Purchasing property via a Trustee sale has some benefits that outweigh some of the risks. Knowing the basic process is the first step in a successful winning bid and a home with instant equity.

You are buying liens not properties when you purchasing through a Trustee Sale. If research is not done properly you could be buying additional liens in addition to the first lien and would have the obligations of paying all liens in full.

Researching a chain of title to determine your lien position, as well as any liens that are not extinguished at the trustee sale, such as property tax and IRS liens are crucial. Once you’ve established your position and are comfortable with the existing liens that are valid, you can move forward to the next step.

We’ve all heard the term “As-Is”. You can rest assured when buying a home through a Trustee Sale, the property will be sold “As-Is”. That means there will be no inspections, home or termite, and no buyer or seller warranties. There will also be no title insurance.

Once you win a Trustee Sale bid, there are financial requirements. First you must place an earnest deposit in the amount of $10,000 with a cashier’s check to the trustee. You also must have the remaining funds to pay the note in full within 24 hours after you win the bid. Failure to close the transaction the following day you will automatically lose your earnest deposit and possibly face additional legal ramifications.

How do you obtain the entire amount of the property in such a short period of time? The answer is usually a hard money lender. They may charge exorbitant interest rates on the loan but you will only need it temporarily. After 30 days or so you’ll be able to refinance the note. When you refinance you will be required to place additional funds in escrow which will act as an earnest deposit. You will need approval from the hard money lender prior to attending the Trustee Sale.

Okay, now you’ve won the bid and you have a “fixer-upper”. If you’ve done your homework, most repairs will be minimal and you have a good idea of the costs to make the repairs. Common repairs are paint, carpet, and drywall. If the property requires more costly repairs you will have known this from the start. These costs were budgeted and considered before you bid on the home. Since you’re purchasing the home under market value there should still be equity in the property.

A buyer at a Trustee sale will never pay more than 70 percent of market value. A conventional mortgage will only loan 80 percent of the value in a refinance.

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Arizona’s anti-deficiency statue prohibits a lender from recovering against borrowers assets, such as automobiles and bank accounts, after the lender forecloses on the borrower’s residence. However, the type of loan and type of residence are key factors in determining whether this statute applies.

The requirements under the new law are as follows: single family homes or duplexes on 2.5 acres or less; must be utilized for dwelling purposes (occupied or partially occupied); and construction has to be completed on the property (not under construction). If the requirements do not meet the above standards then the property does not qualify under the anti-deficiency statue.

If the property is completed and is held as an investment and only used occasionally, this would qualify under the anti deficiency statue and the homeowner would not be liable for any deficiency arising out of a trustee sale. Once the trustee sale is complete, the deed of trust does not allow the bank to look for other assets to satisfy the remaining debt.

Investors beware. If the investor does not occupy the residence for a minimum of six months and there is a second lien on the property, such as a home equity line of credit, the investor could be liable for any unpaid debt or deficiency arising out of the trustee sale. This means that after the Deed of Trust is recorded after the trustee sale is completed, the bank could file a judgment or lawsuit against the investor for any remaining debt.

A “non-recourse” loan means the lender cannot pursue a deficiency against the borrower or homeowner. The only recourse the lender has is to repossess the property.

Purchase Money loans are usually “non-recourse” loans. Purchase Money loans are your primary or first position liens or loans that were originated at the time the home first closed escrow and was secured by a Deed of Trust.

Some types of “recourse” liens or loans might be a Home Equity line of credit. Possibly a second position loan when the borrower received a loan for a pool. Usually second position loans use your home as collateral and were applied for by the borrower after they first purchased the home. They closed escrow originally and then at a later date borrowed money for home improvements, vacations, etc. The bank or lender then has “recourse” to pursue the homeowner for the unpaid lien through a judgment or lawsuit.

When interviewing an agent to sell your home it is really important that they are knowledgeable about this new law and disclose or relay this information to the seller. Many sellers will walk away from the homes and find out they will be liable for some of this remaining debt.

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When the government enacted some new rules about who is entitled to hire an appraiser to complete a market analysis on a property, there were many ramifications that were not initially considered. Now Fannie Mae and Freddie Mac have some mandatory guidelines, which again will have some positive and negative impact on the real estate housing market.

Appraisers have been appraising properties of late without reviewing the purchase contract. This is now a new requirement for the appraisal companies. Any contracts and/or addendums associated with an offer on a home MUST be handed over to the appraisal company prior to completion of the appraiser. Any changes to these contract and/or addendums must also be provided to the appraiser prior to the final results of the comparative market analysis. Do you think this might put another delay on the timeline to close a transaction?

