How Soon Should The Bid Price Be Available?

Things are happening at the trustees’ sales these days.  The most interesting change is the greater number of interested people who attend.  It makes you wonder what attracts them now.  Why are more and more people now bidding at the trustees’ sales–while the number of properties going to the foreclosing lender also is increasing?  What attracts them? There is no question that the number of properties offered for sale is increasing almost weekly.  It seems obvious then that more and more people are unable to keep their properties in spite of the effort by the government to alleviate the financial burdens that have plagued so many for so long.  But yet, the sheer volume of available properties can’t be the magnet that draws those who attend the sales.  Each buyer there is seeking available properties at a discount–that is a property available at a price significantly under the market price when the property is offered by the foreclosing lender at price at or near the amount due on the loan. As you know, the non-judicial foreclosure process in California starts with the recording of the Notice of Default which alerts the delinquent owner that the lender has not been paid as promised on the Promissory Note and will take action unless a specified amount is paid within a certain date,  This is followed by the recording and publishing of the Notice of Trustee’s Sale which informs the defaulted owner that the property will be sold at a public auction on a specified date unless further action is taken by that owner to stop the foreclosure. The trustee, who handles the foreclosure for the foreclosing lender, follows a procedure outlined in California Civil Code 2924.  This requires the trustee to record and publish the amount due the lender at the trustee’s sale.  Those who bid successfully at the sale in cash or cashier’s checks must exceed the amount shown on the Notice of Trustee’s Sale and will ultimately received title to the property.  So far, there is nothing different here than has not been happening at such sales for many years–but wait, there’s more! Unpaid lenders have to evaluate their options carefully when borrowers become unable or unwilling to continue making payments on the loan as agreed on the signed Promissory Note and Deed of Trust.  First of all, let’s agree that the lender will take those steps that are in the best long-term interests of that lender.  If the lender is convinced that initiating the non-judicial foreclosure process is the next logical step, the trustee will begin the steps outlined above. We know that the lender is permitted to foreclose on the amount due on the foreclosing loan–including unpaid principal, interest, late charges, penalties, and trustee’s fees and costs.  The lender cannot require the delinquent owner to pay more than the amount due, however that lender has the option to offer the property at the trustee’s sale for less than the amount.  Once again, the lender can be expected to do what is best in that lender’s interest. Most institutional lenders have concluded that simply foreclosing on the delinquent borrower can be a risky process for the lender even under the best of circumstances.  As a matter of fact, such lenders usually have a “Loss Mitigator” in their REO department whose job it is to minimize the costs of foreclosure for the lender if and when such a step becomes necessary. I have heard that lending institutions estimate that the total costs of foreclosure to the lender approach $45,000 to $65,000 from the acquisition of the property when no third party bid is received at the trustee’s sale to the ultimate completed sale of the property to a qualified buyer.  (Is this an urban legend?) If that is a true figure, it is easy to see why such lenders do not warmly welcome the addition of another foreclosed property to their swelling inventory of REO properties. One obvious way for the lender to sidestep such costs is to lower the amount due that lender to an amount that becomes attractive to the third party bidders who attend the trustees’ sales.  When the local residential market of available properties escalates and more properties are dumped into that market, almost no one becomes the winner at a foreclosure.  Yet, it is possible to see that getting the property off its books has to be a realistic goal for many lenders.  It is obvious that some lenders have come to that decision and are deciding to take that catastrophic step with an unhappy shrug. Each bidder at the trustees’ sales will periodically check with the trustee of the foreclosing property to see what changes have been made in the interim that will affect the buyer’s interest in the purchase of the property.  In order to minimize the volume of interrogations received by the trustee on any one sale, the final bid amount at which the property will be offered by the trustee on behalf of the lender normally is not given until 24 hours prior to the sale–and sometimes at a time even closer to the actual published or postponed sale date and time.  It is obvious that a larger number of potential bidders will attend the sale of the property if the sales price is substantially lowered at as early a time before the sale as possible–and not just a day or an hour before the actual auction of the property. This being true, it makes good sense to conclude that the foreclosing lender (and therefore the defaulted owner) benefits from the early disclosure of a substantially discounted offering price at the trustee’s sale–thus giving time for the potential bidders to gather sufficient funds with which to bid most competitively.  If the final opening bid chosen by the lender is to be substantially less than the amount due that lender, an early release of that bid amount will encourage more bidders to participate, and a higher property bid will be realized by the lender.  Isn’t it time to require lenders to make that critical decision at least 24 hours or more before the actual sale–and to make that minimum bid amount available to the public as quickly as possible? By Warren Racine

Warren will be presenting at FEC

on March 25- come out to network,

meet Warren and learn more.

