This is the age when foreclosed homes are more attractive and practical as investments. That is because as the volume of foreclosures reach record-highs, prices drop to interesting and surprising levels. Alabama foreclosures are among the most sought-after. But have you heard about so-called federal tax lien foreclosure sale? Is it true you could generate more savings upon buying in such auction?

To begin with, a tax lien is incurred if there is unpaid property tax or utility bill. In 29 states in the country, including Alabama, such liens could be gathered to be resold to investors through a federal tax lien foreclosure sale. The buyer of the liens gains the privilege or right for debt collection. Thus, it is considered a good investment.

How is Alabama foreclosures linked to federal tax lien foreclosure sale? You may not be fully aware of it, but a number of Alabama foreclosures that are up for sale in the market could be tax liens. There is nothing illegal about buying such properties. However, sellers of such tax liens (mostly banks) are not comfortable in disclosing their identities during sale.

In May to June last year, Bank of America and Fortress Investment Group acquired tax liens through various auctions in Florida. It was found that the companies bid for same parcels for up to 8,000 times. There is irregularity in the process. Many critics say this practice inappropriately revs up the system to cause confusion. It could also indicate the greed of some businesses.

If you could identify sellers in any federal tax lien foreclosure sale, you could be in the right direction. As you scour the market for Alabama foreclosures, you might come across several tax lien foreclosures that are up for sale. There is nothing wrong with buying such distressed properties. But sometimes you may get to wonder how the original owner fell into tax liens.

Meanwhile, Alabama foreclosures are 23rd highest in the US last November, according to data released by a property tracking firm – there were 2,754 foreclosed homes. Some of those foreclosed homes could have been sold in any federal tax lien foreclosure sale.

BuyForeclosuresSale.com is a complete source of information related to foreclosures. Updated and accurate foreclosure listings you find here as well.

Original Post: How To Stop Foreclosure

Is there Federal tax lien foreclosure sale in Alabama?

The North Carolina legislature has enacted new legislation to help homeowners with subprime loans avoid foreclosure.  If a homeowner with a subprime loan defaults on his loan, the lender is now required to send to the homeowner a Pre-Foreclosure Notice at least 45 days prior to filing the Notice of Foreclosure Hearing.  The Pre-Foreclosure Notice must include an itemization of all past due amounts and other charges that need to be paid in order to bring the loan current as well as a statement that the homeowner may have options available other than foreclosure.  In addition, the Notice must also include contact information for the lender, the North Carolina Office of Commissioner of Banks and other HUD approved foreclosure counseling agencies.

The intent is to give homeowners who have fallen behind on their mortgage notice before their house is actually in foreclosure that they may be facing foreclosure in the near future and that there are options available that may allow them to save their home and/or their credit score.

Dan Zellers and Scott Rudd- Founding Partners

Dan Zellers, originally from Ohio, earned his undergraduate degree in finance and management from Defiance College and his law degree from the University of Toledo College of Law. He is a member of the North Carolina Bar, South Carolina Bar, Mecklenburg County Bar and the North Carolina Bar Association. His practice is focused on residential and commercial real estate, foreclosure alternatives, landlord-tenant laws and estate planning.

Scott Rudd, a North Carolina native, earned his undergraduate degree in accounting from Campbell University and his law degree from the Norman Adrian Wiggins School of Law at Campbell University. He is a member of the North Carolina Bar, Mecklenburg County Bar and the North Carolina Bar Association. His practice is focused on residential and commercial real estate, business formation and litigation, foreclosure alternatives and work with homeowners’ associations.

Prior to founding Zellers Rudd PLLC, Dan Zellers and Scott Rudd worked together in the real estate finance group of some of the top international law firms in the nation. They represented large national banks and servicers in multi-million dollar commercial property transactions as well as multi-billion dollar commercial loan securitizations. These transactions included the negotiation of large servicing contracts as well as conducting large commercial loan transactions, loan assumptions, defeasances, parcel releases, and other consent matters on large commercial properties located all across the nation. In addition, their work prior to that has afforded them extensive experience in all aspects of residential real estate and residential real estate transactions including loan closings, foreclosure, landlord-tenant law, work with homeowners’ associations, default judgments and private transactions.