Appraisals that only value a portion of a parcel are forbidden. The comparative market analysis by the appraiser has to include the entire parcel of the subject property or parcel of land. The key word here is “entire”.

REO and foreclosed properties MUST be included as comparable properties. Previous guidelines allowed the appraiser to exclude these numbers.

When information about values within a neighborhood is provided by someone who has a financial interest in the transaction, the appraiser must verify this information with a third party who is “arms-length” from the transaction. One would think this would be common sense.

Any structural defects or abnormal repairs found with a property must be corrected before an appraisal company finalizes the market value of a home or parcel. FHA created the 203K loan to address these concerns.

Supervisory authorities can no longer sign off on completed appraisals without reviewing the subject property themselves. The supervising appraiser has to personally review the property before agreeing to sign off on an appraisal completed by one of their employees.

The revised Home Valuation Code of Conduct applies many changes within the industry and was meant to stop improper influencing of values as well as protect the consumer. These changes although somewhat positive will most likely add additional delays to the transaction.

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Arizona’s anti-deficiency statue goes into effect September 30, 2009. The Federal Law prohibits lenders from recovering assets against borrowers, such as autos and bank accounts, after the lender forecloses on the borrower’s property. There are key requirements that apply, to fall under this new statue.

The law which takes effect September 30, 2009 prevents a bank from going after the borrowers assets, such as cars and bank accounts once the home is foreclosed upon. The statue addresses two major factors, the type of owner-occupancy and the type of loan. Based on these two type will determine if the law applies.

Investment properties have to be occupied by the person on title for a minimum of 6 months to qualify under the anti-deficiency statue. In other words the investor would not be liable for any deficiency arising out of the foreclosure or trustee sale. The banks or lien holders could not look for additional assets to satisfy the remaining debt after the trustee sale is complete.

Investors beware. If the investor does not occupy the residence for a minimum of six months and there is a second lien on the property, such as a home equity line of credit, the investor could be liable for any unpaid debt or deficiency arising out of the trustee sale. This means that after the Deed of Trust is recorded after the trustee sale is completed, the bank could file a judgment or lawsuit against the investor for any remaining debt.

A “non-recourse” loan means the lender cannot pursue a deficiency against the borrower or homeowner. The only recourse the lender has is to repossess the property.

A bank only has the option of repossessing the property if the guidelines don’t meet the Arizona anti-deficiency law. Under this circumstance, it would be a “non-recourse” loan. The bank only has one option, and that is foreclosing on the home and cannot go after any assets of the homeowner.

Some types of “recourse” liens or loans might be a Home Equity line of credit. Possibly a second position loan when the borrower received a loan for a pool. Usually second position loans use your home as collateral and were applied for by the borrower after they first purchased the home. They closed escrow originally and then at a later date borrowed money for home improvements, vacations, etc. The bank or lender then has “recourse” to pursue the homeowner for the unpaid lien through a judgment or lawsuit.

A good analogy of a “recourse” loan would be a line of credit from the bank. The bank loaned the homeowner money and used their home as collateral. This loan was acquired AFTER a Deed of Trust was initially established. Therefore the bank could pursue a judgment or lawsuit against the homeowner. One of the main reasons this law was re-addressed after being in effect since 1990, was the 2nd mortgages that were being borrowed by the homeowners and the today’s market value on a home is substantially less than what is owned of the 1st mortgage, meaning the 2nd is not getting a dime in return.

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A key component when purchasing a property at a Trustee Sale (or any sale for that matter) is to research the chain of title. You can typically purchase a ‘”limited title report” for $80.00 to $110.00.

The purpose of this title report is to ensure several things. One, we want to confirm that the foreclosing lender is in first position and secondly are there any property tax, mechanic or IRS liens attached to the property.

Keep in mind we’re buying a “lien” vs a “property”. Not doing the proper research could cause us to buy all “liens” without our knowledge and drastically increase our liabilities and responsibilities.

IRS liens are very rare but they do happen. The IRS has redemption rights meaning they can seize the property within 120 days of being notified of the Trustee Sale. Notified is the key word here as the redemption period doesn’t start until the notification to the IRS.

Verifying liens can be somewhat tricky, especially mechanics liens. Once you verify the lien you will then have to locate the contractor and try to reach a settlement prior to bidding on the property. You also might consider the services of an attorney at this point. If this doesn’t work or you feel uncomfortable, passing on the property might be your best option.

