Don’t Be Scared off of Homes that Need Fixing
When you purchase a home owned by a bank you need to know that they do not get fixed before the purchase is made. They are sold on an as-is basis. Sometimes they may be in disrepair and need fixing but don’t be scared off. You can gain equity in the home as long as you begin improving it. Some of them include updating the flooring and doing landscaping on the property. Other fixtures in the kitchen and bathroom can improve the home’s value too. These are all minor problems. You should avoid major repair problems such as foundation problems or purchasing a home that needs a new roof.

Score Bank Foreclosures Before Others
An auction is held to try to sell the home before it gets placed on the market as an REO. Each auction varies. Some of them get only a few bidders while some others have many people who fight to get the property. The auction base price is how much the original owner owes on the home in addition to the fees that have been added for attorneys. You should always make sure that the property you are auctioning on doesn’t have liens associated with it. You don’t want to buy a home that has thousands of liens associated with it because you may not get such a great deal.

Always Get a Home Inspection
A home inspection should always be conducted when you buy a home whether it is brand new, a traditional sale, or a bank foreclosure. If you purchase a home that has an issue with something as major as a roof or the foundation you won’t be getting a deal at all. This step allows you to get out of the deal if the results aren’t as desired.

Redemption Period
A redemption period exists in many different states. During this time period the original home owner has the opportunity to get their home back even if an auction has been completed and the home sold already. The stipulations state that the original owner needs to pay off the complete balance on the mortgage before getting it back so it is a very rare occurrence but you need to be aware of all possibilities. Also hold off on repairs until the redemption period has passed.

Use a Foreclosure Agent to Assist You
Most people do not have any experience with foreclosures and the laws that are surrounding them. A foreclosure agent is a very valuable asset because they know the laws and have experience with foreclosures on a frequent basis. You won’t have any losses because they get paid by the seller on a commission basis. This will help you get the home you want and allow you to do it in the easiest way possible.

Before you can begin you should first learn how to get bank foreclosures and find somewhere that allows you to constantly get updates about new ones.

Locating the perfect foreclosure home will require endless hours of searching MLS databases and viewing properties. Unless buying houses with cash, investors must obtain preapproved financing before placing bids on foreclosure properties.

Four primary options exist for buying foreclosed real estate. The most popular is to purchase properties through foreclosure auctions. While investors can buy houses below market value, buying from auctions can lead to frustration.

When houses are sold through auction, investors are responsible for removing creditor and tax liens. These can amount to several thousand dollars and oftentimes cannot be negotiated. Foreclosure homes are sold as-is and most require substantial repair or renovation. Another drawback of foreclosure homes is sometimes evicted homeowners refuse to leave. Investors are responsible for eviction, which can be costly and dramatic.

Less stressful options for buying foreclosure real estate include: buying directly from the seller via a short sale transaction; hiring realtors to locate bank owned foreclosures or short sale properties; working with bank foreclosure specialists.

Those unfamiliar with the process of buying foreclosure homes should work with a realtor or foreclosure specialist. Working with trained specialists can help investors obtain reduced prices and can aide in reducing closing costs.

Real estate agents and bank foreclosure specialists have a wealth of information at their fingertips. They can help real estate investors locate a foreclosure home more quickly than if they were to search properties on their own. Additionally, specialists can help investors locate properties in the areas where they wish to invest in rental homes.

Investors who elect to locate foreclosure homes without assistance should take time to research comparative sales reports and real estate market conditions. It is smart to determine the availability of public and private schools, property values, and anticipated growth of the area.

Should you decide to seek out foreclosure homes without the assistance of others, you will want to thoroughly research the area. Determine the availability of public and private schools, average property values and the anticipated value growth in the area.

Novice real estate investors often make the mistake of being intoxicated by low-priced foreclosure homes. It is important to realize if a property requires extensive repairs the restoration costs can quickly deplete any profit margin. Investing in properties which are priced higher but require fewer repairs might be a better option.

Bank owned foreclosure homes are properties owned by mortgage lenders. When real estate goes unsold at public auction it is returned to the lender. Once banks regain ownership they remove creditor judgments and tax liens and the property is sold with a clean title.

Buying bank owned properties can be a lengthy process, but can yield a profitable investment property. Investors must work with bank loss mitigators to negotiate the sale price and close the deal.

