http://IndyRealEstateInvestor.com – Hola folks, Lee Smith here. I am a Real Estate Investing Junkie from Indianapolis, Indiana.. Jon decided to hire me on as an author(and occasional proofreader of his posts) for his blog(see episode 29). We have little time before he wisens up and kicks me from the boards, so onward we go! Lot of my articles will be more midwest oriented, but definitely can be pulled over and used in New Jersey and elsewhere….

My real estate investing lawyer, Matt Griffith, hit me up last night about a new Fannie Mae program that allows investors to get financing on some of their REO properties… This comes from a local(Indianapolis) mortgage broker, Mickey Brooks (317 218.0283), who has the contacts to get deals done in a couple of states nationwide, so give him a call, and if he can’t help you, he can prolly refer you to someone who can! Make sure to tell him I(Lee Smith) told you to call! I LIKE it when mortgage brokers like me!

“Dear Valued Partner,

As we enter 2009, the crisis in the financial markets seems to be the top story on every news channel. But many of the reporters and so-called pundits don’t understand what really happened, what’s happening today…and what may happen next.
That’s why I’m excited to tell you about a series of articles I’m creating to put an end to the confusion once and for all! In these easy-to-understand articles, with help from many resources, I explain in layman’s terms exactly what caused the current financial crisis, what the almost daily news reports really mean – and what to be watching for in the near future. The content for these articles comes from various services that I have invested in to stay up to date and educated, in order to always best serve as your trusted advisor. It’s important to me to stay on the leading edge as a professional, and when I saw these resources, I wanted to make them available to you as well. I’ll attach basic stories behind the crisis for your review, to help you better understand what happened, why, and where we’re going from here. The few minutes you spend reading them will open your eyes to what very few experts truly understand.

As your trusted advisor, I’m committed to doing whatever I can to help you understand what the current economic situation means for you going forward in 2009.
Give me a call if you want to discuss strategies for strengthening your financial future in the weeks and months ahead.

Fannie Mae HomePath Financing Program
Fannie Mae has just released a new program called HomePath to help consumers buy and finance many of their REO properties. All FNMA REO properties are not eligible for HomePath financing. Only those properties listed at the following web site www.homepath.com with the HomePath logo qualify for this program.

Mortgage Financing The benefits include:
• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors (Primary, Secondary, Investment)
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer (2% Seller Maximum)
• No mortgage insurance
• No appraisal fees
• Also eligible for HomePath Renovation Mortgage (see details below) (Primary Residence Only)

Available only on homes you make your primary residence and offers these benefits:
• Financing to fund both your purchase and light renovation.
• Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate).
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer.
• No mortgage insurance.
• Renovation funds are borrowed as part of the purchase financing and held in escrow until the renovations are completed.
• Renovation Costs limited to 20% of the “as repaired or completed” value or $30,000, whichever is less, and renovations must be completed within 3 months of closing.

About Fannie Mae Homes

• Why does Fannie Mae have properties for sale? Fannie Mae works with all of its partners to help homeowners prevent and avoid foreclosure; however, sometimes it is unavoidable. When foreclosures occur on mortgages in which Fannie Mae is the investor, our goal is to sell properties in a timely manner in order to minimize the impact on the community.

• What kinds of properties are available in the Fannie Mae HomePath database? Fannie Mae’s HomePath database includes only properties that are owned by Fannie Mae. There is a wide selection of homes, including single-family homes, condominiums, and town houses — located in a variety of neighborhoods. The number, types and the sales prices of the homes that are offered for sale may vary substantially. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.

• How is buying a home owned or managed by Fannie Mae different from other home purchases? Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture. When buying a Fannie Mae-owned home, you should know the condition of the property, as explained in more detail below, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.• Has Fannie Mae fixed everything in the house? Fannie Mae may make some repairs to properties to increase their marketability; however, the buyer should be aware that other repairs may be needed. Fannie Mae sells each property “as is,” which means that the buyer accepts the property “as is.” Fannie Mae is not responsible for fixing any problems after settlement. Even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn’t mean everything in the house is new, or even works. Fannie Mae does not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract. Where a home warranty is available, you may wish to buy it at your own expense. You should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy.

• What can you tell me about this house? If Fannie Mae knows of any hazards on properties we own or market, we disclose this information through our real estate listing agents. However, we may not have been informed by the previous owner of all hazards. We encourage you to have the property inspected by a professional before you buy.

• What type of sales contract does Fannie Mae use? Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for our properties. If there is anything in the document you don’t understand or aren’t comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you.

• Do I have to use Fannie Mae’s selected title, settlement, or escrow companies? No. You may designate the title, settlement, or escrow company of your choice, subject to the terms of the contract.

• Will Fannie Mae accept an offer contingent on the sale of my house? No, Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.

• Why does Fannie Mae require a lender’s prequalification statement before negotiating a home purchase offer? Fannie Mae wants to be sure that prospective buyers will be able to complete the sales transaction, including obtaining financing when needed. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range. A loan prequalification doesn’t mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.

• Does Fannie Mae provide special financing? Special financing is available on many properties through HomePath Renovation Mortgage.

