


 
  

|
All agents are NOT alike! Find out why we are top real estate experts. Call us: 970-690-4920.
|

Sign Up For Our eNewsletter, FREE! There are always important changes happening in the real estate market, locally and nationally. These changes can affect YOU. Find Out More > View All Offers >
|
Compare
three mortgages at one time. Download TripleCalc now. It's
free.
|
Rob Kittle & The Kittle Team
is one of The Top Selling Real Estate Experts Find Out More > |
|
|
|
CLICK HERE TO SEARCH FORECLOSURES
Foreclosures are at an all time high which translates into more opportunities for you to invest in real estate. Since foreclosures are increasing, this is the perfect time to jump into investing because there will be more and more lenders discounting properties.
Investors know foreclosured homes are the perfect place to put their discretionary income.
Why? The answer is simple.
The potential for a large return on investment is hugely favorable. When locating and purchasing house foreclosures, you are buying prime real estate at deeply discounted prices. The house foreclosure market is, unfortunately for some, booming today. However, experts predict the housing market will rebound no later than 2010. During this time, these house foreclosed properties will increase in value and build more equity. Your net worth will increase exponentially the longer you keep the property. When the market does rebound, you will likely profit nicely from the sale of your home.
Return to top 
Short Sales
So what is a short sale? A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount.
For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $290,000. You write an offer to the lender for $210,000, which is accepted as full payment for the loan. This is a short sale.
Why are they willing to take such a discount? Several reasons.
First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it.
Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all.
Foreclosures are at an all time high which translates into more opportunities for you to invest in real estate. Since foreclosures are increasing, this is the perfect time to jump into investing because there will be more and more lenders discounting properties. It is safe to say that most lenders will accept a short sale, however, you may come across one or two lenders who will not discount. If the numbers work out for the lender they will do it.
There are two stages within pre-foreclosure. The first stage being homeowners who are behind on payments and the second stage are those who are behind on payments with a notice of default. In order for this to work properly and for you to successfully get a short sale, you must find the homeowners who are in the second stage of pre-foreclosure or more than 3 payments behind on their mortgage. Once the notice of default has been recorded, banks become motivated, so you are more likely to get a discount. Until that time, very rarely will a bank ever discount a mortgage that soon. Why would they? The homeowners still have time to cure the loan and make up the back payments.
It does not matter what type of house or condition it's in, all mortgages can be discounted. The best properties to perform a short sale on are the houses that need lots of work and repairs because lenders will give you a bigger discount if they see they are "don't wanters". Properties that are over leveraged are also prime candidates. Most rookie investors who see a house over leveraged with an upside-down mortgage may think there is no hope for this property. On the other hand, this is a sweet deal to the savvy investor. Properties with large 2nd mortgages are also treated as gold because the 2nd mortgage is wiped out at the foreclosure auction. Lenders with a 2nd and 3rd mortgage position would rather have something than nothing.
Things to remember..... - Always get pre-approved before starting the process
- Since the banks are taking 75 - 90 days to approve any short sale, make sure your inspection contingencies are to start on the day bank approves the offer NOT when the seller signs.
- There are hundreds of potential short sale homes for you to consider. Most are good buys. You need to be prepared to wait 75 -90 days. Patience is a virtue.
- Realistically expect a minimum of 75 days to close. Some banks are taking longer and some are quicker. You just need to be patient.
- You ARE negotiating with the bank, NOT the seller.
- The Seller will need to sign off on your offer, then the offer and required documents from the seller will be presented to the bank. Return to top 
Real Estate Contracts >Sales Contracts
The purchase or sale of a home is one of the most complicated business transactions most people will be involved in during their lifetime. Whether the print is large or small, there is a lot of it! The purchase agreement covers not only the price of the property, but has many paragraphs governing the terms under which it will be conveyed to the new owners.
When you list your home for sale or when you begin your search for a new home, ask your real estate agent for a copy of the standard sales agreement. Familiarize yourself with the document ahead of time, and make certain you understand the responsibilities of both parties between the initial meeting of the minds and the closing date. You should be aware of all of the deadlines in the purchase agreement. Each contract is different, but there are usually time limits covering the structural contingency, the financing application, the loan commitment, and the closing.
You greatly increase the chances of a smooth transaction by being fully informed about the sales contract.
|
| Q |
Where is the world's largest bridge located?
|
| A |
Lake Pontchartrain Causeway at New Orleans, Louisiana is the world's largest bridge. It is almost 24 miles long. |
See More Real Estate Trivia > |
|

|
Kittle Team Keller Williams 2580 E. Harmony Road Ste 201 Fort Collins, CO 80525 970-690-4920 Fax: 970-377-3701 robkittle@NUMBER1EXPERT.com
As a leader and owner of the Colorado Home Specialists, Rob graduated with honors from the University of California in Santa Barbara with a B.S. in Hydrology and a B.A. in Environmental Sciences. After purchasing his first home in Fort Collins shortly after graduating, he was intrigued as to why there were so many students who were renting when could own a home and enjoy the benefits that home ownership provides. This passion led to a full time career in Real Estate where he initiated a first time home buyer program for the Colorado State University Students.
www.RobKittle.com is brought to you by
Rob Kittle & The Kittle Team NUMBER1EXPERT in real estate for
Fort Collins, Loveland and Windsor, Colorado, Foreclosures Read Rob Kittle & The Kittle Team's
Privacy Guarantee,
Terms of Service,
and
Free & Without Obligation Pledge
|
NUMBER1EXPERT®
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.
|