Just imagine buying a home and getting into financial trouble. You try to sell your home to no avail. So you decide to “wash your hands” and walk away. The home forecloses and all of sudden you’re served a judgment to pay thousands of dollars. This is what the new Arizona’s anti-deficiency statue addresses.

The law which takes effect September 30, 2009 prevents a bank from going after the borrowers assets, such as cars and bank accounts once the home is foreclosed upon. The statue addresses two major factors, the type of owner-occupancy and the type of loan. Based on these two type will determine if the law applies.

As for the dwelling, the home must reside on 2.5 acres or less and either a single family home or multi-plex property. It has to be a “primary” residence or at least lived in by the original owner for a period of at least 6 months. Since the law requires some form of occupancy that mean the law does not apply to homes under construction. That means there will have to be a “Certificate of Occupancy” attached to the home.

The law addresses two types of loans: “recourse” and non-recourse”. A bank or lender has “recourse” if the homeowner is liable for the entire amount due on all liens after the homes is foreclosed upon. That means the banks or lenders can aggressively pursue the homeowner for the unpaid debts through a judgment or lawsuit.

A “non-recourse” loan means the lender cannot pursue a deficiency against the borrower or homeowner. The only recourse the lender has is to repossess the property.

Typically, a first position “purchase money” loan is a non-recourse loan. In English, this means the loan on the home was originated at the time the home was purchased and the property was secured by a deed of trust.

A “purchase money” loan would also be considered a “non-recourse” loan. This is a 1st position loan and the entire loan was established and secured a Deed of Trust at the time of initial ownership.

Under the Arizona anti deficiency laws, the lender on the purchase money loan would have no recourse other than to take back the property. The lender who has the second position home equity line of credit could and usually does enter into judgment and possibly lawsuits against the homeowner.

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Arizona’s anti-deficiency statue prohibits a lender from recovering against borrowers assets, such as automobiles and bank accounts, after the lender forecloses on the borrower’s residence. However, the type of loan and type of residence are key factors in determining whether this statute applies.

The residence must be on 2.5 acres or less, limited to a single or two family dwelling, must be “utilized” for dwelling purposes, wholly or partially occupied and it must be a finished product. Homes that are still under construction or not complete will not qualify under the anti deficiency statues.

As for the dwelling, the home must reside on 2.5 acres or less and either a single family home or multi-plex property. It has to be a “primary” residence or at least lived in by the original owner for a period of at least 6 months. Since the law requires some form of occupancy that mean the law does not apply to homes under construction. That means there will have to be a “Certificate of Occupancy” attached to the home.

Investors beware. If the investor does not occupy the residence for a minimum of six months and there is a second lien on the property, such as a home equity line of credit, the investor could be liable for any unpaid debt or deficiency arising out of the trustee sale. This means that after the Deed of Trust is recorded after the trustee sale is completed, the bank could file a judgment or lawsuit against the investor for any remaining debt.

A “non-recourse” loan means the lender cannot pursue a deficiency against the borrower or homeowner. The only recourse the lender has is to repossess the property.

Purchase Money loans are usually “non-recourse” loans. Purchase Money loans are your primary or first position liens or loans that were originated at the time the home first closed escrow and was secured by a Deed of Trust.

A “purchase money” loan would also be considered a “non-recourse” loan. This is a 1st position loan and the entire loan was established and secured a Deed of Trust at the time of initial ownership.

A good analogy of a “recourse” loan would be a line of credit from the bank. The bank loaned the homeowner money and used their home as collateral. This loan was acquired AFTER a Deed of Trust was initially established. Therefore the bank could pursue a judgment or lawsuit against the homeowner. One of the main reasons this law was re-addressed after being in effect since 1990, was the 2nd mortgages that were being borrowed by the homeowners and the today’s market value on a home is substantially less than what is owned of the 1st mortgage, meaning the 2nd is not getting a dime in return.

