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Class-Action Lawsuit Scrutinizes Foreclosure Procedures | Avvo News

2009-11-06T11:18:00.000-05:00

Class-Action Lawsuit Scrutinizes Foreclosure Procedures | Avvo News

A Great “NO” From the Fed!

2009-11-06T08:30:00.001-05:00

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

2009-10-29T10:54:00.000-04:00

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

2009-10-22T08:35:00.001-04:00

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!

2009-10-15T08:43:00.003-04:00

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

2009-10-08T09:22:00.002-04:00

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!

2009-10-01T09:21:00.000-04:00

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.

Real Estate Owned (REO) = Easy as 1, 2, 3

2009-09-24T12:24:00.003-04:00

REOs can be great for individuals, as opposed to investors, looking to purchase a home. Buying the home as an REO allows for a regular home inspection, title insurance, and even a conventional mortgage.

However, the REO isn’t necessarily the smartest purchase for an investor. Although banks do not want to own properties, they most likely have taken a large loss on the property and that will be indicated in their asking price. Remember that the better deals for the investor are to be found in the early stages of the legal process; the pre foreclosure and foreclosed properties.

Here is the three step REO process:

1. An owner defaults on a property mortgage, and the lender establishes a court document warning the owners that, in order to maintain ownership, they must pay all arrears on the property including penalties, interest, and other fees. At this point, the property is in pre foreclosure.

2. The property owner does not positively react to this warning, and a public sale of the property is scheduled. At this point, the property is in foreclosure.

3. Simply put, if the property is not purchased at sale by an investor or other potential property buyer, the ownership defaults to the lender. At this point, the property has become a REO.

Pre Foreclosure 101

2009-09-14T11:54:00.001-04:00

The first day of school for students always gives me a chance to hold my one and only class of the Default Research school year. Since we do not have a lot of time, we are going to skip the "what did you do over the summer question" and jump right into Pre foreclosure 101.

First order of business in this class is, what is a pre foreclosure? Simply put, when the homeowner defaults on their mortgage loan, not much time goes by before the lender is sending reminders, notices, and late fees. It is at this point that the owner can contact the lender and try to rectify the situation. However, when that correspondence is met with no action on the mortgage holder’s part, a Notice of Default is filed in the local Clerk of Court’s office, and becomes public record.

The timing of the Notice of Default may vary from state to state. In California, for example, it is not filed until the property owner is at least 60 days behind on their mortgage payments. It is vitally important if you are in the pre foreclosure market to know the current (they are often changed) laws that affect the states and counties in which you are interested.

If you are a lender, a lawyer, a buyer, a real-estate agent, these lists of pre foreclosures can be the most important tool you have to succeed in your business! Maybe you are looking to buy a property in foreclosure, or maybe you hope to be able to help the homeowner by offering a loan. Perhaps you want to contact the owner and try to sell their house for them before foreclosure becomes a reality. You have to carefully choose your provider of lists and determine whether you are getting fresh leads, correct phone numbers when available, and that your supplier of pre foreclosure lists is trustworthy. If your provider can do all of those things with their lists, than you can expect to be the first to approach the homeowner in distress and get a serious advantage over your competition.

Remember what a pre foreclosure list does not include – such as properties that are up for sale at the local sheriff’s office, nor are they REO properties. That will be for our next class!

Get Ready For The Green Light And The Recession To Be Over!

2009-08-19T14:24:00.005-04:00

If you think of the recession as a traffic light, that long endless red light might be changing from red to a long yellow now. By no means is the economy operating with a green light yet, but the unemployment figures from last week are definitely encouraging. Not only did the total jobless rate decrease last week, the number of continuing claims also decreased 141,000 from the week before, and July’s job losses were the smallest this year meaning the nation reached a six month low in terms of jobless claims.

"The worst may be behind us," said President Obama. Not a ringing endorsement that the recession may be coming to an end, but after the newest unemployment figures last week are a very good sign (or traffic light if you want to think of it that way).

What is keeping the recession stop light at red or that long yellow might actually have something to do with – and no pun intended here – the automotive industry. It could be a seasonal quirk or it could be the auto industry, but the number of new claims for unemployment had increased from the previous week. Not good, but could be worse.

