Real Estate Loan Officer
NSCC: Real Estate: Loan Officer Certificate Search/SiteMap | Maps/Directions | Contact Us NSCC Home > Business Programs > Real Estate Program Loan Officer Certificate Real Estate Home Contact Info Faculty Basic Real Estate Basic Sales Advanced Sales Commercial/Invest Appraisal Trainee Certified Residential Appraiser Licensed Residential Appraiser General Appraisal Property Management Brokerage Escrow Loan Officer Loan Processor AAS Degree Appraiser AAS-T Degree Learn about the real estate finance including marketing, buyer, prequalifications, closing costs, and the advantages and disadvantages of various loan programs. Learn the principles of appraising and how to underwrite (approve or reject, based on risk) loan requests. LOAN OFFICER CERTIFICATE Course Credits Quarter 1 RES 100 - Real Estate Fundamentals 5 RES 106 - Real Estate Fraud 1 RES 125 - Applications of Real Estate Math ( 1 ) 2 RES 165 - Real Estate Loan Officer 3 Subtotal: 11 Quarter 2 RES 180 - Basic Appraisal Principles 3 RES 266 - Real Estate Loan Underwriter 3 Choice: Approved Electives ( 2 ) 6 Subtotal: 12 Total 23 Note 1: Students may challenge RES 125 - Applications of Real Estate Math, by passing the RES 125 challenge test and receiving two credits. Note 2: Choose 6 credits from the list below: Approved Real Estate Electives Course Credits RES 101 - Technology for Real Estate 5 RES 110 - Introduction to Commercial Real Estate 3 RES 140 - Real Estate Sales Practice 3 RES 150 - Residential Sales and Leasing Documentation 1.5 RES 166 - Real Estate Loan Processing 4 RES 170 - Real Estate Law 3 RES 175 - Introduction to Title 3 RES 177 - Real Estate Taxes 1.5 RES 190 - Real Estate Escrow I 3 RES 200 - Seminar In Current Real Estate Issues 5 RES 210 - Real Estate Investments 3 RES 220 - Real Estate Economics 3 RES 225 - Current Trends in Real Estate Market Analysis 1.5 RES 260 - Real Estate Finance - Commercial 1.5 RES 298 - Special Projects: Internship in Real Estate 1-6 BUS 140 - Customer Relations 5 BUS 197 - Work Experience: Business - or - CWE 110 - Internship 5 3 BUS 236 - Interpersonal Communication for the Workplace 3-5 Effective Winter 2006 © 2003-2008 North Seattle Community College | Disclaimer | About This Site
Sell House
AutoTrader.com - How to Sell Your Car Home > Research > How to Sell Your Car How to Sell Your Car Why should I sell my car instead of trading it in? It's simple—to boost your profit. Sell it yourself, and you get a higher value out of your car. Depending on the age and condition of your car, you can pocket an extra $1,000 to $2,000 or more. If you have a late-model vehicle, you stand to make much more. Just think of it as cutting the middle man out. If you trade your car in, the dealer has to pay to clean it, advertise it and sell it while making a comfortable profit. Your lower trade-in reflects that. Besides, with today's online resources, selling your car is easier than ever. Find out all you need to know to put your car up for sale, and then list it at a less expensive price than traditional printed classified listings. Plus, you reach more buyers in your area—and across the country. Place Your Ad Today Get a CARFAX Vehicle History Report Provide buyer assurance. Check your vehicle's history before you sell. Enter VIN Find Info on Specific Models Get the details on your old car before you advertise. Find out options, standard features, safety and more. What are my first steps? Selling your car yourself can be rewarding, especially with a little guidance. We've come up with a few tips to make the experience easier and to help you get the best price for your car. View Hide Set a competitive price A good place to start is determining the market value of your car. Check out our used-car values page to find out what your car is worth. You'll want to price competitively in your local market-look at our online ads in your area to see what used cars similar to yours are being sold for. If you're open to negotiation, determine the least amount you will accept. Based on that amount, you may want to create some cushion in your price—$500 is a good minimum. Remember, buyers are looking at the same online pricing guides, so if your price is close to or lower than the price they found, your car could be that much more appealing. Once you set your price, consider using the proper ad lingo to make your point: Inserting "or best offer" (OBO) or "asking price" signals you'll consider an offer lower than the stated price. You may get more responses. Stating