Foreclosure is the process of a mortgage company taking possession of a property because of a
failure of the mortgagor to maintain positive payments. It's a sad truth that, though most home
owner's wish to avoid foreclosure, foreclosures still happen. Despite a home owner's best efforts
they can still end up having to foreclose on a home, potentially losing all their equity and
damaging their credit while having to find a new place to live.
For investors, the property can usually be bought at a better price than if processed through a
traditional sale. During the foreclosure process, time and certainty of a sale are much more
important since the seller is looking to recoup as much from their unmanageable property as
possible. As difficult as it can be for the seller, it can prove to be a mutually beneficial sale
if an investor comes along during the right stage of the foreclosure.
The three stages of foreclosure are: pre-foreclosure, foreclosure, and post-foreclosure.
Pre-Foreclosure Phase
The pre-foreclosure phase is when an investor is able to do the most good for a distressed
home-owner. In this stage, if an investor is able to quickly reach a price that is agreeable,
then the house can be sold with most of the distressed home-owner's credit rating intact. Ideally
if an investor is buying a home during this phase they needn't involve the lender, just interact
directly with the home owner. An investor's best chance to find property in this stage is through
real estate agents, accountants, attorneys or through basic word of mouth such as colleagues and
friends who may know the homeowner.
Foreclosure Phase
This is the actual foreclosure itself. This is the best time for investors to strike but does not
allow for as much help to the home owner. Most of these types of properties will be found through
the County Clerk's office. This is where the investors can look up recent notice of defaults so
they are aware of any pending foreclosures in the area. You can also sometimes be placed on a
notice list to inform you of any pending defaults as they happen.
Depending on the state the foreclosure process is different. A judicial foreclosure can take much
longer then a non-judicial foreclosure which is usually ready to go to auction after two to four
months. No matter how they get there once they are finished processing they will be sold at the
auction to whoever is the highest bidder.
Post Foreclosure
You can attempt to buy a house when it is in the post-foreclosure process. You will be able to
look up the new owner and how much they paid for the foreclosure notice. This is when the
property has either been sold to an investor at auction or it is being held by the lender, which
is known as a REO (Real Estate Owned). An investor will usually be a tougher buy when they bought
during the foreclosure part of the process but they might still be willing to sell so they can
have a quick property sale. If the house is lender owned you are usually able to negotiate more
because they would just rather recoup their losses and get the house off of their balance sheets.
Hopefully knowing these distinctions will allow you to better understand the steps to selling a
house or investing through foreclosure. It can be a tricky process at first, but if handled with
care the foreclosure process can present a unique opportunity to either make a profit as well as
help out distressed home owners.
----------------------------------------------------
Let us help you if you are in a tough spot and need to sell your home quickly. We can buy all
types of homes and we might be interested in buying your home. Skip the headaches of a tradtional
home sale and let us buy your house.
http://www.sellmyhousenowseattle.com/tag/how-to-sell-a-house-in-seattle/
Posted by Randall Frier http://jrandallfrier.com/
Monday, December 30, 2013
Thursday, December 26, 2013
Chapter 11 Bankruptcy Can Breathe New Life Into Your Business
Copyright (c) 2013 Eli Gali
Just the word bankruptcy can give a business owner chills and bring on anxiety and stress.
However, in Chapter 11 bankruptcy a corporation, LLC, and even sole proprietor can have a second
chance with a business restructuring. Huge corporations have entered into Chapter 11 and come out
being stronger and more viable. There are news articles almost daily about one giant or another
that has met the plan and is going full board ahead.
The key to making the decision that Chapter 11 Business Restructuring is the right move for any
business, large or small, is to consult with a seasoned Corporate Reorganization Lawyer. This
specialized attorney will review every aspect of the business from the ground up. Some of the
answers sought are to questions like did the current fiscal conditions arise out of mismanagement?
If so, what steps have been taken to alleviate this issue?
There are many benefits for a struggling company to opt for Business Restructuring. It could be
that the debts that are currently owed are settled for pennies on the dollar freeing capital to
work in real time. There is also the possibility that if the Corporate Reorganization Lawyer
proposes a workable plan to the courts, they may agree to allow current management to run the
day-to-day operations as status quo. Even if some members of the Committee vote down the plan,
there are steps that can be taken to over-ride the decision. However, in either case the court
will keep a close eye on how things are being run.
If there are any negative features of Chapter 11 they are that the company cannot enter into any
additional long-term debt, expand beyond its current boundaries or take off in a new direction.
However, these all make good common sense.
