(My Original Blog Post: http://www.minnesotainvestors.com/blog/45-mn-properties-available-through-ronorrcom/)
45 properties available for sale in Minnesota, most available on a contract for deed, pass this list onto your social network. Receive this list by email http://www.ronorr.com
1xxx Galtier
For Sale
6 month C/D with $8000 down payment
Move-in condition
$82,000
3bed
2 1/2 bath
2car
1890 built
1800 sq ft
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
74xx 84th Ave
Brooklyn Park
$105K
3Bed
2bath
1car
built in 1980
1500 sq ft
great facility pools and grilling areas
$2500-$5000 Down
Contract for deed or Rent to Own
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
65xx 83rd Cord Bkl Park 2 Bad 1 Bath 1 car Grg
email ron@minnesotainvestors.com if interested broker
Available on a c/d or rent to own
C/D price is $75k
Prefer 4-6% down payment minimum
recommend meeting us in the office,
your phone # in the reply is recommended
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
78xx Noble Ave Brooklyn Park, MN
150K resale price- fully updated
30 year fixed 5% down payment 560 score
Please Call: 763-634-1766 for loan, housing and credit questions
email: ron@minnesotainvestors.com
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
free email list of properties at: http://www.ronorr.com
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
Address - Unity Ave N, Brklyn Park
For Sale no c/d
2/1 Twinhome
Sheriff sale - $ 74,447
2nd loan - none
End of redemption - August 25th
OK condition - needs carpet, paint, bath repair.
Property is vacant
Owners to get $2,650 at close.
I can Quit claim to your company for redemption.
$6500 assignment fee.
ARV = $120k
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
35xx Lyndale Avenue S. Uptown
Uptown
Bedrooms 2
Bathrooms 1 full, 0 partial
Sq Footage 1,000
Parking 1 dedicated
Pet Policy Cats, Dogs, Conditional
Deposit $990
Call:952-356-2204
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
19xx Colfax Ave S., Minneapolis Uptown
Bedrooms 2
Bathrooms 1 full, 0 partial
Sq Footage 1,200
Parking 2 dedicated
Pet Policy Cats, Dogs, Conditional
Deposit $1,075
Call:952-356-2204
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
2xx 33rd st w, Minneapolis, MN Uptown
Bedrooms 5
Bathrooms 2 full, 0 partial
Sq Footage 2,500
Parking 2 dedicated
Pet Policy Cats, Dogs deposit
Call:952-356-2204
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
41xx Russell Ave N Mpls (Victory neighborhood)
1925 Built
3bed
1bath
1car
1600+ sq ft
$1395/month plus Utilities
Full remodeled
Corner location
Sunlight into newly tiled kitchen
illuminated spacious living room
Finished basement entertainment room
Newly finished upstairs bedroom
New - carpet, paint, appliances, and H/W floors
Rent to Own Available
Rent to Own - Lease with Option to buy:
Minimum $5000 Down
1 year Term = $135,500 purchase price
2 year Term = $143,500 purchase price
3 year Term = $152,000 purchase price
Contract for Deed Available
NOT AVAILABLE FOR RENT ONLY
Agent-Dan 612-743-7279
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
For Rent in Burnsville
2 bed/2bath Executive styled Townhouse in $1195
Please call: Owner's Partner Roc 612-220-7227
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
For Rent in Belle Plaine
2 bed apartment (owner pays everything except electricity) $799
Please Call: Owner's Partner-Roc 612-220-7227
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
Edina
Rent to Own
Condo 1 bedroom
$799/month + $3900 option money
$119,900 for sale
remodeled, fitness area, golf area, centential lakes
washer and dryer, huge closets
Agent-Dan 612-743-7279 (list agent)
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
38xx Chicago
Contract for Deed
$159,900
email if you have 4%-7%+ down
Interest Rate 6.99%
Term 360 months (30 years)
Loan $152,985.00
Payment $1,016.79
Int only $891.14
Tax $171.17
2054
Ins $41.67
Total Pymt: $1,229.62
owner/agent
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
16xx DAYTON, ST. PAUL
$199,900
Contract for Deed
Email if you have 4%-7%+ Down
3 Bedrooms on 2nd Floor
Cool Upper Deck off of the Bedroom
Extra Large Main Bathroom
Recently Renovated Kitchen
Center Island in Kitchen
1/4 bath in Basement
Full Width front porch
Living Room with picture windows
Formal Dining Room
Short walk to Snelling bus and shopping
Fenced Yard
owner/agent
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
156xx 52nd Ct. NE St. Michael, MN
525K resale price- new furnace,
exterior paint/siding, new flooring inside.
(this appraised a few years ago at 800K,
it is 5,800 sf two story home on 2 acres.)
30 year fixed 5% down payment 560 score
Please Call: 763-634-1766 for loan, housing and credit questions
email: ron@minnesotainvestors.com
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
free email list of properties at: http://www.ronorr.com
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
4xx S 7th Street #2625, Minneapolis, MN 55415
$90,000 (For Sale)
0bed
1bath
550 sq ft
$255/month association fee
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
67xx Garfield Avenue , Richfield, MN 55423
$199,999 (For Sale)
Over $100k in updates last 5 years
2bed
1bath
1car
1930's built
1600+ sq ft
1/4 acre
Cul-de-sac
Lyndale East 68th street left on Garfield
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
Trappers Ridge Drive , Clear Lake, MN 55319
$177,500 (For Sale)
2bed
1bath
3car
2006 built
1600 sq ft
split-level
cul-de-sac
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
Buy package of 4plexes or 1 at a time:
Address Price Gross Rent Taxes Utilities
29xx Penn Ave N $259,000 $47,484 $3,194 $5,843
14xx 26th Ave N $259,000 $43,200 $2,714 $4,816
24xx Portland Ave S $327,000 $62,400 $3,411 $6,444
341xx Penn Ave N $259,000 $44,400 $3,647 $5,239
30xx Clinton Ave S $202,000 $45,120 $4,733 $6,310
33xx 4th Ave S $257,000 $52,800 $4,405 $6,000
17xx Fremont Ave N $259,000 $44,400 $3,069 $7,149
Details
29xx Penn Ave N: 3br 1ba units. 75% occupied, One unit available for show.
14xx 26th Ave N: 3br 1ba units. 100% occupied.
2xx Portland Ave S: 4br 2ba units. Rehab just finished.
341xx Penn Ave N: 2br 1ba units. Rehab just finished.
30xx Clinton Ave S: 3br 1ba units. 75% occupied. One unit available for show.
33xx 4th Ave S: 3br 1ba units. 100% occupied.
17xx Fremont Ave N: 2br 1ba units. 75% occupied. One unit available for show.
($211,000 discount if you buy all 7 4plexes)
Repairs needed:
Properties have been rehabbed
Minor items with vacant units to prepare for new tenants (paint, screens, etc.)
Need POF, serious investors only
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
35xx 6th Street N
$80,200 ($75,000 if cash)
3bed
1bath
1car
1020 sq ft
$850 monthly rents
$1427 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
38xx Aldrich Ave N
$109,400 ($75,000 if cash)
3bed
1bath
1car
1020 sq ft
$850 monthly rents
$1714 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
35xx 4th Street N
$90,600 ($75,000 if cash)
3bed
1bath
2car
1384 sq ft
$1100 monthly rents
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
34xx 4th Street N
$91,800 ($75,000 if cash)
3bed
1bath
1car
1108 sq ft
$900 monthly rent
$1641 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
35xx Girard Ave N
$107,000 ($75,000 if cash)
4bed
2bath
1car
1292 sq ft
$1200 monthly rents
$1922 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
38xx Colfax Ave N
$115,400 ($75,000 if cash)
3bed
1bath
2car
1239 sq ft
$979 monthly rent
$2078 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
41xx Sheridan Ave N
$105,900 ($75,000 if cash)
3bed
1bath
2car
1200 sq ft
$1100 monthly rents
$2143 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
36xx Queen Ave N
$87,800 ($75,000 if cash)
3bed
1bath
2car
1310 sq ft
$800 monthly rents
$1544 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
42xx Sheridan Ave N
$103,400 ($75,000 if cash)
3bed
2bath
2car
1212 sq ft
$1050 monthly rents
$1830 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
34xx 6th Street N
$105,800 ($75,000 if cash)
4bed
2bath
1car
1352 sq ft
$1900 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
36xx Aldrich Ave N
$119,000 ($75,000 if cash)
4bed
2bath
1car
1396 sq ft
$2420 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
37xx Girard Ave N
$109,000 ($75,000 if cash)
3bed
1bath
1car
1893 sq ft
$850 rents
$1977 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
40xx Sheridan Ave N
$104,400 ($75,000 if cash)
3bed
2bath
1car
1713 sq ft
$900 monthly rents
$2395 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
45xx Aldrich Ave N
$111,800 ($75,000 if cash)
2bed
1bath
no garage
1120 sq ft
$1200 monthly rents
$2522 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
34xx Emerson Ave N
$83,000 ($75,000 if cash)
2bed
2bath
1car
1130 sq ft
$1045 monthly rents
$1643 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
36xx Emerson Ave N
$98,200 ($75,000 if cash)
4bed
3bath
2car
1130 sq ft
$2246 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
Forward this email to a friend who may want to know about it
35xx Dupont Ave N
$101,000 ($75,000 if cash)
4bed
1bath
1car
1756 sq ft
$1100 monthly rents
$1752 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
15xx Hillside Ave N
$94,350 ($75,000 if cash)
4bed
2bath
no garage
1400 sq ft
$2321 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
19xx 24th Ave N
$91,400 ($75,000 if cash)
3bed
2bath
2car
1519 sq ft
$1599 property taxes
Available on Rent to Own or Contract for Deed
Contact info:
ron@minnesotainvestors.com
763-634-1766 for loan, housing and credit questions
Broker-MinnesotaInvestors.com, Inc.--pricing may not include buyer's agent comm.
Subscribe to my free email list for a list of 40+ properties: http://www.ronorr.com
Buy or Sell on a C/D with 5% down http://www.minnesotainvestors.com/5CD.pdf
3 EZ Steps: 1. Credit Analysis, 2. Find/Buy C/D home 3. Refinance later Call 763-634-1766
Thursday, July 22, 2010
Monday, July 12, 2010
Why Rent when a loan is this easy...
(My Original Blog Post: http://www.minnesotainvestors.com/blog/why-rent-when-a-loan-is-this-easy/)
Let me explain this, we just had someone go to a 668 score, up 160 pts in only 6 weeks.  $499 for credit repair, NO foreclosure for 3 years, NO chapter 7 for 2 years, NO chapter 13 for 1 year, and just give us a few months to get your score up, and we'll get you into any of up to 30+ grant, down payment assistance or 100% loan programs, so many too choose from, all that stands in the way for most people are the 1-3 year timeframe and the $499.  So why rent, when a home loan can easily be less money out of pocket than renting, save your money, use $499 for credit repair.
300+ Credit Score
$499 for a higher Credit Score
NO Foreclosure last 3 years
NO Chapter 7 last 2 years
NO Chapter 13 last 1 year
Call Me: 763-634-1766
ron@minnesotainvestors.com
Let me explain this, we just had someone go to a 668 score, up 160 pts in only 6 weeks.  $499 for credit repair, NO foreclosure for 3 years, NO chapter 7 for 2 years, NO chapter 13 for 1 year, and just give us a few months to get your score up, and we'll get you into any of up to 30+ grant, down payment assistance or 100% loan programs, so many too choose from, all that stands in the way for most people are the 1-3 year timeframe and the $499.  So why rent, when a home loan can easily be less money out of pocket than renting, save your money, use $499 for credit repair.
300+ Credit Score
$499 for a higher Credit Score
NO Foreclosure last 3 years
NO Chapter 7 last 2 years
NO Chapter 13 last 1 year
Call Me: 763-634-1766
ron@minnesotainvestors.com
Monday, June 28, 2010
38 MN properties Available For Rent and For Sale!
(My Original Blog Post: http://www.minnesotainvestors.com/blog/38-mn-properties-available-for-rent-and-for-sale/)
This list was started around 6/25/10. Here is the list of all 38+ properties in Minnesota that are available, some of these will be sold right away, and this list may be taken down within a couple of weeks, so it's best to get the lastest updates about properties at: http://www.ronorr.com by joining the email list for free.
For home loan or down payment assistance questions please call: 763-634-1766
Real Estate Broker MinnesotaInvestors.com, Inc.
Property specific questions should be emailed or call at the phone #'s below.
Fixer-Upper
$63,000 cash
14xx Selby Ave, St. Paul
St. Thomas Area
Needs about 20-25k worth of work.
This is non-mls and no code issues.
Can close quickly.
This is a money maker.
If you are interested please call or email after you drive by the property.
We are looking for only serious inquiries so please be ready to move quickly.
N. Mpls For Rent
Penn Ave.
$1450/month rent
Completely remodeled
4bedroom + 5th room with no egress window
1800 sq ft
currently non-mls
34xx 31st Ave s. Mpls For Sale
4bedroom
$79,999
Needs $40,000 in fixup
$160-170+ comps
4 bedroom
2 bath
recently remodeled in 2007 with new windows and siding
approximately 400 sq feet up and 1100 on main level
built in 1911
It is in a great S. Minneapolis neighborhood.
14 blocks from light rail, close to restaurants and bars on lake st. close to airport.
Charming curb appeal.
Need cash buyer, will likely sell quickly
email me ron@minnesotainvestors.com, Inc.
27xx 18th Ave South- 6unit 10Bed/6Bath $3300 Rent, Fully Rented, Could
use new roof, some foundational work, cosmetic.Can do it for 186K, CD
is a possibility but terms are not ironed out yet. Looking to do a
cash buyer first. Please ask for Ron 612.408.6744
29xx Queen Ave North-3Bed/1Bath, Needs 15K for Section 8. REO Asking 46K
Please ask for Ron 612.408.6744
25xx Lowry Ave North-3Bed/1Bath, Needs 20K for Section 8. Asking 46K
Please ask for Ron 612.408.6744
35xx Girard Ave North-3Bed/1Bath, Needs 10K for Section 8. Asking 55K
Please ask for Ron 612.408.6744
10xx Edgerton Street-3Bed/2Bath, Cat 2, Asking 33K
Please ask for Ron 612.408.6744
8xx Bidwell in West St. Paul - 3 BR, 2BA, Recently updated -
Granite and stainless. Will go on MLS shortly. Pre MLS price is $130K.