Arizona State property tax liens are almost always present on a property that is going to foreclosure. Although these liens do need to be paid by the winning bidder at the Trustee Sale, in Arizona, property taxes are relatively inexpensive so this lien typically doesn’t hurt the investor’s profit margin.

Trustee Sales in Arizona can help investors and homeowners gets great prices on homes in the Phoenix area but you need to do a little homework regarding the value of the property and the liens being purchased and acquired by the successful bidder.

By doing your research correctly and timely can reap amazing benefits to the investor. Arizona currently has some of the best bargains in the country for the savvy investor

Technorati Tags: blog, finance, foreclosure, homes, Leasing, loans, mortgage, Real Estate

Richmond Home Shopper » Recovery Signs in Housing Market Stir Some …
Mr. Shah was not dissuaded when the salesman at K. Hovnanian Homes told him the five-bedroom place had been empty since it was finished three years ago. “It was waiting for me,” said Mr. Shah, 64. “I’m on a lakefront. … Las Vegas was the worst-performing city in the May Case-Shiller index, falling 2.6 percent. Prices have fallen there by a third in the last year. “The mom and pop that work at the Hilton can now afford a home here again,” said Justin Pechonis, …  read more…

Lake Worth Homes for Sale
A 4 bedroom, 3 ½ bath 1+ acre lake front estate home with 3945 living sq feet, built in 2005 was sold in January 2008 for $905000. Originally listed for $1199000, the price had been lowered to $1099000. The house was on the market for 261 days. …. 13′x8′ terrace overlooks marina, ICW and courtyard fountain. Just minutes to fabulous beaches, trendy downtown Delray Beach, City Place in West Palm Beach and PBI International Airport. $275000, reduced from $295500, …  read more…

MANALAPAN HOMES FOR SALE: STIMULUS PACKAGE'S FIRST TIME HOME …
Email Blog Manager at marilynfjacobs@gmail.com with items about events and happenings in your city that you would like to see on the blog. Also learn here about insurances and annuities you may want or need. ….. Single Family Homes are priced from $400000 to $15000000. Oceanfront and Lakefront Property Available. The Palm Beach Post said Manalapan is “poised to steal Palm Beach’s thunder.” With real estate on the oceanfront as well as houses in Point Manalapan and …  read more…

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Lake Travis Houses
Cooling lakes surrounded by rolling hills and spotted with tree-filled parks, that’s Lakeway Texas for you!

Located just 20 minutes west of the dynamic city of Austin Texas, this small city is home…  read more…

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Robbinsdale approves plans for Lakeland Avenue subdivision (Crystal – Robbinsdale Sun-Post)
The Robbinsdale City Council voted Monday, Aug. 3, to approve the preliminary plat for a new subdivision on the 3900 block of Lakeland Avenue North.  read more…

Eastern suburbs removing tree limbs after storm; power restored to almost all customers (The Cleveland Plain Dealer)
Marvin Fong/The Plain DealerA bicyclist moves under a downed tree Tuesday on Braemar Road in Shaker Heights. Monday’s storm left the city with downed trees and power outages. SHAKER HEIGHTS — Libby Huang used to live in Taiwan, where a…  read more…

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ADULT EDUCATION n Beginner’s genealogy workshop by Larry Clark from 6:15 to 8:45 p.m. Monday at the South Haven Branch of the Porter County Public Library, 403 W. County Road 700N, Valparaiso. Registration required, free program. Call 759-4474. AN EVENING OUT n The Steppers are hosting a musical tribute to Michael Jackson, Steppin in White All Night, at 8 p.m. Saturday at the Genesis …  read more…

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Resolved Question: Which city would you like to host the 2016 olympics?
Chicago. A beautiful, compact games on the lakefront(that can be mistaken for an ocean) with the beautiful skyline as the backdrop. The village is situated so that 90 percent of athletes are 15 mins away from their competition venues.. and 10 mins away from bustling downtown.. with beautiful parks, dining, museums and culture. A good use of existing facilities, while also creating new stadiums that will be downgraded after the games to be used for chicagoans..unlike the “white elephant”stadiums that go unused. Chicagoans are known for their love of sports. It has the two most influential people in OBama and Oprah, supporting the game. Chicago has crime, but is Rarely seen in the downtown area and is not as bad as rio. Chicago has more convention space than any other city except for Las Vegas. More than double the amount of hotel space required by the IOC and at a lesser price than the other candiate cities.It has made a 2.5 billion dollar guarentee for the games, it needs to be noted that NO american city has ever lost money for an olympic games. Chicago is home to dining, sports, culture, music, and pride. I think it will make a fantastic city to host. I think many chicagoans fear that they will be footed with the bill, but the games give chicago a chance to make a big step on the world stage. As chicago city planner Daniel Burnham famously said “Make no little plans, they have no magic to stir mens blood,.. Make big plans..aim high in hope and work”

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Resolved Question: Progressive Field in Cleveland home of bugs and sea gulls and bad players?
Can someone explain why a city would build a stadium on the lakefront?,just watched a 4 gm series with the yankees and the bugs and lake birds was crazy.Why?