It is incumbent upon the management of a company researching the benefits of seeking Chapter 11
protection to find the best Corporate Reorganization Lawyer available. The entire process is
intricate, tedious and rift with special laws, rules and regulations. If the company in question
appears in court with an attorney who is ill-prepared, the case may be dismissed altogether. This
is a very precise legal specialty.
In the discovery process, the business wanting to restructure should query the attorney on how
many cases have been personally handled and out of those how many cases were ruled in favor of the
petitioner? Another detail to include is whether or not the attorney has worked both sides of the
fence. Does he know the 'tricks of the trade' that attorneys for the creditors will pull at court?
Does he know how to overcome their objections?
Business restructuring via Chapter 11 can be a virtual life-saver for many companies who could
proceed in business if it weren't for a heavy burden of debt. Everyone deserves a second chance,
and for a corporation or any size business, this could be it.
----------------------------------------------------
Law Law Firm provides high caliber business related legal services in a broad range of areas
regarding corporate bankruptcy, general counsel and debtor and creditor rights. Eric Terry is a
lawyer that serves many clients in San Antonio, Austin, Houston and Dallas, Texas.
http://ericterrylaw.com
Posted by Randy Frier http://jrandallfrier.com/
Just the word bankruptcy can give a business owner chills and bring on anxiety and stress.
However, in Chapter 11 bankruptcy a corporation, LLC, and even sole proprietor can have a second
chance with a business restructuring. Huge corporations have entered into Chapter 11 and come out
being stronger and more viable. There are news articles almost daily about one giant or another
that has met the plan and is going full board ahead.
The key to making the decision that Chapter 11 Business Restructuring is the right move for any
business, large or small, is to consult with a seasoned Corporate Reorganization Lawyer. This
specialized attorney will review every aspect of the business from the ground up. Some of the
answers sought are to questions like did the current fiscal conditions arise out of mismanagement?
If so, what steps have been taken to alleviate this issue?
There are many benefits for a struggling company to opt for Business Restructuring. It could be
that the debts that are currently owed are settled for pennies on the dollar freeing capital to
work in real time. There is also the possibility that if the Corporate Reorganization Lawyer
proposes a workable plan to the courts, they may agree to allow current management to run the
day-to-day operations as status quo. Even if some members of the Committee vote down the plan,
there are steps that can be taken to over-ride the decision. However, in either case the court
will keep a close eye on how things are being run.
If there are any negative features of Chapter 11 they are that the company cannot enter into any
additional long-term debt, expand beyond its current boundaries or take off in a new direction.
However, these all make good common sense.
It is incumbent upon the management of a company researching the benefits of seeking Chapter 11
protection to find the best Corporate Reorganization Lawyer available. The entire process is
intricate, tedious and rift with special laws, rules and regulations. If the company in question
appears in court with an attorney who is ill-prepared, the case may be dismissed altogether. This
is a very precise legal specialty.
In the discovery process, the business wanting to restructure should query the attorney on how
many cases have been personally handled and out of those how many cases were ruled in favor of the
petitioner? Another detail to include is whether or not the attorney has worked both sides of the
fence. Does he know the 'tricks of the trade' that attorneys for the creditors will pull at court?
Does he know how to overcome their objections?
Business restructuring via Chapter 11 can be a virtual life-saver for many companies who could
proceed in business if it weren't for a heavy burden of debt. Everyone deserves a second chance,
and for a corporation or any size business, this could be it.
----------------------------------------------------
Law Law Firm provides high caliber business related legal services in a broad range of areas
regarding corporate bankruptcy, general counsel and debtor and creditor rights. Eric Terry is a
lawyer that serves many clients in San Antonio, Austin, Houston and Dallas, Texas.
http://ericterrylaw.com
Posted by Randy Frier http://jrandallfrier.com/
Thursday, December 12, 2013
The New Bankruptcy Law - Its Impact on Bankruptcies
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, more commonly called the 2005
Bankruptcy Act or New Bankruptcy Law, made significant reforms to the current US Bankruptcy code.
Its purpose is to prevent perceived abuse by customers especially those individuals who file for
bankruptcy just to avoid paying for unwanted debts. An example of these changes is that before
individuals are eligible to file for bankruptcy relief, they must go through a mandatory credit
counseling program for six months. After that individual has filed for bankruptcy, a financial
management course must also be completed.