Please ask for Ron 612.408.6744
18xx Benson, St. Paul - 4 BR, 1BA,dutch colonial -
Recently updated - Granite and stainless. Will go on MLS shortly.
Pre MLS price $150K.
Please ask for Ron 612.408.6744
7xx Cook, on East side 2 BR, 1 BA
Clean and simple - good porch, but no garage. Ready
for tenants - (former code compliance) $56K
Please ask for Ron 612.408.6744
9xx Farrington - Central St. Paul -3BR,1BA,
Ready for tenants - (former code compliance) $70K
Please ask for Ron 612.408.6744
53xx Oliver Ave N, Brooklyn Center
5BR, 2BA - Soon to be finished, complete rehab, tile,
granite and stainless. Pre-MLS price is $135k
Please ask for Ron 612.408.6744
Wholesale rehab opportunity -
20xx Sherwood. Cat 2 Code compliance - needs about 40to 50K
in work. Neighborhood is great - 125K to 150K resale.
Non conforming duplex that we would turn back into a 3 bed
SF residence. 40K with a quick close (Before we start the work).
Please ask for Ron 612.408.6744
21xx Springside Drive - Currently
listed on MLS Nice Rambler in Great location - all new...
Travertine, granite, stainless appliances, hickory
flooring, cool porch. On at 167,900K.
Please ask for Ron 612.408.6744
36xx 5th Ave S - Currently listed
on MLS $130k, 3BR, 1BA, completely renovated
inside and out, tile in kitchen and bath, new siding and
front porch. Will consider adding a garage as well. Bring an offer!
Please ask for Ron 612.408.6744
69xx Colorado Ave N, Brooklyn Park,
will be completely renovated in about 3 weeks.
4BR,2BA,3GA,client is welcome to colors of paint, flooring, carpet
and some other things. Pre MLS price is $155k.
Please ask for Ron 612.408.6744
11xx 28th St NE Mpls, Currently listed on MLS -
But could let go for less and possible bonus
if quick close. Completely renovated inside and out, tile
in kitchen and bath, new siding, new carpet throughout.
On at $140k, will let go around $135k and will add granite
for quick close. Bring an offer!
Please ask for Ron 612.408.6744
46xx Brunswick Ave N, Crystal -
Non MLS, 3BR, 1BA, 1GA, completely renovated, SS
appliances, cherry floors w/ loft. Asking $130k negotiable!
Please ask for Ron 612.408.6744
5xx Chalupsky Ave NE, New Prague,Pre-Approved Shortsale,
4BR, 3BA, 3GA, newer construction home on cul-de-sac, new appliances,
quick close possible @$160k.
Please ask for Ron 612.408.6744
38xx Chicago
Contract for Deed Prefer 7-8% down payment
Interest Rate 6.99%
Term 360
Loan $152,985.00
Payment $1,016.79
Int only $891.14
Tax $171.17
2054
Ins $41.67
Total Pymt $1,229.62
Please email ron@minnesotainvestors.com if interested Real estate broker
owner/agent
50xx Penn
Contract for deed prefer 7-8% down payment
Interest Rate 6.99%
Term 360
Loan $115,785.00
Payment $769.54
Int only $674.45
Tax $172.00
Ins $41.67
Total Pymt $983.21
Please email ron@minnesotainvestors.com if interested Real estate broker
owner/agent
16xx DAYTON, ST. PAUL
$199,900
Contract for Deed
Prefer 7-8% down payment
3 Bedrooms on 2nd Floor
Cool Upper Deck off of the Bedroom
Extra Large Main Bathroom
Recently Renovated Kitchen
Center Island in Kitchen
1/4 bath in Basement
Full Width front porch
Living Room with picture windows
Formal Dining Room
Short walk to Snelling bus and shopping
Fenced Yard
Please email ron@minnesotainvestors.com if interested Real estate broker
owner/agent
Uptown (blocks from Calhoun)
6BR 2300 a month
3BR 1200 a month
2BR 990 a month
952-356-2204
Agent
2 bed/2bath Executive styled Townhouse in Burnsville $1195
Roc 612-220-7227
2 bed apartment in Belle plaine (owner pays everything except electricity) $799
Roc 612-220-7227
Dave 763-898-2053
St. Paul
$999/month for the lease
$999 deposit
Lower level of a duplex
Minnehaha
4bed
Owner pays:
water
trash
sewer
Tenant pays:
Gas
Electric
off-street parking
has water
cheapest 4 bedroom around
has basement
has washer and dryer
Dan 612-743-7279
Edina
Condo 1 bedroom
$799/month lease + $3900 option money for rent to own
$125,000 for sale
remodeled, fitness area, golf area, centential lakes
washer and dryer, huge closets
Agent
Dan 612-743-7279
Crystal
3 Bedroom
1 Bath
1 Garage
1200 sq ft.
Rent to Own, Lease/Option
$129,900 purchase price on 2 Year Term
Minimum $4,000 Down Payment
$1295/mo plus utilities
Agent
3xx Bates, St. Paul 4Br Single
family, Rented at $1150 Tenant pays all
utilities. $89k
Please email ron@minnesotainvestors.com if interested
Real estate broker
12xx Payne Ave 3Br Single
family Rented @ $975. Tenant pays all
utilities. $59k
Please email ron@minnesotainvestors.com if interested
Real estate broker
6xx Case Ave Duplex
(up/down) Each unit: 4 Bedrooms, Living
Room, Dining
Room, Kitchen, 2 full baths, Laundry
hook-ups. Rent at $1100 each
Tenant - gas & electric; Owner -
water $149,000
Please email ron@minnesotainvestors.com if interested
Real estate broker
7xx Fifth St Duplex
(up/down) Each unit: 4 bedrooms, Living
Room, Kitchen, Laundry hook-ups. Rent
at $975 and $1100 Separate gas & electric – tenant
paid; Water – owner $144,000 Ask about a possible contract for deed
Please email ron@minnesotainvestors.com if interested
Real estate broker
8xx York Single Family
5+ Bedrooms, Living Room, Dining
Room, Kitchen, 2 full Baths, Main Floor Laundry
Room. Rent $1250
Tenant pays all utilities. $139,000
Please email ron@minnesotainvestors.com if interested
Real estate broker
6xx Jackson Duplex (S xS)
Each unit: 3 Bedrooms; Living Room,
Dining Room,
Kitchen; Full Basement with laundry
hook-up. Rent at $975 each
Separate gas, electric & water –tenant
paid $139,000 Ask about a possible C/D
Please email ron@minnesotainvestors.com if interested
Real estate broker
6xx Jackson Single
Family 3 Bedroom, Living Room, Dining Room,
Den, Kitchen. Rent at $975 Tenant pays gas,
electric and water $69,000
Please email ron@minnesotainvestors.com if interested
Real estate broker
This list was started around 6/25/10. Here is the list of all 38+ properties in Minnesota that are available, some of these will be sold right away, and this list may be taken down within a couple of weeks, so it's best to get the lastest updates about properties at: http://www.ronorr.com by joining the email list for free.
For home loan or down payment assistance questions please call: 763-634-1766
Real Estate Broker MinnesotaInvestors.com, Inc.
Property specific questions should be emailed or call at the phone #'s below.
Fixer-Upper
$63,000 cash
14xx Selby Ave, St. Paul
St. Thomas Area
Needs about 20-25k worth of work.
This is non-mls and no code issues.
Can close quickly.
This is a money maker.
If you are interested please call or email after you drive by the property.
We are looking for only serious inquiries so please be ready to move quickly.
N. Mpls For Rent
Penn Ave.
$1450/month rent
Completely remodeled
4bedroom + 5th room with no egress window
1800 sq ft
currently non-mls
34xx 31st Ave s. Mpls For Sale
4bedroom
$79,999
Needs $40,000 in fixup
$160-170+ comps
4 bedroom
2 bath
recently remodeled in 2007 with new windows and siding
approximately 400 sq feet up and 1100 on main level
built in 1911
It is in a great S. Minneapolis neighborhood.
14 blocks from light rail, close to restaurants and bars on lake st. close to airport.
Charming curb appeal.
Need cash buyer, will likely sell quickly
email me ron@minnesotainvestors.com, Inc.
27xx 18th Ave South- 6unit 10Bed/6Bath $3300 Rent, Fully Rented, Could
use new roof, some foundational work, cosmetic.Can do it for 186K, CD
is a possibility but terms are not ironed out yet. Looking to do a
cash buyer first. Please ask for Ron 612.408.6744
29xx Queen Ave North-3Bed/1Bath, Needs 15K for Section 8. REO Asking 46K
Please ask for Ron 612.408.6744
25xx Lowry Ave North-3Bed/1Bath, Needs 20K for Section 8. Asking 46K
Please ask for Ron 612.408.6744
35xx Girard Ave North-3Bed/1Bath, Needs 10K for Section 8. Asking 55K
Please ask for Ron 612.408.6744
10xx Edgerton Street-3Bed/2Bath, Cat 2, Asking 33K
Please ask for Ron 612.408.6744
8xx Bidwell in West St. Paul - 3 BR, 2BA, Recently updated -
Granite and stainless. Will go on MLS shortly. Pre MLS price is $130K.
Please ask for Ron 612.408.6744
18xx Benson, St. Paul - 4 BR, 1BA,dutch colonial -
Recently updated - Granite and stainless. Will go on MLS shortly.
Pre MLS price $150K.
Please ask for Ron 612.408.6744
7xx Cook, on East side 2 BR, 1 BA
Clean and simple - good porch, but no garage. Ready
for tenants - (former code compliance) $56K
Please ask for Ron 612.408.6744
9xx Farrington - Central St. Paul -3BR,1BA,
Ready for tenants - (former code compliance) $70K
Please ask for Ron 612.408.6744
53xx Oliver Ave N, Brooklyn Center
5BR, 2BA - Soon to be finished, complete rehab, tile,
granite and stainless. Pre-MLS price is $135k
Please ask for Ron 612.408.6744
Wholesale rehab opportunity -
20xx Sherwood. Cat 2 Code compliance - needs about 40to 50K
in work. Neighborhood is great - 125K to 150K resale.
Non conforming duplex that we would turn back into a 3 bed
SF residence. 40K with a quick close (Before we start the work).
Please ask for Ron 612.408.6744
21xx Springside Drive - Currently
listed on MLS Nice Rambler in Great location - all new...
Travertine, granite, stainless appliances, hickory
flooring, cool porch. On at 167,900K.
Please ask for Ron 612.408.6744
36xx 5th Ave S - Currently listed
on MLS $130k, 3BR, 1BA, completely renovated
inside and out, tile in kitchen and bath, new siding and
front porch. Will consider adding a garage as well. Bring an offer!
Please ask for Ron 612.408.6744
69xx Colorado Ave N, Brooklyn Park,
will be completely renovated in about 3 weeks.
4BR,2BA,3GA,client is welcome to colors of paint, flooring, carpet
and some other things. Pre MLS price is $155k.
Please ask for Ron 612.408.6744
11xx 28th St NE Mpls, Currently listed on MLS -
But could let go for less and possible bonus
if quick close. Completely renovated inside and out, tile
in kitchen and bath, new siding, new carpet throughout.
On at $140k, will let go around $135k and will add granite
for quick close. Bring an offer!
Please ask for Ron 612.408.6744
46xx Brunswick Ave N, Crystal -
Non MLS, 3BR, 1BA, 1GA, completely renovated, SS
appliances, cherry floors w/ loft. Asking $130k negotiable!
Please ask for Ron 612.408.6744
5xx Chalupsky Ave NE, New Prague,Pre-Approved Shortsale,
4BR, 3BA, 3GA, newer construction home on cul-de-sac, new appliances,
quick close possible @$160k.
Please ask for Ron 612.408.6744
38xx Chicago
Contract for Deed Prefer 7-8% down payment
Interest Rate 6.99%
Term 360
Loan $152,985.00
Payment $1,016.79
Int only $891.14
Tax $171.17
2054
Ins $41.67
Total Pymt $1,229.62
Please email ron@minnesotainvestors.com if interested Real estate broker
owner/agent
50xx Penn
Contract for deed prefer 7-8% down payment
Interest Rate 6.99%
Term 360
Loan $115,785.00
Payment $769.54
Int only $674.45
Tax $172.00
Ins $41.67
Total Pymt $983.21
Please email ron@minnesotainvestors.com if interested Real estate broker
owner/agent
16xx DAYTON, ST. PAUL
$199,900
Contract for Deed
Prefer 7-8% down payment
3 Bedrooms on 2nd Floor
Cool Upper Deck off of the Bedroom
Extra Large Main Bathroom
Recently Renovated Kitchen
Center Island in Kitchen
1/4 bath in Basement
Full Width front porch
Living Room with picture windows
Formal Dining Room
Short walk to Snelling bus and shopping
Fenced Yard
Please email ron@minnesotainvestors.com if interested Real estate broker
owner/agent
Uptown (blocks from Calhoun)
6BR 2300 a month
3BR 1200 a month
2BR 990 a month
952-356-2204
Agent
2 bed/2bath Executive styled Townhouse in Burnsville $1195
Roc 612-220-7227
2 bed apartment in Belle plaine (owner pays everything except electricity) $799
Roc 612-220-7227
Dave 763-898-2053
St. Paul
$999/month for the lease
$999 deposit
Lower level of a duplex
Minnehaha
4bed
Owner pays:
water
trash
sewer
Tenant pays:
Gas
Electric
off-street parking
has water
cheapest 4 bedroom around
has basement
has washer and dryer
Dan 612-743-7279
Edina
Condo 1 bedroom
$799/month lease + $3900 option money for rent to own
$125,000 for sale
remodeled, fitness area, golf area, centential lakes
washer and dryer, huge closets
Agent
Dan 612-743-7279
Crystal
3 Bedroom
1 Bath
1 Garage
1200 sq ft.
