If you're looking for a bargain home purchase or looking to turn a profit, consider locating a foreclosure property - one that has been taken away from an owner for delinquent payments.
Home buying has been one of the more stable investments of the last century. If bought with forethought and patience real estate can create a financial future for you and your family faster than you can say “stock market”. In doing your homework you will make a path to a strong home purchase that will never put you in the category of foreclosure.
WHAT IS FORECLOSURE?
A foreclosed home is one that someone else is unable to pay for. The lender, a bank, individual, or company that has loaned the money for the initial purchase, takes back the property from the delinquent homeowner.
Steps to a declaring a foreclosure and taking the property back will vary slightly state to state. A bank will want to turn over the property quickly and not hold on to it so foreclosed properties will be discounted at a high rate. That means getting the purchase prices cut by up to thirty percent or more in some cases.
FINDING A FORECLOSURE
Foreclosures are a difficult animal to locate and to execute. The potential is what usually draws people into the process. Turning them over for a profit is a motivating factor.
Look for foreclosures in real estate magazines, local newspapers and on the Internet. Lenders will often have a department that handles REO, or real estate owned. Call your local lenders and ask for their REO listings. Fannie Mae and the Department of Housing and Urban Development, HUD, also have foreclosure listings. Also worth noting, any lender who has decided to foreclose must file a notice of default in the county clerk’s office where the property resides. The county may be the best place to locate fresh foreclosure leads.
BE PREPARED
Foreclosures bring with them their own set of difficulties. Because the prior owner was obviously in financial straights (who would give up a home in the first place, right?) it stands to reason that other difficulties may have pushed them to failure and liens might have been drawn against the home. Know what the foreclosure brings with it by doing the homework. Check for liens and unpaid property taxes and locate who is responsible for paying those. Making sure these are cleared up before making an offer is advisable. Check for these in the county clerks office where the property is located.
Purchasing foreclosures requires more paperwork than should be legally allowed. This is especially so when a government agency is involved in the purchase. To protect yourself make sure you have a real estate agent that is well versed in the foreclosure process. Have the agent check pricing in the vicinity of the foreclosure to make sure what seems a bargain is a bargain. This will have much more meaning if you are intending to resell the property and are hoping to gain the discount you were given as profit.
Arrange a home inspection. Foreclosures can have a lot of damage if the owner’s were financially negligent for any length of time. If you cannot pay the mortgage chances are you were not keeping up with typical home maintenance needs as well. Neglected maintenance can lead to long-term problems that may include water leaks and foundation issues as well as termites and infestation problems. Tour the property yourself to make an initial assessment but make sure a professional inspector is hired.
Foreclosures can be difficult. Most people are motivated by the possibility of a large profit and forget to fill in the blanks. If you will do the homework a foreclosure purchase can occur in a smooth manner.
http://www.essortment.com/home/homebuyingfore_smyu.htm
Monday, July 2, 2007
Tips for finding earthquake insurance
Do you need an Earthquake Insurance Policy? This article explores finding the best insurer for you and how to compare companies.
Whether you are a homeowner, business owner or renter, if you live in earthquake territory, you must consider insurance to cover the risk. There are a handful of states which have no recorded earthquake activity and there are quite a few with no activity within the past 30 years. However, did you know that Charleston, South Carolina, was nearly demolished in 1886 by a 7.3 quake and damage was reported as far away as Ohio, Alabama, and Kentucky? In 1811 the New Madrid area of Arkansas was hit with a 7.0 and a 7.7 quake, and one of the largest recorded quakes with a magnitude of 8.0 hit the same region on the Missouri side in 1812. If a quake within those magnitudes hit your home would you be able to rebuild?
It is certainly worth your time to investigate whether your property is at risk of such catastrophic damage. Once you have established that you are at risk, the time has come to explore your investment in Earthquake Insurance.