your price is "firm" signals that you're sticking to your price. View Hide Get your car ready Appearance is everything. That means you should thoroughly clean your car, inside and out. And consider taking care of any minor maintenance issues. Here's a laundry list of things you can do to improve your car's appearance: Wash, wax and vacuum your car. Wipe down the dashboard and other surfaces. Gloss up the tires and polish the wheels. Clean all glass inside and out, including mirrors. Clean out any junk from inside your car and the trunk. Replace any burnt lights or fuses. Top off the fluids. View Hide Gather your car's records Smart car shoppers want to know how well maintained your vehicle is and will ask for maintenance records. A presentable maintenance log with all of your receipts, especially oil changes, can be a powerful selling tool. Consider collecting the receipts you have and creating a maintenance log. If you know you had something done but can't find the receipt, log it anyway. Warranty receipts are especially important. If you've recently replaced your tires or battery, present the warranty to the buyer. View Hide Purchase a vehicle history report You can put buyers at ease by showing a copy of your car's vehicle history report . One of the biggest fears of used-car buyers is unwittingly buying a car that has been in a wreck. A vehicle history report reveals if a car was ever wrecked, whether the odometer was rolled back and other costly problems. Presenting your maintenance records and a clean vehicle history report instills confidence in buyers—it could make the sale! How do I advertise my car? Your best bet is to place an online ad . Think about it this way: how many newspaper readers are looking to buy a car? Compare that to the number of people visiting auto websites like this one looking to buy a car now. You'll also get more sophisticated options, like editing tools and more space to show off your car. Here are some surefire bets to bring you more responses. View Hide Post quality photos Although photos are not required for listing your car online, they are a key selling tool. You have a far greater chance of buyers clicking on your Search Results Listing if you have photos. In fact, 85% of buyers look for listings with photos in their initial search. You don't need to have a digital camera to post photos. Just take your traditional film to your local photo-processing lab and ask for a photo CD. You can easily upload photos from the CD to your ad. Or, you can turn your prints into digital pictures with a scanner. Before you point and shoot, remember these guidelines: Photograph your car in daylight. Avoid reflections and shadows from the sun and trees. Photograph your car at a front-side angle to achieve a good view of the entire car. Park your car against a flattering backdrop. Make sure your car is clean and neat in appearance. If you post multiple photos, photograph the interior and any special features about your car, such as specialty tires and wheels. View Hide Give details buyers will respond to Another benefit of advertising online is providing a complete description of your car. You get to give buyers those extra details that grab their attention. In your AutoTrader.com ad, you will list your car's basic details and options installed. With that important information already out of the way, you can focus on making your description enticing. Keep in mind the first 150 characters of your description will show on your Search Results Listing. Put your most important details first, so buyers see them right away. Consider giving some of the following details: Appeal to a buyer's lifestyle. Ex. Van—"great family car," economy car—"excellent gas mileage makes it a great commuter car," truck—"a dependable work truck." Use key phrases that typically signal you've taken care of your car, like "one owner," "kept in garage" and "maintenance records available." But do be honest! Mention any non-standard modifications and improvements, such as stereo, speakers and specialty wheels. List any recent replacements, like new tires or battery. View Hide Be prepared to field inquiries Once you place your ad, be ready to answer questions. Keep a list of basic facts about your car near the phone and computer. Print out the online sources that show your car's market value. Buyers are making a big decision, so try to answer every question honestly and openly. You'll save yourself time instead of making unnecessary appointments. Make appointments for a specific