Rent to Own, Lease/Option
$129,900 purchase price on 2 Year Term
Minimum $4,000 Down Payment
$1295/mo plus utilities
Agent
3xx Bates, St. Paul 4Br Single
family, Rented at $1150 Tenant pays all
utilities. $89k
Please email ron@minnesotainvestors.com if interested
Real estate broker
12xx Payne Ave 3Br Single
family Rented @ $975. Tenant pays all
utilities. $59k
Please email ron@minnesotainvestors.com if interested
Real estate broker
6xx Case Ave Duplex
(up/down) Each unit: 4 Bedrooms, Living
Room, Dining
Room, Kitchen, 2 full baths, Laundry
hook-ups. Rent at $1100 each
Tenant - gas & electric; Owner -
water $149,000
Please email ron@minnesotainvestors.com if interested
Real estate broker
7xx Fifth St Duplex
(up/down) Each unit: 4 bedrooms, Living
Room, Kitchen, Laundry hook-ups. Rent
at $975 and $1100 Separate gas & electric – tenant
paid; Water – owner $144,000 Ask about a possible contract for deed
Please email ron@minnesotainvestors.com if interested
Real estate broker
8xx York Single Family
5+ Bedrooms, Living Room, Dining
Room, Kitchen, 2 full Baths, Main Floor Laundry
Room. Rent $1250
Tenant pays all utilities. $139,000
Please email ron@minnesotainvestors.com if interested
Real estate broker
6xx Jackson Duplex (S xS)
Each unit: 3 Bedrooms; Living Room,
Dining Room,
Kitchen; Full Basement with laundry
hook-up. Rent at $975 each
Separate gas, electric & water –tenant
paid $139,000 Ask about a possible C/D
Please email ron@minnesotainvestors.com if interested
Real estate broker
6xx Jackson Single
Family 3 Bedroom, Living Room, Dining Room,
Den, Kitchen. Rent at $975 Tenant pays gas,
electric and water $69,000
Please email ron@minnesotainvestors.com if interested
Real estate broker
Wednesday, June 2, 2010
Real Estate Services Looking, Staying, Leaving
(My Original Blog Post: http://ping.fm/ar9Fk)
The following are situations to help you determine how to find your next property or work with your existing property. If you are looking to rent with first month's rent and a deposit. I know sometimes people want to try to do a rent-to-own if they have some option money and I understand that. The question is often asked if a contract-for-deed is possible and with a down payment of about $7500 or so it is a possibility.  I will tell you that based on people's situation I talk to from the past, it's likely that they have had a foreclosure or a bankruptcy in many cases.
Because of this I'd highly recommend a credit repair service because most things can be removed off of your credit and the truth is having a higher credit score is really what you are looking for later on to get financing on that rent to own or contract for deed property that the owner is financing today. Don't worry if your credit score is really low, even in the 400's, you'd be surprised what's possible these days. For example I just saw someone go from a 520 to 638 in 60+ days of credit repair. Of course that's a pretty good-case scenario, but the reason I bring it up is I run into so many people who think they have to wait 7 years to get a house again, and they just stop thinking of home ownership.
The truth is that you can get home-loan financing within 3 years from a foreclosure, short sale, deed-in-lieu or whatever may have happened to you. Some of you didn't have a foreclosure but rather a bankruptcy, well the way bankruptcy works on getting your next home loan is that you would need to wait 12 months into a Chapter 13 bankruptcy and 24 months from Chapter 7 discharge. I run into people a lot that think that staying may be a better option than actually getting another place, and if your credit is good then a refinance may be your best option. I do find that a lot of people owe a little too much on their home, so really depending on where they are as it relates to payments, if they are falling behind on payments they may want to try a short-refi which does have a principle reduction with qualifying for different loan terms.
If you get into foreclosure and you insist on staying you may end up needing assistance with your bank on a loan-modification. If you decide along the way that you need any help with home repairs whether you are staying or leaving, I know of some people that do home-repairs. If you decide you don't want to stay in the house, or that you just can't make it work with your bank, your option and decision may have you selling your house. In the case of selling, you will find yourself with many options, at first they may seem confusing, but let me go over them one by one. You will need to determine if you have equity in the house, if the payment will be affordable for the long-term, and if you are current or behind on payments. Those three factors are all very important in the decision making process. So if you have a little equity, and a reasonable payment for awhile, meaning no ARM's adjusting to be too much anytime soon, you may want to offer owner financing to a prospective tenant or buyer. You can rent-out your place there are renter placement services that can help and if you don't want to be a landlord than there are property management companies that, for a small monthly fee, can manage just about everything from the contractor calls, collecting rents, possibly even the accounting. Sometimes if you offer your house for sale on a rent-to-own, where you give the buyer a locked-in price, it's possible to get a better tenant and a little more money upfront. You could even sell on a contract-for-deed, which is selling the house, where that buyer would hope to refinance the house in as little as 12 months in many cases.
Before I had mentioned that it's important to know if you were upside down or don't have equity in the house. If you owe too much after you figure out both mortgages, new home values, the cost to list with an agent, and any vacancy and time left on the market, it may make sense to sell on a short sale. Selling on a short sale works best if you get started earlier in the process, and if you wait until there is less than 4 months left in redemption, it's going to be tough to get a short sale done due to the lack of time to negotiate and market the property. At the point when you are past the sheriff sale with a few months left, you have a couple of options. If your house sold for really cheap at the sheriff sale, meaning that there was a low bid, you could sell over the low-bid amount. If you find that it didn't have a low bid, you are over-financed and time has run out, there is an option even up until 3 days before the end of the redemption period. I know people that will pay you for your house and deed if you ever do decide to just walk-wway.
If you have equity in your house, you can always sell and list your house with a real estate agent, and I work with many that can help with that. Working on your credit right now or needing to get rid of your house due to your payment or lack of equity, could just be the result of the unfortunate situations that happened in your life. I do see them ever day, they are understandable and more common than you think. One of the top reasons is because of health issues and large medical bills, which has caused collections, charge-offs, or possibly even judgments in your name, or on your credit report, which may have got you for wage-garnishment in the past. Family situations often can creep up at unexpected times.
Think about all the family situations that can come at the wrong time. There is divorce, back child support, and sometimes there is an unfortunate death in the family, where someone may have unexpectedly inherited a house, and they have to go through probate or an estate sale, and attorney's bills will be quite large. Sometimes jobs don't work out in life like we'd hoped. A simple job transfer having us move out of state, a job loss ourselves, or a spouse's losing his/her job. Also unemployment isn't always easy to get and sometimes when you do get it, it runs out and ends. Anything can hold people back from really getting a place, tax liens from the past, repossessed cars, or just simply writing a few bad checks, or having worked with some tenants that didn't pay you. Whichever situation you find yourself in, trust that I have an affiliate that I work with every week that works with people in all situations. Please email me ron@minnesotainvestors.com or you can visit my website for more information http://www.ronorr.com. I am a real estate broker and have been around the business since 2002, so let me know how I can help.
Thanks,
Sincerely,
Ron Orr, Jr.
The following are situations to help you determine how to find your next property or work with your existing property. If you are looking to rent with first month's rent and a deposit. I know sometimes people want to try to do a rent-to-own if they have some option money and I understand that. The question is often asked if a contract-for-deed is possible and with a down payment of about $7500 or so it is a possibility.  I will tell you that based on people's situation I talk to from the past, it's likely that they have had a foreclosure or a bankruptcy in many cases.
Because of this I'd highly recommend a credit repair service because most things can be removed off of your credit and the truth is having a higher credit score is really what you are looking for later on to get financing on that rent to own or contract for deed property that the owner is financing today. Don't worry if your credit score is really low, even in the 400's, you'd be surprised what's possible these days. For example I just saw someone go from a 520 to 638 in 60+ days of credit repair. Of course that's a pretty good-case scenario, but the reason I bring it up is I run into so many people who think they have to wait 7 years to get a house again, and they just stop thinking of home ownership.
The truth is that you can get home-loan financing within 3 years from a foreclosure, short sale, deed-in-lieu or whatever may have happened to you. Some of you didn't have a foreclosure but rather a bankruptcy, well the way bankruptcy works on getting your next home loan is that you would need to wait 12 months into a Chapter 13 bankruptcy and 24 months from Chapter 7 discharge. I run into people a lot that think that staying may be a better option than actually getting another place, and if your credit is good then a refinance may be your best option. I do find that a lot of people owe a little too much on their home, so really depending on where they are as it relates to payments, if they are falling behind on payments they may want to try a short-refi which does have a principle reduction with qualifying for different loan terms.
If you get into foreclosure and you insist on staying you may end up needing assistance with your bank on a loan-modification. If you decide along the way that you need any help with home repairs whether you are staying or leaving, I know of some people that do home-repairs. If you decide you don't want to stay in the house, or that you just can't make it work with your bank, your option and decision may have you selling your house. In the case of selling, you will find yourself with many options, at first they may seem confusing, but let me go over them one by one. You will need to determine if you have equity in the house, if the payment will be affordable for the long-term, and if you are current or behind on payments. Those three factors are all very important in the decision making process. So if you have a little equity, and a reasonable payment for awhile, meaning no ARM's adjusting to be too much anytime soon, you may want to offer owner financing to a prospective tenant or buyer. You can rent-out your place there are renter placement services that can help and if you don't want to be a landlord than there are property management companies that, for a small monthly fee, can manage just about everything from the contractor calls, collecting rents, possibly even the accounting. Sometimes if you offer your house for sale on a rent-to-own, where you give the buyer a locked-in price, it's possible to get a better tenant and a little more money upfront. You could even sell on a contract-for-deed, which is selling the house, where that buyer would hope to refinance the house in as little as 12 months in many cases.
Before I had mentioned that it's important to know if you were upside down or don't have equity in the house. If you owe too much after you figure out both mortgages, new home values, the cost to list with an agent, and any vacancy and time left on the market, it may make sense to sell on a short sale. Selling on a short sale works best if you get started earlier in the process, and if you wait until there is less than 4 months left in redemption, it's going to be tough to get a short sale done due to the lack of time to negotiate and market the property. At the point when you are past the sheriff sale with a few months left, you have a couple of options. If your house sold for really cheap at the sheriff sale, meaning that there was a low bid, you could sell over the low-bid amount. If you find that it didn't have a low bid, you are over-financed and time has run out, there is an option even up until 3 days before the end of the redemption period. I know people that will pay you for your house and deed if you ever do decide to just walk-wway.
If you have equity in your house, you can always sell and list your house with a real estate agent, and I work with many that can help with that. Working on your credit right now or needing to get rid of your house due to your payment or lack of equity, could just be the result of the unfortunate situations that happened in your life. I do see them ever day, they are understandable and more common than you think. One of the top reasons is because of health issues and large medical bills, which has caused collections, charge-offs, or possibly even judgments in your name, or on your credit report, which may have got you for wage-garnishment in the past. Family situations often can creep up at unexpected times.
Think about all the family situations that can come at the wrong time. There is divorce, back child support, and sometimes there is an unfortunate death in the family, where someone may have unexpectedly inherited a house, and they have to go through probate or an estate sale, and attorney's bills will be quite large. Sometimes jobs don't work out in life like we'd hoped. A simple job transfer having us move out of state, a job loss ourselves, or a spouse's losing his/her job. Also unemployment isn't always easy to get and sometimes when you do get it, it runs out and ends. Anything can hold people back from really getting a place, tax liens from the past, repossessed cars, or just simply writing a few bad checks, or having worked with some tenants that didn't pay you. Whichever situation you find yourself in, trust that I have an affiliate that I work with every week that works with people in all situations. Please email me ron@minnesotainvestors.com or you can visit my website for more information http://www.ronorr.com. I am a real estate broker and have been around the business since 2002, so let me know how I can help.
Thanks,
Sincerely,
Ron Orr, Jr.
Wednesday, May 12, 2010
FROM BAD CREDIT TO GREAT CREDIT
(My Original Blog Post: http://www.minnesotainvestors.com/blog/from-bad-credit-to-great-credit/)
FROM BAD CREDIT TO GREAT CREDIT
DISCLAIMER:
My name is Ron Orr, (RonOrr.com) I have helped people in all areas of real estate since 2002. I am a Real Estate Broker with MinnesotaInvestors.com, Inc. Before answering questions below, I am not an attorney, a CPA, or an accountant. I suggest you seek legal, and/or a competent CPA's advice before making any decisions. What I am typing below is based on extensive research I have read. It's suggested that you do your own research on the topic of he information below, it's in no way to be used as: legal, tax or financial advice.
PART 1: BAD CREDIT
Before you decide to give your house back to the bank, walk away, go bankrupt, or fall behind on other payments, please read below as to the damaging effects all of this can have on your credit and life. The following on bad credit is written to try to help prevent this from happening to you. After you read all of this, I'll go into part 2, how to improve your credit score.
20-25 YEAR AFFECT OF BAD CREDIT ON YOUR LIFE:
YEAR 1: LOSING A HOUSE TO FORECLOSURE
Dealing with non-stop calls from your banks' collection department
Dealing with threatening debt letters from your bank and notice of default letters
Dealing with late fees and penalties, accruing daily
Dealing with 1st lender, 2nd lender or your association initiating a foreclosure action
Dealing with repeated unsuccessful attempts to get through to your bank by yourself
Dealing with an unreasonable and unsuccessful repayment plan
Dealing with giving the bank all of your private financial paperwork which may later be used for collection methods against you
Dealing with negotiating an unsuccessful loan modification
Dealing with getting calls from your bank at work, to your co-workers, or boss
Dealing with your family and kids getting calls from your bank at home
Dealing with bankers calling neighbor's or having them knock on your door to get a hold of you
Dealing with a banker knocking on your front door to serve your spouse or kids paperwork
Dealing with unpaid water bills and taxes, eventually becoming liens on the house
Dealing with day to day money stress, affecting your life and your families
Dealing with your house being publicly advertised in the newspaper for foreclosure
Dealing with someone to stop by and research the property for the bank for a BPO
Dealing with a sheriff sale deadline date
Dealing with a redemption period time limit and deadline
Dealing with possibly being evicted at the end of redemption
Dealing with possibly cleaning the house very well for your bank under "cash for keys"
Dealing with a possible eviction filed on your record, later making renting hard
Dealing with continued missed payments showing up on your credit report as rolling lates
Dealing with over aggressive REO agents visiting trying to get data before the bank owned listing
Dealing with the house listed with a foreclosure sign in the front yard of your neighorhood after the bank gets it back
Dealing with moving out into a cheaper place while in foreclosure, may actually hurt your "bankruptcy means" test
YEARS 2-5:
Receive collection calls from collection companies for years at work, home, during dinner and family time
The other lender(often the 2nd lender) may seek to collect on wage garnishment from the promissory note
Credit score takes a bigger dip with a foreclosure Vs. a short sale
Penalties can accrue for years on unpaid balances
High-interest can accrue for years on unpaid balances
A lender may not hire an attorney to find you for a couple of years
It may take years before you realize that the debt forces you into bankruptcy, starting a new time clock
YEARS 5-7:
Up to 5-7 years from foreclosure to get financing with lenders backed by Fannie Mae and Freddie Mac
Up to 6 years and 180 days for the creditor to file the judgment
Up to 7 years of employment background and credit checks with foreclosure shown on your credit report
Up to 7 years with foreclosure on your credit report limiting your job options or not getting certain jobs at all
While in Chapter 13 bankruptcy,repayment plan could show up as rolling late's for years on your credit report
Missing even 1 payment on a 5 year bankruptcy repayment plan possibly accrues all interest and penalties since day one.