Is there a green light in our future? The L.A. Times spoke with Nigel Gault, chief U.S. economist for IHS Global Insight, and he seemed to think so. "It's unlikely that we've actually peaked, yet on the unemployment rate . . . I suspect we'll probably still lose jobs for the rest of the year, but at a slower pace. The huge increases are now behind us. We're in the process of beginning to flatten out here."

Now that we are hitting a flat road, we should all get ready (just be ready) for when the light turns green and it is downhill at full speed ahead. That is when our savvy clients who invested using our statistics will be able to put the pedal to the metal and profit!

Finding Stability

2009-08-06T09:28:00.001-04:00

A market rally by August seemed unthinkable five months ago when stocks plunged to twelve year lows. It’s the beginning of August though and the temperature is not the only thing heating up! Alright, maybe I shouldn’t go overboard, but we are seeing signs of a stable economy.

Need proof? U.S. stocks have been gradually seeing gains the past few weeks due to positive earnings reports, and predictions for stability in the construction, manufacturing and the auto market are adding a glimmer of optimism to a once dim outlook for the economy being on its way to recovery by the end of the summer. Stability has become the catch-word that many market analysts are looking for when it comes to the stock market and to the economy as a whole.

Stability is not what we have in the housing market – yet (unless you are talking about Default Research and we will always provide the freshest lists to our clients). As some good signs are being reported in a few early August reports, they are followed by other reports tempering the optimism. Some states are seeing a leveling out of foreclosures, but remember that they are doing so at still very high levels of foreclosures. Therefore, I say yet when it comes to the housing market because stability is in the air with the downswing from the monumental negative effects of the past year and get ready, investors, for a hotter winter!

Now is the Time!!!!!

2009-07-29T09:05:00.005-04:00

The sale price of homes continues its downward spiral. Forbes this week is saying that it doesn’t matter where you live, you are not invulnerable. From Bel Air where a 31% decline has been seen to Greenwich Village where the drop is 45% during the past year, we are surrounded by a wide-ranging epidemic.

It is like looking at a Polaroid of the economy; not only have prices fallen, but home sales themselves have been following that downward spiral. The available inventory, as you can guess, has increased tremendously, and “It’s a buyer’s market” has never been truer!
We’ve been saying this for a long time, and we will continue to proclaim that this is the best of times for the savvy investor who knows where to put their money by following up-to-date leads, and who has the ability to hang on to a prime piece of property for a while. The market is changing; if you haven’t yet done so, now is the time to get in!

…AND YOUR BUSINESS CONTINUES TO GROW….

2009-07-23T08:47:00.002-04:00

Mid-year 2009, and “foreclosure” is a word that has not gone away. According to one expert, approximately ½ of all homes sold today are a result of properties sold through short sales or the foreclosure process. Let me repeat that -- one-half! That means neighborhoods across the country are being devalued at an astonishing rate. Think of it…if an owner near you moves out or is forced out of their home and the property stands empty and deteriorates, the result is your home’s value (and the value of surrounding properties) is negatively affected. Multiply that by the large number of neighborhoods across the country experiencing the same problems and you can see that now is the time for savvy investors to strike deals and also help families in trouble.

No matter what area of real estate you are in, as a seasoned or even fresh real-estate professional, you can be instrumental in mitigating some of the effects of this prevalent swing in losses. Just remember that this method of business is growing and that means there are unlimited possibilities for you!

New Michigan Foreclosure Law Went into Effect on July 5th, 2009

2009-07-15T14:44:00.001-04:00

The new state foreclosure laws in Michigan were signed on May 20th, 2009 and went into effect on July 5th 2009. Together, the three laws (2009-PA-0029, 2009-PA-0030 and 2009-PA-0031) aim to increase the duration of the foreclosure process. Currently foreclosures in Michigan happen in about 5 weeks. These three new mandates will delay the foreclosure for 90 days, or approximately 12 weeks.