One good source for locating discounted Fannie Mae foreclosure homes is Home Path Mortgage. In addition to selling discounted real estate, Home Path offers special financing offers for home buyers and investors. Qualified applicants might be eligible for Neighborhood Stabilization Program grants offered through the Department of Housing and Urban Development.

Many options exist for locating quality real estate at discounted prices. Investors who take time to conduct research or network with other investors can find money-saving strategies to improve their return on investment.

1. Children laugh at your Home For Sale sign as they ride by on their bicycles.

2. The bank keeps pleading with you not to give them your house.

3. Real estate agents hang up when you ask them to list your house.

4. Government bailout plans to prevent foreclosures specifically exempt your house from any help.

5. Joe the Plumber won’t work on the plumbing.

6. Sarah Palin can’t think of any mavericky ways to help you.

7. The neighbor’s auction didn’t produce any bidders.

8. You didn’t get a single bid on ebay.

9. Your house is always used as an example of the housing slump by your local news.

10. They refused to do a house makeover of your home on TV.

Today, it is estimated that one in ten homeowners is either in foreclosure or behind in their payments. As the economic crisis becomes more severe and the recession feeds upon itself, people have become more and more desperate to find some way to hold onto their houses. With such conditions, the average member of the public is ripe for a scam and the and those who try to dupe you or use trickery know this. It is no surprise, therefore that the number of foreclosure and loan modification scams are on the rise.

Those who are most likely to be targeted by persons attempting to perpetrate a fraud are the elderly, anyone entering foreclosure, people who have recently lost their jobs, families who have lost a loved one, people who have limited knowledge of English, people with limited resources, and homeowners whose payment amounts have recently been raised.

The moment you enter foreclosure, you can expect to be inundated with offers of help from many individuals with generic type sounding names, and some claiming even to have references from churches or other social organizations near you. These are, in most cases, some of the people you should stay away from at all cost.

The person who will approach you in this type of scam is more often than not, well-dressed, well groomed, and seems personable, kind, and trustworthy. Some utilize social skills to put you at ease such as their representation to be of the same religion as you, or even the same church, to have been in the military if they think that will put you at ease or feel more trusting of them, and others will claim to be working for non-profit organizations, or branches of the government.

If you need help selling or finding a home or land in Southern California, in Riverside County, San Bernardino County, Orange County or San Diego County or anywhere in the Inland Empire or Coachella Valley including Palm Springs, Palm Desert, Indio, La Quinta, Indian Wells or Rancho Mirage, call us at any of the numbers you find on our website at http://www.SebastianGibsonProperties.com

In the interim, these are some of the most common scams you should be aware of and here’s what you can do to avoid being a victim of such real estate scams, ripoffs and frauds.

1) The Disappearing Foreclosure Consultant – With a helpful sounding name, and armed with references and a kind voice, the person who contacts you promises to help you stave off foreclosure with just an up-front fee for their time. The only problem is, as soon as the money clears their bank, you never see or hear from them again. The soon-to-be phantom performs little or no service, takes your money and you are left with your original problems and less time to try to save your home from foreclosure.

2) Loan Modification Helpers – Unlike Santa’s Helpers, in this scam you pay a fee up front to the “loan modification expert” to negotiate directly with your bank, only here you don’t get a present from Santa. If the expert really gains your trust, you also make your mortgage payments directly to the expert rather than to the mortgage company. Both the up front fee and the mortgage payments go directly into the pocket of the loan modification helper with the white beard and the kind voice and by the time you receive notice that your house is in foreclosure, this elf has disappeared and is back at the North Pole.

3) Just Sign Here Scams – As you face the prospect of foreclosure, one offer of help seems far better than all the others because it allows you to stay in your home as they save it from foreclosure. Unfortunately, in the papers you sign without having a lawyer look at them, you agree, knowingly or unknowingly, to sign over the house to the person offering this help and still remain responsible for the mortgage payments. The person then either sells your house, collects other fees from you or holds onto the house and evicts you.

4) Sale and Leaseback Scams – In this scam, if you are a homeowner who still has some equity in your home, you will be convinced to sign over title in your home and pay rent to the scam artist with the promise that they can bail you out, cure your problems and that you will be allowed to buy back the house later at a bargain price. All of this can be accomplished, but only if the property is in the consultant’s name. The payments you make go directly to the scam artist and eventually you will find yourself holding the bag. You may also find yourself evicted when you can no longer make the excessive rent payments. If you have lost your job and are having trouble making your house payments, even if you have equity in your home, you may be tempted by this scam. And while you would be entitled to the excess equity in your home if the house is sold in foreclosure, when you fall victim to this scam, you will lose the equity when it is either sold out from under you or the equity is stripped away by the new owner.