Attorney's fees can accrue very high the entire time for every letter, or call for many years for unpaid collections
YEARS 7-10:
Foreclosure shown for 7 years on your credit report
Bankruptcy Chapter 7, 11 and 12 remain on file for 10 years from the date of filing
Bankruptcy Chapter 13 remains 7 years from the discharge date, and for a maximum of 10 years.
Tax Liens-State and Federal -if paid, remain on your credit report for 7 Years from the date of filing
Civil Judgments- 7 years from the filing date, or from the date of satisfaction.
Bankruptcy affects employment background and credit checks limiting you on certain jobs or getting a job
Bankruptcy affects receiving high-security clearance type jobs
Judgments can be collected upon for up to 10 years
Judgments are paid through bank levies, all types of property liens, or wage garnishment
YEARS 10-20:
Judgments can be renewed a 2nd time for another 10 years
When Judgment is renewed a 2nd time, you could be levied by your bank, receive liens, or wage garnishment
YEARS 20-25:
Through the next 10-year renewed judgment, you may still have money garnished from your weekly paycheck, taking years to pay back
Tax Liens- State and Federal- If not paid, they stay on your credit report indefinitely.
Child Support-Can stay on credit indefinitely
TIMELINE RECAP FOR CREDIT REPORT AND MONIES DUE:
Lifetime for unpaid state tax liens
Lifetime for unpaid federal tax liens
Lifetime for unpaid child support
Lifetime positive paid trade lines
20 Years from the end date of the 1st judgment followed by a 2nd filed renewed judgment
10 Years on a credit report for a closed positive account
10 Years for Bankruptcy Chapter 7, 11, 12 from the date of filing
10 Years maximum for Chapter 13
7 Years maximum since Chapter 13 discharge date
7 Years a foreclosure is on your credit report
7 Years as paid since date of last activity on collections and judgments
7 Years for paid state tax liens from the date of filing
7 Years for paid federal tax liens from the date of filing
7 Years for a deficiency judgment to remain on your credit report
7 Years for civil judgments from the filing date, or from the date of satisfaction
7 Years for child support payments from the date of closure
7 years of employment background, credit checks with foreclosure on your credit report
7 years of employment background, credit checks with bankruptcy on your credit report
7 years of not getting a high-security clearance job, due to bankruptcy and/or foreclosure
7 Years for max reported financing when lender is backed by Fannie Mae
7 Years for max reported financing when lender is backed by Freddie Mac
6 Years and 180 days a creditor can wait to file a judgment
5 Years a 5 year Chapter 13 repayment plan could show up as rolling late payments
5 Years accrued interest and penalties can accrue on Chapter 13 bankruptcy if you fail
5 Years for earliest reported financing when lender is backed by Fannie Mae
5 Years for earliest reported financing when lender is backed by Freddie Mac
3 Years for financing when lender is backed by FHA
2 Years for hard inquiries on your credit report
2 Years charge-offs and liens affect your score a little less
2 Years from Chapter 7 bankruptcy discharge date to get a FHA loan
1 Year into Chapter 13 bankruptcy to get a FHA loan
1 Year for financing when lender is backed by FHA and "extenuating circumstances"
3 TOP NEGATIVE FACTORS ON HOW BAD CREDIT AFFECTS YOUR DAILY LIFE:
Levies
Liens
Weekly Income Garnished
Levies-This is where the bank levies and takes money out of your bank account without notice. Depending on how much money you owe, this could happen for years. This could happen from any creditor that has a judgment against you, or if you owe any tax liens.
Liens-Liens can be placed in people's name for specific locations in the county records. Whenever you try to sell or pass title to someone else through houses or vehicles, liens can be placed on the items, where upon these liens need to be paid in order to pass clear title.
Weekly Income Garnished-Imagine having a credit secure a position to garnish up to 25% of your weekly paycheck. Depending on how much you owe, this money could be garnished for months or years from your paycheck. When you are hired to a job, remember the IRS receives your tax information.
What makes matters worse with the above is, not only will it feel like they are taking money out of your bank accounts, properties, or paychecks forever, but don't forget all of the penalties, high-interest, and very high attorney's fees that just keep accruing along the way for every letter sent, call made, and other items in the collection process..
Note: The bank levies bank accounts to which the same SS# or tax id is attached.
Note: MN has a $300,000 homestead exemption law at this time for your personal residence
OTHER NEGATIVE FACTORS ON HOW BAD CREDIT AFFECTS YOUR DAILY LIFE:
-It's very hard to apply for a home loan with bad credit
-Bad credit limit's your finance options, often giving you a loan with much higher interest rates
-You often won't get approved for a credit card
-Credit cards you are approved for will likely come with a very high interest rate
-Your auto insurance may be denied, or it may be a higher rate
-You may not be able to get a auto loan at all, forcing you to drive cars that often need repairs
-You may not be able to get a bank account
-You may not be able to open up investment accounts
-You may be denied a job when a credit check is done
-You may be forced to only get high-interest department store cards
-You may not be able to increase your credit line
-You may not qualify for a home equity line of credit in the future
-You may be forced to pre-pay for minutes on a cell phone instead of a contract
-You may not be able to get cable tv, or have to pay a very large deposit upfront
-You may have to pay a deposit upfront with your local utility or electric company
-You may not be able to get a college loan, or start a career
REMOVABLE ITEMS:
Note: Removed items off of a credit report will still show up on county public records
where a lender could do a search to find them prior to a loan approval.
Foreclosures
Short Sales
Bankruptcies
Judgments
Charge-Offs
Collections
Repossessions
Late Payments
Inquiries
NON-REMOVABLE ITEMS:
Sally Mae and DOE student loans
Child support payments
Tax liens
BEFORE YOU CAN GET A HOME LOAN:
Tax Liens-Must be on a repayment plan with a written verification letter from State, or the Federal Government
Back Child Support-Must be current, or being repaid through wage-garnishment
Judgments-Must be paid in full, prior to final approval, sourced or gift on funds
Collections-Will review each one individually, a determination is based on individual circumstances
Bad Checks-Must be paid in full prior to Pre-Approval for those on the credit report
Chapter 13 BANKRUPTCY:
There must be 12 consecutive months of on time payments on all accounts
(including utilities, cell phones,etc) from the filing of the chapter 13 bankruptcy.
Chapter 7 BANKRUPTCY:
There must be 24 months of perfect credit from the disposition of a Chapter 7 bankruptcy.
FORECLOSURE:
1 Year: Extenuating Circumstances for financing 1 year out of foreclosure
The FHA Underwriters have the ability to manually underwrite the file and get an "exception" if there are extenuating circumstances (i.e. Medical, Death, multiple job loss). Buyers would need to write out a very detailed explanation of exactly what happened, and will need to submit supporting docs (legal, medical, etc). Each File will be reviewed by Underwriting to determine if the circumstances warrant "Extenuating". If so, they will grant Pre-Approval.
*3 Years since last foreclosure if you don't qualify for above
*2-3 Years since short sale with Fannie Mae
LOAN PROGRAMS STARTING AT A 580+ CREDIT SCORE :
Alternate Credit Sources
-580+ credit Score
-12 month's into chapter 13
-2 years from chapter 7 discharge
-3 yrs from Sheriff's Sale
-12 month's Verifiable Rent (cancelled checks or Verification Form from management Company
-Insurance Bill - letter from Agent of 12 month's on time payments
-Utilities - letter from Company of 12 month's on time payments
580+ Mid Credit Score
580+ Mid Credit Score
580-619 Guidelines:
-12 month's Verifiable Rent Payments - On time
-3.50% of Purchase Price in Seasoned Funds (must be in your bank account, 60 days+)
-2 Open Trade Lines (active accounts) on your credit bureau reports
580+ Mid Credit Score* 60+ day seasoned funds, must have 3 open trade lines with a 12 month history
Federal Housing Administration Loans - OK to 580 scores
- Minimum 580 minimum middle FICO score required
- Great for first time homeowners
- 30 Year Fixed Rates Only
- Low, government sponsored, monthly Mortgage Insurance payments
- Owner Occupied Only
- 12 months verified rent history required
- Down payment MUST come from borrowers own funds
- Gifts allowed for all closing costs
- Compensating factors required for 580 scores
- NO declining market restrictions
PART 2: GREAT CREDIT
Credit Score % Breakdown:
35 percent - An individual's history of making credit payments on time
30 percent - Amounts owed vs. Credit Available
15 percent - The age and length of an individual's open credit lines
10 percent - The frequency with which someone applies for new credit
10 percent - Types of credit used
TOUGH CHOICE: 3 CHOICES TOWARD IMPROVEMENT
A. Manage your bills and pay them off
B. Negotiate collections/judgments with creditors
C. Test for Chapter 7, seek advice on filing for bankruptcy
REBUILD A POSITIVE CREDIT HISTORY: 3 OPTIONS
A. Add a primary user's positive trade line which increases utilized credit to available credit ratio
B. Deposit cash into a CD at banks, take a loan out on the CD, make payments on time, have reported
C. Deposit cash on new secured credit cards, make payments on time, have reported to credit bureaus
SECURED CREDIT CARD SOURCES:
Credit.com secured cards
Credit.com for bad credit
Credit.com pre-paid and debit
Credit.com cards for no credit
CreditCards.com pre-paid-debit
CreditCards.com for bad credit
Secured credit cards
CREDIT REPAIR:
Phone/Voicemail: 763-634-1766-These calls will be answered by a loan officer and/or a buyer's agent
ron@minnesotainvestors.com
NEVER BE LATE: One 30 day late payment could cause your score to drop 100-140 points
NEVER MAX OUT CREDIT CARDS:
(Goal: Balances under 20% preferred on all, then 30%, then 50%, then 70%)
GET SECURED CREDIT CARDS: Your on-time payments will create a positive payment history
DISTRIBUTE BALANCES EVENLY: distribute over all credit cards
(Goal: Balances under 20% preferred on all, then 30%, then 50%, then 70%)
CREDIT MIX: Establish various types of credit, mortgage, car loan, credit card account
DON'T CLOSE UNUSED CREDIT ACCOUNTS:
(This may be your long-term credit history which factors into your score)
INCREASE CREDIT LIMITS ON YOUR CREDIT CARDS:
(hIgher limits on your credit cards lowers your utilized/available credit ratio percentage)
LIMIT YOUR CREDIT INQUIRIES
(Each one can lower your credit score a few points)
DON'T OPEN TOO MANY ACCOUNTS WITHIN A SHORT PERIOD OF TIME
GET A CHECKING OR SAVINGS ACCOUNT
(Always keep a positive balance)
AVOID DEBT CONSOLIDATION PROGRAMS:
(This may continue to report as rolling late payments for years)
WATCH FOR CREDIT CARDS THAT REPORT YOUR HIGHEST BALANCE AS HIGH LIMIT
(Some credit card companies will report your highest balance to date, as the new credit limit, making you appear maxed out)
CREDIT BUREAUS MAY UPDATE BALANCES AT DIFFERENT TIMES OF THE MONTH THAN YOUR PAYMENT
ADD POSITIVE TRADE LINES TO YOUR CREDIT REPORT
HAVE A PROFESSIONAL NEGOTIATE CHARGE-OFFS, COLLECTIONS & JUDGMENTS AFTER A CLOSING
OPEN BUSINESS CREDIT, IT DOESN'T SHOW UP ON YOUR PERSONAL CREDIT REPORT UNLESS LATE
BANKRUPTCY INITIALLY HURTS YOUR CREDIT
CREDITORS ARE NOT REQUIRED TO REPORT TO THE CREDIT BUREAUS
HAVE PAID COLLECTIONS AND JUDGMENTS DELETED OFF VS. REPORTING AS 'PAID IN FULL'
BECOME AN AUTHORIZED USER ON SOMEONE ELSE'S ACCOUNT
DISSOLVE JOINT ACCOUNTS AFTER A DIVORCE
CONTACT ME:
Please answer these questions on your first Voicemail/Email before looking for a home
1. Credit score of everyone to be on the loan
2. Last Bankruptcy, Foreclosure, or Short Sale for everyone to be on the loan
3. How long of consistent work for everyone to be on the loan
4. Monthly payment you can afford
5. Total money available you have
6. Your desired move-in date
Phone: 763-634-1766-These calls will be answered by a loan officer and a buyer's agent
ron@minnesotainvestors.com
FROM BAD CREDIT TO GREAT CREDIT
DISCLAIMER:
My name is Ron Orr, (RonOrr.com) I have helped people in all areas of real estate since 2002. I am a Real Estate Broker with MinnesotaInvestors.com, Inc. Before answering questions below, I am not an attorney, a CPA, or an accountant. I suggest you seek legal, and/or a competent CPA's advice before making any decisions. What I am typing below is based on extensive research I have read. It's suggested that you do your own research on the topic of he information below, it's in no way to be used as: legal, tax or financial advice.
PART 1: BAD CREDIT
Before you decide to give your house back to the bank, walk away, go bankrupt, or fall behind on other payments, please read below as to the damaging effects all of this can have on your credit and life. The following on bad credit is written to try to help prevent this from happening to you. After you read all of this, I'll go into part 2, how to improve your credit score.