Under this new foreclosure law, lenders must send a homeowner a notice of default and give them 14 days to contact a credit counseling advisor. If the homeowner responds to the letter, they are given 90 days to attempt to modify the loan with the lender.

What does this mean to Default Research clients? These laws provides a great opportunity for those interested in loss mitigation, credit counseling, real estate investing, short sales, and/or bankruptcy. With more time in the pre foreclosure stage, our clients can work with homeowners before their properties go to sale.

Many people have avoided working in Michigan because of the quick foreclosure process. That process is no longer in effect and now is an excellent opportunity to capitalize on the new law while helping homeowners in distress.

TAKE IT FROM A U.S. SENATOR: “STUDY, STUDY, STUDY!”

2009-07-09T13:52:00.002-04:00

Former Senator and Presidential candidate Bill Bradley is known for saying, “when you aren’t studying, somebody else is.” And, that holds true in real estate too – especially now! When you aren’t studying, somebody else is learning that pre foreclosure and foreclosed properties have become essential elements of today’s real estate market and no matter what segment of the industry you are in, from broker to seller, lawyer to lender, the current times will definitely find you handling pre foreclosure or foreclosed properties.

While Bradley didn’t offer any specific ways to study and improve your knowledge base, we have several solid methods for you to study when that other person is too.

1. For example, there are conferences to attend that will help hone your skills in working with properties in distress. These conferences are an excellent opportunity to take classes, mix and mingle with respected members of the real estate scene, and also a great place to promote your real estate business too.

2. Your local community college may offer a class in dealing with distressed properties and if they don’t already have a class, you might encourage them to do so! Many of the professors at the community college level are main players in the real estate industry in that region, so they are excellent people to know and to learn from.

3. Explore any local group that will help you enhance your knowledge in this prevalent area of the industry. Local real estate groups can be found in every major city in the country and they are a great place to network and learn from others people in your same shoes.

4. The web offers unlimited resources for self-education. Study the laws governing the specific area in which you are interested. Did you know that Default Research offers information regarding state foreclosure laws on our website? And, our monthly newsletter is available for reading and it offers a great variety of valuable information. This is not just a shameless plug for Default Research, but it also brings up a very important point – wherever you do research pre foreclosure, make sure the source of the information is trusted and well respected in the industry.

The real estate world is changing everyday which means that each day there is something new to learn. Remember it or write it down so you don’t forget; when you are not studying, somebody else (quite possibly your competition) is studying and getting that much smarter, savvier, and in the end, wealthier.

The Dreaded Cold-Call

2009-07-01T13:24:00.002-04:00

Making cold-calls is almost always seen as a terribly unpleasant job! If you’ve ever done any cold calling, you know you’ll hear the word “NO” or a very audible hang-up more often than not. To succeed at this sales tactic, you want a few weapons in your arsenal of skills:

1. Don’t allow yourself to be deterred by a negative response. Develop the mind-set of “what’s the worst that could happen, someone is going to tell me that they’re not interested, so what, who cares, next call.” And then it is time to move onto the next phone number and prospect!

2. Always remember cold calling is not about making the sale; it’s about creating an interest in the product you offer, and successfully setting up a second conversation or meeting where you can prove the value of that product. This first cold call gives you the chance to start building rapport, respect, and a strong relationship with this customer.

2. Have a friendly introduction ready but make sure to avoid sounding like a rehearsed advertisement! As you speak, include some knowledge you have of the prospect’s business (i.e., a recent achievement they have accomplished or goal they are trying to meet) and try to strike up a conversation.

If you are able to generate interest on the prospect’s part, then consider that a successful cold call! Whether you end up getting the sale or not, hopefully you have established a link that will aid in future negotiations. The key is to be personable, understanding, and knowledgeable in both what the prospect’s business is about and that what you have to offer that person will be extremely valuable to them!

Ask What You Can Do for Your Community

2009-06-18T08:20:00.002-04:00

In this tough economy, it is time to ask yourself what you can do for the place where you live and own a business. Since people in your community need all different kinds of financial help, and your business could use any free advertising it can get, volunteering is a great way to create free advertising. Not only will your business get promoted through publicity for the event, the company’s public image will also be strengthened by showing your business cares about the community in which you operate.

