Nobel Finance Sydney – Money Matters Newsfeed

By Cory Boatright

Here is an excerpt from my home study course “Short Sale Fundamentals” in the final phases of completion now.

The Homeowner is in Bankruptcy

First off you don’t ever want to offer legal advice to the homeowner unless under the rare situations where you’re a qualified attorney. Let’s discuss the two typical types of bankruptcies that you may encounter.

Chapter 7 – know as Liquidation

Chapter 13 – known as Reorganization

With either type you are going to have to contact the Trustee of the Bankruptcy to get the property released out of it. 

You will need to get a letter called “Affidavit of Abandonment for Real Estate & Asset”

This letter will allow you to obtain clear title so you can close on the property with your buyer. Bankruptcy puts a hold or “stay” on the foreclosure process or any other debt collections period. This will continue until it is completed or a “release of stay” is issued by the judge for the lender or lender’s trustee to proceed with the foreclosure.   {continued}

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by ForeclosureFish.com
Although we have been familiar with the problem of inflated appraisals for some time, the trend seems to be growing worse by the day. More and more clients who call us have been the victims of over-inflated appraisals. When the illegal appraisal is discovered, it is usually too late by then to hold anyone accountable, especially if the homeowner is now in foreclosure. Saving the home is the top priority – anything else comes after that.

Why do appraisers inflate appraisals? The main reason is money: the appraiser gives the loan officer whatever value is needed for a loan, so the loan officer will use the appraiser again and again, inflating the value of numerous properties. But when the homeowners attempt to refinance, if they use a different mortgage company, the legitimate appraiser will value the property at its actual (not inflated) value. This may cause a significant decrease in value, sometimes to the point where a client owes more on the mortgage than what the property is worth. Obviously, this can cause significant problems. {continued}

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 by Steve Gillman
If you are buying your first home, there are people who will help you get into all types of trouble. Well, mostly it is one type of trouble: financial. Here are some examples.

Watch Out For Real Estate Agents

You might think that real estate agents would love first-time home buyers, since they can influence them and make a sale more easily. In reality, though, many people are very hesitant to make a decision when they buy their first home. It will be the single biggest purchase they have made in their lives, after all, so they want to take their time and see a lot of houses. Meanwhile, the agent just wants a sale.

Don’t be pushed to make a fast decision. It may be true that a particular house is “not going to last long,” or it may just be something an agent says. Either way, their are other homes, and you need time to get a feel for what is available and at what prices. This education is crucial, and comes primarily from looking at a lot of homes.  {continued}

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There is a lot of interest in buying bank owned properties these days. A lot of information, some good and some bad, is floating around about the subject. Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”. The fact is that there are no secrets, and to make money does require effort.

What’s an REO?

REO stands for “Real Estate Owned”. These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you’ll receive the property 100% “as is”. That could include existing liens and even current occupants that need to be evicted. A REO, by contrast, is a much “cleaner” and attractive transaction.   {continued}

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by M Imran

There are two different types of home equity loans: the ones closed at the end, and the line of credit for the equity of the home. The first one is very similar to a mortgage loan: a specific amount of money is loaned, and monthly payments of capital and interest should be made. These kinds of loans are also known as second traditional mortgages. The due date for the payment of the loan is established when the money is loaned, and the interest rate is also usually fixed. On the contrary, a line of credit is like a credit card. These lines of credit will allow the credit based on the amount approved. It is possible to obtain the money when it is needed.

Typically, the borrower has between five and twenty years to use this line of credit. Once the term reaches its end, it is not possible to lend and the capital and interests should be paid. There is a term of ten to twenty years to pay, or there could be amortizable payments. The payments at the due date require making the whole payment of capital in one single transaction. Usually, the interest rate is adjustable and varies depending on the changes of the economy.

Some of the advantages of these kinds of loans are the low interest rates, which tend to be lower than the credit cards or common loans. Also, another benefit is the deductible taxes and the flexibility to decide when to use the money, besides the decision of when to pay the capital. On the other hand, some of the disadvantages are the risk of losing the house for not being able to pay or refinance the loan. The house is the warranty of the loan. Another problem could be generated by the rise of the interest rates as a result of the changes in the economy.

Therefore the payments could rise or lower, and the clients should know with a certainty the maximum interest of their loan because this will indicate how much it could rise after a year, as or for the whole term of the loan. Moreover, the costs could be another disadvantage of the home equity loans, since the borrowers sometimes charge diverse costs like the application or their retirement. It is also important to know in advance all the costs that could incur during the period of the loan.

About the Author

Imran is writer in finance and a part of a mortgage consulting group site in UK. From there you can find all the information about mortgages and loans such as secured loans. A very useful mortgage calculator is also available.

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