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THE RENOVATION MORTGAGE |
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| Whether you are a first-time
investor or an experienced full-time investor this product will
work for you! |
| "The Renovation
Mortgage" |
| enables investors
to finance purchase, rehabilitation costs, and first three months
mortgage payments into one convenient mortgage, with a low down
payment of only 10%. Loan amounts are based on the “as-completed”
appraised value. |
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| Unheard of Low Costs:
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This is by far
the cheapest source of investor rehab money that I’ve
ever seen. The interest rate is only two points higher than
a conventional mortgage, with a one-point origination fee,
plus normal closing cost. Wow!
The loan process is completed in two phases:
- The first phase is credit approval. (You need to have
a 620 or Better FICO.
- The second phase is the submission and approval of the
project Documentation (appraisal based on after repaired
value; general Contractor bid and contract; draw schedule,
etc.)
In about 2-4 weeks, your purchase transaction is completed
with the rehabilitation costs held for disbursement upon completion
(typically in three to five draws directly to contractor).
This is a one-time close transaction with no modification
necessary when the renovation is finished.
Romeo I Abenoja and his team have built a solid and growing
business over the past 30 years through dedication to customer
service, excellence, and development of long-term relationships
with clients, real estate professionals and financial institutions.
Romeo Abenoja is experienced Broker/Realtor, real estate
investment banker and new investor sensitive, as well as just
good friends. His job is not about doing loans; but about
helping others better their lives through real estate investment.
Helping others achieve his goals, adds meaning and purpose
to all his work each and every day.
TO GET STARTED, PLEASE CONTACT, ROMEO I ABENOJA
directly or you may visit our website: interbankfinancialcorp@aol.com
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| HOW MORTGAGE FORECLOSURES
WORK: |
Presented by: Romeo I Abenoja, GRI, SRESBroker/Realtor
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If you want to buy a foreclosure property at a bargain below-market
price, you need to know how foreclosures work.
STEP 1-LENDER RECORDS A NOTICE OF DEFAULT OR FILES
A JUDICIAL LAWSUIT AGAINST THE DEFAULTING HOMEOWNER
The first step in a foreclosure on a mortgage, deed of trust,
mechanics' lien, income tax lien, judgment lien or homeowner's
association lien is to record a notice of default or file
a judicial lawsuit against the defaulting homeowner. Exact
procedures vary in each state.
The homeowner is given a reinstatement period in which he
or she can attempt to cure the default. The speed of the actual
foreclosure sale varies widely by state law. It can be as
short as 21 days in Texas to as long as six to 12 months in
a few states. Three or four months is typical for most states.
During this first step of the foreclosure procedure, the homeowner
is free to sell or refinance the property. This period can
be a great buying opportunity for purchasers, but they should
be aware that they will be buying the home subject to all
existing encumbrances on the property.
Some sellers just want a small amount for their equity. A
first time home buyer described his own best foreclosure purchase.
He bought a house from the defaulting owner for just $500
cash because the homeowner wanted to move in with her relatives
in Louisiana. However, he bought the house subject to the
$73,000 first mortgage, which he had to reinstate to prevent
the foreclosure from proceeding to auction.
STEP 2-THE FORECLOSURE AUCTION
The next step occurs when the reinstatement period ends. Then
the foreclosure sale takes place.
Depending on the type of mortgage, deed of trust or lien being
foreclosed, the foreclosure auction might be conducted by
a judge, sheriff, court referee or independent trustee. Foreclosure
auction locations include courtrooms, the steps of city hall
or even in front of the property.
If there are no bidders at the auction, the foreclosing lender
or lien holder usually submits a credit bid for the amount
owed, plus legal fees and other foreclosure charges, and obtains
title to the property.
Bidders at foreclosure auctions should be aware they are buying
the property subject to any prior existing liens, such as
a first mortgage if the sale is being conducted by the second
mortgage lender.
If there is a recorded Internal Revenue Service lien on the
property, the IRS has an automatic four-month redemption period
after the sale during which it can buy the property from the
high bidder for the amount paid.
A major advantage of buying at the foreclosure auction is
any junior liens, such as a second, third or fourth mortgage
secured by the property, will be wiped out if the first mortgage
lender is foreclosing.
A major disadvantage of buying at a foreclosure auction is
that cash is required. The auction is one place where credit
cards aren't welcomed.
STEP 3-BUY AFTER THE FORECLOSURE AUCTION
If you don't have enough cash to buy at the foreclosure auction,
you're not out of luck. You might still get a bargain wholesale
purchase price.
If there were no bidders at the foreclosure sale, the foreclosing
lender then would take ownership the property, wiping out
any junior liens. I have had success by immediately sending
an overnight letter to the foreclosing lender offering to
buy the property for the amount of the defaulted loan and
asking for seller financing. I address my letter to the lender's
president. Of course, the president never sees it. But it
does get to the right person who always replies, sometimes
accepting my purchase offer and sometimes making a counteroffer.
If the property was sold at the foreclosure sale to a high
bidder, you might be successful by contacting that buyer.
He or she might be an investor who wants a quick sale profit.
That happened to me a few years ago when I bought a foreclosed
house from the high bidder who didn't want to tackle the necessary
upgrades. He just wanted a quick profitable resale. He even
carried back the mortgage for me.
BE CAUTIOUS OF VA AND FHA FORECLOSURES
If you see a Veterans Administration or Federal Housing Administration
foreclosure house advertised in the newspaper classified ads,
be careful. These houses have already been through the foreclosure
procedure and nobody bid at the auction.
That's why the VA or FHA owns the houses and wants to sell
it. Special mortgage finance terms sometimes are offered,
but the asking price usually has been marked up to full market
value. Most VA and FHA foreclosed houses are not bargains.
HOW TO FIND FORECLOSURES
Exact procedures for locating houses in the foreclosure process
vary by community. Some local subscription publications list
these properties. Ask local real estate lawyers, title insurers
and real estate brokers for recommendations of the easiest
way to locate foreclosures in your area.
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