time, rather than allowing a buyer to show "sometime after work." It increases the chances of the buyer making it, and it doesn't waste your time. If you feel uncomfortable with a buyer coming to your house, arrange to meet in a populated, well-lit area. How do I close the deal? You've done your homework. Now it's time to sell your car. With a little preparation and patience, you should do just fine. View Hide Show your car to interested buyers Once you make an appointment, a buyer will most likely want to take your car for a spin. Before the test-drive, remember to: Ask to see a valid driver's license and proof of insurance. Let the buyer drive, but you navigate. Have a planned route in mind that allows the buyer to experience different driving conditions. If a buyer is very interested and wants you to hold the car, ask for a deposit and specify that it's only for a certain amount of time. Also, some buyers may want to have the car inspected by their mechanic. This is a reasonable request, but it's up to you how you want to handle it. View Hide Negotiate a fair price By now, you know what your car is worth, and you know what you're willing to accept. Prepare yourself with possible responses when a buyer begins to negotiate. For example: If a buyer mentions a scratch or ding, say it's normal wear and tear and that it's accounted for in the depreciated market value. If a buyer makes an offer lower than your asking price, counter offer. Never seem too eager to lower your price. And don't budge beyond your minimum. If a buyer shows you a mechanic's receipt for repairs needed on your car, take a look at the repairs. If they're warranted, consider reducing the price based on the amount needed for the repairs. If you advertised that your car is being sold "as is," then simply refer to your ad. View Hide Finalize the sale Once you settle on a price, accept only cash or a cashier's check before you sign over the title. And make sure the check has cleared at the issuing bank. Be suspicious of any buyer who offers a complicated payment arrangement that involves overpayment with a refund. This is often a sign of fraud. To learn more about spotting a scam, read our fraud awareness tips . You should have a bill of sale ready for both parties. A bill of sale is a sales receipt that shows transfer of ownership to the buyer and contains both parties' contact information, details about the car, the agreed upon sell price and the odometer reading. To find a bill of sale, your state motor vehicle website should offer a detailed form. If not, try an office supply store for a generic form that you can add to if needed. Also, check with your state motor vehicle website to find out what the requirements are to transfer the title to the new owner. Generally, you will have to sign and date the title before turning it over to the buyer. Notifying your local motor vehicle office of the transaction and ensuring the title is correctly transferred will prevent you from being liable for any accidents. If you still owe money on the car and a lending institution is holding the title, you can finish the sale with the buyer at the offices of the lender. Once you have the money and the loan has been paid off, sign the title to the buyer. If the bank is out of state, you can go with the buyer to the motor vehicle office and get a temporary operating permit based on the bill of sale. Once you pay off the balance of the loan with the money from your car sale, you'll receive the title. Sign it over to the new owner and the transaction is complete. One last thing—don't forget to cancel or transfer your insurance policy to your new car. I want more resources... Credit Tools Free Credit Report Be prepared before getting an Auto Loan. Vehicle Valuation Trade-in & Retail Pricing Get free trade-in values and retail pricing. Car Loans Loan Center Get up to 4 offers with one simple form. Refinance Auto Loan Center Refinance your auto and save. Payment Calculator Calculate the monthly loan payment for a car. Safety Safety Info Information and articles on safe driving and vehicle safety features. Reviews and Tips Search Reviews Search the latest car reviews. Buying Tips Information and articles to help you make the most informed buying decisions. Home > Research > How to Sell Your Car Find A Dealer | Become an AutoTrader.com Dealer | About | Help | Site Map | Employment Opportunities | Email Us | Press Room By using this service, you accept the terms of our Visitor Agreement . ©2005 AutoTrader.com L.L.C.
