Foreclosures Help Information

Archive for May, 2007

Illinois Mortgage Foreclosure Statute

There are over 80 million lawsuits filed every year in the United States. Landlords and real estate investors are especially susceptible to liability. Are you a target? Are your assets easy to locate? Is your real estate titled in your name?

You wouldn't walk around with a financial statement taped to your forehead would you? So why would you have your most valuable assets exposed to public scrutiny? Anyone can go down to the county courthouse or recorder's office and look up the owner of any property. Real estate records are now computerized, so all of your real estate holdings can be located at the touch of a button!

Any mortgages on your property will be recorded as well. Most recorded mortgages will state the amount of the original principal balance and the date the mortgage payments began. All one has to do is figure out the balance of your mortgage and subtract that amount from the market value of your house. Bingo! Now they know how much equity you have and hence whether suing you is worthwhile.

If a tenant or creditor is contemplating suing you, he will make an appointment with a lawyer. Unless he can afford an attorney by the hour ($150 and up), he will likely seek a contingency-fee lawyer. A contingency-fee lawyer does not charge by the hour; he charges a percentage of whatever he collects. Most contingency fee lawyers will not take a case unless there is something upon which to collect.

If you have no real estate in your name, then finding out your ownership interest will not be easy for a typical lawyer. It's not that lawyers are lazy. It's simply a matter of allocation of resources; lawyers focus on cases they can win and collect. If they don't find any assets in your name (and there is no other apparent deep pocket), they probably won't take the case. As you can see, appearing broke is the best lawsuit repellent money can buy!

There is another problem with owning real estate in your own name. If a judgment is obtained against you and filed in any county in which you own real estate, all real estate in that county will have a lien attached to it. You cannot sell or refinance any property in that county, since no title insurance company will guarantee a clean title. You're stuck until you pay off the lien.

Some people use a corporation or limited liability company to hold title to their real estate. While these entities will protect you, they will not protect your property.

If you own all of your properties in one corporation, a judgment against the corporation will create a lien on all property owned by the corporation. Furthermore, the directors and officers of a corporation are public record, so a corporation will not hide your ownership.

The solution for holding title to real estate is a land trust.A land trust is a revocable, living trust used to title ownership of real estate. Title to the property is held in the name of a trustee, who is forbidden to reveal the beneficial owner. The beneficial owner or "beneficiary" can be an individual, corporation or other entity for further protection.

Land trusts were first used in Illinois, hence the nickname, Illinois Land Trust. In nine states (AL, FL, GA, HI, IL, IN, ND and VA), land trusts are specifically recognized by statute. In most other states the validity of land trusts are supported by common law and general trust principles (land trusts are not recognized in TN & LA).

A land trust, if properly setup and implemented, will hide your name from the public records. No one will know who owns the property but you, your attorney and the trustee. If a judgment is entered against you, a lien will not automatically attach to the property, since title is not in your name.A transfer of realty into a land trust virtually no income tax consequences. A land trust is considered a revocable "grantor" trust under the Internal Revenue Code, so it does not require a separate tax identification number or income tax return.

Thus, you continue report the property for income tax purposes as though you still own it. Furthermore, a transfer of property into a land trust will not usually trigger the due on sale clause of your mortgage. A land trust will allow you to assume an FHA or VA loan without recourse. Anyone can assume an old FHA or VA loan without qualifying, but few investors realize that such an assumption is with recourse.

If the investor sells the property and the buyer assumes then defaults on the loan, the investor (and anyone else who previously assumed the loan) may be held liable. If a land trust is established to take title to the property and assume the loan, there is no recourse against the beneficiary.

Furthermore, the loan will not appear on the beneficiary's credit report as a liability. So What are your waiting for?

Get that Property Out of Your Name!

About the Author:

Richard Reichmann is internationally known as a millionaire maker. He's a leading consultant in real estate and internet marketing strategies that are profit proven.

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Source - Get That Property Out of Your Name Before Someone Else Does

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Bank Foreclosure Clean Out

Question: Renting condo.....received decree of foreclosure summons....?

I have been living in a small condo community since August 1.....for the last month I have been receiving multiple summons to court for foreclosure...it has me as "unknown occupant" along with the cond community and the actual property owner...WTF am i suppose 2 do...do i continue 2 pay rent...what if i pay rent and come home the next day and the bank put a lock on my door....then the condo community sent a letter 2day basically stating continue 2 pay rent...oh here is the big thing...the condo office is cleaned out...nothing is there...somebody please give me some direction...i'm so freakin confused!

These are all the docs I received from the courts and/or attorney's office
3 copies of court summons
complaint on note and to foreclosure mortgage
judgenent entry and decree of foreclosure
motion for default judgement
affidavit of attorney fees
copy of warranty deed and mortgage

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Answer: Ummm....Let me just be the first to say, SORRY! I hate to tell you this but it seems the company that owns you condo community has gone under adn cannot afford to pay their mortgage. it seems as if they have taken off and expect you to pay rent so that they cna try to pocket it. I would lawyer up. That away you may be able ot get something taken care of. BUt I would not pay your rent until someone tells you what is going on

Bank Forclosure Check This Mess Out 3

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Wayne County Tax Foreclosure List

The funds can be used to purchase, manage, maintain, demolish or repair and resell foreclosed and abandoned properties.  States and localities can use these funds to establish financing methods for the purchase and redevelopment of foreclosed houses.

Funds can also be used to offer financial assistance to low and middle income home buyers.  After purchase with these funds the homes must be used to assist qualifying families who are considered to be low-income and 25% of the funds must be used to help households with income at or below 50% of the area median.

Funding will be focused on areas that need it the most with need-calculations being determined by HUD based on the capacity of the lead applicant to execute projects, leverage potential and concentration of investment to achieve neighborhood stabilization.

Realtors who are knowledgeable of the different provisions in the Stimulus Package can make important contributions to their local community neighborhood stabilization program.  They can provide advice to home buyers about utilizing helpful programs that they may not be aware of.

Realtors can use their knowledge of the neighborhoods to stimulate sales in neighborhoods where there are a lot of foreclosures and vacant houses.  Unoccupied homes destroy property values; neighborhoods are much more desirable when there are no rundown properties suffering from lack of maintenance.

Other provisions of the Stimulus Plan include:

First Time Homebuyer Tax Credit

FHA, Fannie Mae and Freddie Mac Loan Limits

Commercial Real Estate

Rural Housing Services

Low Income Housing Grants

Tax Exempt Housing Bonds

Energy Efficient Housing Tax Credits and Grants

Transportation Investments

Broadband Deployment

Mark Goedert of Goedert Real Estate is the creator of http://www.under100000realestate.com/ a site designed to provide information, products and resources for real estate investors, REO agents, first-time home buyers and individuals who are selling their home.

About the Author:

Mark Goedert of Goedert Real Estate is the creator of http://www.under100000realestate.com/ a site designed to provide information, products and resources for real estate investors, REO agents, first-time home buyers and individuals who are selling their home.

Source - Neighborhood Stabilization Plans for Wayne County, Michigan

Debtors Prison Break in the Sewerhood

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