You may think you are covered under your general homeowners or renter’s policy. All standard homeowner insurance policies list exactly what they cover. It is worth your time to re-read your policy. Some will provide coverage for “falling objects” without specifying what caused the objects to fall. With such a general homeowner’s policy, one may be able to reclaim some loss of household items, when a roof falls on those items due to an earthquake. However, your roof that caved in is not covered. Other general policies may specify…”unless caused by earth movement/earthquake. In most states, Earthquake coverage is a separate policy with a separate premium.
Most insurance companies offer Earthquake Insurance. Starting with your current homeowner’s insurance company, inquire of the cost of earthquake insurance for your home or business. Premiums differ widely between insurance companies, and area. If there is a greater probability of an earthquake in your area, the cost of Earthquake Insurance will reflect that. The type of structure you are insuring will also vary. Brick tends to be higher than wood structures. If your insurance company’s premiums for earthquake insurance seem much too high, it is good to shop around. If you have access to the internet through home, business, school or library, you can easily compare rates for all companies that offer insurance in your state. Entering “insurance” in the internet browser, will bring up pages of insurers. You can receive free quotes from any insurance you query. If internet is not an option, use your local library to look up Insurers, call and have them send you appropriate information. Some other handy resources are your State’s Insurance Commission, Office of Consumer Affairs, and Consumer Reports. These resources can assist you with discovering the quality of the insurance companies you are investigating – has there been any complaints lodged against a particular insurance company, how do they rate in comparison to other insurance companies, and how long have they been in business.
This sort of information will provide you assurance that you are considering only companies with a good record. When you pay your premiums in good faith, you need to know before a time of crisis that you are dealing with a company who will perform well.
In addition to the cost of yearly premiums, earthquake policies come with a deductible. Some are a flat rate. For example, your premium may be $900.00 a year, and your deductible is $5,000. That would mean that, if you have earthquake damage, you must pay $5,000.00 of the cost to repair/replace. Most Earthquake Insurance, however, is a percentage. The percentage can vary as wide as $1 per $1,000 insured, to $20.00 per $1,000. So, if your percentage is $10 per 1,000, and your structure is insured for $100,000. Your deductible would be $10,000. If your home is worth $600.000 and above, such deductible requirements could be prohibitive.
Other crucial issues in earthquake insurance are “loss of use” expenses. Where will you live or conduct business until your property is rebuilt? This may not seem very important, however, if a major earthquake hits your area, your needs for repairs are in line with everyone else. It is possible to have “loss of use” for up to a year! Also, to be considered are “other structures”. This would include barn, pool, detached garage, or tool shed. You will need to determine an overall value of personal possessions as well. Some insurance companies will require you to rebuild the other structure and keep receipts for re-purchasing of personal items. Then and only then will they reimburse you for anything over your deductible. Other insurance companies will pay total or percentage of loss, at time of loss, no replacement required. This is an important factor. If your personal possessions are deemed a total loss and your insurance sends you a check for that covered loss, this money can help you recover from the deductible, and enable you to start rebuilding.
If, at this point, you feel overwhelmed, get a sheet of paper and a pen. Make columns to the left and write in the names of insurance companies. On the top of your sheet make rows with these headings: Deductible, Other Structures, Loss of Use, Personal Possessions, Total Yearly Premium, and Company Rating. Take your time in adequately filling in the details. When Earthquake insurance is a must and premiums/deductibles are high, your strategy in planning may determine just how helpful your coverage will be in time of crisis.
With your sheet of paper, finally filled out, you can see the best overall value in each different insurance company. One company may have a higher premium, but an affordable deductible. One company may require you to replace before receiving cash for loss, while another company will use such loss as part of your deductible, thus saving you money in the long-run.
http://www.essortment.com/home/tipsfindingear_smto.htm
Whether you are a homeowner, business owner or renter, if you live in earthquake territory, you must consider insurance to cover the risk. There are a handful of states which have no recorded earthquake activity and there are quite a few with no activity within the past 30 years. However, did you know that Charleston, South Carolina, was nearly demolished in 1886 by a 7.3 quake and damage was reported as far away as Ohio, Alabama, and Kentucky? In 1811 the New Madrid area of Arkansas was hit with a 7.0 and a 7.7 quake, and one of the largest recorded quakes with a magnitude of 8.0 hit the same region on the Missouri side in 1812. If a quake within those magnitudes hit your home would you be able to rebuild?
