Dealing With Foreclosure Understanding The Process So You Are Aware Of Your Rights

There are many reasons why homes go into foreclosure. Dealing with foreclosure is going to be difficult no matter what the cause. So if you’re facing a foreclosure it’s crucial that you understand as much as possible about the process and what your options are.

Why do homes go into foreclosure?

When a homeowner is late with a certain number of payments or stops making payments, the lender has the right to start the foreclosure process, depending on the terms of the mortgage agreement. It’s a good idea to be aware of what this “magic” number is so you can do whatever is necessary to avoid reaching it.

How long can homeowners remain in their homes once they go into foreclosure?

The law varies from state to state, so there is no set rule. In some states, homeowners can remain in the home for about a year. But in other states, the time frame may be as short as a few months. And in reality, there are some homeowners who don’t move out even when their home has gone into foreclosure. In that case, they may decide to wait for an eviction notice before leaving.

What are redemption laws and what is a period of redemption?

When a home is foreclosed upon, many states allow a set period of time where the homeowner can repay any overdue payments on the mortgage. This is a redemption law and what it means is that the homeowner is able to reclaim his property if he meets the conditions set out. These conditions include repaying all monies owed within a specific time frame. It’s even possible to use the redemption law to reclaim a home that has been sold at auction.

What is meant by short sale and how does it work?

With a short sale what happens is that the property is sold but the net gain is less than the total amount owed. The lender though agrees to take the lesser amount. But, in some cases, the seller may still be on the hook for the difference between the total owed and the proceeds of the short sale. The advantage to the seller is that the foreclosure won’t show up on their credit report. The disadvantage is that you have to pay the difference, even though you’ve sold your home.

What is deed-in-lieu of foreclosure?

In this case the homeowner agrees to give the lender the deed to the house. In return the lender forgives the mortgage and cancels the foreclosure proceeding. You should be aware that this type of agreement will affect your credit to pretty much the same extent as a regular foreclosure.

Being informed may help when you are dealing with foreclosure, so you are able to decide on your best options.

If you’re dealing with foreclosure learn about 6 practical steps you can take to avoid foreclosure. If it’s too late for that, find out how to stop a foreclosure by going to

Investing In Real Estate To Make Money

People are always looking for ways to earn more money and invest for their futures. One of the best ways to invest money to make more money is in real estate, and with the current market situation, now is a great time to invest in the real estate market.

Whether you are looking to buy your first property or looking to purchase an investment property, now is the time to act. Current home mortgage loan rates are low and there are many outstanding deals out in the market.

Return on Investment

Over time, the return on your investment is good when it comes to real estate. Property values over time mostly rise. Keep in mind that you should not consider real estate investing if you are wanting a fast return on your money. Just like stocks, the housing market prices will rise and fall, but over time, most properties will see a rise in value. Depending on which market you live in will depend on the rate of return. For example, the Dallas-Fort Worth area sees about a 2% rise in home values per year.

Using Real Estate For Additional Income

When it comes to additional income, buying rental houses is a fantastic way to generate additional income plus build wealth over time. Each rental house can help with creating cash flow for property home owners. It is crucial to remember to start out slow with rental properties and make sure that you maintain the house.

Many investors are jumping on the opportunities to purchase homes at great prices and turning the properties into positive cash flow investments.

Not all properties are good rental properties, so it is important to review the possible rent income compared to the cost of owning the house to make sure that buying the house is a good investment.

Building Wealth And Becoming A Millionaire

Over 90 percent of the millionaires use real estate in some sort of fashion in building their wealth because real estate offers a great way to consistently increase wealth. Property owners have tenants pay for the mortgage while they benefit from the rise in property values over time. If done correctly, real estate investing can be a great way to have a monthly income in retirement years.

So when it comes to ideas of building wealth, you should consider purchasing a home. Begin small with buying your first house and moving on from there. Spend the time to gain the knowledge of the market and do research on each possible house before moving forward. Understand your financing options and understand the different home loan programs available for investors.

David White is a Senior Mortgage Officer who specializes in home loans. David has over 12 years experience helping his clients with Dallas home loans. This article, Investing In Real Estate To Make Money has free reprint rights.