What About the Tenants Living In Your Foreclosure Property?

What is Foreclosure? Foreclosure is often referred to as a situation in which a homeowner is unable to pay up the loan or mortgage. Foreclosure is a legal process which makes the homeowner lose all rights to the home or property. It is also known as a real estate owned (REO) property.

If you are looking for a home, you can think about buying a foreclosed property. A Real Estate Owned (REO) property is owned by the money lender based on the fact that the previous home or property owner’s nonpayment on the loan. This is why a type of home like this is referred to as a bank-owned property or a foreclosure property.

In case the home you are living in, as a Tenant, has undergone Foreclosure, the following are some of the situations you may likely end up in.

  • The New Owner may allow you to keep on living in the house as a tenant

The new owner may be unwilling to start looking for new tenants since there is one readily available. On the off chance that the new property owner is not interested in searching for a new tenant or even selling the house, then be rest assure that you won’t be affected by the after-effects of the Foreclosure.

All you need to do is to change who you pay your rents to from your old landlord to the new homeowner. Try as much as possible to enquire about some proof of documentation once you must have been introduced to the new homeowner.

  • You may be asked to vacate the property

Some new home owner loves fresh starts. These type of individuals may ask you to vacate their property. It is totally their call since they now own the rights to the property. Although, you need not panic. You are still able to stay in the home for up to 60 days. This will give you enough time to find a new home to move to.

At times, there a couple of exceptional circumstances in which the new homeowner can barge you out before elapsing your 60 days period of notice. “Nuisance or waste” is a type of offense that if you commit, there is a likely possibility of getting evicted from the property. This consists of any major destruction or any other criminal related offenses.

  • Barter you out

At times, in a case that the new property owner does is not willing to wait for the 60 days period of notice to elapse, and will like you to vacate the property as soon as possible, you may be given a reasonable compensation or cash to make a deal. This looks just like the barter system.

At this point, everything depends on you. You can decide to accept the deal and vacate the property immediately, you can likewise decide to stay until your 60-days’ notice period elapses. In case you opt for the compensation and immediate vacation, try as much as possible to get it documented with both the owners’ signatures.

  • The latent owner

At times, the new property owner may decide to remain anonymous to you. Even though this hardly happens because of RCW 59.18.060 which clearly states that it is compulsory to inform the tenants concerning any sort of change or transition in the ownership of the property or home.

If a situation like this happens, it is now your responsibility to make thorough investigations about this hidden information. However, try as much as possible to keep an account of your rents so as not to become disorganized if the new landlord shows up anytime asking for the rents.

If you happen to be the tenant of a house undergoing foreclosure, it will be wise of you to learn about and understand your rights as a significant occupant of the property. You can likewise contact an attorney without postponing it further.

What Are 10 Year Notes & How Can You Buy Them?

A 10 Year Notes can be defined as a form of U.S. Treasury security which is being sold with the objective of financing federal debt. The treasury notes in United States mature in over one year, but they don’t go up to 10 years. Therefore, treasury notes differ from the treasury bills. In fact, treasury bills can be categorized as short term securities, which are associated with less than a year. You will be able to purchase treasury notes from the public securities market. Or else, it is possible to get them through federally operated auctions.

Several factors affect the prices where 10 Year Notes are being sold. The goals of the investor, resources of the investor, interest and yield rate coupon amount and maturity date are to name a few. The United States securities include both Treasury bills as well as Treasury notes. Both of them pay the interest to holders in every six months. In addition, face value of the security would be paid upon maturity. Treasury bonds mature after a time period of over 10 years. Moreover, they are being sold in bigger increments. For the financial institutions, the treasury bills will be short term debt instruments, which mature within one year from the date of issue. The investors purchase these treasury bills for a lower amount when compared to the face value. The paid interest would equal the difference that can be found in between the par value at maturity and purchase price.