For more information about Charlotte foreclosure and foreclosure alternatives, please visit:  http://zellersrudd.com/areas_of_practice/foreclosure_alternative.aspx

Original Post: How To Stop Foreclosure

Pre-Foreclosure Notice for Sub-Prime Loans

After the Foreclosure Hearing in which the Clerk of Superior Court approves the sale of the property being foreclosed, the Trustee will hold a Foreclosure Sale at the county courthouse in which the property is located.  At the Foreclosure Sale the Trustee invites offers to buy the property from those in attendance and then accepts the highest bid.  The highest bidder is bound by his offer the moment it is accepted. 

After the Foreclosure Sale, there is a 10 day upset bid period in which another bidder may submit an upset bid that is higher than the reported sale price.  An upset bid must be at least 5% and a minimum of 0.00 higher than the previously reported sale price.  When an upset bid is made, the upset bid period starts over again for an additional 10 days.  This process continues until 10 days elapse without an upset bid, at which point the last bid on the property is accepted and the foreclosure can be completed.

If you are a homeowner going through the foreclosure process, you have the right to stop the foreclosure and save your home up to and until the upset bid period expires by either paying the lender the money owed or working out an alternative to foreclosure with the lender. 

For more information about Charlotte foreclosure and foreclosure alternatives, please visit:  http://zellersrudd.com/areas_of_practice/charlotte_foreclosure_alternatives.aspx

Prior to founding Zellers Rudd PLLC, Dan Zellers and Scott Rudd worked together in the real estate finance group of some of the top international law firms in the nation. They represented large national banks and servicers in multi-million dollar commercial property transactions as well as multi-billion dollar commercial loan securitizations. These transactions included the negotiation of large servicing contracts as well as conducting large commercial loan transactions, loan assumptions, defeasances, parcel releases, and other consent matters on large commercial properties located all across the nation. In addition, their work prior to that has afforded them extensive experience in all aspects of residential real estate and residential real estate transactions including loan closings, foreclosure, landlord-tenant law, work with homeowners’ associations, default judgments and private transactions.

Original Post: How To Stop Foreclosure

The Foreclosure Sale

If you are looking to profit from the poor real estate market and the large number of foreclosed homes across the country, there is one important thing you must know. You do not need to wait until foreclosure proceedings start. Yes, you can get amazing deals on foreclosed properties, but there are other options too. These include foreclosure short sales and deeply discounted for sale by owner properties.

Foreclosure short sales occur when the homeowners or current home occupants cannot pay their mortgage. There is no foreseeable solution in the near future. They will lose their home. It is honestly just a matter of when. To save their credit score and to avoid costly and lengthy foreclosure proceedings for the mortgage lender, a short sale is decided on. The mortgage lender agrees to sell for less than the outstanding mortgage debt. The lender will take a loss, but they still get some of their money and avoid foreclosure proceedings.

For sale by owner sales are often last minute attempts to avoid foreclosure by the delinquent borrower alone. Sometimes, the mortgage lender refused a short sale.

Unfortunately, it isn’t always easy to find soon-to-be foreclosed homes for sale. In some cases, they are risky. You need to target homeowners who have reached the point of no return. There are many steps for homeowners to avoid foreclosure. You need to familiarize yourself with these steps to save yourself time.

Loan reinstatement. With today’s economy, many individuals are finding themselves in the unemployment line. In some areas of the United States, it is difficult to find a job. It can take a year or more. In other areas, an unemployed person can find a job and be working in as little as a few weeks or months. Don’t avoid, but proceed with caution with individuals who are only facing temporary hardships. When dealing with for sale by owner homes, the owner can change their mind at any time before the final closing. If the current home occupant finds employment or gets their mortgage lender to work with them during these tough, but temporary times, you may be left out in the cold.

Loan modification. This shouldn’t be a major issue for you as a potential homebuyer. Most homeowners approach lenders with this option right from the start. A loan modification involves readjusting the interest rate, the monthly payments, or the overall term of the loan. Many homeowners, unless unemployed, can save their homes from foreclosure with loan modifications. If you want to do a good deed, offer the suggestion. If you want to make a profit, keep this to yourself. After all, the homeowner should already know about loan modifications. If not, it is their loss and your gain.

