Foreclosures Help Information

Archive for June, 2008

Foreclosure Attorney Alabama

Redemption rights in foreclosure actually only come after the homeowner's property is lost through judicial sale or foreclosure. The owner can redeem by paying the lender the outstanding principal and interest due, plus the lender's costs in foreclosure. Once the home has been lost, some states allow the homeowner the right to "reclaim" his home for varying periods.

Because of the power the banks have for foreclosing, some states decided that that homeowners should likewise have the right to reclaim their home if their personal circumstances turnaround within a given time period. The homeowner will have to petition the court for a hearing to get his home back and show "proof of funds" that he is able to repurchase his home for what is owed plus all the associated costs of the foreclosure.

Proof of funds can either be cash in the bank or a pre-approved letter from another lender that is willing to fund his purchase. The new lender does not have to be a bank, but can be a "hard money lender" who will charge the homeowner a much higher interest rate and closing points and will only carry the loan for year or so.

These hard money lenders are sometimes called "predatory lenders". The amount they will lend is based on the "quick sale" value of the property. That gives them an equity cushion in case they are forced to again foreclosure upon the property to recoup their loan money.

The homeowner who lives in one of the states that has long redemption periods, can solicit local hard money lenders or real estate investors to exercise his redemptive right if there is equity in the home that can be retrieved by fixing the property and selling it in the retail market.

These are called Equity Agreements and are common in the real estate business. Equity Agreements stipulate who gets how much of the proceeds from the sale, who pays what expenses and who will be dong the work. Remember, if it isn't in writing in the Agreement, it isn't going to happen. If you have a question, ask an attorney before you sign anything.

Here are the states that have no redemption period: Arizona, Connecticut, Delaware, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Mississippi, Montana, New Hampshire, New York, Oklahoma, Pennsylvania, South Carolina, and Texas. While these sates have no redemption privileges, it is possible to bring legal action against the bank with regard to deficiencies in the foreclosure proceeding or mortgage irregularities. This is seldom worth the effort.

States that have one year redemptive rights include: Alabama, Idaho (either 6 or 12 months), Kansas, Kentucky, Maine, North Dakota (6 or 12 months), and Wisconsin (possibly to 12 months).

The other states vary greatly because of specific terms in the mortgage or deed of trust contracts but range from 10 days to 240 days. It is imperative that become familiar with your local foreclosure laws because they vary greatly from state to state, and the sale or auction practices vary from county to county.

About the Author:

Mark Walters is a third generation real estate investor and founder of
CreatingWealthClub.com
. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free.
Free guide to private money loans.
 
http://www.FindPrivateMoney.info

Article Source: ArticlesBase.com - Foreclosure Redemption Rights Explained

Foreclosure in Alabama - Notice of Foreclosure

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Bank Foreclosures Texas

The state of Texas is one of the states that were hit hardest by the mortgage crisis that the United States is currently facing.  Though the rate of Texas bank foreclosures is pegged right now at only 1.6%, the situation is that there are an estimated 10,000 Texas bank foreclosures going on every month.  This figure includes Houston bank foreclosures.  This means that for every 809 households in Texas, one is facing some sort of Texas bank foreclosures procedure.

Texas has one of the toughest procedures for foreclosure in the United Sates.  The whole process, which also applies to Houston bank foreclosures, can take only a little over a year to complete.  In some cases, the entire process takes even less than a year.  The process for foreclosures in Texas starts with the default, in which the lender would notify the borrower in writing that he or she needs to be updated with the mortgage payments.  The period for the default can last anywhere between a month and a year, depending on the decision of the lender.

If the borrower fails to make his or her mortgage payments updated during the default period, then the process for Texas bank foreclosures calls for the start of the acceleration period.  The acceleration period is a 30-day period wherein the lender would make a demand for the borrower to pay the amount owed in full plus interest.  This can probably be the toughest part of the borrower’s life if he or she really does not have the money to settle the mortgage payments.  The borrower would need to pay up or sell the house in order to avoid having to face Texas bank foreclosures proceedings.

Once the 30-day acceleration period ends, the foreclosure period begins.  In Texas, the foreclosure is only 21 days.  At this point, the borrower would have to vacate the premises of the property to avoid being literally thrown out on the curb.  That is really done in Texas; if the borrower does not leave the property at the end of the foreclosure period, the authorities would come to put his or her belongings out on the street and change the locks on the property.  Most borrowers who defaulted on their mortgage payments would rather leave than be subjected to this part of the proceedings for Texas or Houston bank foreclosures.

At this period, a notice of sale or auction would be put up by the lender or the lender’s trustee at the county courthouse 21 days before the date of the Houston bank foreclosure sale.  The same notice would be mailed to the borrower at the same time.  If the house is put up for auction, the lender or the trustee will award the ownership of the house to the highest bidder, with the title stripped of the junior liens on the property.  The winning bidder, however, will have to deal with any senior liens that the property carries.  If the winning bid happens to be more than what the borrower originally owed the lender, then the difference would be used to cover the junior liens on the property.

About the Author:

There are many great opportunities to own good homes that were subjected to Texas bank foreclosures proceedings. Our website has an extensive list of homes that have gone through Houston bank foreclosures that are now available at a reasonable price.

Article Source: ArticlesBase.com - The Process for Texas Bank Foreclosures is the Most Aggressive in the US

Texas Bank Foreclosures - TX

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Find Foreclosures In Chicago

Question: What's the competition for newbie investor in foreclosures for rehab?

I have access to working capital to fund a purchase of the mid price range family home category needing only cosmetic or minor repairs that I would mostly do myself before getting it back to market in say 180 days. Am I up against stiff competition from professional rehabbers wanting to buy foreclosures in Chicago?

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Answer: Your competition is not limited to professional rehabbers. There are also a lot of people who look at such foreclosures for their use as a personal residence.

Know your market values and do not overpay. Perform the due diligence to insure that title to anything upon which you bid will be 'clean' when you purchase. The naive and underinformed have been known to lose money on such ventures. 180 days is WAY too long to hold such a property for resale. Too many potential changes in the market over six months, plus you're going to kill your profit structure with taxes, insurance, and interest payments from such a lengthy holding period.

Chicago Foreclosures

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