It is certainly worth your time to investigate whether your property is at risk of such catastrophic damage. Once you have established that you are at risk, the time has come to explore your investment in Earthquake Insurance.
You may think you are covered under your general homeowners or renter’s policy. All standard homeowner insurance policies list exactly what they cover. It is worth your time to re-read your policy. Some will provide coverage for “falling objects” without specifying what caused the objects to fall. With such a general homeowner’s policy, one may be able to reclaim some loss of household items, when a roof falls on those items due to an earthquake. However, your roof that caved in is not covered. Other general policies may specify…”unless caused by earth movement/earthquake. In most states, Earthquake coverage is a separate policy with a separate premium.
Most insurance companies offer Earthquake Insurance. Starting with your current homeowner’s insurance company, inquire of the cost of earthquake insurance for your home or business. Premiums differ widely between insurance companies, and area. If there is a greater probability of an earthquake in your area, the cost of Earthquake Insurance will reflect that. The type of structure you are insuring will also vary. Brick tends to be higher than wood structures. If your insurance company’s premiums for earthquake insurance seem much too high, it is good to shop around. If you have access to the internet through home, business, school or library, you can easily compare rates for all companies that offer insurance in your state. Entering “insurance” in the internet browser, will bring up pages of insurers. You can receive free quotes from any insurance you query. If internet is not an option, use your local library to look up Insurers, call and have them send you appropriate information. Some other handy resources are your State’s Insurance Commission, Office of Consumer Affairs, and Consumer Reports. These resources can assist you with discovering the quality of the insurance companies you are investigating – has there been any complaints lodged against a particular insurance company, how do they rate in comparison to other insurance companies, and how long have they been in business.
This sort of information will provide you assurance that you are considering only companies with a good record. When you pay your premiums in good faith, you need to know before a time of crisis that you are dealing with a company who will perform well.
In addition to the cost of yearly premiums, earthquake policies come with a deductible. Some are a flat rate. For example, your premium may be $900.00 a year, and your deductible is $5,000. That would mean that, if you have earthquake damage, you must pay $5,000.00 of the cost to repair/replace. Most Earthquake Insurance, however, is a percentage. The percentage can vary as wide as $1 per $1,000 insured, to $20.00 per $1,000. So, if your percentage is $10 per 1,000, and your structure is insured for $100,000. Your deductible would be $10,000. If your home is worth $600.000 and above, such deductible requirements could be prohibitive.
Other crucial issues in earthquake insurance are “loss of use” expenses. Where will you live or conduct business until your property is rebuilt? This may not seem very important, however, if a major earthquake hits your area, your needs for repairs are in line with everyone else. It is possible to have “loss of use” for up to a year! Also, to be considered are “other structures”. This would include barn, pool, detached garage, or tool shed. You will need to determine an overall value of personal possessions as well. Some insurance companies will require you to rebuild the other structure and keep receipts for re-purchasing of personal items. Then and only then will they reimburse you for anything over your deductible. Other insurance companies will pay total or percentage of loss, at time of loss, no replacement required. This is an important factor. If your personal possessions are deemed a total loss and your insurance sends you a check for that covered loss, this money can help you recover from the deductible, and enable you to start rebuilding.
If, at this point, you feel overwhelmed, get a sheet of paper and a pen. Make columns to the left and write in the names of insurance companies. On the top of your sheet make rows with these headings: Deductible, Other Structures, Loss of Use, Personal Possessions, Total Yearly Premium, and Company Rating. Take your time in adequately filling in the details. When Earthquake insurance is a must and premiums/deductibles are high, your strategy in planning may determine just how helpful your coverage will be in time of crisis.
With your sheet of paper, finally filled out, you can see the best overall value in each different insurance company. One company may have a higher premium, but an affordable deductible. One company may require you to replace before receiving cash for loss, while another company will use such loss as part of your deductible, thus saving you money in the long-run.
http://www.essortment.com/home/tipsfindingear_smto.htm
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