The 10 Year Notes are being issues along with future maturity dates. It can be 2, 3, 5, 7 or even 10 years. Moreover, the 10 Year Notes are being issued as increments of $100. The interest rates and purchase prices of them are being determined at the audition. As a result, the price can be less than, more than or equal to the paramount or face value of the note. Since 10 Year Notes are a fixed rate security, the price depends on the interest rate and the yield to maturity ratio. For example, if the interest rate is less than the yield to maturity rate, the price would be more than par value.

The 10 Year Notes can be purchased from a bank or any other financial institution, a government security dealer or through private security brokers. Or else, it is possible to reach Treasury Direct and purchase 10 Year Notes. All the securities will be issued as per the book entry method. In this method, the entries would be recorded in a centralized ledger. All the entries can be conducted via commercial bank form along with your broker or the bank. In fact, this is a multi-tier system, which is associated with the Treasury Department. If you are looking forward to invest your money on 10 Year Notes, it is recommended to have a clear understanding about them in order to stay away from frustration in the future.

Buying a Short Sale? Avoid These Errors

Since the deep recession periods of 2007, short sales have been a way for buyers to escape foreclosures and relieve themselves of weighty mortgage balances.

Even though, buying a short sale is an opportunity, it might also be a burden when you have to spend too much on repairs. Short sale, foreclosure or HUD home buyers must understand that many of these properties might be in poor condition since the owner who owed mortgage debt may not be able to afford the house’s upkeep, hence there may be major repairs needed.

For example if you bought a home for $20,000 less than its fair market value and you had to make repairs worth $30,000. You lost $10,000 on your purchase.

So here are the common errors to avoid when buying a short sale home;

1. The Obvious Issues
Don’t ignore the obvious issues like the termite damaged floor and the pipe leak. The price may be attractive and even though the neighborhood has good schools and fine houses, ignoring the obvious signs may cost you a lot.

2. Skipping the Home Inspection
Buyers should be involved in the home inspection. A considerable part of an inspector’s job is education. Buyers should therefore inquire about, problems, potential problems and how much it would cost to fix them. Never underestimate how much renovation costs.

3. Ignoring Legal & Insurance Information
Have all renewals been approved? Is the house on a floodplain? In a short sale, the current owners of the house may not be 100% percent open about the condition of the house.

4. Making Assumptions
A short sale typically can take longer than a traditional home sale transaction, and in some cases a good deal longer. Occasionally it will take a bank time to come to a decision; in many cases, bank employees have a lot more things to do and a short sale application might sit in their to-do box for a long while. Never assume that this will be a quick transaction.

5. Falling in Love
A lot of agents agree that the issue with a lot of home buyers is letting their emotions control their logic. When buying, you need to think like an investor. How much could you earn monthly if you rented the property? How much will it cost to rehabilitate the house? Many buyers love a home when they buy it, but their emotions change later after having put $ 40,000 in repairs. Carefully examine a house and make decisions logically.

Why Many Boomerang Buyers Are Coming Back Into the Housing Market

Cities that were hardest hit by foreclosure are going to see an upsurge in demand by boomerang buyers, cities like Phoenix, DC, Detroit, Miami and Las Vegas.

This is based on assessment of foreclosure rates, affordability and demographic data by RealtyTrac. A boomerang buyer is one of the seven million homeowners who lost their home to foreclosure during the recession.

Basically, it takes seven years for foreclosure to disappear from a credit score. Many of those who got hit by recession in 2008 and 2009 are getting their slate wiped clean and reentering the market. Millions of consumers’ credit report will no longer reflect past mortgage problems.

Between June 2016 and June 2017, 2.5 million foreclosures, short sales and bankruptcies will fall off credit reports, according to facts by Experian. Many of these boomerang buyers have had enough time to work on boosting their credit. So Experian’s research further adds that 68% of boomerang buyers have high or near prime credit scores, which will improve their odds of getting good rates on the mortgage.

However, comparing short sales between 2007 to 2010, it can be concluded that short sales make it easier to bounce back into the market. Experian’s research reveal that 29% of short sale sellers during the recession have reentered the market and secured a new mortgage compared with just 12% of foreclosed home owners.