Buy Property
Amazon.co.uk: Buying a Property: Florida: Books BOOK SEARCH BROWSE CATEGORIES SPECIAL OFFERS TOP SELLERS AUDIO BOOKS Paperbacks 3 for £12 NEW & USED TEXTBOOKS HARRY POTTER SELL YOUR BOOKS All Products -Books -Used Books -Collectable Books All Subjects -Art, Architecture & Photography -Audio Cassettes -Audio CDs -Biography -Business, Finance & Law -Children's Books -Comics & Graphic Novels -Computers & Internet -Crime, Thrillers & Mystery -Fiction -Food & Drink -Gay & Lesbian -Health, Family & Lifestyle -History -Home & Garden -Horror -Humour -Mind, Body & Spirit -Music, Stage & Screen -Poetry, Drama & Criticism -Reference & Languages -Religion & Spirituality -Romance -Science & Nature -Science Fiction & Fantasy -Scientific, Technical & Medical -Society, Politics & Philosophy -Sports, Hobbies & Games -Travel & Holiday -Young Adult All Subjects Art, Architecture & Photography Audio Cassettes Audio CDs Biography Business, Finance & Law Children's Books Comics & Graphic Novels Computers & Internet Crime, Thrillers & Mystery Education & Languages Fiction Food & Drink Gay & Lesbian Health, Family & Lifestyle History Home & Garden Horror Humour Mind, Body & Spirit Music, Stage & Screen Poetry, Drama & Criticism Reference Religion & Spirituality Romance Science & Nature Science Fiction & Fantasy Scientific, Technical & Medical Society, Politics & Philosophy Sports, Hobbies & Games Travel & Holiday Young Adult BOOKS INFO At A Glance Reviews Customer Reviews Table of Contents See more by these authors: Christian Moen John Howell E-mail a Friend About This Item Recommendations If you already own this, rate it and improve your recommendations , Not Rated Visit the DVD shop Harry Potter and the Prisoner of Azkaban (Two Disc Edition) Find a huge selection of books at 30% off Become an Associate Join our Associates Programme and make money from your website! Buying a Property: Florida Christian Moen , John Howell Publisher: learn how customers can search inside this book. List Price: £12.99 Our Price: £9.09 & eligible for Free UK delivery on orders over £15 with Super Saver Delivery. See details & conditions . You Save: £3.90 (30%) Availability: usually dispatched within 24 hours. 36 Used & New from £5.50 See larger photo Edition: Paperback More Product Details ~ See Table of Contents Perfect Partner Buy Buying a Property: Florida with Buying a Property in Florida: The Ultimate Guide t... today! Buy Together Today: £26.08 Customers who bought this item also bought: Buying a Home in Florida ;Paperback~David Hampshire, Jim Watson (Illustrator) Florida Atlas & Gazetteer (Florida Atlas & Gazetteer) ;Paperback~Delorme Publishing Company Complete Guide to Buying Property in Florida ;Paperback~Charles Davey The Field Guide to Home Buying in America: A Home Buyer's Companion from House Hunting to Moving Day ;Paperback~Stephen Pollan, et al The "Which?" Guide to Buying Property Abroad ("Which?" Consumer Guides) ;Paperback~Jeremy Davies Explore similar items ... Product Details: Paperback 320 pages(October 20, 2003) Publisher: Cadogan Guides Language: English ISBN: 1860111157 Category(ies): Home & Garden , Travel & Holiday Average Customer Review: | Write a review Amazon.co.uk Sales Rank: 13,621 (Publishers and authors: improve your sales ) sign in to turn on 1-Click™ ordering. 26 New from 5.50 10 used from 5.50 Have one to sell? (We'll set one up for you) View my Wish List . Customers interested in this title may also be interested in: What's this? ( What's this? ) Feedback Ocean Florida - Bespoke Florida Holidays Among the UK's best prices for tailor made Florida holidays. We specialise in Florida and offer massive savings on flights, holidays, car hire, and cruises. One click and you're on your way. www.ocean-florida.com Book Florida Holidays at Thomson.co.uk Save up to 150 exclusively online on Florida holidays with Thomson. www.thomson.co.uk Book Holidays to Florida with Virgin Research and book a great holiday to Florida with Virgin Holidays. We offer total flexibility flying with scheduled airlines plus great discounts when you book online. www.virginholidays.com Reviews Book Description Produced in conjunction with the Sunday Times, this innovative guide gives all the practical information necessary to buy a home in Florida. Whether you’re looking for an apartment, a holiday home or a place to retire to, it offers all the latest information on buying property. The guide covers all the regions that are popular with home-buyers and provides in-depth information on what to expect from each area: its climate, economy and facilities. Buying a Property gives advice on every step of the moving process, from the first stages of organizing visas and dealing with immigration and customs, to negotiating with estate agents, having surveys done and drawing up contracts, as well as restoring your property and finding reputable rental agencies. To accompany the practical advice, the guide features anecdotes and case studies which give insights into the realities of settling into a new environment and getting used to a different culture and pace of life. About the Author Christian Moen is a freelance writer who migrates to southeast Florida every winter. John Howell is the senior partner of a law firm, and specialises in advising people about buying property abroad. See all reviews... Customer Reviews Avg. Customer Review: Write an online review and share your thoughts with other shoppers! 