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How long does it take to close on a home from time of contract to close of escrow? 2 months . . . .4 months. . . . .6 months? Even though there are some new and positive guidelines for Fannie Mae and Freddie Mac, these new requirements will most likely lengthen this time frame. I also see more confusion in the real estate market and finance industry. Let’s try and put some light on these new changes.

Appraisers have been appraising properties of late without reviewing the purchase contract. This is now a new requirement for the appraisal companies. Any contracts and/or addendums associated with an offer on a home MUST be handed over to the appraisal company prior to completion of the appraiser. Any changes to these contract and/or addendums must also be provided to the appraiser prior to the final results of the comparative market analysis. Do you think this might put another delay on the timeline to close a transaction?

Portions of a parcel may no longer be appraised. The current guideline states the appraised value must be for the entire parcel.

Sellers beware! If you thought the foreclosed property next door in your neighborhood was not included in the market value of your home, think again. REO’s, short sales and foreclosed homes now have to be considered by the appraiser in determining the market value of your home. The appraisal companies in the past were ignoring the REO’s, short sales and foreclosures.

Third party appraisal companies who are at “arms-length” from a transaction must verify and approve any appraisal completed by someone that might have a financial interest in the subject property. It seems apparent this should have always been a guideline?

If repairs are needed that affect soundness, structural integrity or livability, the property must be appraised subject to the completion of those items. This is where we got the FHA 203K loan.

Supervisory authorities can no longer sign off on completed appraisals without reviewing the subject property themselves. The supervising appraiser has to personally review the property before agreeing to sign off on an appraisal completed by one of their employees.

The main purpose of some of these new guidelines that are revised in the Home Valuation Code of Conduct, was to eliminate or stop any “influence” that may have been considered when determining the market value of a home. Although there are some valid and good changes, the parties to a transaction still need to be concerned if this will prolong transaction even more in the real estate market.

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Knowing some initial steps to take prior to an Arizona Trustee Sale will lower your risks dramatically. You have an opportunity to buy a home with immediate equity which is a huge benefit that can outweigh the risks and possible ramifications.

When you purchase a home at the Trustee Sale, you are buying a lien, not a property. If you don’t do your research, you could accidentally buy a second position lien in which case you will have bought an obligation to pay off any first position lien.

Researching a chain of title to determine your lien position, as well as any liens that are not extinguished at the trustee sale, such as property tax and IRS liens are crucial. Once you’ve established your position and are comfortable with the existing liens that are valid, you can move forward to the next step.

Remember you are buying the property in an “As-Is” condition. There will be no inspection periods, no termite inspections, no home or seller warranties and no title insurance.

Once you win a Trustee Sale bid, there are financial requirements. First you must place an earnest deposit in the amount of $10,000 with a cashier’s check to the trustee. You also must have the remaining funds to pay the note in full within 24 hours after you win the bid. Failure to close the transaction the following day you will automatically lose your earnest deposit and possibly face additional legal ramifications.

There is really only two ways to obtain the cash needed to purchase the property. You either have the cash in the bank or you will have to use a hard money lender. Hard money lenders charge high fees and interest rates but the loan is usually for a 30 day time frame and then you can refinance at that time. Keep in mind you will need an additional down payment when you refinance the home.

Most homes that you purchase at the Trustee sale will need at least paint, carpet and miscellaneous repairs. However, when purchasing at the Trustee sale you are buying a property for under today’s market value and have already calculated the potential work that needs to bring the home up to standard.

The purchase price you pay for the home is never more than 70% of market value. If you refinance the property through a conventional mortgage they will only lend at 80% of market value.

Technorati Tags: blog, finance, foreclosure, homes, Leasing, loans, mortgage, Real Estate

On visiting the official website of ApartmentFinder at http://www.apartmentfinder.com/Default.aspx, one will know that it is essentially a national publisher of local and online printed magazines suited for real estate marketing. Those looking to purchase homes can look for properties that are promoted on this site. For this, only a simple registration is required and the zip code of the region where one is seeking of properties has to be mentioned. Many licensed and insured professionals provide multiple quotes to consumers. ApartmentFinder also offers rental insurance so that consumers feel safe and secure. They also allow for the setting up of individual communication services. They also provide free credit reports to consumers that generate instant individual credit scores.

