Obtaining real estate short sale negotiation assistance from a professional consultant can save you a lot of stress and earn you loads of money. There are hundreds of thousands of homes currently in the United States that have been foreclosed on, and this can mean a huge opportunity for investors to acquire properties for massive savings. The downturned real estate market is a wide open playground for savvy investors, especially those who have some time to wait until the markets stabilize again.

The short sale process can be daunting and complicated for those who are not familiar with it. A short sale is quite simply when the lender of a mortgage loan agrees to provide a discount on the balance due. The short sale negotiation process is carried out with the loss mitigation department of the lender. The homeowner sells the property for less than the balance due on the loan and turns over all proceeds to the lender. In almost every case, this is not a full settlement between the homeowner and the lender. Almost always, there still exist a balance of deficiency owed to the lender from the homeowner. The lender is responsible for the final decision as to whether to allow the short sale or not and there are no regulatory agencies that govern these types of transactions.

For that reason, skillful negotiation tactics are necessary. From both the standpoint of the homeowner and the buyer, it is highly-advantageous to illicit the assistance of a professional short sale negotiator. Short sales generally occur as an alternative to foreclosure. Foreclosure rates are at an alarming all-time high currently and state governments and lenders alike are scrambling to find ways to lower them. In essence, the lender will allow a short sale if it believes that it will take less of a loss by allowing the short sale than it will to enter foreclosure proceedings and auction the property. In fact, most short sales occur only after the Notice of Default has been filed by the lender.

Advantages of a short sale for the homeowner include:

A lessened negative impact on their credit score than a foreclosure would yield;

Maintaining partial control of deficient finances;

Time savings as compared to foreclosure;

The fact that a short sale is a type of settlement as compared to a seizure of the property;

Lessened embarrassment in the form of newspaper ads and postings of legal notices;

Negotiating a real estate short sale should be handled by a professional to ensure that the homeowner and/or buyer are represented fairly and presented with all of their rights throughout the process. Lending organizations are struggling at present and it is not their intention to offer anything more than they absolutely have to. If you are unfamiliar with the short sale process, as most homeowners are, then you will benefit greatly from obtaining short sale negotiation assistance from a seasoned professional.

To learn more about how short sale negotiations are handled, please visit us at Stop Foreclosure Help Today.

Igor Mosyak
http://www.articlesbase.com/real-estate-articles/short-sale-negotiation-assistanceunderstanding-the-short-sale-procedure-for-real-estate-677018.html

When a loan is secured by real estate collateral, it is known as a real estate loan or more commonly a mortgage. Investors prize this form of real estate because it gives them an opportunity to bring in cash. Real estate investment loans dont just come from banks and loan agencies. They can also be found via mortgage bankers, pension funds, finance lenders, and insurance companies. Investors can even secure these loans via private individuals.

The different types of real estate investment loans serve different purposes. With a residential loan, the property is only used for commercial purposes. Stores, warehouses, and commercial businesses fall into this category. Residential loans, on the other hand, can only be used for residential real estate purposes. These can also include loans used for rental income. When an investor gets this type of loan, he or she usually receives a one-time lump sum payment from the lender. This sum is paid back in installments.

Since purchasing a residential property involves having a great deal of money, a person has to undergo a thorough screening process to be approved. Many factors contribute to the lenders decision. These include the borrowers income, their credit score, and their debt/income ratio. The interest rate on the loan depends on all of these factors.

Consisting of short term loans, long term loans, and interim loans, real estate investment loans come in many varieties. There are also other options like equity financing, construction debt, permanent debt, interim financing, structured financing, mezzanine financing, foreclosure investor money, residential repair funding, and hard money loans.

Investors with less than perfect credit should not lose hope. Loans such as bad credit real estate loans are specifically formulated for individuals with tainted credit reports. Although it is a higher risk to the lender, it allows individuals to obtain a mortgage from a company when more traditional companies might decline the loan.

Interest rates are often based on how long your repayment terms last. If you have a twenty year loan, the interest rate will be higher than a five year loan. Talking frankly and openly with a loan rep will help you understand all the intricacies of the process.