Before you decide to donate a percentage of your sales to the local schools or organize a food drive at the homeless shelter, make sure the event is well planned. If you are able to bring together a well publicized event, with radio, television, and newspaper coverage through solid press releases, other companies will want to be part of your event too. Those new participants will be able to spread the word to their clients, put up flyers in their stores, and also mention the event on their web site. Make sure that your company logo and contact information are on every piece of information and you have just created an amazing promotional machine by doing community service.

A well done event to help your community, complete with solid press and strong partners, can be an important, long lasting marketing tool. So, if your business is a bit slower and you have free time to donate, ask what you can do for your community now and your company will thank you later.

Go Green to Help the Environment and Increase Home Value

2009-06-11T10:57:00.001-04:00

Now is the time to start thinking seriously about home improvements, especially when it comes to energy savings. The government’s stimulus package includes The American Recovery and Reinvestment Act of 2009 and is available to the general public for tax credit when they make energy efficient improvements to their homes. A tax credit of 30% is available when that improvement includes insulation, as well as the substantial savings realized from having lower heating and cooling bills because of the improvement.

There is a myriad of small inexpensive ways of reducing heating and cooling bills, from insulation to caulk and weather stripping. Eco-friendly homes can be more marketable than a similar traditional home. Buyers are more conscious now than ever about the cost of energy, and eco-friendly homes make for a long term energy savings.

In dollars and cents, many experts have found that an eco-friendly home sells for 10 to 15 percent premium than traditional homes. Combine that with the tax credit, in fiscal terms upgrading a home to be eco-friendly can result in a significant increase in sales price. In addition, with the rising price of energy, eco-friendly home demand will continue to rise.

Commercial Foreclosure - Top 5 Counties

2009-06-03T13:05:00.005-04:00

Commercial foreclosures have been a hot topic lately. With vacancy rates rising and rents declining, commercial properties are seeing a decline in cash flow. Combined with the lack of financing, this has led to a spike in commercial properties on the foreclosure lists. It is no surprise that this is happening now as the commercial market lags behind the already peaked residential market. Many of our clients are interested in commercial foreclosures and are inquiring as to where to find the largest number. A list of our top five commercial foreclosure areas for May 2009 includes: (1) Clark County, NV (2) Los Angeles County, CA, (3) Miami-Dade County, FL, (4) Maricopa County, AZ and (5) Lee County, FL.

Because commercial loans are generally made on much shorter terms than residential mortgages, many property owners just refinance at the end of their term. However, with the lack of available financing, many financially viable properties are making their way onto our Default Listings. For more information about commercial properties click here.

The commercial foreclosure market seems to be heating up, so those interested should begin by exploring the most up-to-date commercial foreclosure listings that Default Research provides.

California Title Companies No Longer Able To Provide Default Information

2009-05-28T12:27:00.016-04:00

On September 25, 2008, the Governor of California signed Senate Bill 133 ("SB 133"), which became effective January 1, 2009. This new legislation instituted a program for the California Department of Insurance to register, regulate and monitor title company marketing representatives and addressed what the legislation referred to as the "problem of illegal rebates and inducements dispensed by title marketing representatives". The bill regulates who may be employed as a title marketing representative by forcing such individuals to obtain certain certificates and hold said certificates for certain lengths of time.

The changes to California Insurance Code Section 12404 under SB 133 impact existing title companies and their sales and marketing practices. In addition, there are severe penalties imposed upon a title sales representative found to be in violation of SB 133 including a 5 year revocation of license and monetary sanctions, as well as an investigation and potentially severe monetary sanctions against the Title Company, including up to a $10,000 fine.

Since January 1, 2009, there are a number of newly-prohibited activities and expenditures for Title Companies. One of the main prohibitions pertaining to the foreclosure sector is the prohibited activity of creating and/or providing marketing/informational materials that are not exclusively related to title insurance. For example, flyers related generally to short sales, foreclosures, REO processes, auction processes, tax issues, loan modifications and refinances, HELOCs, and new construction are prohibited unless they solely discuss how these items are handled in the title insurance process or how these items impact a preliminary title report and title policy. Hence the reason your California title company may no longer be able to provide you with notice of default listings. As an alternative I highly recommend you check out http://www.defaultresearch.com/ for obtaining pre foreclosure listings for your county.