20-25 YEAR AFFECT OF BAD CREDIT ON YOUR LIFE:
YEAR 1: LOSING A HOUSE TO FORECLOSURE
Dealing with non-stop calls from your banks' collection department
Dealing with threatening debt letters from your bank and notice of default letters
Dealing with late fees and penalties, accruing daily
Dealing with 1st lender, 2nd lender or your association initiating a foreclosure action
Dealing with repeated unsuccessful attempts to get through to your bank by yourself
Dealing with an unreasonable and unsuccessful repayment plan
Dealing with giving the bank all of your private financial paperwork which may later be used for collection methods against you
Dealing with negotiating an unsuccessful loan modification
Dealing with getting calls from your bank at work, to your co-workers, or boss
Dealing with your family and kids getting calls from your bank at home
Dealing with bankers calling neighbor's or having them knock on your door to get a hold of you
Dealing with a banker knocking on your front door to serve your spouse or kids paperwork
Dealing with unpaid water bills and taxes, eventually becoming liens on the house
Dealing with day to day money stress, affecting your life and your families
Dealing with your house being publicly advertised in the newspaper for foreclosure
Dealing with someone to stop by and research the property for the bank for a BPO
Dealing with a sheriff sale deadline date
Dealing with a redemption period time limit and deadline
Dealing with possibly being evicted at the end of redemption
Dealing with possibly cleaning the house very well for your bank under "cash for keys"
Dealing with a possible eviction filed on your record, later making renting hard
Dealing with continued missed payments showing up on your credit report as rolling lates
Dealing with over aggressive REO agents visiting trying to get data before the bank owned listing
Dealing with the house listed with a foreclosure sign in the front yard of your neighorhood after the bank gets it back
Dealing with moving out into a cheaper place while in foreclosure, may actually hurt your "bankruptcy means" test
YEARS 2-5:
Receive collection calls from collection companies for years at work, home, during dinner and family time
The other lender(often the 2nd lender) may seek to collect on wage garnishment from the promissory note
Credit score takes a bigger dip with a foreclosure Vs. a short sale
Penalties can accrue for years on unpaid balances
High-interest can accrue for years on unpaid balances
A lender may not hire an attorney to find you for a couple of years
It may take years before you realize that the debt forces you into bankruptcy, starting a new time clock
YEARS 5-7:
Up to 5-7 years from foreclosure to get financing with lenders backed by Fannie Mae and Freddie Mac
Up to 6 years and 180 days for the creditor to file the judgment
Up to 7 years of employment background and credit checks with foreclosure shown on your credit report
Up to 7 years with foreclosure on your credit report limiting your job options or not getting certain jobs at all
While in Chapter 13 bankruptcy,repayment plan could show up as rolling late's for years on your credit report
Missing even 1 payment on a 5 year bankruptcy repayment plan possibly accrues all interest and penalties since day one.
Attorney's fees can accrue very high the entire time for every letter, or call for many years for unpaid collections
YEARS 7-10:
Foreclosure shown for 7 years on your credit report
Bankruptcy Chapter 7, 11 and 12 remain on file for 10 years from the date of filing
Bankruptcy Chapter 13 remains 7 years from the discharge date, and for a maximum of 10 years.
Tax Liens-State and Federal -if paid, remain on your credit report for 7 Years from the date of filing
Civil Judgments- 7 years from the filing date, or from the date of satisfaction.
Bankruptcy affects employment background and credit checks limiting you on certain jobs or getting a job
Bankruptcy affects receiving high-security clearance type jobs
Judgments can be collected upon for up to 10 years
Judgments are paid through bank levies, all types of property liens, or wage garnishment
YEARS 10-20:
Judgments can be renewed a 2nd time for another 10 years
When Judgment is renewed a 2nd time, you could be levied by your bank, receive liens, or wage garnishment
YEARS 20-25:
Through the next 10-year renewed judgment, you may still have money garnished from your weekly paycheck, taking years to pay back
Tax Liens- State and Federal- If not paid, they stay on your credit report indefinitely.
Child Support-Can stay on credit indefinitely
TIMELINE RECAP FOR CREDIT REPORT AND MONIES DUE:
Lifetime for unpaid state tax liens
Lifetime for unpaid federal tax liens
Lifetime for unpaid child support
Lifetime positive paid trade lines
20 Years from the end date of the 1st judgment followed by a 2nd filed renewed judgment
10 Years on a credit report for a closed positive account
10 Years for Bankruptcy Chapter 7, 11, 12 from the date of filing
10 Years maximum for Chapter 13
7 Years maximum since Chapter 13 discharge date
7 Years a foreclosure is on your credit report
7 Years as paid since date of last activity on collections and judgments
7 Years for paid state tax liens from the date of filing
7 Years for paid federal tax liens from the date of filing
7 Years for a deficiency judgment to remain on your credit report
7 Years for civil judgments from the filing date, or from the date of satisfaction
7 Years for child support payments from the date of closure
7 years of employment background, credit checks with foreclosure on your credit report
7 years of employment background, credit checks with bankruptcy on your credit report
7 years of not getting a high-security clearance job, due to bankruptcy and/or foreclosure
7 Years for max reported financing when lender is backed by Fannie Mae
7 Years for max reported financing when lender is backed by Freddie Mac
6 Years and 180 days a creditor can wait to file a judgment
5 Years a 5 year Chapter 13 repayment plan could show up as rolling late payments
5 Years accrued interest and penalties can accrue on Chapter 13 bankruptcy if you fail
5 Years for earliest reported financing when lender is backed by Fannie Mae
5 Years for earliest reported financing when lender is backed by Freddie Mac
3 Years for financing when lender is backed by FHA
2 Years for hard inquiries on your credit report
2 Years charge-offs and liens affect your score a little less
2 Years from Chapter 7 bankruptcy discharge date to get a FHA loan
1 Year into Chapter 13 bankruptcy to get a FHA loan
1 Year for financing when lender is backed by FHA and "extenuating circumstances"
3 TOP NEGATIVE FACTORS ON HOW BAD CREDIT AFFECTS YOUR DAILY LIFE:
Levies
Liens
Weekly Income Garnished
Levies-This is where the bank levies and takes money out of your bank account without notice. Depending on how much money you owe, this could happen for years. This could happen from any creditor that has a judgment against you, or if you owe any tax liens.
Liens-Liens can be placed in people's name for specific locations in the county records. Whenever you try to sell or pass title to someone else through houses or vehicles, liens can be placed on the items, where upon these liens need to be paid in order to pass clear title.
Weekly Income Garnished-Imagine having a credit secure a position to garnish up to 25% of your weekly paycheck. Depending on how much you owe, this money could be garnished for months or years from your paycheck. When you are hired to a job, remember the IRS receives your tax information.
What makes matters worse with the above is, not only will it feel like they are taking money out of your bank accounts, properties, or paychecks forever, but don't forget all of the penalties, high-interest, and very high attorney's fees that just keep accruing along the way for every letter sent, call made, and other items in the collection process..
Note: The bank levies bank accounts to which the same SS# or tax id is attached.
Note: MN has a $300,000 homestead exemption law at this time for your personal residence
OTHER NEGATIVE FACTORS ON HOW BAD CREDIT AFFECTS YOUR DAILY LIFE:
-It's very hard to apply for a home loan with bad credit
-Bad credit limit's your finance options, often giving you a loan with much higher interest rates
-You often won't get approved for a credit card
-Credit cards you are approved for will likely come with a very high interest rate
-Your auto insurance may be denied, or it may be a higher rate
-You may not be able to get a auto loan at all, forcing you to drive cars that often need repairs
-You may not be able to get a bank account
-You may not be able to open up investment accounts
-You may be denied a job when a credit check is done
-You may be forced to only get high-interest department store cards
-You may not be able to increase your credit line
-You may not qualify for a home equity line of credit in the future
-You may be forced to pre-pay for minutes on a cell phone instead of a contract
-You may not be able to get cable tv, or have to pay a very large deposit upfront
-You may have to pay a deposit upfront with your local utility or electric company
-You may not be able to get a college loan, or start a career
REMOVABLE ITEMS:
Note: Removed items off of a credit report will still show up on county public records
where a lender could do a search to find them prior to a loan approval.
Foreclosures
Short Sales
Bankruptcies
Judgments
Charge-Offs
Collections
Repossessions
Late Payments
Inquiries
NON-REMOVABLE ITEMS:
Sally Mae and DOE student loans
Child support payments
Tax liens
BEFORE YOU CAN GET A HOME LOAN:
Tax Liens-Must be on a repayment plan with a written verification letter from State, or the Federal Government
Back Child Support-Must be current, or being repaid through wage-garnishment
Judgments-Must be paid in full, prior to final approval, sourced or gift on funds
Collections-Will review each one individually, a determination is based on individual circumstances
Bad Checks-Must be paid in full prior to Pre-Approval for those on the credit report
Chapter 13 BANKRUPTCY:
There must be 12 consecutive months of on time payments on all accounts
(including utilities, cell phones,etc) from the filing of the chapter 13 bankruptcy.
Chapter 7 BANKRUPTCY:
There must be 24 months of perfect credit from the disposition of a Chapter 7 bankruptcy.
FORECLOSURE:
1 Year: Extenuating Circumstances for financing 1 year out of foreclosure
The FHA Underwriters have the ability to manually underwrite the file and get an "exception" if there are extenuating circumstances (i.e. Medical, Death, multiple job loss). Buyers would need to write out a very detailed explanation of exactly what happened, and will need to submit supporting docs (legal, medical, etc). Each File will be reviewed by Underwriting to determine if the circumstances warrant "Extenuating". If so, they will grant Pre-Approval.
*3 Years since last foreclosure if you don't qualify for above
*2-3 Years since short sale with Fannie Mae
LOAN PROGRAMS STARTING AT A 580+ CREDIT SCORE :
Alternate Credit Sources
-580+ credit Score
-12 month's into chapter 13
-2 years from chapter 7 discharge
-3 yrs from Sheriff's Sale
-12 month's Verifiable Rent (cancelled checks or Verification Form from management Company
-Insurance Bill - letter from Agent of 12 month's on time payments
-Utilities - letter from Company of 12 month's on time payments
580+ Mid Credit Score
580+ Mid Credit Score
580-619 Guidelines:
-12 month's Verifiable Rent Payments - On time
-3.50% of Purchase Price in Seasoned Funds (must be in your bank account, 60 days+)
-2 Open Trade Lines (active accounts) on your credit bureau reports
580+ Mid Credit Score* 60+ day seasoned funds, must have 3 open trade lines with a 12 month history
Federal Housing Administration Loans - OK to 580 scores
- Minimum 580 minimum middle FICO score required
- Great for first time homeowners
- 30 Year Fixed Rates Only
- Low, government sponsored, monthly Mortgage Insurance payments
- Owner Occupied Only
- 12 months verified rent history required
- Down payment MUST come from borrowers own funds
- Gifts allowed for all closing costs
- Compensating factors required for 580 scores
- NO declining market restrictions
PART 2: GREAT CREDIT
Credit Score % Breakdown:
35 percent - An individual's history of making credit payments on time
30 percent - Amounts owed vs. Credit Available
15 percent - The age and length of an individual's open credit lines
10 percent - The frequency with which someone applies for new credit
10 percent - Types of credit used
TOUGH CHOICE: 3 CHOICES TOWARD IMPROVEMENT
A. Manage your bills and pay them off
B. Negotiate collections/judgments with creditors
C. Test for Chapter 7, seek advice on filing for bankruptcy
REBUILD A POSITIVE CREDIT HISTORY: 3 OPTIONS
A. Add a primary user's positive trade line which increases utilized credit to available credit ratio
B. Deposit cash into a CD at banks, take a loan out on the CD, make payments on time, have reported
C. Deposit cash on new secured credit cards, make payments on time, have reported to credit bureaus
SECURED CREDIT CARD SOURCES:
Credit.com secured cards
Credit.com for bad credit
Credit.com pre-paid and debit
Credit.com cards for no credit
CreditCards.com pre-paid-debit
CreditCards.com for bad credit
Secured credit cards
CREDIT REPAIR:
Phone/Voicemail: 763-634-1766-These calls will be answered by a loan officer and/or a buyer's agent
ron@minnesotainvestors.com
NEVER BE LATE: One 30 day late payment could cause your score to drop 100-140 points
NEVER MAX OUT CREDIT CARDS:
(Goal: Balances under 20% preferred on all, then 30%, then 50%, then 70%)
GET SECURED CREDIT CARDS: Your on-time payments will create a positive payment history
DISTRIBUTE BALANCES EVENLY: distribute over all credit cards
(Goal: Balances under 20% preferred on all, then 30%, then 50%, then 70%)
CREDIT MIX: Establish various types of credit, mortgage, car loan, credit card account
DON'T CLOSE UNUSED CREDIT ACCOUNTS:
(This may be your long-term credit history which factors into your score)
INCREASE CREDIT LIMITS ON YOUR CREDIT CARDS:
(hIgher limits on your credit cards lowers your utilized/available credit ratio percentage)
LIMIT YOUR CREDIT INQUIRIES
(Each one can lower your credit score a few points)
DON'T OPEN TOO MANY ACCOUNTS WITHIN A SHORT PERIOD OF TIME
GET A CHECKING OR SAVINGS ACCOUNT
(Always keep a positive balance)
AVOID DEBT CONSOLIDATION PROGRAMS:
(This may continue to report as rolling late payments for years)
WATCH FOR CREDIT CARDS THAT REPORT YOUR HIGHEST BALANCE AS HIGH LIMIT
(Some credit card companies will report your highest balance to date, as the new credit limit, making you appear maxed out)
CREDIT BUREAUS MAY UPDATE BALANCES AT DIFFERENT TIMES OF THE MONTH THAN YOUR PAYMENT
ADD POSITIVE TRADE LINES TO YOUR CREDIT REPORT
HAVE A PROFESSIONAL NEGOTIATE CHARGE-OFFS, COLLECTIONS & JUDGMENTS AFTER A CLOSING
OPEN BUSINESS CREDIT, IT DOESN'T SHOW UP ON YOUR PERSONAL CREDIT REPORT UNLESS LATE
BANKRUPTCY INITIALLY HURTS YOUR CREDIT
CREDITORS ARE NOT REQUIRED TO REPORT TO THE CREDIT BUREAUS
HAVE PAID COLLECTIONS AND JUDGMENTS DELETED OFF VS. REPORTING AS 'PAID IN FULL'
BECOME AN AUTHORIZED USER ON SOMEONE ELSE'S ACCOUNT
DISSOLVE JOINT ACCOUNTS AFTER A DIVORCE
CONTACT ME:
Please answer these questions on your first Voicemail/Email before looking for a home
1. Credit score of everyone to be on the loan
2. Last Bankruptcy, Foreclosure, or Short Sale for everyone to be on the loan
3. How long of consistent work for everyone to be on the loan
4. Monthly payment you can afford
5. Total money available you have
6. Your desired move-in date
Phone: 763-634-1766-These calls will be answered by a loan officer and a buyer's agent
ron@minnesotainvestors.com
Saturday, May 8, 2010
Walking away Vs. a Short Sale
(My Original Blog Post: http://www.minnesotainvestors.com/blog/walking-away-vs-a-short-sale/)
What are the disadvantages from walking away in foreclosure Vs. Selling on a Short Sale?
SOLUTION: I believe selling on a properly executed short sale is better than walking away.
DISCLAIMER:
Before I answer questions below, I am not an attorney, a CPA, or an accountant. I suggest you seek legal,and/or competent CPA's advice before making any decisions. What I am typing below is based on extensive research I have read. It's suggested that you do your own research on the topic of he information below, it's in no way to be used as: legal, tax or financial advice.