Real Estate ABC at http://www.realestateabc.com/ is a haven of consumer resources, hints and tips for mortgage borrowers, home sellers and home purchasers. It provides numerous services and articles to assist consumers in the procedure of purchasing or selling homes. Realestateabc.com offers mortgage calculators and rates, professional and accurate valuation of your home, helpful tips, realtor search, and search for homes that are available on sale. They understand the significance of purchasing a home from the investor’s viewpoint and provide them with all the necessary information and assessment. Real Estate ABC provides the opportunity of purchasing homes that best meets one’s individual and family requirements.

Real estate market evaluation, home values, property rates and neighborhood information for customers is provided by Eppraisal at http://www.eppraisal.com/. You can connect with their local professionals of real estate who are obtainable as appraisers, agents, home inspectors and mortgage brokers to buy, sell or rent a house. Eppraisal has up to date information on demographics, schools, cities, rankings of the real estate market and also provides home value widgets. Eppraisal has quick links on local information, home values and names of professionals on real estate who can guide you in striking property deals. Customers can get good service and remain assured of making the best investments of properties by browsing Eppraisal.

Retrove at http://www.retrove.com/ is another leading website of real estate. Its uncomplicated and powerful search interface aids in consumers to find the best information and sources on various communities very quickly. Its vertical real estate search engine indexes a fixed number of listing resources. Its prime focus lies on human technology and review. This enables it to generate the most correct, reliable and appropriate results for the sake of its consumers. The index of Retrove is an astounding 12,163,321 sources. One can gain information about almost all listings in one’s local area. This site allows one to make the best monetary decisions in terms of home investments. The site also gives impartial resource listings thus producing the most correct results.

ChoiceA at http://www.choicea.com has one of the best interfaces in recent times. Its process for property searching is quite uncomplicated and one can see the results on a map, via a gallery or may be in the form of a list. The properties of listing on this particular site are quite to the point and clear. One can also obtain many useful tips, guidance and hints in the procedure. ChoiceA provide a few legal documents that are based on the states and thus enables the smooth selling of homes. The site is well known as a good FSBO site and does not charge any extra cost. The data on this site contains lesser jargons than most other sites.

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ApartmentFinder at http://www.apartmentfinder.com/Default.aspx is a website that is a national publisher for online and local printed magazines for the real estate market. Customers wanting to buy a house can look in the available options in ApartmentFinder. The customer just needs to register mentioning the zip code of the locality where they desire to look for properties. They can get a considerable number of quotes from insured and licensed real estate professionals. ApartmentFinder have the feature of renter’s insurance so that the renter feels absolutely safe in their new home. Own services for communication can be set up. You can also procure a free report of credit that will provide you with an instant credit score at ApartmentFinder.

Real Estate ABC at http://www.realestateabc.com/ is a haven of consumer resources, hints and tips for mortgage borrowers, home sellers and home purchasers. It provides numerous services and articles to assist consumers in the procedure of purchasing or selling homes. Realestateabc.com offers mortgage calculators and rates, professional and accurate valuation of your home, helpful tips, realtor search, and search for homes that are available on sale. They understand the significance of purchasing a home from the investor’s viewpoint and provide them with all the necessary information and assessment. Real Estate ABC provides the opportunity of purchasing homes that best meets one’s individual and family requirements.

Real estate market evaluation, home values, property rates and neighborhood information for customers is provided by Eppraisal at http://www.eppraisal.com/. You can connect with their local professionals of real estate who are obtainable as appraisers, agents, home inspectors and mortgage brokers to buy, sell or rent a house. Eppraisal has up to date information on demographics, schools, cities, rankings of the real estate market and also provides home value widgets. Eppraisal has quick links on local information, home values and names of professionals on real estate who can guide you in striking property deals. Customers can get good service and remain assured of making the best investments of properties by browsing Eppraisal.