1 of 1 people found the following review helpful: A useful primer but not enough for the serious investor , October 30, 2005 Reviewer: aircooledheaven from Northants United Kingdom I eagerly awaited delivery of this book, I'd been told it was the definitive guide for buying Florida property. Plus I'd read the glowing 5 star review here on Amazon. Overall I was dissapointed, particularly in the superficial mannner in which the most important aspects of property investing were covered. All the common sense stuff is there, like 'a dirty property won't get any repeat rentals'. But the nitty gritty is skated over. No useful information on financing, obtaining a US mortgage, management companies and fees, yields and ROI. Clearly written by someone who doesn't own a rental property in Florida. This book is a good primer but don't expect it to provide enough information to go right out and do what it suggests in the title. Was this review helpful to you? 32 of 32 people found the following review helpful: Excellent guide for buying a property in Florida , March 1, 2004 Reviewer: Frankie from UK This is an excellent guide to buying a property in Florida which beats it's rivals hands down. It is written by people with an indepth knowledge on the subject and an intimate knowledge of the local market - something of great importance to anyone considering making this big step. I would regard it as essential reading to anyone thinking of buying in Florida. Was this review helpful to you? Customers who bought books by Christian Moen also bought books by these authors: David Hampshire Katy Pownall Charles Davey Delorme Publishing Company Stephen Pollan Look for similar books by subject: Browse for Books in: Subjects > Travel & Holiday > General Subjects > Travel & Holiday > Guidebook Series > General Subjects > Travel & Holiday > Countries & Regions > United States > Regions > South Subjects > Travel & Holiday > Countries & Regions > United States > States > Florida > General Subjects > Travel & Holiday > Guidebook Series > Cadogan Guides Subjects > Home & Garden > Buying & Developing Property > Property Guides Search for books by subject: Florida Household Management Housing & property for the individual Real Estate - Buying/Selling Homes Travel Travel & holiday guides Travel - United States United States - South - General United States - South Atlantic - Florida i.e., each book must be in subject 1 AND subject 2 AND ... 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home equity loan? How
Home equity brochure Office of Consumer Credit Commissioner Home Equity Loans in Texas: Frequently Asked Questions Printer-friendly PDF version What is a home equity loan? How much can I borrow? Why can't I borrow against more than 80% of the home's value? How are home equity loan interest rates determined? What other costs are involved? What if I feel a lender has overcharged me on closing costs? Are there different kinds of home equity loans? Can I set up a line of credit with my home equity? How can I use the money? What if I change my mind? How many home equity loans can I have? Why do I have to wait a year to refinance a home equity loan? Could a lender foreclose on my home if I'm late paying on a car loan or a credit card? What else should I know? What are some other helpful resources? Top of Page What is a home equity loan? A home equity loan is a financial product that allows a borrower to use the market value of a home as collateral for a loan. Loans secured by real estate generally are considered safer by lenders, resulting in lower interest rates than for other types of loans. Equity is easily calculated by subtracting the amount owed on the home from the current market value. For example, if a house with a market value of $100,000 has an outstanding mortgage of $30,000, the homeowner has equity of $70,000. If there were no mortgage or other type of lien on the house, the homeowner would have $100,000 in equity. Top of Page How much can I borrow? Through home equity loans, Texans can borrow money using up to 80% of the value of their homes as collateral. Consider the example of a home valued at $100,000 with an outstanding mortgage debt of $30,000 and $70,000 worth of equity. Because homeowners are limited to borrowing no more than 80% of the home's value, the homeowner would simply calculate 80% of $100,000 ($80,000) and then subtract $30,000 to arrive at a maximum loan amount of $50,000. Total mortgage debt, including the amount of any existing mortgages plus the projected home equity lien, cannot exceed 80% of the home's current fair market value. Homeowners with 20% or less equity in their homes are not eligible for home equity loans. Top of Page Why can't I borrow against more than 80% of the home's value? Texans voted to limit the loan amount to 80% to help prevent overextensions of credit and protect our economy during times of economic slowdown. Top of Page How