SELLING SHORT SALE SOLUTION: SOLVING THE PROBLEM SOONER Vs. SUFFERING CONSEQUECES LATER:
With a short sale, typically within only 4-8 months you have put almost everything behind you. A properly done short sale can work towards a satisfaction of the mortgages and promissory notes, eliminating the possiblities of a future deficiency judgment against you personally. People often like to mention that short sales takes months to complete, but what they should realize is that the negotiator, agent, or investor is the one that spends 95% of the time following up. The homeowner simply just waits and doesn't have to do much work at all other than allow for the house to be shown and sign some paperwork upfront. Little to any money is involved on the seller's end, as the bank pays the majority of the fees. Seller's may have to pay any past due associate fees and or required city inspections. Those are required WHENEVER you sell a house, regardless if you sell on a short sale.
WALKING AWAY CAN HAUNT YOU LATER ON:
Walking away and letting the bank take the house back seems like an easier solution today, to many, as it doesn't appear to take any work, you don't have to keep thinking about the central focus of your problem today, your house. This is because you don't know what you don't know.
"Walking away from your house is like sweeping everything under the rug, eventually, it has to be dealt with, for now you don't have to look at it or think about it, but later it comes back with an escalating number of cockroaches and ants, requiring an exterminator."
BEFORE 2012, THERE ARE SOME TAX BENEFITS:
It's true that there are some great benefits currently before 2012 allowing homeowners some great tax credits on losses due to foreclosure and short sales. This can be seen through the IRS website IRS.gov under The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
http://www.irs.gov/individuals/article/0,,id=179414,00.html
This is great, but this is independent of the other issues. What I am saying is this only covers taxes, not deficiency judgments and lender collection attempts and wage garnishment. The lender who DOES NOT do the foreclosure by advertisement would like to collect the judgment later.
Note: Remember when you signed your mortgage and got a house loan you also signed a promissory note, obligating you to pay your creditor/bank/lender.
You heard this goes away with foreclosure, but you only half heard what you wanted to. Please read below, it is true that foreclosure by advertisement does waive the right by THAT lender to seek a deficiency later. The key word is THAT. In some cases, it may be true that only 1 lender likely initiated foreclosure waiving their rights. You may want to seek an attorney's advice on this point. I suggest getting a satisfaction with the 2nd lender on a property executed and negotiated short sale.
FORECLOSURE BY ADVERTISEMENT:
Foreclosure by advertisement is by far the preferred method of foreclosure because it faster, more simple and less expensive. Foreclosure by advertisement is only for mortgages that include a power of sale clause. A power of sale clause simply grants the lender the right to sell the property upon default.
DEFICIENCY JUDGMENT: THE #1 THING YOU ARE TRYING TO AVOID
"If the foreclosure sale does not bring in enough money to pay off the debt, the creditor may be able to obtain a deficiency judgment against the mortgagor. If the statutory redemption period is six months, however, such a deficiency judgment can be obtained against the mortgagor only if the foreclosure was by action. No deficiency judgment can be obtained against the mortgagor if the redemption period is six months and foreclosure was by advertisement. If the redemption period is twelve months, however, a deficiency judgment can be sought. Finally, even if the redemption period is six months, a deficiency judgment can be sought against any guarantors of the promissory note." -source http://www.extension.umn.edu/distribution/businessmanagement/df7297.html
ONLY 1 LENDER INITIATED THE FORECLOSURE:
Keep in mind that often the 1st lender is the one that initiated the foreclosure. Often there is a 2nd lender in the equation who DID NOT initiate a foreclosure that does have a promissory note signed by the borrower, which they can use later against you.
DECISION TIME:
Typically what's going to happen, is that the homeowner will decide either to:
A: Give the house back (walk away-Foreclosure)
B: Sell on a short sale
BEST SOLUTION: SELLING ON A SHORT SALE:
Often when selling on a short sale the 2nd lender will release the lien/mortgage from the house, so that the seller can sell the house to the new buyer. Notice I said release, not cancel. What this could do is make it so that the seller owes the 2nd mortgage company even more money down the road. Often the 1st mortgage lender needs to know about this as the 1st lender only agrees to give up a short sale discount based on dictating what the 2nd lender will receive. At this point Private Mortgage Insurance (PMI) and others can get involved as well as the investors backing the loan such as FHA, Freddie Mac, Fannie Mae, servicers, etc.
Short sales can be the right solution, but often are too complex for a homeowner to try to do on their own. Homeowners may get ahold of the bank after numerous phone calls for months and eventually get the house sold, but often with major mistakes along the way, that they may not catch until years later. That's why hiring a professional short sale negotiator is recommended.
With the above, we discussed doing a short sale, solving the problem and wrapping it up within 8 months or less on average. With a successful short sale you should be able to often receive a satisfaction on the loan. You should be able to minimize taxes, especially before 2012 based on current laws. The short sale itself has a minimal impact from obtaining your next loan in 2-3 years, provided you qualify in the other required areas. A full foreclosure could take 5-7 years with Fannie Mae and Freddie Mac, 3 years with FHA, currently less under extenuating circumstances with job loss, or medical. A short sale should have less of a credit score impact than a foreclosure. Source: http://www.wecallyourbank.com/FREE/shortsalevsforeclosure.pdf
ALTERNATIVE TO A SHORT SALE:
WALKING AWAY:GIVING THE HOUSE BACK:FULL FORECLOSURE
When walking away from your home and giving the house back through foreclosure, your problem doesn't easily go away, in fact, it may linger on for many years. For now it appears to be the easier solution. It may give you more peace of mind today since you don't have to think about it right now. It's very likely you will have to think about the repurcussions of walking away for years into your future. Let me discuss some things you have to look forward to, if you choose to walk away Vs. selling on a short sale.
Important Note: Those doing loan modifications, then later walking away after 2012, are even worse off as the IRS tax benefit expires after 2012. See: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation http://www.irs.gov/individuals/article/0,,id=179414,00.html
SOLUTION: Sell on a short sale before 2012 if you are or will be over-financed on your home.
FUTURE PAIN OF WALKING AWAY:
(FORECLOSURE RECORD AND ON YOUR CREDIT REPORT)
ENVISIONING YOUR LIFE'S FUTURE THE NEXT 20-25 YEARS:
HINT:(IT'S NOT A WONDERFUL LIFE)
YEAR 1:
Dealing with non-stop calls from your banks' collection department
Dealing with threatening debt letters from your bank and notice of default letters
Dealing with late fees and penalties, accruing daily
Dealing with 1st lender, 2nd lender or your association initiating foreclosure action
Dealing with repeated unsuccessful attempts to get through to your bank by yourself
Dealing with an unreasonable and unsuccessful repayment plan
Dealing with giving the bank all of your private financial paperwork which may later be used for collection methods
Dealing with negotiating unsuccessful loan modifications
Dealing with getting calls from your bank at work or to your co-workers, or boss
Dealing with your family and kids getting calls from your bank at home
Dealing with bankers calling neighors or having them knock on your door to get ahold of you
Dealing with a banker knocking on your front door to serve your spouse or kids paperwork
Dealing with unpaid water bills and taxes, eventually becoming liens on the house
Dealing with day to day money stress, affecting your life and your families
Dealing with your house being publically advertised in the newspaper for foreclosure
Dealing with someone to stop by and research the property for the bank for a BPO
Dealing with a sheriff sale deadline date
Dealing with a redemption period time limit and deadline
Dealing with possibly being evicited at the end of redemption
Dealing with possibly cleaning the house very well for your bank under "cash for keys"
Dealing with a possible eviction filed on your record, later making renting hard
Dealing with continued missed payments showing up on your credit report as rolling lates
Dealing with over agressive REO agents trying to get data before the bank owned listing
Dealing with the house listed with a foreclosure sign in the front yard of your neighorhood after the bank gets it back
Dealing with moving out into a cheaper place while in foreclosure, may actually hurt your "bankruptcy means" test
YEARS 2-5:
Receive collection calls from collection companies for years at work, home, during dinner and family time
The other lender(often the 2nd lender) may seek to collect on wage garnishment from the promissory note
Credit score takes a bigger dip with a foreclosure Vs. a short sale
Penalties can accrue for years on unpaid balances
High-interest can accrue for years on unpaid balances
A lender may not hire an attorney to find you for a couple of years
It may take years before you realize that the debt forces you into bankruptcy, starting a new time clock
YEARS 5-7:
Up to 5-7 years from foreclosure to get financing with lenders backed by Fannie Mae and Freddie Mac
Up to 6 years and 180 days for the creditor to file the judgment
Up to 7 years with a foreclosure shown on your credit report
Up to 7 years of employment background and credit checks with foreclosure shown on your credit report
Up to 7 years with foreclosure on your credit report limiting your job optios or not getting certain jobs at all
While in Chapter 13 bankruptcy,repayment plan could show up as rolling lates for years on your credit report
Missing even 1 payment on a 5 year bankruptcy repayment plan possibly incures all interest and penalties since day 1
Attorney's fees can accrue very high the entire time for every letter, or call for many years for unpaid collections
YEARS 7-10:
All discharged bankruptcies, whether a state or federal filing remain on a Credit report for 10 years
A dismissed chapter 13 remains for 7 years
A dismissed chapter 7 remains for 10 years
Bankruptcy affects employment background and credit checks limiting you on certain jobs or getting a job
Bankruptcy affects receiving high-security clearance type jobs
Judgments can be collected upon for up to 10 years
Judgments are paid through bank levies, all types of property liens, or wage garnishment
YEARS 10-20:
Judgments can be renewed a 2nd time for another 10 years
On the 2nd renewed judgment, you could be levied by your bank, receive liens, or wage garnishment
YEARS 20-25:
Through the next 10-year renewed judgment, you may still have money garnished from your weekly paycheck, taking years to pay back
----------------------------------------------------------------------------------------------------
Please contact: ron@minnesotainvestors.com if you would like to sell on a short sale, or
if you already gave your house back to the bank and need a place to live, and future loan.
http://www.ronorr.com/2010.html
Real Estate Broker
MinnesotaInvestors.com, Inc.
What are the disadvantages from walking away in foreclosure Vs. Selling on a Short Sale?
SOLUTION: I believe selling on a properly executed short sale is better than walking away.
DISCLAIMER:
Before I answer questions below, I am not an attorney, a CPA, or an accountant. I suggest you seek legal,and/or competent CPA's advice before making any decisions. What I am typing below is based on extensive research I have read. It's suggested that you do your own research on the topic of he information below, it's in no way to be used as: legal, tax or financial advice.
SELLING SHORT SALE SOLUTION: SOLVING THE PROBLEM SOONER Vs. SUFFERING CONSEQUECES LATER:
With a short sale, typically within only 4-8 months you have put almost everything behind you. A properly done short sale can work towards a satisfaction of the mortgages and promissory notes, eliminating the possiblities of a future deficiency judgment against you personally. People often like to mention that short sales takes months to complete, but what they should realize is that the negotiator, agent, or investor is the one that spends 95% of the time following up. The homeowner simply just waits and doesn't have to do much work at all other than allow for the house to be shown and sign some paperwork upfront. Little to any money is involved on the seller's end, as the bank pays the majority of the fees. Seller's may have to pay any past due associate fees and or required city inspections. Those are required WHENEVER you sell a house, regardless if you sell on a short sale.
WALKING AWAY CAN HAUNT YOU LATER ON:
Walking away and letting the bank take the house back seems like an easier solution today, to many, as it doesn't appear to take any work, you don't have to keep thinking about the central focus of your problem today, your house. This is because you don't know what you don't know.
"Walking away from your house is like sweeping everything under the rug, eventually, it has to be dealt with, for now you don't have to look at it or think about it, but later it comes back with an escalating number of cockroaches and ants, requiring an exterminator."
BEFORE 2012, THERE ARE SOME TAX BENEFITS:
It's true that there are some great benefits currently before 2012 allowing homeowners some great tax credits on losses due to foreclosure and short sales. This can be seen through the IRS website IRS.gov under The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
http://www.irs.gov/individuals/article/0,,id=179414,00.html
This is great, but this is independent of the other issues. What I am saying is this only covers taxes, not deficiency judgments and lender collection attempts and wage garnishment. The lender who DOES NOT do the foreclosure by advertisement would like to collect the judgment later.
Note: Remember when you signed your mortgage and got a house loan you also signed a promissory note, obligating you to pay your creditor/bank/lender.
You heard this goes away with foreclosure, but you only half heard what you wanted to. Please read below, it is true that foreclosure by advertisement does waive the right by THAT lender to seek a deficiency later. The key word is THAT. In some cases, it may be true that only 1 lender likely initiated foreclosure waiving their rights. You may want to seek an attorney's advice on this point. I suggest getting a satisfaction with the 2nd lender on a property executed and negotiated short sale.
FORECLOSURE BY ADVERTISEMENT:
Foreclosure by advertisement is by far the preferred method of foreclosure because it faster, more simple and less expensive. Foreclosure by advertisement is only for mortgages that include a power of sale clause. A power of sale clause simply grants the lender the right to sell the property upon default.
DEFICIENCY JUDGMENT: THE #1 THING YOU ARE TRYING TO AVOID
"If the foreclosure sale does not bring in enough money to pay off the debt, the creditor may be able to obtain a deficiency judgment against the mortgagor. If the statutory redemption period is six months, however, such a deficiency judgment can be obtained against the mortgagor only if the foreclosure was by action. No deficiency judgment can be obtained against the mortgagor if the redemption period is six months and foreclosure was by advertisement. If the redemption period is twelve months, however, a deficiency judgment can be sought. Finally, even if the redemption period is six months, a deficiency judgment can be sought against any guarantors of the promissory note." -source http://www.extension.umn.edu/distribution/businessmanagement/df7297.html
ONLY 1 LENDER INITIATED THE FORECLOSURE:
Keep in mind that often the 1st lender is the one that initiated the foreclosure. Often there is a 2nd lender in the equation who DID NOT initiate a foreclosure that does have a promissory note signed by the borrower, which they can use later against you.