5) The Trust Me, I’m Religious or I Was In The Military Too Scam – These people posing as Christians, former members of the military or members of whatever social organizations you belong to come complete with references from members of your church or with military haircuts and promise that by adding them to the title to your home, they can rescue you from foreclosure, and have your credit repaired. Having gone through your mail or your trash, they probably know all about you. There’s no need to see a lawyer, they tell you. Just pray with them or have a drink with them and swap military stories. Just be sure to hold on to your wallet, don’t give them any money and don’t sign anything.

6) Sign Me Up Scotty And Get A New Loan Scam – In this scam, you are told that if you add the nice looking good Samaritan onto your title by signing a Grant Deed or other legal instrument, (which you are told, you don’t really need to read) this friendly person can apply for a new loan, which, unfortunately, if approved, will leave you on the hook for both the old loan payments and the new loan payments, and any up front fees you pay for this service will disappear with this fraud.

7) Buy My Books, Take This Seminar And Make Millions Scam – You may see this offer on late night television, on roadside signs or even on billboards. Only this time, you are talked into buying materials that are full of worthless information that will do nothing to help you avoid foreclosure. Even worse, the materials you receive may offer advice that will land you in jail by telling you how to approach others in foreclosure and advise you to tell them you can save them from foreclosure. The trouble is, what you will be doing is either practicing law without a license or acting as a credit repair agency or loan modification expert without a real estate license and without an advance fee agreement approved by the Commissioner of the California Department of Real Estate and without being registered with the California Department of Justice.

The Short Sale Scam – In this scam, the “short sale specialist” who contacts you promises his expertise to accomplish a short sale in a small amount of time that will protect your credit. There is a fee of course that would have been better spent on groceries. When the real estate market was better, there were additional wrinkles to this scam that today are more difficult to perpetrate due to the difficulty of selling homes in this economy.

9) It’s Like Magic – Here the homeowner is told to sign one thing, but the homeowner winds up signing something altogether. In some instances of this bait and switch scam, the scam artist will serve as the notary as well. In conjunction with this and other scams, or in other variations, forgery may be utilized, and identity theft employed as well.

10) Want Somewhere Cheap To Rent Scam – Here the bogus homeowner or leasing agent takes your rent payment and security deposit and rents or leases you vacant residential or commercial property, that isn’t owned by the person you are talking with and if you are talking with a leasing agent, this “agent” has no authority to offer you the property for rent or lease.

Here are the five tips of advice we recommend to anyone in this situation being approached by people offering help.

1. Avoid any solicitations of help that come unexpectedly, by mail, e-mail and by phone or to your door.

2. Avoid using any help agency whose name you find on roadside signs such as those which state “We Buy Homes For Cash” and those which promise to “Stop Foreclosure.”

3. Avoid paying up-front fees to foreclosure or loan modification experts.

4. Disregard anyone who tells you not to talk to your bank or tells you to avoid consulting with a lawyer.

5. Don’t sign anything without having it reviewed by a real estate lawyer.

Red flags to you that you are about to be scammed should include requests of you for any of the following: to pay money up-front before any service has been performed, payment by cash, cashier’s checks or bank wires only, transfers of title, actions to be taken immediately, power of attorney, signatures on grant deeds, signatures without any explanation or while under time constraints, signatures on incomplete documents, and mortgage payments to persons other than the mortgage company.

Other red flags include unqualified promises, offers that sound too good to be true, failures to provide you with copies of what you sign, oral promises that are in conflict with written provisions, refusals to put the oral promises in writing, oral statements that the provisions in writing don’t mean what they say or won’t be enforced, and warnings not to discuss the matter with an attorney, your lender or anyone else.

