Real Estate Foreclosures In Alameda County California – Tax Foreclosures

13 October, 2010

Timing is a major key to being successful in Real Estate. If one is able to buy property when it is being sold below market it can not only save you thousands of dollars but also originate you thousands of dollars. Whether you are a short term investor or long term investor in Right Estate, buying foreclosures is a good method to make a profitable chunk of change. Foreclosure is when a creditor repossesses the collateral or property that the loan is against because the borrower has defaulted in their payments.

If the borrower does not cure the default the property will eventually be auctioned and sold at a Trustee’s Sale. In California for Alameda County the foreclosure sales are conducted at the bottom of the Courthouse steps which is located at 1225 Fallon Street in Oakland. The seek of the sale dates are published in the newspaper where the property is located. You can find the notices in the legal notices section of the newspaper.

If you are unusual to the foreclosure business and you already haven’t done so it would be a profitable idea to attend the auction and get the feel of how the auction works. Also you should attend a class on foreclosures to learn the process and understand the risks that are associated with the process. Sometimes local Title Companies will host these seminars with a guest speaker. At the auction you will need to have a cashier’s check from a bank if you are going to narrate on any property.

The advantages of buying these properties is that you can buy them at a lower price. For example lets say there is a property with a fair market value of $500,000. Let’s say the owner owes $350,000 on the 1st mortgage and the 1st mortgage lender is foreclosing on the property. Let’s say it sells for $375,000 at the auction. That means there is 25% equity in the property. If you had purchased that property you could retain it or sell it. There could be costs involved with selling and sometimes you may have to evict the occupants and fix up the property but if done right one could get a 10% or higher return on their investment.

Before bidding you should do all your homework. It is very vital that you check all the liens that are against the property. If you are bidding on a property where the senior trust deed holder is foreclosing that means the junior trust deeds will be wiped out unless the property should happen to sell for more than what the total liens that are owed. There are other liens that may take priority like state tax liens. These will be inherited with the property which means you have to pay. There are also times that a property, which has no access such as a lot, may be auctioned or a property where you are not allowed to build. It would be good to contact the city or county to inquire about any issues which may affect the usage of the property.

Tips On Buying Homes With No Money Down – Free Tax Foreclosure Houses

09 October, 2010

The universally accepted fact known by every normal salary-earner like you and me is that rent is a sunk cost and a home builds equity. The mortgage payment on a home is worth the investment. There are many sources in the market which are ready to offer you home loans that include mortgage banking companies, commercial banks, community banks, credit unions, mortgage brokers, and other financial institutions. Other than this there are many Government programs for home loans like the federal programs, state programs, city and county programs, Freddie Mac and Fannie Mae and many more. But the sizable dive into home owning stays a dream for most of us because of the danger to afford a down payment of 5-20 percent of the cost of the house. We are all aware of how long it takes to establish so remarkable from our dream vacation trips and our wives’ little shopping sprees.

Most of the potential precise estate buyers never turn into real buyers due to this problem. But in reality there are many ways in which you can either minimize or even eliminate the down payment on a house. To name a few of them, VA loans, Owner financing, Lease or purchase, House trading, Job-related federal programs and State and Local government programs have been introduced to help you wade out of this situation.

VA loans, better known, as the Veterans Affairs loans are schemes established to provide home loans with no down money through the Department of Veterans Affairs. All the currently engaged as well as the retired members of the military service, veterans, POW’s and MIA’s, their unmarried widows can be benefited from this loan structure. Some others who fit in this category are members of Selected Reserves or National Guard with a standing job of six years, WW II service from the merchant marines, coast guards and the like. However this loan structure the precondition that the eligible person can use this loan to posses a single house, which should be the prime position of the member himself. It cannot be used as a rented home or a vacation home.

Owner financing or Lease-Purchase is yet another option. We stare that as there are quite a few unsold houses in the market, where the sellers get impatient to sell their houses at the earliest. Therefore, they are willing to assist the buyers. They ask for no money down. Moreover these petty sellers are over burdened with the exuberant competition with builders who fund down payments on their new homes. In such situations the fearful sellers win into agreements for lease-purchase or owner-financing plans. These also have the benefit of no down payments. Herein the buyer should be cautious in making some verification to find out if the program turns out to be good or bad.

Some of the points to be kept in mind before making any agreements are –

– All accurate transactions should be prepared on a standard right form.

– These legal forms can be obtained from any major office supply stores.

– An experienced Attorney should draft all owner-financing contracts.

– For take agreements the buyer gets into a monthly payment arrangement with the seller for an amount that is more than the monthly rent he would receive.

– For sale of the house a portion of the additional money can be returned to the buyer and used as a down payment.

– If the buyer is unwilling to buy the house, the additional money is forfeited.

– There would be no tax deductions for the interest of the house payments.

– If the seller goes bankrupt or loses the home in foreclosure, the buyer is entitled to a huge loss and many more things have to be kept in mind.

House trading and lines of credit is yet another option for avoiding money down on a house. The professional real estate investor gets into no money down investment by trading one property for another. Exchanging a large property for several small rental properties carries on trading.

One more method called the HUD is a very feasible opinion by The Office of Housing and Urban Development. It finances first time homeowners. This program is exclusively designed for all the low-income families who would like to invest in a house for the first time. This idea is provided with the benefits to be free from a significant down payment and closing fees.

Another program called the $10000 down payment gift program is an opportunity for all homebuyers. A gift down payment program allows up to $10,000 or 5% of the purchase price, whichever is lower. This amount is never repaid and these are treated as gifts. Any homebuyer is eligible for this conception with no income limits. The home purchasers can go into this scheme and they need not be first-time homebuyers too. The houses that advance under this category need not be pre owned; even a newly constructed house is included in this program. These gift funds can be further used on any FHA or HUD loan for the down payment. The HUD loans are based on need but not the FHA loans.

The job related federal programs are a boon for all the local farmers and the police personnel. In this scheme those people with miniature income and living in rural areas are eligible to posses their home for no down money. The Rural Economic and Community Development Administration offer farmers home loans with no down money. Moreover their monthly payments may be subsidized and the interest can be as low as one percent. Further the police could be attracted to stay in crime-affected areas by offering them federal programs to purchase houses in these areas for no down money.

If you are serene dreaming of making money in real estate or trying to posses a new house, then it is worth considering the options discussed here. You could resolve which suits your lifestyle best.