are home equity loan interest rates determined? Market competition and conditions determine the rates in general; the borrower's own credit history will further affect the rate offered. Home equity loans usually have lower interest rates than do other types of consumer loans, such as loans secured by personal property or loans secured simply by a borrower's signature (unsecured loans). First mortgages (the primary loan on a house) generally have the lowest interest rates. As with any financial arrangement, you should shop around to find the best deal. In the Consumer Assistance section of our Web site are links to some handy online calculators that will help you compare loan programs. Top of Page What other costs are involved? Lenders can charge certain fees, usually called closing costs, in addition to interest. On a home equity loan, closing costs cannot exceed three percent (3%) of the principal amount borrowed. Prepaid interest, also known as points, is not subject to the 3% cap. Top of Page What if I feel a lender has overcharged me on closing costs? As a savvy consumer, you should always carefully examine a loan agreement before signing it. Have the lender thoroughly explain the contract's fee structure; you'll discover that any points you've purchased are not considered part of the fee amount subject to the three percent limitation. If a lender has overcharged you, you must give the lender a chance to correct the mistake (called curing the loan) before you can take legal action against them. You need to send a written request to the lender specifying the error so that the lender can issue a corrected loan agreement and refund any amounts due. For more information on this process, contact our Consumer Helpline at 800.538.1579 or send your questions to us via e-mail . Top of Page Are there different kinds of home equity loans? No, but a home equity loan can hold either first lien or junior lien (often called second) position. If you own your home outright and take out a home equity loan, it will be considered a first mortgage because it is first in line to receive payment if the home is sold or a borrower defaults. If you refinance an existing first mortgage, and pledge some of your equity to receive cash in hand, you will still have just one-but larger-first mortgage. In this loan, generally called a cash out re-fi, the dollar difference between the original mortgage and the refinanced mortgage is the home equity loan amount. A secondary mortgage is a loan secured by a house that already has at least one other mortgage or lien. Taking out a home equity loan in addition to a first mortgage places a second lien against the home. The law prohibits a homeowner from having more than one home equity loan at a time, although a homeowner may have secondary liens from other sources, such as a home improvement loan or a tax lien. Top of Page Can I set up a line of credit with my home equity? As of September 2003, Texans can establish lines of credit using up to 50% of the value of their homes as collateral (as opposed to the 80% allowed on standard loans). Top of Page How can I use the money? However you choose. There are no legal restrictions regarding how you use your loan proceeds. Top of Page What if I change my mind? The law requires a 12-day waiting period from the time an application is taken AND a legally mandated written consumer rights notice is given to the borrower. For example, if a potential borrower submits an application on Monday, but doesn't receive a copy of the consumer rights notice until Wednesday, then the 12-day countdown would begin on Wednesday. The 12-day period is measured in calendar days (rather than business days) per the Home Equity Commentary issued by this office. Once the waiting period has passed, the loan can be closed. Further, the homeowner or homeowner's spouse may still cancel the loan agreement without penalty within three days after closing. Top of Page How many home equity loans can I have? A borrower may have only one equity loan at a time. Furthermore, it cannot be refinanced more frequently than once a year. Because of this limitation, it is crucial to shop for the best terms among lenders. It is also important, as in any credit transaction, to compare the total costs of a home equity loan to other types of credit available to the consumer. For example, a borrower might not face a prepayment penalty for early payoff of a home equity loan. However, if the loan is paid off early, a home equity loan could end up being more expensive than an unsecured loan with a higher interest rate if you paid closing costs and points. To better determine the best solution to your situation, see the financial calculators in the Consumer Assistance section of our Web site for help crunching the numbers. Top of Page Why do I have to wait a year to refinance a home equity loan? Texas voters placed this provision in the Texas Constitution as a consumer protection. Because closing costs and points are collected each time a mortgage loan is closed, generally it's not a good idea to refinance often. Top of Page Could a lender foreclose on my home if I'm late paying on a car loan or a credit card? On