Class-Action Lawsuit Scrutinizes Foreclosure Procedures | Avvo News

Class-Action Lawsuit Scrutinizes Foreclosure Procedures | Avvo News

A Great “NO” From the Fed!

There was a quiet and positive sign from the Federal Reserve this week that the economy is continuing to improve and it came in the form of a big, fat, positive "no." It was a positive no from the Fed when they issued a statement about not being willing to up the lending rate. It is an excellent sign that this is even being discussed because the topic would never have come up in the first half of the year. Back then there was little indication of upswing to make higher interest rates a possibility. But now, enough progress has been made to even consider the option of raising the lending rate!

Since December of last year, the lending rate has remained close to zero, but emerging indications are that growth has increased by close to 3.5 percent during the third quarter of this year. There are several reasons for this gradual incline in the market, and much of it can be attributed to the incentives provided by the government, including "Cash for Clunkers", first time home buyer’s credit, and the economic stimulus package in general.

A positive "no" may seem a little confusing, but when you think about it, this is the Feds way of saying "yes we can" get out of this recession and we are!

COMMERCIAL BREAK; Time to Make Money

Whether or not you have considered growing your business through commercial foreclosures, now is certainly the time to begin! Using Default Research’s state of the art lists, you can easily separate the commercial properties in your area from the residential properties, and you are on your way to a Commercial Adventure!

Here are the top five counties with the current highest commercial foreclosure rate.

1. Los Angeles, CA

2. Miami-Dad, FL

3. Maricopa, AZ

4. Cook, IL

5. San Bernardino, CA

It is important to remember that commercial properties are not bought or sold like residential properties, and they can be a long term investment for you. They are rentable to companies who do not want to buy a property in the current climate, and can be bought low and sold high at a later time when the market has regained its normal behavior. Also, commercial properties have the potential of selling for remarkably less as a foreclosure than they would if they were sold on the conventional real estate market.

This commercial break is over for now – let’s go make some commercial deals!

The Best and Worst of the Foreclosure Crisis

While the foreclosure crisis has been very bad news for millions of homeowners, it has meant good news and big money for savvy real estate experts around the country. An article in the Miami Herald, titled Some entrepreneurs find opportunity in foreclosure meltdown, writer Cammy Clark details companies that have been able to strike it rich using many different methods to profit from the awful real estate situation.

Default Research was not asked to comment for this article, but we have been a major source for other articles that were very similar to Clark’s. Much like the companies detailed in her article, we also feel very fortunate to be helping families during the crisis, helping investors turn a profit, and also grow our business at the same time. The freshest lists in the business have created a win for the families in trouble, win for the entrepreneurs who use our service, and a win for our employees since day one.

What everybody has in common is an ability to see a good opportunity and adapt to the changing environment. Everybody from our clients, to Default Research the company, to contractors who are now completing unfinished work on condos knew a good thing when we saw it. So, here’s to everybody continuing to help people in trouble and making good money in the process!

Consider Commercial!

Most homebuyers and investors automatically assume when you talk about foreclosures you are talking about residential properties, but with the recent weak economy and tight credit market, commercial properties are facing tough times as well. Are commercial properties the next big foreclosure boom? All signs point to yes.

Before any investor goes to the Default Research state-of-the-art database that provides quick access to commercial properties, one should know that a commercial property can include a retail store, warehouses, and office buildings. A commercial property enters foreclosure when a business defaults on a commercial loan. A number of factors seem to be causing the upswing in commercial property foreclosures. With many companies looking to downsize and cut back on space, massive volumes of retail space have become available. Another contributing factor is the rise in internet shopping which leads to less foot traffic in local malls and shopping centers.

So why invest in commercial properties? Because they provide a great potential; these properties are typically resold by lenders at a relatively reduced price compared to the actual property value because lenders want to recover the mortgage amount as soon as possible. A major advantage of investing in commercial real estate compared to residential properties is that the values are not based on comparison sales. A building that sold for a substantial amount of money down the street will not affect the building in which you hope to invest, which means that you are not dealing with one of the uncertainties of the residential market place. Another compelling reason many recommend investing in commercial property is because, in the current climate, many companies are more willing to rent than buy, and the rental growth experienced by commercial investors during the past few years has been noteworthy.

Don’t ignore the commercial property market because it has the potential of becoming a strong money maker for your business!

　

The Best of Times and the Worst of Times

Short sales can be the best of times and the worst of times – just depends on who you are in the short sale process.

Let’s start with the worst of times for the lender. Actually, not all lenders will agree to a short sale because they usually end up with less money than they loaned. For instance, if an owner has been in arrears for a long amount of time and the property is unsellable at the amount owed, a lender might agree to accept less and the property is sold for the lesser amount. This is Short Sale 101 and it is a painful outcome for the lender.

There is another side to the story though, and sometimes the borrower can experience much better times. Not only is he no longer in debt to that property, he usually finds his credit report affected just as if the sale were a foreclosure. Therefore, the borrower can be back in the market for another property in two years (compared to the 5-7 year required waiting period if the property is taken as a foreclosure).

A short sale is not always the answer to a prospective foreclosure. Much depends on the willingness of the lender to accept less than is owed and on how deeply in arrears the borrower is. A short sale is, however, another good or bad chapter (depending on who you are) in the mortgage process.

Who’s the Boss? You are!

Did the article on REOs interest you? I hope so and I also hope it made you want to learn more about the subject. That doesn’t mean you have to become an expert on REO’s, but whether it is REO’s, short sales, or commercial foreclosures, you need to become the "boss" of at least one subject.

Being the expert gives you more of an authoritative voice and then provides your clients with a reliable person to turn to if they need help. For example, if you wanted to become a strong voice in state foreclosure laws, you can feel free to use our web site by checking out http://www.defaultresearch.com/laws. We know our information is reliable and trustworthy, but unfortunately, not all information on the Internet can be trusted.

However, be careful when selecting your experts. The best ones to find are usually your local experts because laws and market situations are very different around the country. Finding a local "boss" on a subject is also a smart way to go because now you have somebody you can turn to with questions and you have worked your way into another network.

If you are a local expert on a subject, please let us know. Our information department is always looking for great contacts and resources for our press releases that reach the national media. Therefore, network your way into our circle, let us hear your authoritative voice, and we might let you be heard on the national real estate stage.