Affordable Improvements to Sell Your House

2009-05-04T11:50:00.003-04:00

Despite recent improvements in the housing market, home sellers interested in selling quickly for the maximum dollar amount should consider making some small improvements to positively affect the bottom line and decrease time on the market. A home that appears well cared for with recent updates will stand out from the competition. Updates do not have to be a $50,000 newly renovated kitchen. Think small and spend your money wisely.

Start with the outside by checking curb appeal. Repair or replace a wobbly mail box and plant flowers around it. If your house numbers are hanging by a thread, it is time to replace them. Be sure to trim the shrubbery, as well as weed, edge, mulch flower beds, and plant flowers to add a splash of color close to your house. Could your front door use a coat of paint or a new lockset? Remember to mow your lawn, too. A house that looks well tended on the outside will draw buyers in.

On the inside, start at the ceiling and work your way down. Lighting fixtures older than you should probably be replaced. Replace broken or damaged electrical outlet and switch covers. Doorknobs that are worn or broken should also be replaced. If you cannot remember when a room was last painted, consider painting, but be sure to choose a neutral color. If your furniture is old or mismatched, consider slipcovers and some new, inexpensive throw pillows. If you have dirty carpet, rent a rug cleaner from your local home improvement center and get busy cleaning the carpets. This is especially important if you have pets or rooms with high foot traffic. Just because you do not smell your pet does not mean potential buyers cannot smell pet odor. Making your house look and smell its best will enable buyers to see themselves living there.

Another important and simple thing to help sell your house is to remove clutter and depersonalize. Do not distract your potential buyers with your personal collection of bobble heads. Your buyers’ attentions should be focused on your beautiful home and no place else. Since you are selling your house and moving, you might as well start packing up personal collections, photographs and other items for your move to a new home. Packing now will make the stressful time of moving day a little easier by having most of your things ready to go in the moving truck. When your house is being shown, do not forget to turn on every light in the house, and open all blinds and curtains to make your home appear light-filled and inviting.

Remember, you are selling space - make your entire home look as spacious as possible by placing your overflowing stored items from over-packed closets, basements, and sheds in a storage rental unit. As you would stage any other room in your home, stage your closets and storage areas with only a minimum amount of things you cannot live without while your house is on the market. Buyers will be impressed with how much storage space your house has if everything is not falling out of the closet as the door is opened.

There is really no need to break the bank to get your house sold quickly. A few well chosen updates as well as removing clutter by packing up personal items will work wonders in making your home appear more spacious and appealing to buyers.

Lender Documentation Requirements

2009-04-27T14:07:00.002-04:00

There are many documents lenders require, whether purchasing or refinancing a home. The amount of documentation required varies by lender and, at times, can be very intimidating to someone unfamiliar with the process. This is especially true now as lenders toughen up their standards in light of the recent financial crisis

Documentation requirements are different for someone who is self-employed, and are usually more stringent. For the self-employed, you may be required to provide personal Federal Income Tax Returns including Schedules for the last two years. Business owners will need to provide Business Federal Income Tax Returns for the last two years. Profit and Loss Statements for the current year and 1099 Statements may also be required. For income verification you will need two of your most recent pay stubs as well as your most recent two years of W2s. It is also important to remember that your lender will need to verify your employment, so be prepared to provide your company’s Human Resources Department contact information.

If you have rental property income, in addition to your Federal Income Tax Returns with Schedules, you may need to provide your lease agreements. Additionally, while the bank is not allowed to inquire if you receive child support, they can inquire if you pay it, and you may be required to supply your payment history.

For pension as well as social security income, you may be asked to provide two years of 1099s. The bank may also require documentation from your pension provider stating payment amount and frequency, and/or the most recent award letter with the dollar amount you will be receiving from your social security. If you have an annuity, the quarterly statement with account balance is usually adequate. You will also be required to protect your home with homeowner’s insurance. Be sure to provide your agent’s name, address, and phone and fax number to your lender.