a standard car loan, the car itself is the collateral, and Texas law prohibits using a person's homestead as additional collateral on the same loan. However, if a homeowner decides to take out a home equity loan to pay off credit card debts or buy a car, the home is then collateral for the home equity loan and can be foreclosed on if the homeowner does not make payments on time. Top of Page What else should I know? It's always a sound practice to shop around for a loan, but don't fill out any applications until you've picked the company you definitely want to work with. Filling out too many applications may unduly harm your credit report. Before you sign on the dotted line, find out what kind of experience other consumers have had with your potential lenders. Check out lenders with the Better Business Bureau . The Office of Consumer Credit Commissioner regulates certain home equity lenders and offers a Consumer Helpline for credit-related questions at 800.538.1579. We can let you know about consumer complaints we have on file. To get more information about home equity issues or to request lender complaint files, visit our Consumer Assistance page. Other Helpful Resources Texas Office of the Attorney General Consumer Protection Hotline: 800.252.8011 Federal Trade Commission Consumer Response Center: 877.382.4357 U.S. Dept. of Housing & Urban Development Main number: 202.708.1112 State of Texas / TRAIL (Texas Records and Information Locator) Texas Finance Commission / Department of Information Resources Sunset Advisory Commission / Privacy Policy Open Records Requests En Español
foreclosure property There are
Is Foreclosure Investing for You? Online Catalog | Shopping Cart HOME | Foreclosure Investing | Short Sales | Articles | Financing | Commercial | Mobile Homes | Cash Flow | Legal | News Group CRE Online > Money-Making Ideas > Is Foreclosure Investing for You? Is Foreclosure Investing for You? by Ronald Starr If you are new to real estate investing and considering buying foreclosure properties, you need to be realistic about what you are facing. If you feel more sober about foreclosure investing after reading what I have written below, I will have accomplished my goal. Foreclosure investing is not a good investment approach for beginners. I recommend that you have at least a couple of years' experience with more traditional real estate investing first. The profits from foreclosure investing can be huge. That makes foreclosures attractive. There is an awful lot to know in order to avoid the problems that can occur. If you don't know what you are doing, one disastrous foreclosure investment can wipe out your capital and your enthusiasm for all real estate investing. Three ways to buy a foreclosure property There are three basic approaches to buying properties in foreclosure depending on the stage of the foreclosure process: buying pre-foreclosures, buying at the foreclosure auction, and buying from lender after the foreclosure sale. If you buy from the delinquent property owner before it goes to auction, you have bought a pre-foreclosure deal. Buying at the auction is self-explanatory. If nobody bids, the lender ends up with the property. Buying from the lender after the auction is called buying REOs (real estate owned) or Repos, (repossessions). Sometimes you will see them referred to as "corporation owned" or, my favored term, "lender owned." REOs are the least risky way to buy foreclosures You may have more risk than you would in a regular real estate transaction, but REOs are less risky than in buying at the auction. Since REOs are somewhat similar to a regular sale, they can be pretty safe. You might not get a seller's disclosure. In California, a lender who acquires a property through foreclosure does not have to offer a disclosure to you as a buyer. But, if there are problems after you buy the property, you might be able to sue the lender who sold you the property, or at least threaten to sue them, and they might make things right or pay part of the cost. There's a good chance they will still be around after the sale. The risks of buying pre-foreclosure real estate The next riskiest foreclosure purchase is the pre-foreclosure. If an owner of a pre-foreclosure disappears, you risk not getting anything from him after the sale. A pre-foreclosure seller might be desperate and lie to you about the condition of the property and the neighborhood. There might be liens on the property that the seller "forgot" to mention. The big utility bills become the buyer's responsibility if the pre-foreclosure investor failed to check them out. Ditto for unpaid property taxes. There may be another person on title who did not sign the deed, and so on. In California and, I believe, some other states, there are special laws related to dealing with and buying a property from a homeowner occupant who is in default on a loan. If the contracts and the sale are not done according to the law, the seller has the right to rescind the sale and could, long after the sale, sue to have the sale reversed. There are extreme penalties for violating the law. Remember, "Ignorance of the law is no excuse." You need to know the state law when you