These 3 sites offer different spins on the way that each one allows you to search their foreclosure database for leads and documents.

Here’s what they have in common

• Detailed property characteristics
• Comparable neighborhood sales
• Loan history
• Foreclosing loan information
• Tax assessment information
• Owner, trustee, and lender contact information
• Access to online auctions
• New property alerts sent via e-mail
• Foreclosure trends
• Extensive learning resources, tutorials, glossary, checklists and self help
• Member Services support via toll-free number or e-mail

In addition, RealtyTrac seems to offer a wider range of info on the following data

• Access to make an offer directly to lenders
• Resale Data
• Resale properties
• Foreclosure News Report subscription
• Access to For Sale by Owner listings
• List Your Properties FREE
• List your property for sale by owner FREE!
• Monthly RealtyTrends member newsletter

If Foreclosures are your niche- give both of these a glance, compare their free trials and see which one is a better fit for your business model.

Get a 7-Day FREE trial with RealtyTrac! Find a foreclosed property now!

and/or

Foreclosure.com also offers a Free 7 Day Trial for you to check out their service.

and/or perhaps HUD Foreclosed.com is for you

Homes from $20,000! Amazing Real Estate Deals!

What is a HUD Home?

HUD is a shorthand term for the U.S. Government’s Department of Housing and Urban Development. When someone with a HUD-insured mortgage cannot meet the payments, the lender forecloses on the home, HUD takes ownership of the home and pays the lender what is owed. HUD then sells the home as quickly as possible, often at a discounted price. HUD Homes are sold “as-is,” without warranty.

HUDForeclosed.com grants access to their website, where you can search their exclusive database of foreclosure listings, including homes as low as $10,000. You also get foreclosure research, neighborhood reports, credit reports, videos, blogs, forums and access to support.

If you’d like to catch a free glimpse of their services, check out the almost free trial- cost is $1.00 to view these Foreclosures in your area

Remember that it’s your responsibility to know the Foreclosure Laws in your particular State- so I’ve posted a link to the updated, state specific Foreclosure Law Summaries here for your convenience.

United States Foreclosure Law

—————————————————————————————

And….

If all of this sounds like Greek to you

Overwhelmed with Foreclosure Process?

The Mar 25th Event will be set up in such a way that we’ll be evaluating as though a FORECLOSURE PROPERTY IS TO BE SOLD TOMORROW AT A TRUSTEE’S SALE AND WE’RE DETERMINING HOW MUCH SHOULD WE BID?

Here’s some of what Warren will cover…

• Introduction to the research process on a property before the trustee’s sale
• Obtain a Notice of Trustee’s Sale (where to look and what to look for)
• Set up research form for chosen property
• Check county assessor’s office records (grant deed)
• Check county tax collector’s office records (real property tax delinquency)
• Examine all appropriate county documents at recorder’s office
• (grant deed, deeds of trust, notice of default, deed of full reconveyance, etc.) Review title and debt changes on research form
• Calculate total debt secured by property
• Find fair market value
• Calculate remaining equity in chosen property
• How much should we bid?

This will be an actual foreclosure sale. It’ll should be fun, educational and can be quite realistic!

to get to the RSVP Page and Bring all of your Questions!

Guess What?

It’s That Time Again…

Here’s a compiled list of important dates for you- bookmark this page for future reference