Depending on the investor, many people prefer options like buying shares in a Real Estate Investment Trust (REIT). These can be used as collateral to fund investment loans.

Kris Koonar
http://www.articlesbase.com/investing-articles/what-are-real-estate-investment-loans-64831.html

Capital is one of the biggest requirements for real estate. So many people want to get started in real estate investing, but do not have the money to do so.

Sometimes it can seem like a Catch-22 kind of situation. You want to invest in real estate to make money, but you need money to invest in real estate. Many people wonder how they will ever be able to get started in real estate investing if they are unable to come up with the money to do so.

A grant can be the answer for you here.

You may have previously heard that there are grants available for people who want to start their own businesses. Naturally, this leads you to wonder if there are grants for real estate investing.

The simplest answer is that there are grants available for almost anything you want to do. That answer would translate to mean that there are indeed grants for real estate investing. The key to getting grants for real estate investing is first finding these grants.

If you have ever tried to search for grants for real estate investing, you might have noticed that the process is a lot like searching for college scholarships. There are plenty of grants for real estate investing out there, but many of them have very specific requirements. For example, the requirement for a grant might be phrased as something like “Must be a descendant of George Washington living the state of New Mexico”. That example might be a little overboard, but you get the hint.

After looking at the requirements for so many different grants for real estate investing, you might think that there is no hope of ever getting a grant. Of course if you give up, you will never know if you can receive grants for real estate investing. You can succeed in getting grants for real estate investing if you don’t first try to get the grants.

To obtain grants for real estate investing, you must first know how to write a grant proposal. This is not a skill that is inherent. While you might be effective at other kinds of writing, grant proposals have their own format. This format must be followed if you want to receive grants for real estate investing. If you are not aware of the format for grant proposals, you can find information on the internet or through purchasing reference material from a bookstore. Alternatively, you can hire someone to write grants for you.

To improve the odds at receiving grants for real estate investing, you should apply for every grant you come across. If you think you meet the criteria in even the slightest way, it is worth a try to write the grant proposal.

In the case that you are paying someone to write your grant proposals, chances are you don’t want to spend the money to have more than ten grant proposals written for you. You can pay someone to write a few, and then use those as a guideline for drafting your own.

The key to finding grants for real estate investing is persistence. Continue trying until you have exhausted your resources, you may find that it pays off in the end.

Gerald Mason
http://www.articlesbase.com/advice-articles/grants-that-are-available-for-real-estate-investing-79106.html

Almost everyone has heard of foreclosures, but most people may be unsure about the meaning of the word. Usually, most people who want to become homeowners cannot afford to pay outright for the homes. This leads to the person taking a loan and dealing with periodic mortgage payments. In many cases, an individual may be unable to continue payments. The lender generally allows a certain amount of time for the individual to make his mortgage payment. If a defaulter is unable to make the payment even after the grace period has passed, banks and other lenders repossess and sell the property, usually at a discount, to ensure a fast sale.

Pre foreclosures are those properties that are in the final stages, before being taken back by the bank or the lender. It is still owned by the homeowner; however the lenders loan is in default. This means that the original owner is in charge of the property, but if he does not pay the mortgage to the bank, the financier will soon repossess the home. A loan goes into default once the mortgage payment has not been made within the required 30 days. After 90 days pass without payment, a list of people in default goes on record at the local courthouse. This list is called the 90-day Notice of Default. The bank does not yet own the home, but it does own the mortgage, which is in default.

There are a lot of benefits in buying pre foreclosures. First of all, the prices of such properties are lower. The owners are in a hurry to sell the house before the bank forecloses. So, they are more inclined to consider the offers they receive. It is possible to find pre foreclosures that are as much as 50% less than the market value. You also have the advantage of dealing directly with the owner. The buyer is in control in a pre foreclosure deal. There are no carrying costs. Until you sell, no one makes any payments. The profit is not eaten up by outrageous holding costs.

You can create equity by requesting a lender to take less than what is owed. Lenders often agree to do this because they really dont want to repossess the property. Foreclosures look bad on the banks record. This process of discount creates new equity and earns more money for you in the deal. Thus, you can create an unusually large equity spread.