do pre-foreclosure investing. Can the seller can legally deed the property to you? What if the seller is already in bankruptcy? The deed is likely not valid unless it has gone through the bankruptcy court. You have to call the local bankruptcy court to check for a possible filing. And, of course, the seller could have filed bankruptcy in another bankruptcy court that you did not call. And, even if the seller does not file bankruptcy until after your purchase, you may have to deed the property back to the seller up to three years after you bought it. If selling the property made the seller destitute, and the seller sold for much below market value--which you hope he did so you could make a good profit--the bankruptcy trustee can require you to deed the property into the bankruptcy estate on the grounds that the sale was a "fraudulent transfer," wherein the seller deprived his creditors of an asset which could help pay the debts. At that point, you become a creditor of the bankruptcy estate. Is this really what you planned when you bought the "great pre-foreclosure deal"? A lot of pre-foreclosure buyers may forego some of the inspections because they are hurrying to buy before the foreclosure auction. Sometimes the buyers will give money to the owner, get a deed, and record the deed themselves in the land records office of the county. The pre-foreclosure buyer has to be very alert to a lot of possibilities and check them out. You must have superior knowledge of real estate investing before you start doing pre-foreclosure investing. But, if you sign a proper sales contract with the owner, get appropriate inspections, go through an escrow with a knowledgeable escrow agent, and look at the property yourself, you probably will not be at great risk. If you use the safeguards above, you are going to have less risk than in most foreclosure auction buys. The risk of buying at the foreclosure auction Buying at the auction is the riskiest foreclosure purchase. At the auction you have no real estate agent to lead you through the process. You have no escrow and no title report let alone title insurance. In most jurisdictions it is an all cash sale. In some states you may have a week to a month to come up with the full purchase price. If you do not raise the money, you lose your deposit. At the auction the people conducting the sale will announce that the successful bidder will receive NO WARRANTY OF ANY KIND. You have no assurance that there are not other liens or loans on the property. You do not have any inspections by contractors, roofers, pest inspectors, building inspections, water well, or septic system experts. You get no disclosure from the seller as to the condition of the building or what is happening in the neighborhood. Usually you cannot see the inside of the building; perhaps not even the back of the outside. You know nothing about the electrical system, the plumbing, the heating, or air conditioning. If you buy an occupied property, you have to do an eviction, which, in some states, can drag out for a while, preventing you from getting into the property quickly to prepare for resale. Sometimes the occupants, if they are former owners, will vandalize the properties before leaving or steal items, such as cabinets, doors, fixtures, lamps, etc. If you are buying to resell the property quickly for a profit, you had better know if your buyer can readily get title insurance when buying your foreclosed-upon property. When you get a very good deal at a foreclosure auction, you may find that the former owner files a lawsuit to attempt to overturn the sale. So be prepared to hire an attorney and fight for your profit. Experience and knowledge build your foundation Now do you begin to understand why I recommend that beginners not start investing in foreclosures? Start with simpler buying approaches and get some experience with properties, laws, ordinances, deeds, and loans, and so on to provide a foundation. Learn to do title searches as fast as the professionals. Get to know intimately the government offices that have property records and tax assessment rolls. Get to know the property values in an area where you invest. Learn about the problems with properties in different neighborhoods, such as bad soil, poor construction in certain subdivisions, problems with septic systems and wells, and soil contamination. When you have learned all that, start studying up on foreclosures. Study the foreclosure laws in your state. Study law books on the priority of liens, bidding at auctions, title insurance, and bankruptcy. When you fully understand foreclosures, start buying them. I am not trying to stop you from investing in foreclosures. They can be profitable for those who can practice it well. But, few beginners can do it well. I'm telling you to be realistic and get the background that will allow you to be successful in foreclosure investing. The field is rife with risk. You can easily lose your whole investment if you make a single mistake. Please believe me, even with all my years of real estate investing experience, it has happened to me. Good Investing, Ron Starr MORE INFORMATION More on this topic... Customers also bought...