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Resolved Question: What are the nicest parts of New Orleans now?
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ApartmentFinder at http://www.apartmentfinder.com/Default.aspx is basically a website that is a national publisher of online and local printed magazines meant for the market of real estate. If you wish to purchase a home, you can look in their available options. You simply need to register yourself mentioning the zip code of the locality where you want to look for properties. You can obtain numerous quotes from insured and licensed professionals. They provide renter’s insurance so that you feel absolutely safe in your new home. You can set up your own services for communication. At ApartmentFinder, you can also procure a free report of credit that will provide you with an instant credit score.

Real Estate ABC at http://www.realestateabc.com/ is a haven of consumer resources, hints and tips for mortgage borrowers, home sellers and home purchasers. It provides numerous services and articles to assist consumers in the procedure of purchasing or selling homes. Realestateabc.com offers mortgage calculators and rates, professional and accurate valuation of your home, helpful tips, realtor search, and search for homes that are available on sale. They understand the significance of purchasing a home from the investor’s viewpoint and provide them with all the necessary information and assessment. Real Estate ABC provides the opportunity of purchasing homes that best meets one’s individual and family requirements.

Real estate market evaluation, home values, property rates and neighborhood information for customers is provided by Eppraisal at http://www.eppraisal.com/. You can connect with their local professionals of real estate who are obtainable as appraisers, agents, home inspectors and mortgage brokers to buy, sell or rent a house. Eppraisal has up to date information on demographics, schools, cities, rankings of the real estate market and also provides home value widgets. Eppraisal has quick links on local information, home values and names of professionals on real estate who can guide you in striking property deals. Customers can get good service and remain assured of making the best investments of properties by browsing Eppraisal.

Retrove at http://www.retrove.com/ possesses a simple yet influential search interface of real estate to aid you in locating the best listing sources and information on communities almost instantly. Having a vertical search engine of real estate which indexes a finite number of listing resources, it thus focuses on human review and technology that yields the most complete, accurate and genuine results for consumers. Retrove boasts of an index of real estate that contains 12,163,321 sources of real estate. You can gain access to almost every listing in your locality. You can thus make the best financial decisions for such a significant investment. The site provides for unbiased resource listings and generates the most accurate results.

ChoiceA at http://www.choicea.com has one of the best interfaces in recent times. Its process for property searching is quite uncomplicated and one can see the results on a map, via a gallery or may be in the form of a list. The properties of listing on this particular site are quite to the point and clear. One can also obtain many useful tips, guidance and hints in the procedure. ChoiceA provide a few legal documents that are based on the states and thus enables the smooth selling of homes. The site is well known as a good FSBO site and does not charge any extra cost. The data on this site contains lesser jargons than most other sites.

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Real estate Blog Marketing has become a catchphrase. Fashioning and running a blog for Real Estate business is a crucial tool, basically for your Internet exchanges gamut. With a unique blog writing and posting you can share your valuable real estate property among the peoples all around the globe. Not only this you can achieve huge Search Engine ranking with blog marketing but you can too get a desired amount of web traffic for your real estate website.

You can get the opportunity to exchange information, opinion and idea with different global visitors those are keenly interested to sell and buy property. Giving you a medium to stay ahead of your competitors will hype your business. Real estate blog marketing catchphrase guarantees faith and approval for your real estate business.

On a daily basis, your blog will come up with deals, cash and enormous web traffic. As you know that the most important demand in human’s life is a home, a sweet home. And blog marketing is the right device to make your dream of a home come true. Everyday you need to check your blog, as it may get flooded with comments making lively contributor in this online game. The old fashioned way of promoting business on local newspaper and other print media is being eliminated due to the up come of online marketing.

Real Estate Blog Marketing is the prefect way to ignite communication between the buyer and the property seller and vice-versa. But there are some simple ways to know, before getting into this online game of blog marketing for real estate. Remember to mention your visitors to put comment and start discussion. Commenting must be easy and spamming must be avoided because it may hamper the health of your blog.