Foreclosure short sales. As previously stated, the decision to short sell is made by the mortgage lender and in agreement with the current homeowner or occupants. This is considered a last ditch attempt to avoid foreclosure. In most cases, short sales are a great way to profit from the real estate market. You must proceed with caution though. If a new homeowner just acquired a mortgage within the last year, they owe a significant amount on their mortgage. Always compare the home’s appraised value with the short sale selling price. Homes can depreciate. Remember your goal is to get a good deal and possibly resell for a profit.

For sale by owner properties. As with foreclosure short sales, proceed with caution with for sale by owner properties. You will always find homeowners who want to turn a profit. This means selling a home for more than it is worth. If you know the home is near foreclosure, use this as a bargaining tool. Those who are truly interested in avoiding foreclosure and protecting their credit will sell the home at a fair price. Aim for the outstanding amount on their mortgage, plus a small amount for first and last months rent at a new apartment.

As you can see, there are ways that a homeowner can avoid foreclosure. Use these steps to your advantage. Save time and money by opting for those who have reached the point of no return. If they don’t sell their home, foreclosure right around the corner.

Original Post: How To Stop Foreclosure

Options to Avoid Foreclosure

Loan Defaulters

Banks become owners of properties or homes when their owners are not able to keep up with their monthly payments on the loans that they have taken, and thus find it to be a means whereby they can resolve their payment obligations. Whenever the bank and the owner of the property fail to come to an amicable solution with regard to outstanding payments, the property then becomes a bank foreclosure.

Sometimes, bank foreclosures are also referred to as REO properties or Real Estate Owned, and it is normal for banks to be more interested in disposing off the property rather than hold on to it so that they can realize their outstanding dues, and so they forego any profits that can be made and simply sell off the property to realize their dues. This is a very good reason why bank foreclosures turn out to be very profitable, and it is up to you take advantage of such situations, and having a good relationship with realtors would be in your best interests.

You need to get in touch with an experienced firm or persons who can locate for you bank foreclosures and thus help you realize a good deal, and doing research on your own can also be helpful, though you need to be careful that you have done a proper title search and also made inspections before buying such properties. Bank foreclosures are generally good investments provided you work with the right realtor and thus you need to invest your time in developing the proper relationship, which would ensure you enter only into sound property transactions.

There are literally millions of bank foreclosures out there in the market, and you can be sure that every day there are many new bank foreclosures taking place regardless of the state and also type of home owner. Since, at the moment, interest rates are on the low side, more and more people are opting to finance their homes though this has also been accompanied by an appreciation of homes in the US, which has pushed up the monthly payments on loans as well. Often, people cannot keep up with their monthly obligations and thus the banks move in and foreclose the property, and this is where you can enter the property market and get a good deal on bank foreclosures.

Original Post: How To Stop Foreclosure

Bank Foreclosures Make For Very Profitable Buys

Different Types

A mortgage holder is allowed to begin foreclosure proceedings as soon as there is a default in the terms of the mortgage, though there are different types of foreclosure that can occur in the United States with two being widely encountered, while the others may occur in some states. The most usual type of foreclosure is that which is known as foreclosure by judicial sale and it is found applicable in all states in the country and is required in a number of states as well.

The foreclosure by judicial sale means that the mortgaged property is sold under the courts supervision and the proceeds of the sale are first meant to wipe out the outstanding payments on the mortgage and then the remainder will be used to pay off other holders of liens, and the remaining portion would then go into the hands of the mortgagor.

There is also foreclosure by power of sale, in which case the property is sold by the holder of the mortgage though there is no supervision of any court, and whenever such form is available, it is usually a better option of foreclosing on property and it is thus allowed in most of the states as well. The handling of the proceeds is more or less the same as in the first case, and whatever other types of foreclosure are possible, they will depend on the state in which the property is located and will differs from one state to the other.

There is also strict foreclosure in which a mortgagor will default whereupon the court shall order the mortgagor to pay mortgage for a specified period of time and should the mortgagor still default; the holder of the mortgage gets the title to the property without being under any obligation to sell off the property. Such a form of foreclosure was the original form, though now it is only available in New Hampshire, Connecticut and also Vermont.