Retrove at http://www.retrove.com/ has a simple but powerful search interface for real estate to help customers locate the best listing sources and information on real estate communities very quickly. Retrove has a vertical search engine for real estate which indexes finite number of listing resources, and thus focuses on human review and technology that yields the most total, correct and valid results for consumers. Retrove has an index for real estate containing 12,163,321 sources for real estate. You can gain access to many listings in your locality. You can make the best financial decisions for such significant investments. Retrove provides unbiased resource listings and generates very precise results.

ChoiceA at http://www.choicea.com has one of the best interfaces in recent times. Its process for property searching is quite uncomplicated and one can see the results on a map, via a gallery or may be in the form of a list. The properties of listing on this particular site are quite to the point and clear. One can also obtain many useful tips, guidance and hints in the procedure. ChoiceA provide a few legal documents that are based on the states and thus enables the smooth selling of homes. The site is well known as a good FSBO site and does not charge any extra cost. The data on this site contains lesser jargons than most other sites.

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When searching for a real estate agent to help you with the sell of your home, you have probably heard that it is best to select someone that is a Realtor. There is a difference between a realtor and a real estate agent or broker and you might not have realized that. While a real estate agent or broker is not a member of the National Association of Realtors whereas a realtor is. Why should you be concerned about whether or not your agent or broker is a member the National Association of Realtors and what is it?

Reducing Risks with the National Association of Realtors

Established in 1908 as the National Association of Real Estate Exchanges, the National Association of Realtors was built on the concept of regulating real estate agents and ensuring consumers receive the best service possible.

The professional must complete certain educational requirements that are above and beyond those required to become a real estate salesperson, in order to become a member of the National Association of Realtors.

In addition, a code of ethics and Standards of Practice that have been established by the National Association of Realtors must be followed by the members. Whether you are the buyer or the seller, by following the code of ethics and the Standards of Practice, you can be certain your interests are protected.

Becoming a Member of the National Association of Realtors

Quite a number of people do not understand that there are in reality various types of real estate professionals that can become members of the National Association of Realtors. Some of these professionals include:

Appraisers Commercial real estate brokers Counselors Immovable property managers Real estate salespeople Residential real estate brokers

Though their roles do very a bit, each of these professionals is heavily involved in the real estate transaction process. For example, real estate sales people is not as educated or are as responsible as a real estate broker. Yet, both can assist you in the house buying process. In the same manner, a commercial real estate broker specializes in assisting in transactions having to do with commercial or industrial properties while residential real estate brokers assist with transactions having to do with residential homes.

With a history that is almost 100 year old, the National Association of Realtors is well established and greatly respected in the industry. You are taking the first step toward enjoying a successful house buying or selling experience when you decide to work with a realtor that belongs to the association.

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As a business person and writer of your own or other’s real estate marketing materials, plagiarism is an expensive mistake you cannot afford.

However, it has been a common practice for most direct marketers to use copies of previous mails they have received. Some may consider it plagiarism, but the truth is this is not entirely the case. Let me explain why.

The term being used is “swipe-file” where in you collect all the mails you received from other marketers who may have the same offer as yours or from other business. You have this collection mainly for the purpose of finding marketing terms which you think are effective to use for your marketing plan.

You then use your new knowledge on the marketing impact of these words in your own real estate direct marketing copy. You don’t use the same sentences or even impart the same idea in your real estate direct mail. You are just using the ‘words’ to market ‘your own ideas.’

So release your natural creativity, while you use other people’s real estate direct mail as a starting point. If you find the phrase “insider secret” compelling then use it in your own headlines. Also pay attention to call to actions when reading other people’s real estate direct marketing materials. Get inspired to make your own magnetic call to action.

Be creative. If you find a headline with the word “turbocharge” excites you try to work it somewhere into your copy. If you like a certain phrase, or even an idea that urges people to call right now, adapt that idea for yourself. Go with your gut instincts. You’ll discover that not only does it make your copy sizzle, but it’ll probably increase your response rate as well.