DECISION TIME:
Typically what's going to happen, is that the homeowner will decide either to:
A: Give the house back (walk away-Foreclosure)
B: Sell on a short sale
BEST SOLUTION: SELLING ON A SHORT SALE:
Often when selling on a short sale the 2nd lender will release the lien/mortgage from the house, so that the seller can sell the house to the new buyer. Notice I said release, not cancel. What this could do is make it so that the seller owes the 2nd mortgage company even more money down the road. Often the 1st mortgage lender needs to know about this as the 1st lender only agrees to give up a short sale discount based on dictating what the 2nd lender will receive. At this point Private Mortgage Insurance (PMI) and others can get involved as well as the investors backing the loan such as FHA, Freddie Mac, Fannie Mae, servicers, etc.
Short sales can be the right solution, but often are too complex for a homeowner to try to do on their own. Homeowners may get ahold of the bank after numerous phone calls for months and eventually get the house sold, but often with major mistakes along the way, that they may not catch until years later. That's why hiring a professional short sale negotiator is recommended.
With the above, we discussed doing a short sale, solving the problem and wrapping it up within 8 months or less on average. With a successful short sale you should be able to often receive a satisfaction on the loan. You should be able to minimize taxes, especially before 2012 based on current laws. The short sale itself has a minimal impact from obtaining your next loan in 2-3 years, provided you qualify in the other required areas. A full foreclosure could take 5-7 years with Fannie Mae and Freddie Mac, 3 years with FHA, currently less under extenuating circumstances with job loss, or medical. A short sale should have less of a credit score impact than a foreclosure. Source: http://www.wecallyourbank.com/FREE/shortsalevsforeclosure.pdf
ALTERNATIVE TO A SHORT SALE:
WALKING AWAY:GIVING THE HOUSE BACK:FULL FORECLOSURE
When walking away from your home and giving the house back through foreclosure, your problem doesn't easily go away, in fact, it may linger on for many years. For now it appears to be the easier solution. It may give you more peace of mind today since you don't have to think about it right now. It's very likely you will have to think about the repurcussions of walking away for years into your future. Let me discuss some things you have to look forward to, if you choose to walk away Vs. selling on a short sale.
Important Note: Those doing loan modifications, then later walking away after 2012, are even worse off as the IRS tax benefit expires after 2012. See: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation http://www.irs.gov/individuals/article/0,,id=179414,00.html
SOLUTION: Sell on a short sale before 2012 if you are or will be over-financed on your home.
FUTURE PAIN OF WALKING AWAY:
(FORECLOSURE RECORD AND ON YOUR CREDIT REPORT)
ENVISIONING YOUR LIFE'S FUTURE THE NEXT 20-25 YEARS:
HINT:(IT'S NOT A WONDERFUL LIFE)
YEAR 1:
Dealing with non-stop calls from your banks' collection department
Dealing with threatening debt letters from your bank and notice of default letters
Dealing with late fees and penalties, accruing daily
Dealing with 1st lender, 2nd lender or your association initiating foreclosure action
Dealing with repeated unsuccessful attempts to get through to your bank by yourself
Dealing with an unreasonable and unsuccessful repayment plan
Dealing with giving the bank all of your private financial paperwork which may later be used for collection methods
Dealing with negotiating unsuccessful loan modifications
Dealing with getting calls from your bank at work or to your co-workers, or boss
Dealing with your family and kids getting calls from your bank at home
Dealing with bankers calling neighors or having them knock on your door to get ahold of you
Dealing with a banker knocking on your front door to serve your spouse or kids paperwork
Dealing with unpaid water bills and taxes, eventually becoming liens on the house
Dealing with day to day money stress, affecting your life and your families
Dealing with your house being publically advertised in the newspaper for foreclosure
Dealing with someone to stop by and research the property for the bank for a BPO
Dealing with a sheriff sale deadline date
Dealing with a redemption period time limit and deadline
Dealing with possibly being evicited at the end of redemption
Dealing with possibly cleaning the house very well for your bank under "cash for keys"
Dealing with a possible eviction filed on your record, later making renting hard
Dealing with continued missed payments showing up on your credit report as rolling lates
Dealing with over agressive REO agents trying to get data before the bank owned listing
Dealing with the house listed with a foreclosure sign in the front yard of your neighorhood after the bank gets it back
Dealing with moving out into a cheaper place while in foreclosure, may actually hurt your "bankruptcy means" test
YEARS 2-5:
Receive collection calls from collection companies for years at work, home, during dinner and family time
The other lender(often the 2nd lender) may seek to collect on wage garnishment from the promissory note
Credit score takes a bigger dip with a foreclosure Vs. a short sale
Penalties can accrue for years on unpaid balances
High-interest can accrue for years on unpaid balances
A lender may not hire an attorney to find you for a couple of years
It may take years before you realize that the debt forces you into bankruptcy, starting a new time clock
YEARS 5-7:
Up to 5-7 years from foreclosure to get financing with lenders backed by Fannie Mae and Freddie Mac
Up to 6 years and 180 days for the creditor to file the judgment
Up to 7 years with a foreclosure shown on your credit report
Up to 7 years of employment background and credit checks with foreclosure shown on your credit report
Up to 7 years with foreclosure on your credit report limiting your job optios or not getting certain jobs at all
While in Chapter 13 bankruptcy,repayment plan could show up as rolling lates for years on your credit report
Missing even 1 payment on a 5 year bankruptcy repayment plan possibly incures all interest and penalties since day 1
Attorney's fees can accrue very high the entire time for every letter, or call for many years for unpaid collections
YEARS 7-10:
All discharged bankruptcies, whether a state or federal filing remain on a Credit report for 10 years
A dismissed chapter 13 remains for 7 years
A dismissed chapter 7 remains for 10 years
Bankruptcy affects employment background and credit checks limiting you on certain jobs or getting a job
Bankruptcy affects receiving high-security clearance type jobs
Judgments can be collected upon for up to 10 years
Judgments are paid through bank levies, all types of property liens, or wage garnishment
YEARS 10-20:
Judgments can be renewed a 2nd time for another 10 years
On the 2nd renewed judgment, you could be levied by your bank, receive liens, or wage garnishment
YEARS 20-25:
Through the next 10-year renewed judgment, you may still have money garnished from your weekly paycheck, taking years to pay back
----------------------------------------------------------------------------------------------------
Please contact: ron@minnesotainvestors.com if you would like to sell on a short sale, or
if you already gave your house back to the bank and need a place to live, and future loan.
http://www.ronorr.com/2010.html
Real Estate Broker
MinnesotaInvestors.com, Inc.
Wednesday, May 5, 2010
Short Sale vs. Loan Modification vs. Short-Refi
(My Original Blog Post: http://www.minnesotainvestors.com/blog/short-sale-vs-loan-modification-vs-short-refi/)
You are in your current home right now and you are deciding what to do, you are looking at all of your options:
There is 1 decision you MUST consider as the first step:
Are you staying in your house, or leaving your house?
Let's go one step further...
Do you want to stay, or are you being forced to leave your house.
We understand why you want to stay, you have money in the house, your kids grew up in the house, they are in the
school system, and many other reasons.
Let's look at the reasons that you are being forced to leave your house:
A: Your payment is adjusting upward and you can't afford it
B: You, a spouse, significant other or family member have lost their job
C: You have had some health problems and set backs
D: You have far too much debt or credit card debt
E: You are near bankruptcy
F: The house needs too much fix up, or maintenance and you can't afford it
G: Their has been a death in the family, and costs are incurred
As we've discussed above there are a lot of reasons why you must leave a house.
Below I am going to discuss all of the major options for leaving your house and staying in your house,
Then I am actually only go into detail on Short Sale, Loan Modification and Short-Refinance.
Staying in your house
1. Do a Short-Refi-
-Before foreclosure is filed
-Current lender or new qualified FHA lender
-Close within 120 days or less
-Loan amount for new BPO at market value
-Approximately $225 out of pocket
-Need tax returns, w-2’s, 1099’s, check stubs, bank statements, etc
-Discharged Debt (Taxes possible see Mortgage Debt Relief Act of 2007)
-Debt-to-income as high as 45%
-Don't need to be behind in payments
2. Do a Loan Modification-
-Usually no loan principle reduction
-Usually redo the amortization
-Usually redo the interest rate, sometimes lower
-Usually fixed interest rate
-Usually if you are behind in payments
3. Do a Foreclosure Extension-
-Delay foreclosure 6-12 months
-Doesn't always work with a short sale
-Great for little time left in redemption
4. Do a Refinance-Rate/Term and Cash-out Refinance
FHA Streamline
620 Minimum (currently)
No Appraisal
No Income Verification
No Asset Verification
Will need to Credit Qualify
Cash Out up to 85% LTV will require new Appraisal
Rural Development Streamline
620 Minimum (currently)
Available with or without Appraisal
Income and Assets Verification Required
Will need to credit qualify
Cash Out up to 95% will require new Appraisal
VA Streamline
620 minimum (currently)
Appraisal may not be required (varies by Lender)
Income/Asset Verification may not be required (varies by Lender)
Will need to credit qualify
Cash Out will require new Appraisal
Leaving your house
1.Rent out your property-
-If you aren't in foreclosure, or don't plan on it
-If rent may be less than your mortgage payment, must be able to afford
-Can provide you with property management
-Provide you with rental placement of the tent, credit checks, marketing, etc
-Renters insurance recommended
2.Lease Option your property-
-Ideal for a little bit more of a serious renter with an option to buy
-Could be your potential future buyer
-Typically a little more money upfront with an option vs. a deposit
-RTO buyer recommended to enter credit repair
-Owner still pays insurance and property taxes
-House shouldn't be over-financed
-Repairs are negotiable in the contract
-Option and monthly payment credits towards purchase are negotiable
-12-36 months until financing are standard terms
-Renters insurance recommended
-Owners judgments could still attach to the house
-Once recorded owner may not easily be able to file new mortgages
3.Sell on a Contract for Deed-
-May make sense for taxes on an installment sale, ask your accountant
-Buyer pays property taxes and insurance, added additionally insured recommended
-Buyer puts down 5-10% typically
-Down payment should be able to be used for future purchase
-12 months of on-time payments typically qualifies for a buyer's refinance
-Owner still has the deed
-Minnesota law requires to be recorded
-Owners judgments could still attach to the house
-Once recorded owner may not easily be able to file new mortgages
-Seller please see due-on-sale clause in mortgage contract per the lender
-Quick closing
4.Sell your House's Deed-
-If you don't think you can sell, sell your deed and the house, vacate the house
-If you have little equity, sell your deed and the house, vacate the house
-Mortgage will still stay in owner's name until new buyer gets a loan and pays off liens
5.Sell your equity house by listing it-
-List it on the MLS
-Full service listing/marketing/selling by a listing agent
-Agent shows houses, or has a buyer's agent show houses
6.Sell for higher than the low bid at the sheriff sale-
-These days, lenders often sell short at the sheriff sale off the original loan amount
-List it on the MLS for more than the low bid amount at the sheriff sale
-Full service listing/marketing/selling by a listing agent
-Agent shows houses, or has a buyer's agent show houses
7.Sell on a Short Sale-
-Best for little, no equity, or over-financed houses
-Beneficial for satisfaction and discharging debt negotiating
-Minimal fees- city inspection, association dues may apply
-Great for those with 2nd and 3rd mortgages
-Great when you want to sell
-Take many months of bank negotiating, and listed on the market
-Often you can take advantage of the mortgage debt relief act until 2002
8.Property Management-
-Renter placement
-Fix up and contractor calls taken care of
-Leases
-Credit/background checks
-Can manage entire portfolio's
-much much more
*If you can't sell, by renting or selling on a contract for deed, you can count 75% of rental income to offset your
Debt-to-Income Ratio (total monthly payments divided by gross income) when qualifying for a loan
*if there is an outstanding mortgage debt, must have 6 months PITI and MI in reserves for both properties"
*FYI, there is a very beneficial IRS tax law that requires you to live in your house 2 of the last 5 years before selling
Now that you as the homeowner know your options, let me discuss: Short Sales, Loan Modifications, and Short-Refinance
Deciding amongst the 3 options above come down to this:
Staying = Loan Modifications and Short-Refinances
Leaving/Selling=Short Sale
Principle Reduction (Discharged Debt) *Possible tax benefits until 2012 see Mortgage Debt Relief Act of 2007 IRS.gov
Short Sales reduce the principle balance so that you can sell
Short-Refinances reduce the principle balance so that you can adjust for a new lesser loan amount
Loan Modifications as a general rule will not offer the principle balance, even upon success, you may miss the 2012 deadline above
Timelines
The timeline you are at in the process may determine which option you need to go with:
0 payments behind-Generally a short-refinance is best, a short sale can be tough, but doable if it looks like you may fall behind
1-3 payments behind-Generally all 3 are a good option in this situation, just decide if you are staying or leaving, and principle reduction
Entered foreclosure-At this point loan modification and short sale are your two options decide if you are staying or leaving
After the sheriff sale-At this point short sale is your option, you have to come up with the full loan balance or sell on a short sale
After the sheriff sale-If your house sold for much less at the sheriff sale, then you could list the house for sale over that amount
4 months left in redemption-This is the minimum amount recommended to have time to negotiate and market your property
3 months or less in redemption-With little time left, a foreclosure extension may be your only option, please contact me
Money
Expensive-Most loan modification 3rd party companies want money upfront for doing loan modifications, sometimes in the thousands
Affordable- Short-refinances can be as little as $225. Short Sales are no cost, but selling may require assoc. dues, city inspections, both affordable.
Qualifying
Not Qualified-If you shouldn't have been qualified originally or your circumstances may have changed you may not qualify for a loan mod or short-refinance
Qualified-If your credit/assets/money/job/debt ratio look strong on paper, then you may qualify for better rates and terms
Situation
Divorce may force you to sell
Probate or a death may force you to sell
Separation may force you to sell
Job transfer may force you to sell
Growing family may cause you to sell
Kids moving out may cause you to sell
Retirement may cause you to sell
Job loss may cause you to sell
As you can see much of the above is based on the factors that you decide, and the situations that decide for you.
Generally speaking when you try to qualify for a loan modification or a short-refinance, the qualifying will be like a home loan, but usually not as tough.
In all cases, short-refinance, loan modification and short sale, you have to prove to the lender your financial situation good or bad and why you
deserve to negotiate away your debt, or in the case of staying why you need better rates and terms. In all scenarios as you can imagine the lenders
will need to see paperwork and gather your financial information to see the full picture of why they will work with you. Below I have created a list
of what will be needed for all three. Please keep in mind that I used home loan qualifying steps for Short-refinance and loan modifications, whereas
they usually require a few less things, but could require a few different things.
I'd appreciate an email to ron@minnesotainvestors.com on your situation and how I can help you. At this time I am looking to work with
those not currently working with an agent/broker.