March 2010
March 1	Businesses – File information returns (Form 1099) for certain payments you made during 2009. These payments are described under February 1. There are different forms for different types of payments. Use a separate Form 1096 to summarize and transmit the forms for each type of payment. See the 2009 Instructions for Forms 1099, 1098, 5498, and W-2G for information on what payments are covered, how much the payment must be before a return is required, what form to use, and extensions of time to file. If you file Forms 1098, 1099, or W-2G electronically (not by magnetic media), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms will still be February 1.
	Payers of Gambling Winnings – File Form 1096, Annual Summary and transmittal of U.S. Information Returns, along with Copy A of all the Forms W-G2 you issued for 2009. If you file Forms W-G2 electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms remains February 1.
	Employers – File Form W-3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W-2 you issued for 2009. If you file Forms W-2 electronically (not by magnetic media), your due date for filing them with the SSA will be extended to March 31. The due date for giving the recipient these forms will still be February 1.
	Employers – with employees who work for tips. File Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31.
	Farmers and Fishermen – File your 2009 income tax return (Form 1040) and pay any tax due. However, you have until April 15 to file if you paid your 2009 estimated tax by January 15, 2010.
March 10	Employees who work for tips. – If you received $20 or more in tips during February, report them to your employer. You can use Form 4070.
March 15	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in February.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in February.
	Corporations – File a 2009 calendar year income tax return (Form 1120 or 1120-A) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe.
	S Corporations – File a 2009 calendar year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120S), Shareholder’s Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe.
	Electing large partnerships – Provide each partner with a copy of Schedule K-1 (Form 1065-B), Partner’s Share of Income (Loss) From an Electing Large Partnership. This due date is effective for the first March 15 following the close of the partnership’s tax year. The due date of March 15 applies even if the partnership requests an extension of time to file the Form 1065-B by filing Form 8736 or Form 8800.
	S corporation election – File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S corporation beginning with calendar year 2010. If Form 2553 is filed late, S treatment will begin with calendar year 2010.
March 31	Electronic filing of Forms 1098, 1099, and W-2G. File Forms 1098, 1099, or W-2G with the IRS. This due date applies only if you file electronically (not by magnetic media). Otherwise, see March 1. The due date for giving the recipient these forms will still be February 1. For information about filing Forms 1098, 1099, or W-2G electronically, see Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Magnetically or Electronically.
April 2010
April 12	Employees – who work for tips. If you received $20 or more in tips during March, report them to your employer. You can use Form 4070.
April 15	Individuals – File an income tax return for 2009 (Form 1040, 1040A, or 1040EZ) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or you can get an extension by phone if you pay part or all of your estimate of income tax due with a credit card. Then file Form 1040, 1040A, or 1040EZ by October 15.
	Household Employers – If you paid cash wages of $1,700 or more in 2009 to a household employee, file Schedule H (Form 1040) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2008 or 2009 to household employees. Also report any income tax you withheld for your household employees.
	Individuals – If you are not paying your 2010 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2010 estimated tax. Use Form 1040-ES.
	Partnerships – File a 2009 calendar year return (Form 1065). Provide each partner with a copy of Schedule K-1 (Form 1065), Partner’s Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return and provide Schedule K-1 or a substitute Schedule K-1, file Form 7004. Then file Form 1065 by October 15.
	Electing Large Partnerships – File a 2009 calendar year return (Form 1065-B). If you want an automatic 6-month extension of time to file the return, file Form 7004. Then file Form 1065-B by October 15. See March 15 for the due date for furnishing the Schedules K-1 to the partners.
	Corporations – Deposit the first installment of estimated income tax for 2010. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.
	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in March.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in March.
April 30	Employers – Social Security, Medicare, and withheld income tax. File form 941 for the first quarter of 2010. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until May 10 to file the return.
	Employers – Federal Unemployment Tax. Deposit the tax owed through March if more than $500.
May 2010
May 10	Employers – Social Security, Medicare, and withheld income tax. File form 941 for the first quarter of 2010. This due date applies only if you deposited the tax for the quarter in full and on time.
	Employees – who work for tips. If you received $20 or more in tips during April, report them to your employer. You can use Form 4070.
May 17	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in April.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in April.
June 2010
June 10	Employees – who work for tips. If you received $20 or more in tips during May, report them to your employer. You can use Form 4070.
June 15	Individuals – If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 and pay any tax, interest, and penalties due. Otherwise, see April 15. If you want additional time to file your return, file Form 4868 to obtain 4 additional months to file. Then file Form 1040 by October 15.   However, if you are a participant in a combat zone you may be able to further extend the filing deadline.
	Individuals – Make a payment of your 2010 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the second installment date for estimated tax in 2010.
	Corporations – Deposit the second installment of estimated income tax for 2010. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.
	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in May.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in May.
July 2010
July 12	Employees – who work for tips. If you received $20 or more in tips during June, report them to your employer. You can use Form 4070.
July 15	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in June.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in June.

Tax Refunds Fast from Express Tax Refund!