In the Inland Empire and Riverside County, you can count on Sebastian Gibson for all your real estate needs from Palm Springs to Palm Desert, from Indio to La Quinta, in Indian Wells and Rancho Mirage, from Cathedral City to Coachella, in Yucca Valley and Twentynine Palms. To learn more about

To learn how we can help you in finding, listing or selling your home, land, or horse property in Southern California, the Inland Empire, Riverside County, San Bernardino County, Orange County or anywhere in the Coachella Valley, call Sebastian Gibson Properties at any of the numbers on our website at http://www.SebastianGibsonProperties.com

However, here in north Texas the housing market still appears to be strong and the sale of existing homes did not decline in May. In spite of this, you never know when our market may take a turn for the worse and begin to reflect what is happening in the rest of our nation.

My research of today’s local real estate market indicates that buyers are far more discriminating these days, and a large percentage of the homes currently listed for sale do not sell the first time.

It’s now more critical than ever to learn what you need to know to avoid potentially costly mistakes in order to sell your home fast and for the most amount of money.

1. Know why you’re selling, and keep it to yourself.

The reasons behind your decision to sell affect everything from setting a price to deciding how much time and money to invest in getting your home ready for sale. What’s more important to you: the money you walk away with, or the length of time your property is on the market? Different goals will dictate different strategies.

However, don’t reveal your motivation to anyone else or they may use it against you at the negotiating table. When asked, simply say that your housing needs have changed.

Remember, the reason you are selling is only for you to know.

2. Find a good real estate agent to represent your needs.

All real estate agents are not the same! A professional real estate agent knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate candidates carefully on the basis of their experience, qualifications, enthusiasm, and personality.

Be sure you choose someone that has a proven track record of selling homes and that you trust and feel confident that they will do a good job on your behalf.

Nearly three-quarters of homeowners claim that they wouldn’t use the same real estate agent who sold their last home. Most relationships with an agent break down because of poor communication. While it is the professional’s responsibility to manage your expectations and regularly communicate with you, you can help by telling them what you expect and regularly talking with your real estate agent.

Be sure to communicate with your real estate agent upfront and let them know what you expect.

3. Do your homework before setting a price.

(In fact, your real estate agent should do this for you). Find out what homes in your neighborhood have sold for in the past 6-12 months, and research what current homes are listed for sale and for much. This is how prospective buyers will assess the worth of your home.

Settling on an offering price shouldn’t be done lightly. Once you’ve set your price, you’ve told buyers the absolute maximum they have to pay for your home, but pricing too high is as dangerous as pricing too low. Remember that the average buyer is looking at 15-20 homes at the same time they are considering yours.

This means that the buyer has a basis of comparison, and if your home doesn’t compare favorably with others in the price range you’ve set, prospective buyers or real estate agents won’t take you seriously.

As a result, your home will sit on the market for a long period of time and, knowing that your house has been on the market for an extended period, new buyers in the market will think there must be something wrong with your home.

4. Maximize your home’s sales potential to get top dollar.

Each year, corporate America spends billions on product and packaging design. Appearance is critical, and it would be foolish to ignore this when selling your home.

You may not be able to change your home’s location or floor plan, but you can do a lot to improve its appearance. The look and feel of your home generates a greater emotional response than any other factor.

Clean like you’ve never cleaned before. Pick up, straighten, unclutter, scrub, scour and dust. Fix everything, no matter how insignificant it may appear.

Often the single best investment you can make when selling your house is a fresh coat of paint, buyers will notice the smell of fresh paint and it gives them the sense that your home has been well taken care of even if you just painted it for the first time in years.

Overall, you want your home to get a “wow” response from prospective buyers.

Allow the buyers to imagine themselves living in your home. The decision to buy a home is based on emotion, not logic. Prospective buy­ers want to try on your home just like they would a nice new set of clothes.

If you follow the buyers around pointing out improvements, or if your decorations are so different that it’s difficult for a buyer to wipe it from his or her mind, you make it very difficult for the buyers to feel comfortable enough to imagine themselves as the new owner.

5. Make it easy for prospects to get information on your home.

You may be surprised to know that some mar­keting tools that most agents use to sell homes (ex. traditional open houses) are actually not very effective. In fact less than 1% of homes are sold at an open house.

Furthermore, the prospects wanting more infor­mation on your home probably value their time as much as you do. The last thing they want to be subjected to is either a game of telephone tag with your real estate agent, or an unwanted sales pitch.

Make sure the ads your agent places for your home are attached to a 24 hour prerecorded hotline with a specific ID# for your home which gives buyers access to detailed information about your property day or night 7 days a week without having to talk to anyone. It’s been proven that 3 times as many buyers call for information on your home under this system. And remember, the more buyers you have competing for your home the better, because it sets up an auction-like atmosphere that puts you control.