Original Post: How To Stop Foreclosure

Some Facts Worth Knowing About Foreclosure

Subprime Mortgage Lending

Nowadays you hear it all over the news. People are being foreclosed on and are losing their houses because they can no longer afford their homes. These people probably got taken in by subprime mortgage lenders. These lenders promise people that theyll help them fulfill the American dream of becoming home owners. They even assure these people that they dont need good credit. So, they offer loans and low rates to get people into their first homes. However, what these people generally dont know, because they dont read the fine print, is that their interest rates are going to jump in a few years. What happens is that these people can no longer afford their payments and they are now subject to foreclosure law.

Notice To Vacate

Foreclosure law states that if you cannot pay your loan in a certain amount of time then you have to vacate the premises. If you cannot pay, you will typically get a notice from the bank, or from your lender, stating lack of payment and when you have to leave. If you do not vacate as the notice states, then you will be forced to leave by the police. Many people are having this happen today because of rising interest rates, so dont get taken in because you didnt read the fine print. Dont become a victim to the foreclosure law. Make sure you can afford a home before you sign on one and you will be a happy homeowner for as long as you choose to live in that home. If you need more information, contact a lawyer who specializes in foreclosures or search the internet as there is much information as well as stories from people who have fallen victim and had to vacate their much cherished homes.

Original Post: How To Stop Foreclosure

Foreclosure Law: Know It Before You Sign

Foreclosure Loans

Foreclosure loans are loans that are offered for this specific type of situation. After all, finding out that your home is entering foreclosure is one of the most devastating things that you can experience, but these foreclosure loans can help you through this situation.

First of all, as soon as you have received a foreclosure notice from your lender this is when you need to take action, and you should not wait. You are going to want to contact them immediately and find out what your options are as they would much rather you keep your home and continue making payments rather than take your home away from you.

Remember that open communication with your lender is going to be a must here and you need to make sure that you keep them in the loop and aware of what is going on. Although it may often be tempting to avoid talking with them and try to figure things out on your own, this is not going to benefit you at all in the end and you need to work together with your lender if you want to come out of this with the best results.

There are a few requirements that you are going to want to consider when it comes to foreclosure loans and the number one requirement for receiving this type of loan is the ability to be able to pay the new mortgage and resolve your financial issues. You are going to have to make the lender believe that you are going to be able to make your future loan payments and if they can see this they will be much more willing to issue you a loan than they would if they were to be doubtful about you paying the loan back.

The best idea here is prevention of course which means making sure that you make all of your mortgage payments on time, but if you do get behind and foreclosure becomes an issue then getting a foreclosure loan is going to be one of the best options available to you.

Original Post: How To Stop Foreclosure

How to Get Foreclosure Loans

Acceleration Clause

Finally, if you continue to play truant with your mortgage payments, the lender would have no option but to demand payment in full, which is sure to be a part of your mortgage stipulation under an acceleration clause that is usually standard procedure in most mortgage contracts. When you reach this stage in the foreclosure process, you will need to pay the balance of the mortgage plus whatever late payments, and legal fees and even late fee penalties as well, and after the acceleration clause has been set into action, you will have no choice but to pay in full and foreclosure process will formally begin.

The first step in this foreclosure process would be to receive from the lender a certified letter of foreclosure which may be served to you either by a processor or by a local sheriff. Following this, the lender will also, as part of the foreclosure process, publish in a newspaper a legal notice informing about pending foreclosure, and you may want to work something out with the lender, though the lender will probably not settle for anything less than full payment.

Next, there is a court date set by which time you and the lender as too any other person with financial interest in your property need to attend the court, which will then issue foreclosure to the lender. Once the lender gets this foreclosure notice, he or she will then publish notice of foreclosure in the paper and list a date for auctioning of the property. You can still try and work out something with the bank and come to a settlement till the auction date comes around.

This part of the foreclosure process is known variously as auction, foreclosure sale or sheriffs sale and is open to anyone, though anyone interested must have to make a minimum deposit and also has the financing ready to get hold of the property.

Original Post: How To Stop Foreclosure

How The Foreclosure Process Works In Its Basic Form

Now Thats Clear As Mud

Original Post: How To Stop Foreclosure

Tips For Buying Tax Foreclosure Properties