March 1	Businesses – File information returns (Form 1099) for certain payments you made during 2009. These payments are described under February 1. There are different forms for different types of payments. Use a separate Form 1096 to summarize and transmit the forms for each type of payment. See the 2009 Instructions for Forms 1099, 1098, 5498, and W-2G for information on what payments are covered, how much the payment must be before a return is required, what form to use, and extensions of time to file. If you file Forms 1098, 1099, or W-2G electronically (not by magnetic media), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms will still be February 1.
	Payers of Gambling Winnings – File Form 1096, Annual Summary and transmittal of U.S. Information Returns, along with Copy A of all the Forms W-G2 you issued for 2009. If you file Forms W-G2 electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms remains February 1.
	Employers – File Form W-3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W-2 you issued for 2009.If you file Forms W-2 electronically (not by magnetic media), your due date for filing them with the SSA will be extended to March 31. The due date for giving the recipient these forms will still be February 1.
	Employers – with employees who work for tips. File Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31.
	Farmers and Fishermen – File your 2009 income tax return (Form 1040) and pay any tax due. However, you have until April 15 to file if you paid your 2009 estimated tax by January 15, 2010.
March 10	Employees who work for tips. – If you received $20 or more in tips during February, report them to your employer. You can use Form 4070.
March 15	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in February.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in February.
	Corporations – File a 2009 calendar year income tax return (Form 1120 or 1120-A) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe.
	S Corporations – File a 2009 calendar year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120S), Shareholder’s Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe.
	Electing large partnerships – Provide each partner with a copy of Schedule K-1 (Form 1065-B), Partner’s Share of Income (Loss) From an Electing Large Partnership. This due date is effective for the first March 15 following the close of the partnership’s tax year. The due date of March 15 applies even if the partnership requests an extension of time to file the Form 1065-B by filing Form 8736 or Form 8800.
	S corporation election – File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S corporation beginning with calendar year 2010. If Form 2553 is filed late, S treatment will begin with calendar year 2010.
March 31	Electronic filing of Forms 1098, 1099, and W-2G. File Forms 1098, 1099, or W-2G with the IRS. This due date applies only if you file electronically (not by magnetic media). Otherwise, see March 1. The due date for giving the recipient these forms will still be February 1.For information about filing Forms 1098, 1099, or W-2G electronically, see Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Magnetically or Electronically.
April 2010
April 12	Employees – who work for tips. If you received $20 or more in tips during March, report them to your employer. You can use Form 4070.
April 15	Individuals – File an income tax return for 2009 (Form 1040, 1040A, or 1040EZ) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or you can get an extension by phone if you pay part or all of your estimate of income tax due with a credit card. Then file Form 1040, 1040A, or 1040EZ by October 15.
	Household Employers – If you paid cash wages of $1,700 or more in 2009 to a household employee, file Schedule H (Form 1040) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2008 or 2009 to household employees. Also report any income tax you withheld for your household employees.
	Individuals – If you are not paying your 2010 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2010 estimated tax. Use Form 1040-ES.
	Partnerships – File a 2009 calendar year return (Form 1065). Provide each partner with a copy of Schedule K-1 (Form 1065), Partner’s Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return and provide Schedule K-1 or a substitute Schedule K-1, file Form 7004. Then file Form 1065 by October 15.
	Electing Large Partnerships – File a 2009 calendar year return (Form 1065-B). If you want an automatic 6-month extension of time to file the return, file Form 7004. Then file Form 1065-B by October 15. See March 15 for the due date for furnishing the Schedules K-1 to the partners.
	Corporations – Deposit the first installment of estimated income tax for 2010. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.
	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in March.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in March.
April 30	Employers – Social Security, Medicare, and withheld income tax. File form 941 for the first quarter of 2010. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until May 10 to file the return.
	Employers – Federal Unemployment Tax. Deposit the tax owed through March if more than $500.
May 2010
May 10	Employers – Social Security, Medicare, and withheld income tax. File form 941 for the first quarter of 2010. This due date applies only if you deposited the tax for the quarter in full and on time.
	Employees – who work for tips. If you received $20 or more in tips during April, report them to your employer. You can use Form 4070.
May 17	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in April.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in April.
June 2010
June 10	Employees – who work for tips. If you received $20 or more in tips during May, report them to your employer. You can use Form 4070.
June 15	Individuals – If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 and pay any tax, interest, and penalties due. Otherwise, see April 15. If you want additional time to file your return, file Form 4868 to obtain 4 additional months to file. Then file Form 1040 by October 15. However, if you are a participant in a combat zone you may be able to further extend the filing deadline.
	Individuals – Make a payment of your 2010 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the second installment date for estimated tax in 2010.
	Corporations – Deposit the second installment of estimated income tax for 2010. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.
	Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in May.
	Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in May.

Get your tax refund today!

One of the hardest things for new Probate investors to do is to make the follow up phone call to the Personal Representative after the letter has been sent. Here are some easy steps to follow.

First of all, just think of it as a call to a soon to be friend. Just a little conversation between two folks who have something in common. They have a house they need to sell and you may have an interest in buying it. The word “may,” was used because after talking with some of the PR’s, you may NOT have any interest.

This is the beauty of this business. You get to pick and choose who you work with. People who show a lot of attitude, aggression, stubbornness and just downright negativity don’t make the cut. Sorry, bub, I don’t go there! Next!

So don’t look at the call as a “do or die” business call – just a friendly little chat.  All you are calling for is to see if they received your letter. Remember?

“Hi Mr. Personal Representative. This is Sue Chandler calling and I just wanted to make sure you received the letter I mailed to you last week.”