“With millions of borrowers potentially returning to the housing market, the trends we are seeing are promising for the mortgage applicant and the lender,” said Michele Raneri, vice president of analysis and new business development at Experian, in a news release.

In the coming years, boomerang borrowers will be a critical segment of the real estate market.

While many of these borrowers have gone through a tough time, it is inspiriting to see them taking control of their finances with better credit scores and better credit management.

Credit scores for these boomerang borrowers have improved, Experian observed. Individuals who applied for a mortgage loan subsequent a foreclosure have an average VantageScore credit rating of 680, representing a 20.8% rise from when they went through the foreclosure. And the median credit score for short sellers has risen to 706, an increase of 16.5% from the time of the short sale.

Top 5 Reasons You May Need To List Your Home

Real estate stats have always shown home sales rising during summer and spring but dwindling during winter and autumn months. If you’re still on the fence about listing your home before the winter months, you may need to act fast because of the following reasons:
  1. Equity advantage

Due to recent market upswings in the Virginia real estate market, your home already has more value. It’s time to take advantage of the gains in equity and list your home now.

  1. Your house is too small

You’ve grossly outgrown your present home — either you had two more kids or an older parent has shifted in. If you are in a home that’s too small for your immediate (and future) needs, this is the time to consider the jump to something somewhat larger. Sale prices are solid, and you could take advantage of current interest levels before they start climbing.

  1. Incredible shrinking family

Empty nesters need to consider downsizing. It’s not fun to have to manage a big house with all its daily responsibilities, cleaning and maintenance. Downsizing now will mean less stress and a better lifestyle.

  1. Interest rates could start a fire

Interest rates are going nowhere but up, so if you are wondering when could be the best time to get a good mortgage rate on a new home?, the answer is now. Rates are currently at historic lows and are not likely to go anywhere but north in the foreseeable future. Sell now, buy and get these low rates for the long term.

  1. Sell if you want to, don’t run after the market

Not ready? Don’t rush it. If you are dealing with job change, divorce, children, medical issues, marriage, etc., and you should sell your present home right now (or don’t have enough time or energy to really get your home in market-ready condition), don’t make an effort to chase the market, run at your own pace.

However, the market still determines your real estate experience. If prices are high, you buy high and you sell high. So, you still need to consider the market whenever you do decide to sell. The bottom line is, list your house when you need to, price it right and move on.


How To Sell a House in Foreclosure

For many people who find themselves in the ‘foreclosure’ situation, asking the right questions is crucial and one very important question to ask is, Can I sell my house in foreclosure? And if so, sellers in distress need to understand how to sell a house in foreclosure. As long as the bank hasn’t put up a for-sale or auction sign on your home, your house is still yours to do with as you please, no matter the equity loss. So it is possible to sell a house in foreclosure.

Hence, it is not a wise option to let your house go into foreclosure, which would take many months or even years to complete. So, how do you sell a house in foreclosure? Try a short sale. Lenders prefer a short sale to a foreclosure and would be eager to respond if you have an experienced agent by your side. Here are the steps to take:

  1. Meet with your lender to discuss the possibility of a short sale. Know that if you don’t default on your loan, your short sale request won’t be approved. Meet with a decision maker in your bank and let him/her know the reason why you need to do a short sale.
  2. Recruit an agent and a legal professional to assist with the sale. Although money is limited, using specialized help will profit you over time. Unless you have the funds to pay them in advance, discuss the opportunity of paying them from the sale proceeds.
  3. Set a price. You want a price as near the money you owe on the mortgage as possible, in addition to the agent’s percentage and other sales costs, but that may well not be possible in a fragile market. Speak to your agent about what you can expect realistically, then put the house on the market.
  4. Present a price to the lender. Present the top bid on the house to the lender for approval. This will be a better option than foreclosure because in a foreclosure auction, the top bid may be way below the value of the house but the lender accepts it anyway since he has to make a sale. Present a good price to the lender and then.
  5. Talk with your lender about a deficiency judgment. Be sure to clarify whether or not your lender will come after you for the deficiency on the short sale. Your real estate agent will help you negotiate this.