Many homeowners are facing foreclosure in today's market because of the current economic climate, rising interest rates and ARM mortgages, and other unfortunate circumstances. With job loss and unemployment at an all time high it is no wonder many people are scrambling to stay in their homes. If you are facing foreclosure there are ways to stay in your home but no matter what option you choose the path is not easy. A foreclosure bail out mortgage can allow you to stay in your home but comes with its own risks just like defaulting.
The terms of a foreclosure bail out mortgage are harsh compared to the terms of a traditional loan. Like a hard money loan or bad credit loan they come with very high interest rates, 12 to 18 percent or more compared to 5 or 6 percent for traditional mortgages for people with good credit. Foreclosure bailout loans are balloon type loans that homeowners can use to pay off the delinquent balance on their mortgage including penalties, late fees, and accrued interest. Along with high interest rates these types of loans often require the purchase of points just to get the rate to a manageable level.
If you are facing foreclosure, a foreclosure bailout loan may allow you to stay in your home but it should not be entered into lightly. There are other options available, such as loan and mortgage modifications or even hard money loans that may carry better terms. If you are considering a foreclosure bailout loan you should be familiar with what you need to have to qualify so you do not waste your time pursuing a loan that you will not be able to get. You have to have sufficient equity in your home to qualify. Most lenders who will fund foreclosure bailouts, hard money loans, or bad credit loans will only give you 65 to 70 percent of your home's value, sometimes even less.
Lenders who fund foreclosure bailout loans do not usually consider a house at its full market value either because they must plan to sell the house below value in a hurry if the borrower defaults. Their estimated value is more likely near 80% of the market value further reducing the amount they will lend. While in many cases a foreclosure bailout loan is better than loosing your home, it is still something to be carefully considered. The terms of these types of loans are harsh and they should only be used as a last resort when getting the bailout is better than allowing the bank to foreclose on the home.
Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes.
Yanni Raz
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Make Money Cleaning Foreclosed Homes
If you want to clean foreclosures for a living, it's an excellent time to start this type of business. According to an article in USA Today entitled, 'Trash-out' firms clean up in foreclosure biz, "Entrepreneur Magazine named it one of the fastest growing businesses on its 2008 "Hot 100 Fastest Growing Businesses" list.
If you're wondering why so many want to jump on the "clean foreclosures for a living" bandwagon, following are three more reasons why.
1. Room for Growth: When you clean foreclosures for a living, you have the opportunity to expand beyond just that. Foreclosure cleaners are multi-purpose business owners. Because they are expected to do everything from yard work to painting to hanging sheetrock, they can expand the business in any number of ways.
For example, after foreclosures are no longer in the news - and this is not going to happen for quite a while according to experts, they can focus on just real estate cleanup, or landscaping, or general contracting.
The point is, while a foreclosure cleaning business may start out as just that, it's a business that can grow and change with the economic times. With so many opportunities for expansion, foreclosure clean out is a great business to start.
2. Self-Employment: To own a business is the American dream. And, statistics prove that self-employed individuals make more money than those who work for others. In fact, one of the quickest ways to become wealthy is to own your own business.
When you decide to clean foreclosures for a living, you're taking the beginning steps to achieving personal wealth. And, there's no shortage of work, if recent statistics are anything to go by.
Why Foreclosure Cleanup Companies are Booming
Consider this: According to Moody's Economy.com, approximately 2.8 million U.S. households will face foreclosure, turn over their homes to their lender or sell the properties for less than their mortgage's value by the end of this year (2009).
Foreclosure cleanup companies can literally rake in the dough, which brings us to the last reason you may want to jump on the "clean foreclosures for a living" bandwagon.
3. It's the Money Baby! Most businesses fail within the first three years. But, work is so plentiful for individuals who want to clean foreclosures, that you can make a success of this business - if you go about it in the right way.
Even simple foreclosure cleanup and trashout jobs pay well. You can make anywhere from several hundred (at a minimum) to several thousand dollars per job. Each job is different, but the work has to get done. And, banks and real estate agencies pay to have it done. They have to because they're not equipped to handle this type of work, so they contract with foreclosure cleanup companies.
If you clean foreclosures for a living, contact local real estate agents to start getting the word out about your services. Soon enough, your phone will start ringing.
If you want to learn more about how to clean foreclosures for a living - and practically be assured of success - log on to Start-a-Foreclosure-Cleanup-Business.
May be reprinted with the following, in full:
Learn how to clean foreclosures for a living and never have to work for anyone else again. Everything you need to know can be found at Start-a-Foreclosure-Cleanup-Business, ie, 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA. View the news video featuring the company here as well.
Article Source: http://EzineArticles.com/?expert=Yuwanda_Black
Should I Let My House Go To Foreclosure
Last week I had lunch with a good friend of mine who is a successful real estate investor and in the last several years he's bought, sold, flipped, rehabbed and rented countless houses. But the times have changed and he now finds himself owning several houses that he does not want.
With the values dropping/correcting he owes more than the houses are worth plus he has negative cash flow. Let's just say with all the houses he owes 500K more than the houses are worth. Financially he's doing very well and has plenty of cash. His credit score is in the 700's.
There is no bailout for him nor should there be. Nobody forced him to do anything. Nobody expected values to drop so fast or hard. It is what it is.
He asked me what he should do and my answer may surprise you. I told him to make a business decision and asked him the following question... Would it be worth 500K to trash your credit?
The answer should be obvious.
The challenge for many is pride and ego. The truth is when the loans were taken out the agreement was if the loan was not paid the lender could foreclose and the borrower will lose the property. As much as I am against losing a home to foreclosure tough decisions must be based on an intelligent decision and not emotion.
The markets have changed. If you are carrying negative equity you should consider making the best business decision available and this may include letting a house go to foreclosure. You could literally owe 200K today and buy back the same house or one like it for 100K as a foreclosure or REO on the same street.
Donald Trump has had companies file for bankruptcy several times and even the Governor of Texas filed for bankruptcy while they were governor.
These are changing times and even though my friend is well off financially he has to decide if it is worth 500K or more to lose several houses to foreclosure and rebuild his credit. The alternative is to keep losing more and more money every month.
What would you do?
Please post a response in the blog below.
About the author:
Gerald Romine is a nationally recognized real estate expert that has been featured across North America sharing the stage with political leaders, film stars, and business leaders. Since 1989, Gerald has been involved with real estate as a real estate agent, broker, rehabber, investor, and builder and has been involved with everything from houses to apartments. For more information about Gerald's products or services visit http://www.kickassrealestate.com.
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