Nine times out of ten the response will be “What letter?”

“Oh, the letter about the house over on 125 River Road.”  ”Oh right! Yea, I got it. How much are you going to give me for the house?”

“Well, Mr. Personal Representative, I can’t really tell you until I can take a look at the inside of the house. Would you have some time later this week that I could take a look it or would next week be better?”

That’s it folks – end of story. You now have the complete script for the follow up call.

If the PR asks more questions, nine out of ten answers are, “Well, I really can’t say very much until I look at the inside of the house. Would this week be OK, or what time would fit your schedule better?”

Remember, you are telling the exact truth. You really cannot tell the PR much of anything as you have not inspected the house, right? So don’t make it any more complicated than that.

Now, one last comment.

Notice the opening sentence is about the letter. Not about the death of a loved one – not about a house – not about an offer – just about the letter. By focusing on the question, “Did you receive my letter?” you sidestep a ton of emotion. No need to offer condolences or to even discuss the death. That’s it.

By following these suggestions, you can get your appointment without a lot of grief.

Just keep it simple.

Ron Mead has been a Real Estate Investor for the past 30 years. He has specialized in Probate for the last 13 years and currently has the #1 rated probate real estate course on the internet. “31 Days to Profits in Probate Real Estate” is the most comprehensive system of its kind. Ron’s new DVD series, just released in September 2008, takes the instruction to another realm. No other real estate investment system takes you this deep into a real estate transaction. For your own blueprint on how to get your own probate real estate business up and running with little or no money, and to get a free report titled,

“Probate Real Estate: The Untapped Market,”

please visit http://BuyProbateProperty.com

Probate can be one of the most lucrative segments of the Real Estate investing market. There are many reasons for this and here are some of them.

1. MOTIVATED SELLERS.

Persons who have inherited Probate property want and need to sell them quickly. Many times money is needed to pay off existing debt, such as back taxes, so the heirs will be very interested in making a quick discounted sale. Also when there are multiple heirs involved, they need the money from the sale of the house so they can split it among themselves.

2. UNLIMITED INVENTORY

The inventory for Probate is HUGE. Many say its larger than foreclosures and it probably is. But whatever the number is, it’s almost unlimited and it replenishes itself everyday. You will never run out of potential leads.

3. NO COMPETITION

Very few folks know about Probate Real Estate, so there is almost no competition. While other investing strategies come and go, Probate has remained the same for the last 20 years. But because it involves a legal term, Probate, many potential investors have stayed away thinking it is too involved and complicated. That is simply not true. Once you discover how to do it, you will wonder why more are not using this easy to learn strategy.

4. HIDDEN TREASURES

Most houses are sold “AS IS,” meaning you get to keep the personal property that’s in the house, and sometimes the garage. So you can find little gems like furniture, appliances, artwork, cars, collections etc. This can be a great second source of income.

5. GROWING MARKET

As the baby boomers begin to pass on, the market of Probate homes will just continue to grow. This means the opportunity for making money in Probate will just get bigger and bigger over the next twenty years.

6. SIMPLE SYSTEM

Once you learn how to purchase Probate properties, you can use your system over and over again. Unlike other markets like foreclosure, you do not need to adapt to the procedures to each new deal. Just learn once and reuse forever.

Ron Mead, The Probate Guy, has been specializing in Probate Real Estate for the past 13 years. His #1 rated Probate Real Estate course, “31 Days to Profit in Probate Real Estate,” shows you how to tap into this lucrative and little known real estate market filled with “motivated sellers.” Subscribe to Ron’s free report, “Probate Real Estate: The Untapped Market” at http://www.BuyProbateProperty.com.

Buying residential properties at the trustee’s sale continues to be the major goal of many successful foreclosure buyers today and in the recent past.  Probably the most attractive reason for this continuing interest is the fact that properties can be sold by the lender through the trustee at the trustee’s sale solely for the amount of the unpaid debt due that lender with a minimum bid unrelated to the fair market value of the property.  In addition, debt recorded after the date of recording of the foreclosing loan secured by the property is eliminated after the sale.

Any debt recorded between the date of recording of the grant deed and the date of recording of the foreclosing loan remains with the property when purchased at the trustee’s sale.  Any debt recorded after the date of recording of the foreclosing loan is wiped out.  The wipe-out of junior debt can add significant equity to the property purchased at the sale.

Our goal continues to be to purchase a property at the trustee’s sale with as much equity as possible.  The equity we seek is defined by the current fair market value of the property minus the debt securing that property and costs of repair and resale of the property.  Uncovering actual fair market value is not difficult to obtain through the tools available to us today.  On the other hand, uncovering debt is a more complex process.  This means that our chosen property must be examined carefully for the debt securing that property before purchase.