Finally, you will be asked to provide two months of bank statements from checking/savings, any investment account statements, stock certificates, and statements for life insurance, but only if the life insurance has cash value.

When was the last time you….?

2009-04-14T08:16:00.005-04:00

My question to you today is this – when was the last time you really listened to someone? It could be your spouse, parents, children or even friends. I know you’re sitting there thinking, I listen to people all day long. But the kind of listening I’m talking about is giving your full attention to them; not texting someone, watching tv or already thinking of your response.

By now you are probably wondering where I’m going with this question. Everyday we are hit with the numbers of pre foreclosures and layoffs that we forget that these numbers are real people. What I would like the customers of Default Research to do is, when they contact the names on the notice of default lists, to try to really listen to what these people need. Ask about them and find out how they came to be on these lists and what they need to help them out of their situation. Try to remember some of them came to be here through no fault of their own. As I stated in my previous article, try to put yourself on the other side of line when talking with them.

We here at Default Research try to listen to our customers concerns also, which is why we are always trying to improve our product. Feel free to contact us with your suggestions or ideas to help us make your job easier and we will listen to you!

Check back again for the next When was the last time you… ? article.

A HERO EVERY DAY

2009-04-10T10:58:00.004-04:00

We certainly love our heroes, don’t we? From the football field to the stage, America has elevated certain humans to god-like stature because of what they can do, how they look, who they are, or even how much money they might have. A term that has become familiar in the past several years, however, praises the millions of “everyday heroes” who daily shame the status of stardom.

We all know at least one. If you look closely, and have a valid definition of “hero”, you will find more than one in your life. My definition includes several words – “extraordinary”, “selfless”, “goes beyond the call of duty”, “unceasing”, and “tireless”.

I knew a couple who, for 20 years, had been foster parents for the local county. They would welcome abused kids into their lives and home and family, give them love, support, encouragement, and quite often find themselves having to return those damaged children right back to the same people who had inflicted the emotional or physical wounds in the first place. Twenty years of living as heroes!!

A hero changes another’s life, sometimes forever, sometimes for a moment. A smile at the right time can make all the difference. A handshake, a word of encouragement or understanding – all of these can change the course of a life. After all, isn’t that what heroes do?

We all have daily opportunities to join the ranks of “heroism”. We don’t have to give up our lives or our homes. Our customers have that chance when they contact a homeowner in distress. How the homeowner is viewed, spoken to, or helped by an investor in Default Research’s daily lists, can make the difference. Sure, we want to profit. And yes, get something in return for our efforts. But we can be a hero to that homeowner by offering them honesty, a real effort to help, and the best advice at our fingertips. We can have patience with their panic, their mistrust, and sometimes anger.

To get beyond preconceived ideas, to offer our best, and to go the extra mile for another – all of these words are part of the hero sum total!

When was the last time you….?

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So now that I have your attention and you are wondering where this question is leading , let me give you some background. Recently, the CEO of Default Research Inc handed all of us a book to read entitled Raving Fans by Ken Blanchard & Sheldon Bowles. One of the points the authors make is that “Service is so awful customers expect to be abused.”

My question to you is this - when was the last time you had great customer service? If you are like me, you can’t remember the last time someone gave you great service. When did we begin to settle for (and expect as normal) rude clerks in stores or pressing buttons hoping and praying to get a real “live” person to talk to when we try to settle an issue by telephone? One state recently spent $173,000 on politeness training for some of their employees who are in daily contact with the public. Why does a state having to train its employees to be polite when it is a common practice ingrained into most of us since childhood?

One goal we have here at Default Research Inc is to make sure you get to talk to a “real live” person when you call during our business hours. We take time to listen and appreciate your concerns and try to answer them in the best possible way in order to help you meet your goals. We didn’t spend money “training” for this, but rather attempt to deal with our customers as we would want to be dealt with if we were on the other side of the line. We sincerely hope that, if someone would ask you when you last experienced great customer service, you would answer with our name.

Check back for the next When was the last time you…? article soon.