Buying houses in your own name and on your own credit is quite dangerous. In pre-foreclosure deals you are taking over the existing debt, which continues to be in the sellers name. So, the finance is already in place, even before you buy. This reduces the liability, while enjoying all the tax benefits, depreciation benefits and actual appreciation of the property.

Bidding against others at auctions may not be your cup of tea. It is easier to anticipate everyones ideas and move in and complete the deal, before anyone else. It is a niche market with very little competition and therefore has space for you to learn and become an expert in building long-term residual wealth, without much money or credit. Finding pre foreclosures is the same as locating homes that the bank already owns. They are listed in the newspapers, online and with the lenders directly.

Kris Koonar
http://www.articlesbase.com/non-fiction-articles/reasons-to-buy-pre-foreclosures-104352.html

To start, it’s important not to be scared off by headlines. The Nation Association of Realtors reports that 93 metropolitan statistical areas showed price increases for existing homes in the third quarter of 2007 when compared with a year earlier. In comparison, 54 metro areas had declines.

But a little caution is in order because these reported figures may not be realistic. For instance, in my community reported home prices show little change during the past year. The catch is that “reported” home prices do not reflect discounts offered by owners including repairs, upgrades, appliances and so-called “seller contributions” that can total $30,000 for a $500,000 home.

What does it mean for buyers?

• Homes are more affordable than they’ve been for the past several years. The reason is that there are now discounts and price drops in many areas that did not exist at the height of the market. Combine reduced effective prices with interest rates which are low by historic standards and the result is the ability to either buy more house or to better afford a smaller one.
• Some regions are devastated. If you’ve always wanted a condo in Miami or a place in Las Vegas, Dallas, Colorado, Ohio, Michigan and a growing number of areas in California, you’ve got a huge and growing number of choices.
• The situation is likely to get worse before it gets better. Many authorities believe that foreclosure rates will increase in the next few months, meaning that purchasers will have even more leverage in the marketplace.

If there really is a window of opportunity for buyers, it’s a window which needs to be treated with caution. Lower prices — by themselves — may not be a good enough reason to purchase at this time. To buy wisely you need to look deeper. Here are important issues to consider:

First, you have to line up financing. You must speak with lenders before looking at houses so your financial capacity can be determined. Once you know how much you can borrow and how much you can afford, you will then know the price range to search for homes. Doing it the other way — finding a great house and then looking for a loan — will not work if the property is not affordable.

In the process of looking for a lender be aware that the marketplace has changed. You’ll do best if you’re looking for a residence and not an investment and if the financing you need is less than $417,000 — the conventional loan limit. Also, some of the loan practices of the past few years are now largely gone. Expect a return to older, traditional underwriting standards.

Look into FHA financing and fixed-rate mortgages. FHA loans have liberal qualification standards and great terms. Fixed-rate loans are a hedge against future interest increases, a protection many ARM borrowers now wish they had.

Second, buy for the long-term. It makes no sense to buy real estate low and sell lower. We don’t know that today’s prices are as low as the market will go. Alternatively, if you expect to own your home for many years then what happens in the coming few months is largely irrelevant.

Third, work with a buyer broker. There are many questions to negotiate in a real estate purchase, it’s unlikely you can win every issue but you’ll have the best shot at getting what you really want by using an experienced broker who knows how to bargain and works for you.

Fourth, look at the long-term prospects for an area. For instance, is the population growing? Are new jobs being added? Are state and local budgets balanced or in the red? A growing population means more housing demand while an expanding job base suggests a larger pool of qualified buyers. As to budgets, when governments are in the red they will want to raise taxes, a cost that cannot be avoided or paid down.

Fifth, buy smart. For instance, buy in the path of future growth, consider existing homes but also look at distressed properties such as foreclosed homes and real estate owned by lenders, or “REOs”. An experienced buyer broker can show you a range of options and explain the pros and cons of each choice.

Peter G. Miller
http://www.articlesbase.com/mortgage-articles/fha-mortgages-is-now-the-time-to-buy-a-house-273451.html