As discussed earlier, we already made a major step forward at this point because the deed for the property owned by the defaulted owner was identified at the county recorder’s office to be a full-valued grant deed.  We found that the documentary transfer tax on the grant deed from the seller to the defaulted owner showed that the county had taxed on the “full value of the interest of the property conveyed”.  That means any debt in the seller’s name securing the property before the date of recording of that grant deed is eliminated, and all debt from the recording date of that grant deed to today’s date must be in the name of the defaulted owner.  Piece of cake!   The county recorder’s office organizes all recorded documents chronologically under the name of the owner and indexes each document with a document number and recording date for easy access.  Our next job, then, is to examine the images of those documents and report pertinent data sequentially for title changes and debt acquisition and release.

In some cases, the number of documents recorded under the defaulted owner’s name can appear overwhelming, so we are going to limit our search to those documents that only affect title and clearly define debt.  Unless the property appears to have a huge amount of equity, we prefer to choose a property owned by a defaulted owner with an uncommon name (we want less confusion of title and debt among people with identical names) and a person without an unusual number of liens, loans, and judgments recorded against that owner (we want to minimize the number of documents to research). On that basis, we probably can research title and equity on one property at the county recorder’s office in less than thirty minutes.

There are literally hundreds of kinds of documents recorded in the names of owners of real estate in this state, but we are going to limit our examination and reporting to those documents affecting the transfer of properties between owners and those documents that tell us who can and cannot add debt as title holders on the chosen property.  Of course, the primary goal is to examine all documents that affect debt securing that property.

It is probably best to group the documents to be examined.  There are recorded documents that hold our immediate attention and are always examined carefully.  Certainly documents affecting and changing ownership rights and obligations will be examined like grant deeds and inter-spousal transfers of title. We will examine all documents that apply debt to the property such as deeds of trust, mechanics liens, abstracts of judgment, state income tax liens, federal income tax liens, notices of assessment, etc., and documents affecting that debt like notices of default, notices of trustees’ sales, and rescissions of notices of default. Some documents which don’t directly add debt but affect how debt is handled like reconveyance deeds (which show evidence that trust deeds have been paid) and subordination agreements (which interchange priority of one loan and another loan) also must be carefully noted.

Each of the documents which affect the accumulation of debt is important.   Some of these recorded documents, however, can introduce uncertainty to the actual amount of debt securing the property and therefore would not be acceptable if recorded against our chosen property.  A good example would be the abstract of support judgment which does not show the amount due on that judgment.  Another is the lis pendens. “In current practice, a lis pendens is a written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it. The notice is usually filed in the county land records office. Recording a lis pendens against a piece of property alerts a potential purchaser or lender that the property’s title is in question, which makes the property less attractive to a buyer or lender. After the notice is filed, anyone who nevertheless purchases the land or property described in the notice takes subject to the ultimate decision of the lawsuit.” (Wikipedia)

Happily, a number of other documents commonly found in the documentation under a property owner’s name are of little interest to us and do not have to be recorded.  These include the assignment of a deed of trust, request for notice of default, and substitution of trustee.  These ubiquitous documents do not affect the amount of the debt secured by the property, and therefore are not added to our accumulated reporting of title and debt on the chosen property.

Interestingly, not all debt information is accessible at the county recorder’s office.  We must also check with the county tax collector to uncover real property taxes for the current and prior tax years and add such taxes to our accumulation of debt.  Such unpaid taxes can have a heavy effect upon the equity anticipated in the purchase of properties at the trustee’s sale.

In order to facilitate the gathering and reporting of accumulated debt, we usually use a unique form that lists data easily obtainable from the Notice of Trustee’s Sale at the top and then add the available data line by line below from the county sources which emphasize a) the title of the document, b) the grantor, c) the grantee, d) the document number, e) the date of recording of the document, and f) the amount of debt unique to that document.

Our goal, of course, is to summarize all recorded debt which would accompany the property if bought at the trustee’s sale.   From the previously uncovered fair market value of the property (with related costs of purchase and resale) and our accumulated estimate of debt, we are able to determine with some accuracy the residual equity prior to the purchase.

By Warren Racine

Warren will be at FEC on March 25th-

come out to ask questions, to network

and to have some fun.

Want to know exactly how to…
* find the lenders,
* find the investors,
* make the deal,
* collect a fat bounty

<<Check it out here>>

Spend 90 minutes – not months or even hours – and you’ll know how.
AND have all the tools and proven scripts you need.