An individual's eligibility to file for Chapter 7 and Chapter 13 bankruptcy has also been changed
under the New Bankruptcy law. To determine which chapter you are eligible to file for, the
bankruptcy court uses the means test. This means that it compares the your state's median income
to your average income over the preceding six months. You can only file for Chapter 7 Bankruptcy
if your income falls below that median. If not, however, further measures in the means test will
help you understand whether you need to file Chapter 7 or Chapter 13,
Therefore, before you file, it's more important than ever to know the full extent of your
circumstances. Your current income sources, debts, monthly living expenses, the deeds to any real
estate or other major property that you own, records of any large financial transactions for the
last two years, and tax returns should be properly recorded, filed and cataloged to make the
process easier and to avoid any penalties or even disqualification. You'll need the guidance of an
attorney to review your assets because not all property is exempt from being seized as part of the
bankruptcy process. Don't forget to secure the necessary forms to be used as well as to file a
petition. Because any other information brought forth by your creditors could jeopardize the
success of your bankruptcy, it's very important that you are detailed and truthful on this
petition.
If you're filing for Chapter 13, you must also create and submit a repayment plan. Your leftover
money after your living expenses and how that will be divided with your creditors should also be
considered and planned carefully. You must be prepared to pay back child support and taxes in full
while your unsecured debts (like medical bills and credit card debt) are partially paid.
An automatic stay is granted to all your debts when you file for bankruptcy. Once you have
officially filed, any foreclosure proceedings currently in the works at the time of filing and all
communications from creditors will be stopped. However, this temporary relief comes at a price.
The court will appoint a trustee to manage your case and all of your property that are not
protected by the exemptions. Although the New Bankruptcy Law allows for a more merit-based, albeit
confusing, bankruptcy filing, it is still in your best interest to speak with an attorney to
clarify some questions and to guide you correctly through the entire process.
----------------------------------------------------
If you can no longer pay your creditors, you may choose to file for bankruptcy. Get a fresh start
- by liquidating assets to pay your debts or by creating a repayment plan. Based in Oakland,
California, Claude D. Ames Law Offices can provide the legal representation that you need for
Chapter 7 and Chapter 11 bankruptcy. Please call (510) 652-1300 or visit his website:
http://www.claudeamesarbmed.com
Posted by J. Randall Frier http://jrandallfrier.com/
Bankruptcy Act or New Bankruptcy Law, made significant reforms to the current US Bankruptcy code.
Its purpose is to prevent perceived abuse by customers especially those individuals who file for
bankruptcy just to avoid paying for unwanted debts. An example of these changes is that before
individuals are eligible to file for bankruptcy relief, they must go through a mandatory credit
counseling program for six months. After that individual has filed for bankruptcy, a financial
management course must also be completed.
An individual's eligibility to file for Chapter 7 and Chapter 13 bankruptcy has also been changed
under the New Bankruptcy law. To determine which chapter you are eligible to file for, the
bankruptcy court uses the means test. This means that it compares the your state's median income
to your average income over the preceding six months. You can only file for Chapter 7 Bankruptcy
if your income falls below that median. If not, however, further measures in the means test will
help you understand whether you need to file Chapter 7 or Chapter 13,
Therefore, before you file, it's more important than ever to know the full extent of your
circumstances. Your current income sources, debts, monthly living expenses, the deeds to any real
estate or other major property that you own, records of any large financial transactions for the
last two years, and tax returns should be properly recorded, filed and cataloged to make the
process easier and to avoid any penalties or even disqualification. You'll need the guidance of an
attorney to review your assets because not all property is exempt from being seized as part of the
bankruptcy process. Don't forget to secure the necessary forms to be used as well as to file a
petition. Because any other information brought forth by your creditors could jeopardize the
success of your bankruptcy, it's very important that you are detailed and truthful on this
petition.
If you're filing for Chapter 13, you must also create and submit a repayment plan. Your leftover
money after your living expenses and how that will be divided with your creditors should also be
considered and planned carefully. You must be prepared to pay back child support and taxes in full
while your unsecured debts (like medical bills and credit card debt) are partially paid.
An automatic stay is granted to all your debts when you file for bankruptcy. Once you have
officially filed, any foreclosure proceedings currently in the works at the time of filing and all
communications from creditors will be stopped. However, this temporary relief comes at a price.
The court will appoint a trustee to manage your case and all of your property that are not
protected by the exemptions. Although the New Bankruptcy Law allows for a more merit-based, albeit
confusing, bankruptcy filing, it is still in your best interest to speak with an attorney to
clarify some questions and to guide you correctly through the entire process.
----------------------------------------------------
If you can no longer pay your creditors, you may choose to file for bankruptcy. Get a fresh start
- by liquidating assets to pay your debts or by creating a repayment plan. Based in Oakland,
California, Claude D. Ames Law Offices can provide the legal representation that you need for
Chapter 7 and Chapter 11 bankruptcy. Please call (510) 652-1300 or visit his website:
http://www.claudeamesarbmed.com
Posted by J. Randall Frier http://jrandallfrier.com/
Subscribe to:
Posts (Atom)