Creating comments feedback is not just total. Rather you need to make motivation for contribution. Prize promotion can be a nice idea to promote your real estate business and you can make it through email, social marketing and other print resources. Personalize your blog with peoples and make them ease to interact by users outlines. Let visitors join the discussion board by making a platform by customizing on your blog.

People will see their profile accredited on your blog and pointing towards their comments. There you can tie your award promotions. Real estate plus with the effective tool of blog marketing can give you the maximum amount of result. This process will not only help your property to sell or buy but this will assist customers to know it well.

Real estate plus blog marketing can give you the maximum amount of result. This process will not only help your property to sell or buy but this will assist customers to know it well. Real Estate Blog Marketing draws attention to the most reasonable and cost effective technique of advertising and marketing your business.

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Capitol Hill Lawmakers has recently passed a bill to assist families with avoiding Houston foreclosures. The bill will allow homeowners to refinance their current loans and re-mortgage the loans to other loans that are backed by the government. Some of the homeowners in Houston are currently taking the steps to prevent their property from becoming another of Houstons long list of foreclosed property.

It is a sensible step for homeowners, since the economy is uncertain. With the economy, the way it is and the interest rates, fallen people are looking every day for Houston foreclosures. Some people however are renting some of their living space to others to save their home. Despite of the efforts the economy is suffering and the debt market rates are increasing, which is making it difficult for homeowners to repay their mortgage.

Our economy is suffering dramatically because of the greed that is surfacing. Bills are increasing, which is making it difficult for people to stay erect. Thus, people in Houston have to rent some of their living space just to make ends meet.

Nationally, people are renting some of their living quarters as well just to make ends meet and to avoid going on the foreclosure list. Some homeowners however do not have the option to rent space. Some of the newer areas will not allow homeowners to rent to others, since the deed they had signed prohibited this option. What do these people do to avoid foreclosure?

Many of them lose their homes because their options are limited, which is why we see a long list of foreclosed property in Houston. Houston is located at the southeastern parts of Texas and it is the seat of Harris County. It is located at the head of the Houston Ship Channel, which links the city to the Gulf of Mexico. The inland seaports are where the chief financial, manufacturing centers and distribution is seated for the United States. Texas was one of the largest cities in Texas and the fourth largest in the United States. People believe that everything is big in Texas so they migrate there to enjoy the new style of living. With cowboys and girls, they join. If you are looking Houston foreclosures now is the time to get started. Buying homes for 20 to 40 percent at discounted prices is no big thing in Houston Texas.

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One of the best ways to get started with building your own personal wealth-building system is by investing in real estate. Becoming a real estate investor is a daunting task, but one that will, if operated efficiently, pay dividends forever.

Where to start? Well lets look at a few basic tactics for a new investor.

Everywhere you turn these days someone is a member of a Real Estate group. Find where they meet and be willing to ask the most basic of questions.

RE investors, are for the most part, a great group of people, from all walks of life? The one thing we all share is our passion for what we do. We discuss tactics and ideas about what to invest in as well as where. We share tips on things that have worked…and warnings about things that dont.

Now dont buy anything just yet. You need to map out your “battle plan”. What type of real estate are you interested in? What are you willing to do with it? And what is your exit strategy with it?

In the beginning it is important to decide what types of properties to focus on. If you wish to buy rental properties, then focus on those. If flipping houses is in your plans, then concentrate on those types of properties. This is important because it allows the new investor to become a specialist within that area. Becoming a specialist leads to fewer costly mistakes.

Ok now comes the fun part. You need to find the people that offer the skills you need to accomplish your plan. Contractors, handy men, sub-contractors etc. Finding the right people to make your team is the hardest part of this game. (I use the same people for the same job on EVERY property I buy)

So lets say you choose to do the “fix and flip” game. People to have on your team are a contractor, electrician, plumber, and to be safe a heating/air condition guy. Now if you can find one…and the property isnt getting major work (like say a room addition) you can get away with a good handyman who does all the above.

Working with an investors real estate agent in a dream….but they are a nightmare to find. Interview your agent. Tell them exactly what you want to do. Tell them…I want to invest in real estate…I want to buy x amount of properties a year”. This means you need to have an agent thats willing to do far more for you then just show you a house or two. A good agent will write offers…LOTS of offers, and show you the selling history for a given area.

Time is always a key factor in real estate investing, so always look to ways to “turn” a property in the least amount of time. A property that remains unsold or not rented is eating up profits every day it in your possession. Learn to cut the losses on properties that fail to meet their profit potential.

Understand your going to make mistakes. We all do. The goal is to see them before they eat in to your profit.

Be efficient, and resourceful. Keep your eye on your bottom line and you will grow a nice little investment business.

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