If you’re new to the idea of investing in REO property, as is likely to be the case if you’re reading this article, you may still be wondering exactly what these properties you’ve heard so much about are and how exactly they’re a good value for the property investor. You might also want to know if this is a type of property investment which is suitable for novice investors. If these are the questions on your mind, then this article is for you. We’ll cover what a REO property is, how to invest in these properties in bulk and hopefully by the time we’ve finished, you’ll have a good idea of whether these investments are right for you.

So without any further delay, let’s get to the first question.

What Is REO Property?

In case you’re not familiar with the term, REO stands for Real Estate Owned. This is property which has reverted into the hands of a lender; this is almost invariably a bank, credit union or other financial institution following an unsuccessful attempt to sell the property at a foreclosure auction. The banks or lenders then attempt to sell these properties as quickly as possible, since as far as their ledgers are concerned, foreclosed property is a liability, not an asset. Of course, banks aren’t in the real estate business in the first place, so it’s in their best interests to rid themselves of this property.

OK, So What’s Bulk REO Property?

Larger financial institutions especially are often left with a large number of REO properties on their hands, especially now in the wake of the credit crunch and the waves of foreclosures which preceded it. Banks are eager to pass on these properties to buyers, often selling them for greatly discounted prices. Where the idea of bulk property comes into the picture is when real estate brokers and investors will make offers to these institutions to purchase several properties at once for an even lower price.

Why Is Bulk REO Property A Good Investment?

Since the banks need to get rid of these bad investments to get them off of their books and since the housing market is still somewhat soft, there are some excellent values to be had for the forward looking investor or investors who are interested in making a rental income off of these bulk REO properties. Of course, given the very low prices at which these properties can be purchased in bulk, investors can still make a tidy sum by selling these homes even as-is; many REO properties tend to be in need of a little fixing up, but at their price they’re still most often a great bargain.

Are Bulk REOs Something Which Newcomers To Property Investment Should Involve Themselves With?

The answer I usually give to this question (which I’m asked quite a bit) is no – unless these investors are looking to make money. Bulk REOs represent an incredible investment opportunity and there are quite a few novice real estate investors who are already making a substantial amount of money from these investments; and others who are holding on to these properties, waiting for market conditions to improve before selling for even larger profits. Whether you’re an old hand at real estate or you’ve never purchased an investment property before, bulk REOs are something which you should at least consider investing in.

So How Do I Find These Bulk REO Properties For Sale?

That’s often the most challenging question, especially for people who aren’t experienced in the real estate market. There are several ways to go about it, most involving a lot of research. The important thing to remember about real estate investment, whether we’re talking about newly built commercial property or bulk REOs is this – it’s a numbers game. If there was one thing I want people to take away from this article it’s that.

You need to make lots of offers and deal with lots of different banks and other lenders, brokers or asset management personnel and do some investigating to identify properties which interest you. Especially if you’re new to property investments, you may be better off dealing with a reputable broker who has contacts with lender asset managers and is experienced in handling bulk REO purchases.

Just do a little research ahead of time to make sure you’re doing business with someone who’s going to make sure that you’re treated fairly in this transaction – other than that, I hope I’ve answered some of your questions about bulk REO investments and I wish you the best of luck and profitable investing!

More info click below

>>>Bulk REO Secrets

One out of every 136 home owners received a foreclosure notice in the last three months?

This figure would suggest that a brand new foreclosure filing takes place every 10 seconds across the entire country.

In addition to new foreclosure filings, bank repossessions jumped 21% from the second quarter to the third quarter.

“REO (bank owned) activity increased from the second quarter in all but two states and the District of Columbia indicating lenders may be starting to work through some of the pent-up foreclosure inventory caused by legislative delays, loan modification efforts and high volumes of
distressed properties,” said James Saccacio, CEO of RealtyTrac.

What does this mean for investors, agents and other real estate industry professionals?

It means opportunity.
A two-fold opportunity to help others
and to make a profit.

Real Estate Agents have a unique advantage
in the listing of this massive amount of REO’s
and we have the wonderful prospect of partnering
with them on some of these deals.

Where does this leave the banks?

The banks need real estate agents to help list and sell
short sales and bank REO foreclosures not to mention
completing Broker Price Opinions or also known as the
almighty BPO! We all know how important those
are…don’t we?

Niche Markets

There’s so much competition out there and some folks
are having a real tough time scrambling for a niche
and hitting  those much needed commissions.
This might set you apart from the rest
List REO’s and build another profit stream…?

www.bpotoolkit.com

Real estate agents across the country are making
$80,000 per year completing Broker Price Opinions
for the Banks and BPO Companies to move these properties.

Find out more about the types of attributes that banks are looking for to complete their broker price opinions.

You can check it out more here

www.bpotoolkit.com

Talk soon,

Karen

Every competitive edge helps.