6. Know your buyer.

In the negotiation process, your objective is to control the pace and set the duration of the process. What is your buyer’s motivation? Does he or she need to move quickly? Do they have enough money to pay you your asking price? Knowing this information gives you the upper hand in the negotiation because you know how far you can push to get what you want.

The better you know your buyers, the better you can use the negotiation process to your advantage.

7. Make sure the contract is complete.

For your part as a seller, make sure you disclose everything. Smart sellers proactively go above and beyond the laws to disclose all known defects to their buyers in writing. If the buyer knows about a problem, they can’t come back with a lawsuit later on.

Make sure all terms, costs and responsibilities are spelled out in the contract of sale, and resist the temptation to diverge from the contract. For example, if the buyer requests a move-in prior to closing, just say no. Now is not the time to take any chances of the deal falling through and not closing as scheduled.

8. Don’t move out before you sell.

Studies have shown that it is more difficult to sell a home that is vacant because it looks abandoned, forgotten, and simply not appealing. It could even cost you thousands. If you move, you’re also telling buyers that you have a new home and are probably highly motivated to sell fast. This, of course, will give the buyer the advantage at the negotiating table.

9. Have a friend who is not afraid come over and “tell you like it is”.

A good friend will be able to point out all of things they see that need fixing, painting, updating, etc… A “fresh look” from someone else will catch more things than you can see for yourself. Don’t be shy about seeking the honest opinions of others. You need to be objective about your home’s good points as well as bad.

First impressions are critical. Make sure your home makes a positive statement by carefully inspecting all the little details and viewing it through the eyes of a buyer. Don’t gloss over needed repairs and fix-ups, because the buyer will not. Your job is to make sure that your home stands out better than the competition.

10. Remain objective during a showing of your home.
Keep emotion out of the sale of your home, and the best way to do this during a showing is to not be there.

You want the prospective buyer to feel as comfortable as possible when they are viewing your house and when your are there the buyer often feels uneasy about being in someone else’s home. So go for a walk, go to the store, just do anything but be at the house.

Make sure when you leave the house to turn the lights on even during the day, have the temperature set where it is comfortable for the buyer, be certain there are no unpleasant odors, the house is clean, and leave some light background music playing. These items will help set you apart from your competition and make it more likely your home will sell fast and for top dollar.

Overview of a Real Estate Investment Business

A very basic type of real estate investment is buying a home and then renting it out in hopes of keeping up with mortgage payments and coming out with a nice profit at the end of each month. This often entails making some repairs to the home you want to rent, as well as giving the home some perks that will raise its value from its original cost.

This is a lucrative business, and people make a nice living from their real estate investments. It takes work, a good understanding of the real estate business and determination. Now take a look at the pros and cons here.

Pros of Real Estate Investments

One way people obtain real estate is through foreclosures. Often these homes are auctioned off for less than they are worth, which is the prime scenario. In this case you may have to fix up the home a bit, and then have the option of renting or selling it. This is an easy way to get started in the real estate investment business.

Another way to obtain real estate is through buying a fixer-upper and making needed repairs. This type of investment makes sense, as you get to see the house before you make a bid to buy it, so you know what types of repairs it needs ahead of time. The key here is to make a bid early and try to get the lowest price for the home. This works especially well with sellers who want to make a quick deal.

Cons of Real Estate Investments

A foreclosure sale is almost always a “buy as is” type of sale, and you have no recourse, if you want to back out of the sale. In the case of a foreclosure, you could find yourself having just purchased a home that has way more damage than you expected, leaving you to have to make major repairs before the house can be put on the market. These repairs can add up quickly and soon you find that you have put out more money than you can recover.

The same goes for buying a fixer-upper home on the market. If you do not pay close attention to the condition of the house you are interested in purchasing, you might be paying for costly repairs that you did not count on. The ideal situation is to buy a home that is in need of little or no repairs, so you can concentrate on additions and other cosmetic changes that will raise its value. You don’t want to sink your money in major repairs caused by a careless previous owner.

It all boils down to the fact that a careful buyer must take the time to research homes, including their locations, up for sale before making any purchases. Real estate investment should be profitable to you. You should learn the ins and outs of buying homes that will make you money rather than cause you headaches. Be informed, and you should do well.