Short-Refinance and Loan Modifications
Pre-Approval Checklist-(It's recommended that you are pre-approved before looking at homes)
1003 Application Form for home loans Filled out by: Phone, Fax, In-Person, Mail, or Email (Please write Ron Orr on top)
Employment
____ Name, address and phone number of employers for the past two years
____ Copy of pay stubs for the previous 30 days
____ Copy of last 3 years w-2/1099 forms
____ Copy of last 3 years complete federal tax returns with all Schedules)
Self-employed
____ Copy of last two years tax returns (personal and corporate);
____ year to date P&L and Balance Sheet through the most recent quarter, must be certified by Accountant/CPA
Liabilities
____ Name and account numbers for all revolving and installment accounts
____ Name and account number for all mortgage loans for the previous two years
____ Name and address for landlords for the previous 3 years
Assets
____ Name, address, and account number for all bank accounts
____ Name, address, and account numbers for all brokerage accounts
____ Copies of statements covering last 3 months on asset accounts
____ Copy of most recent statement for 401K, Savings Plan, etc.
Miscellaneous
____ Copy of driver's license and social security card
____ Copy of fully executed divorce decree if applicable
____ Copy of fully executed child support court order if applicable
____ Copy of signed earnest money contract
____ Copy of lease agreements on rental properties. must have 2 year history reflected on Taxes to use Rental/Border income
____ Veterans! Copy of DD 214 and Eligibility Cert. if you have it, if not need Company Clerk contact info
____ Check for the cost of your credit report and appraisal
Short Sale Information:
Property Title Info:
Currently Single?
Divorced?
Divorced When? Borrower Info:
First Name:
Last Name:
Home Phone:
Cell Phone:
Best Time to Call:
Email:
Fax: Co-Borrower Info:
First Name:
Last Name:
Home Phone:
Cell Phone:
Best Time to Call:
Email:
Fax:
1st Lender Info:
Lender Name:
Amount Owing:
Monthly Payment:
Payments Behind:
Reinstatement Amount:
Type of Loan: Conventional, FHA,VA
Do you pay PMI:
Account #:
2nd Lender Info:
Lender Name:
Amount Owing:
Monthly Payment:
Payments Behind:
Reinstatement Amount:
Type of Loan: Conventional, FHA,VA
Do you pay PMI:
Account #:
Property Info:
Are you working with a real estate agent currently? MLS#?
Address: City: Zip: County:
Bed: Bath: Garage Stalls:
Property Style Type: Multi-Unit? Sq Ft? Year Built?
Estimated Market Value:
Does it need repairs: Estimated $:
List of repairs needed:
Sheriff Sale Date:
End of Redemption Date:
Is the property currently occupied or vacant?
Have you had a bankruptcy? Date When? Date Discharged: Chapter 7? Chapter 13?
Other liens on the property? Any judgments? Past due water bills? Past Due Taxes?
Short Sale Documents that we will need soon from the homeowner are:
1. Signed Authorization to Release form
2. Tax returns for the last 2 years (1040)
3. Pay stubs from last 2 months (+spouse)
4. Bank statements last 3 months+ (joint accounts)
5. Recent mortgage statements for all properties
6. Hardship letter (handwritten)
7. Financial form will be provided
8. P&L statement for Self Employed and Properties
You are in your current home right now and you are deciding what to do, you are looking at all of your options:
There is 1 decision you MUST consider as the first step:
Are you staying in your house, or leaving your house?
Let's go one step further...
Do you want to stay, or are you being forced to leave your house.
We understand why you want to stay, you have money in the house, your kids grew up in the house, they are in the
school system, and many other reasons.
Let's look at the reasons that you are being forced to leave your house:
A: Your payment is adjusting upward and you can't afford it
B: You, a spouse, significant other or family member have lost their job
C: You have had some health problems and set backs
D: You have far too much debt or credit card debt
E: You are near bankruptcy
F: The house needs too much fix up, or maintenance and you can't afford it
G: Their has been a death in the family, and costs are incurred
As we've discussed above there are a lot of reasons why you must leave a house.
Below I am going to discuss all of the major options for leaving your house and staying in your house,
Then I am actually only go into detail on Short Sale, Loan Modification and Short-Refinance.
Staying in your house
1. Do a Short-Refi-
-Before foreclosure is filed
-Current lender or new qualified FHA lender
-Close within 120 days or less
-Loan amount for new BPO at market value
-Approximately $225 out of pocket
-Need tax returns, w-2’s, 1099’s, check stubs, bank statements, etc
-Discharged Debt (Taxes possible see Mortgage Debt Relief Act of 2007)
-Debt-to-income as high as 45%
-Don't need to be behind in payments
2. Do a Loan Modification-
-Usually no loan principle reduction
-Usually redo the amortization
-Usually redo the interest rate, sometimes lower
-Usually fixed interest rate
-Usually if you are behind in payments
3. Do a Foreclosure Extension-
-Delay foreclosure 6-12 months
-Doesn't always work with a short sale
-Great for little time left in redemption
4. Do a Refinance-Rate/Term and Cash-out Refinance
FHA Streamline
620 Minimum (currently)
No Appraisal
No Income Verification
No Asset Verification
Will need to Credit Qualify
Cash Out up to 85% LTV will require new Appraisal
Rural Development Streamline
620 Minimum (currently)
Available with or without Appraisal
Income and Assets Verification Required
Will need to credit qualify
Cash Out up to 95% will require new Appraisal
VA Streamline
620 minimum (currently)
Appraisal may not be required (varies by Lender)
Income/Asset Verification may not be required (varies by Lender)
Will need to credit qualify
Cash Out will require new Appraisal
Leaving your house
1.Rent out your property-
-If you aren't in foreclosure, or don't plan on it
-If rent may be less than your mortgage payment, must be able to afford
-Can provide you with property management
-Provide you with rental placement of the tent, credit checks, marketing, etc
-Renters insurance recommended
2.Lease Option your property-
-Ideal for a little bit more of a serious renter with an option to buy
-Could be your potential future buyer
-Typically a little more money upfront with an option vs. a deposit
-RTO buyer recommended to enter credit repair
-Owner still pays insurance and property taxes
-House shouldn't be over-financed
-Repairs are negotiable in the contract
-Option and monthly payment credits towards purchase are negotiable
-12-36 months until financing are standard terms
-Renters insurance recommended
-Owners judgments could still attach to the house
-Once recorded owner may not easily be able to file new mortgages
3.Sell on a Contract for Deed-
-May make sense for taxes on an installment sale, ask your accountant
-Buyer pays property taxes and insurance, added additionally insured recommended
-Buyer puts down 5-10% typically
-Down payment should be able to be used for future purchase
-12 months of on-time payments typically qualifies for a buyer's refinance
-Owner still has the deed
-Minnesota law requires to be recorded
-Owners judgments could still attach to the house
-Once recorded owner may not easily be able to file new mortgages
-Seller please see due-on-sale clause in mortgage contract per the lender
-Quick closing
4.Sell your House's Deed-
-If you don't think you can sell, sell your deed and the house, vacate the house
-If you have little equity, sell your deed and the house, vacate the house
-Mortgage will still stay in owner's name until new buyer gets a loan and pays off liens
5.Sell your equity house by listing it-
-List it on the MLS
-Full service listing/marketing/selling by a listing agent
-Agent shows houses, or has a buyer's agent show houses
6.Sell for higher than the low bid at the sheriff sale-
-These days, lenders often sell short at the sheriff sale off the original loan amount
-List it on the MLS for more than the low bid amount at the sheriff sale
-Full service listing/marketing/selling by a listing agent
-Agent shows houses, or has a buyer's agent show houses
7.Sell on a Short Sale-
-Best for little, no equity, or over-financed houses
-Beneficial for satisfaction and discharging debt negotiating
-Minimal fees- city inspection, association dues may apply
-Great for those with 2nd and 3rd mortgages
-Great when you want to sell
-Take many months of bank negotiating, and listed on the market
-Often you can take advantage of the mortgage debt relief act until 2002
8.Property Management-
-Renter placement
-Fix up and contractor calls taken care of
-Leases
-Credit/background checks
-Can manage entire portfolio's
-much much more
*If you can't sell, by renting or selling on a contract for deed, you can count 75% of rental income to offset your
Debt-to-Income Ratio (total monthly payments divided by gross income) when qualifying for a loan
*if there is an outstanding mortgage debt, must have 6 months PITI and MI in reserves for both properties"
*FYI, there is a very beneficial IRS tax law that requires you to live in your house 2 of the last 5 years before selling
Now that you as the homeowner know your options, let me discuss: Short Sales, Loan Modifications, and Short-Refinance
Deciding amongst the 3 options above come down to this:
Staying = Loan Modifications and Short-Refinances
Leaving/Selling=Short Sale
Principle Reduction (Discharged Debt) *Possible tax benefits until 2012 see Mortgage Debt Relief Act of 2007 IRS.gov
Short Sales reduce the principle balance so that you can sell
Short-Refinances reduce the principle balance so that you can adjust for a new lesser loan amount
Loan Modifications as a general rule will not offer the principle balance, even upon success, you may miss the 2012 deadline above
Timelines
The timeline you are at in the process may determine which option you need to go with:
0 payments behind-Generally a short-refinance is best, a short sale can be tough, but doable if it looks like you may fall behind
1-3 payments behind-Generally all 3 are a good option in this situation, just decide if you are staying or leaving, and principle reduction
Entered foreclosure-At this point loan modification and short sale are your two options decide if you are staying or leaving
After the sheriff sale-At this point short sale is your option, you have to come up with the full loan balance or sell on a short sale
After the sheriff sale-If your house sold for much less at the sheriff sale, then you could list the house for sale over that amount
4 months left in redemption-This is the minimum amount recommended to have time to negotiate and market your property
3 months or less in redemption-With little time left, a foreclosure extension may be your only option, please contact me
Money
Expensive-Most loan modification 3rd party companies want money upfront for doing loan modifications, sometimes in the thousands
Affordable- Short-refinances can be as little as $225. Short Sales are no cost, but selling may require assoc. dues, city inspections, both affordable.
Qualifying
Not Qualified-If you shouldn't have been qualified originally or your circumstances may have changed you may not qualify for a loan mod or short-refinance
Qualified-If your credit/assets/money/job/debt ratio look strong on paper, then you may qualify for better rates and terms
Situation
Divorce may force you to sell
Probate or a death may force you to sell
Separation may force you to sell
Job transfer may force you to sell
Growing family may cause you to sell
Kids moving out may cause you to sell
Retirement may cause you to sell
Job loss may cause you to sell
As you can see much of the above is based on the factors that you decide, and the situations that decide for you.
Generally speaking when you try to qualify for a loan modification or a short-refinance, the qualifying will be like a home loan, but usually not as tough.
In all cases, short-refinance, loan modification and short sale, you have to prove to the lender your financial situation good or bad and why you
deserve to negotiate away your debt, or in the case of staying why you need better rates and terms. In all scenarios as you can imagine the lenders
will need to see paperwork and gather your financial information to see the full picture of why they will work with you. Below I have created a list
of what will be needed for all three. Please keep in mind that I used home loan qualifying steps for Short-refinance and loan modifications, whereas
they usually require a few less things, but could require a few different things.
I'd appreciate an email to ron@minnesotainvestors.com on your situation and how I can help you. At this time I am looking to work with
those not currently working with an agent/broker.
Short-Refinance and Loan Modifications
Pre-Approval Checklist-(It's recommended that you are pre-approved before looking at homes)
1003 Application Form for home loans Filled out by: Phone, Fax, In-Person, Mail, or Email (Please write Ron Orr on top)
Employment
____ Name, address and phone number of employers for the past two years
____ Copy of pay stubs for the previous 30 days
____ Copy of last 3 years w-2/1099 forms
____ Copy of last 3 years complete federal tax returns with all Schedules)
Self-employed
____ Copy of last two years tax returns (personal and corporate);
____ year to date P&L and Balance Sheet through the most recent quarter, must be certified by Accountant/CPA
Liabilities
____ Name and account numbers for all revolving and installment accounts
____ Name and account number for all mortgage loans for the previous two years
____ Name and address for landlords for the previous 3 years
Assets
____ Name, address, and account number for all bank accounts
____ Name, address, and account numbers for all brokerage accounts
____ Copies of statements covering last 3 months on asset accounts
____ Copy of most recent statement for 401K, Savings Plan, etc.
Miscellaneous
____ Copy of driver's license and social security card
____ Copy of fully executed divorce decree if applicable
____ Copy of fully executed child support court order if applicable
____ Copy of signed earnest money contract
____ Copy of lease agreements on rental properties. must have 2 year history reflected on Taxes to use Rental/Border income
____ Veterans! Copy of DD 214 and Eligibility Cert. if you have it, if not need Company Clerk contact info
____ Check for the cost of your credit report and appraisal
Short Sale Information:
Property Title Info:
Currently Single?
Divorced?
Divorced When? Borrower Info:
First Name:
Last Name:
Home Phone:
Cell Phone:
Best Time to Call:
Email:
Fax: Co-Borrower Info:
First Name:
Last Name:
Home Phone:
Cell Phone:
Best Time to Call:
Email:
Fax:
1st Lender Info:
Lender Name:
Amount Owing:
Monthly Payment:
Payments Behind:
Reinstatement Amount:
Type of Loan: Conventional, FHA,VA
Do you pay PMI:
Account #:
2nd Lender Info:
Lender Name:
Amount Owing:
Monthly Payment:
Payments Behind:
Reinstatement Amount:
Type of Loan: Conventional, FHA,VA
Do you pay PMI:
Account #:
Property Info:
Are you working with a real estate agent currently? MLS#?
Address: City: Zip: County:
Bed: Bath: Garage Stalls:
Property Style Type: Multi-Unit? Sq Ft? Year Built?
Estimated Market Value:
Does it need repairs: Estimated $:
List of repairs needed:
Sheriff Sale Date:
End of Redemption Date:
Is the property currently occupied or vacant?
Have you had a bankruptcy? Date When? Date Discharged: Chapter 7? Chapter 13?
Other liens on the property? Any judgments? Past due water bills? Past Due Taxes?
Short Sale Documents that we will need soon from the homeowner are:
1. Signed Authorization to Release form
2. Tax returns for the last 2 years (1040)
3. Pay stubs from last 2 months (+spouse)
4. Bank statements last 3 months+ (joint accounts)
5. Recent mortgage statements for all properties
6. Hardship letter (handwritten)
7. Financial form will be provided
8. P&L statement for Self Employed and Properties
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