Learn about ‘Probate Real Estate Investing’ and no one else will stand a chance. Take all of the business!

‘Probate’ is probably the most misunderstood and over-looked aspect of investing- in terms of uncovering motivated home sellers and as a result undoubtedly Huge profits. It’s possible that you have muttered the following words “forget that house, it’s in probate” or “that one’s a probate and they take too long” and/ or you may have heard another investor say something similar to this.

WRONG!

The general scarcity of awareness within the real estate investor industry makes this another niche strategy to having the ability to perpetually create some profitable deals where there is minimal competition. Education is required as a means to learning the exact system that must be followed to implement this technique but should not be considered an obstacle.

In ‘Probate‘ you can expect to analyze these opportunities from the same due diligence standpoint as you would certainly perform with other deals:

• Might the homeowner be motivated and determined to sell?
• Exactly what does the owner want with respect to price and terms?
• Existing title issues that may produce certain hurdles?
• Have I got the appropriate safeguards in place to pursue this deal?
• Precisely what is my exit strategy on this specific deal?
• What type of profit potential am I striving for?
• How should I proceed with the next step, rinse and repeat?

It’s paramount that a well rounded real estate education is essential in order that you will be able to make money during the course of market changes.

In the event you find yourself experiencing a scarcity of deals, there is always a choice. A choice to learn more and deliver the service that’s in demand at that particular time. Always keep yourself armed with knowledge by continuing to learn something new…you never know when your expertise will be required.

‘Probate’ real estate investing could be a new and logical resource to supply you with countless lucrative deals within today’s real estate conditions.

Let me caution you against over analyzing ‘Probate’ deals by convicting yourself that a law degree is necessary to getting involved with these types of properties, that’s a myth. Engaging in ‘Probate real estate investing’ is within realistic range of your abilities, once you have educated yourself.

Allow me to remind you that by choosing to target these types of deals, you’ll nevertheless be utilizing the various other resourceful real estate techniques such as wholesaling, seller financing, etc that you’ve also learned.

Check this out, the experienced ‘Probate real estate investors’ know that they’ve hit pay dirt with this motivated seller goldmine. They aren’t real happy to have their niche become so accessible and would prefer to have these deals to themselves while watching you scramble around on short sales. As long as you have your game plan in place and understand what you’re doing, maybe have a mentor- there’s an abundance of deals out there- go out and get yours!

Exactly why are probate sellers motivated to sell to an investor?

• Powerfully painful memories of years and relatives gone by creating an overwhelming desire to move on.
• Shortage of funds to keep up the mortgage payments, taxes and insurance.
• Absence of cash to fund needed repairs prior to selling or renting.
• A need for quick lump sum of cash for whatever reason.
• Imminent foreclosure proceedings on the horizon due to circumstances.

The ‘Probate‘ process observes certain state specific guidelines but they all come down to the necessity of satisfying the debtors claims and owners must liquidate these properties quickly, this is where you come in.

Every great real estate deal has to ultimately be structured as a win-win experience for everyone involved. It’s true that most everyone prefers to receive as much as possible for his or her property or home while you being an investor consistently requires a cheaper price or better terms in order for it to make sense.

It’s the exact same scenario in ‘Probate‘- while you will be making a profit by helping someone to liquidate their property, you’ll be charged with the duty of creating win-win circumstances that everyone will be content with.

Finally on the subject of ‘Probate’-by identifying yourself as a probate investor, you have  a significant advantage over your local competition and can quite possibly be  perceived as the expert in that arena, creating many, many opportunities to deal directly with sellers, to mentor others and to partner in referral arrangements.

Suppose that you are the only investor in your county that has studied and specialized in probate investing, the person that is undoubtedly aware of the deep discounts you can get for these deals and the HUGE profits accessible because of it?

• You would KNOW that these properties can be obtained at 50%-60% of market value.
• You would KNOW that this is a viable and profitable niche worth mastering.
• You would KNOW how to systematically keep your deals flowing in.
• You would KNOW how to stay ahead of your competition by wheeling and dealing in this untapped sector of the market.
• You would KNOW how to market your business and teach homeowners how to find YOU.

Should you choose to absolutely take your real estate investing enterprise to the height of its success, the height of its profit potential – I firmly recommend that you learn and become proficient as a ‘Probate Real Estate Investor.

I know you’ve heard the saying” you make your money when you buy real estate”- Buy at a heavy discount, lock in your profits from day one-

Get that competitive edge by getting involved with Probate Investing, get aggressive and get paid.

Stop Battling Thousands Over Foreclosures . . . Learn the Little Known Probate Strategy For Real Estate Investing