A swipe file has been used by all of the most successful copywriters for years. If you aren’t already receiving some type of direct-mail from a variety of firms, contact some. Tell them you’re interested in being placed on their mailing list. You don’t need to tell them why!

One effective method we can borrow from poets and creative writers is to read these real estate marketing materials out loud. By doing this, you get to both hear and feel the power of the words.

Other people’s marketing materials really helps in bringing out your creativity when you study them. These would inspire you to come up with better and unique real estate marketing materials.

It wouldn’t help if you somehow feel a little guilt when you do this method. The truth is even the most creative and experienced copywriters have collections of other people’s work. David Ogilvy, a successful copywriter, even admitted that he uses other people’s ideas as inspiration. So if you are having a hard time starting your own copy, why not study other people’s work today.

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If you dream about escaping the cubicle nine-to-five prison, then passive revenue ideas are the keys to your cell. Working for some other person can make you well off financially, but you can doubtless never actually be rich. Owning your business is the way to go if you’re searching for true financial freedom.

Yet many business owners find themselves working more hours and dealing with more headaches than they did while running after the cheese in the rat race. If you want to be free of bosses, headaches and sitting pretty financially passive income is the way to go.

Instead of hitting a clock or working a crazy quantity of hours passive revenue ideas allow you the capability to do the work up front and chill and collect checks for the rest of your life. While there are millions of way to make your own way in this world, one of the most profitable and hands off is real estate investing.

For example, by setting aside some money each paycheck you could simply put money down on a place. Nowadays there are tons of houses for sale, either through traditional means, repos or bank owned properties. Gain advantage from the slow market and get a home below it is correct worth. After putting in some work fixing up the place, hire it out. The renters pay the mortgage and whatever extra is yours.

Repeat the method and your monthly revenue would keep growing as you put in little or no work maintaining your properties. If you out source management of the properties your passive earnings becomes actually easy. The best part is your tenants are paying the mortgage and you’re keeping the overages. If you ever need a giant inflow of cash for your kid’s varsity, a new auto or any other reason you can simply sell a property and collect all of that wonderful equity!

Take this basic idea and use it on other passive revenue ideas, like investing in commercial property. Commercial property is valued differently than home, in that commercial property is valued by the cash it produces not what similar properties are selling for.

This is one of the great passive income ideas because with small improvements you may constantly increase the value of your property as well as your monthly passive revenue checks. You also spread the risk out among several tenants, and aren’t only dependent on one person to promise your money.

With a little planning and a tiny investment you can build an estate empire that may provide you with earnings for the rest of your life.

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A tax levy is a legal seizure of your property in order to satisfy a tax debt. While liens are claims used as security for a tax debt, levies involve the actual physical seizure of assets and properties. Failure to pay taxes or arrangements to settle a debt that you owe can result in the seizure of your car, boat, house, bank accounts, rental income, and related assets.

Levies typically occur after the IRS has sent a final notice of Intent To Levy at least 30 days before the scheduled levy is to occur. There are many legal options that you can explore, however to help protect your assets and property.

If you cannot pay your tax debt, you may be able to qualify for what is known as an offer in compromise. This is a settlement between you and the IRS and is possible in cases of extreme economic hardship, inability to pay off debt in full, and actual presence of tax liability. (tax liability is disputed and found to be inaccurate)

There are both advantages and disadvantages to an offer in compromise. The IRS holds collections while considering an OIC, and releases liens and levies once an OIC is accepted and completed. OICs also allow taxpayers to avoid having to declare bankruptcy. An OIC does require taxpayers to make full financial disclosures to the government however, and if it is accepted, rights to certain tax benefits will be waived. If the IRS accepts an offer in compromise, the taxpayer is required to remain current on all tax obligations for five years, and other conditions are applicable as well.

A tax levy can seem like a scary thing, but the good news is that you do have options. A tax professional can help you identify and sort through these options, and plan an effective strategy. Contact a tax professional in your area to learn more.

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