• Can I buy a house directly from Fannie Mae without going through a real estate sales professional? No. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.What happens if Fannie Mae gets more than one offer? All interested parties may be asked to submit their best offer in writing though the listing agent no later than a specified date and time. Fannie Mae may accept or provide a counteroffer that we determine to be in our best interest. Fannie Mae is not obligated to accept any offer submitted.

General Mortgage Lending Terms
(Underwriting conditions may change on a per transaction basis)

Related posts:

1. Can you use the 8k First Time home buyer tax credit as downpayment?
2. Urgent Politcal Action Needed By All Real Estate Entrepreneurs To Defend Private Property Rights! HR 1728
3. Sam Bell Web 2.0 Real Estate Investing Domination – Episode #34

WARNING:

THIS DEAL IS SO INCREDIBLE YOU WILL NOT FIND IT ON THE WEB!!! YOU HAVE TO EMAIL TO GET THE PRICE!

17 Local, Regional, and National Foreclosure Experts

23 Detailed Workshops

Hundreds of New Ideas for Finding, Funding, Flipping,

And Earning Your Fortune in Foreclosure

Dear Fellow Wealth Builder;

I just got a call from Vena Jones-Cox letting me know that I could come to the awesome 2009 Foreclosure Summit in Atlanta  to speak.

I was planning to go anyway—in fact, I’ve already paid!—so I decided to take my savings and pass it on. This event is so awesome that I want to share it with all of my real estate friends. Look at these topics, and you’ll see why you should come, too…

·         How to Get Rich with REOs and Lease/Options with Andy Heller

·         Inside Secrets of the Loss Mitigator with “Mr. L.” (a real-life loss mitigator)

·         How to Create the Perfect Short Sale Package with Kasey Smith

·         How to Get Short Sale Sellers Calling You in Droves with Justin Williams

·         More Buyers, More Sellers, More Deals Using Web 2.0 with Colin Egbert

·         How to Buy Foreclosures Using Your IRA—or Someone Else’s!

·         How to Wholesale Short Sales and REOs with Vena Jones-Cox

·         How to Sell Your Short Sale Deals to Retail Buyers with Jon Zorrer

·         How to Get All the Private Money You’ll Ever Need to Buy and Fix Foreclosures” with Alan Cowgill

·         Transactioneering: How a Foreclosure Deal Comes Together in Real Life” with Vena Jones-Cox and Drew White

·         Using Contracts to Protect and Control Your Deal

·         Working with Agents on Short Sales with Jon Zorrer

·         How to Make Offers on Bank-Owned Properties that will Actually Get Accepted” with Vena Jones-Cox

·         Make the REALLY Big Money Investing in Commercial Foreclosure with Peter Conti

·         Turn Your “Trash into Cash”: How to Profit from “Dead” Short Sale Deals with Pat Martin

·         How to Negotiate with Distressed Sellers—Without Fear!

·         Presenter Panel Discussion: The Best Foreclosure Strategies I know

·         How to Structure a Foreclosure Deal with Don Derosa

·         Understanding Tax Liens and Deeds with Michael Keefe

·         Buying Foreclosures Creatively: a Guide to Buying Right and Selling Fast in Any Market with Don Derosa

·         How to Create Wealth Buying and Selling Judgments and Liens with Michael Warren

This is an incredible deal on the best foreclosure education you’ll ever see

The 2009 Foreclosure Summit is April 30-May 3 in Atlanta.

email me at reiexpert@gmail.com

To register!

THIS DEAL IS SO INCREDIBLE YOU WILL NOT FIND IT ON THE WEB!!! YOU HAVE TO EMAIL TO GET THE PRICE!

Related posts:

1. 3 Free Short Sale Videos
2. You are Wasting your Time Doing Short Sales Like This – Episode #46
3. Insider Secrets From A Senior Loss Mitigator and Investor Jeremi King from K.K. Consulting – Episode #41

So you have a seller who is calling you…..are you going to anwser the phone?

I know many people who send out postcards and letter to people in pre-foreclosure and they never anwser their phone because they are not comfortable talking to seller.

Why? The probably know more about real estate then the person on the other end.

FEAR!!!

If you have a system to pre-qualify someone you will never get caught up in that. Watch todays epidsode to find out how you can create a system to pre-qualify sellers in pre-foreclosure!

I want to thank you for all of the responce I have been getting on the show! I love you guys. Leave me some more comments.

Related posts:

1. How to Find Buyers and Sellers on Youtube with Peter Kolat – Episode #43
2. Real Estate Investing Techniques: Wholesaling
3. Wendy Patton Lease Options – Episode #37

 We are rocking over here in New Jersey but I am siked to leave for the Foreclosure Summit in the ATL in 2 weeks. Kasey and I were the Foreclosure Investors of the Year for 2007 so I look forward to coming out to the event each year. If you want to come check it out here http://tinyurl.com/csuofy We will be having a V.I.P. party and you can be my guest. Just leave a comment on and come up to me and introduce yourself at the event.

Why Banks do Short Sales

Q: What makes a bank decide whether to take a discount on a defaulted mortgage or not? And what formula do they use to decide how much to take? Some banks I’ve talked to have just said no to a discount right away, and others seem perfectly happy to negotiate any offer, even if it’s a fraction of the loan amount. What gives?—D.D., Houston

        There are a number of factors that go into a lender’s decision about whether (and by how much) to discount a loan gone bad. Some are obvious; some involve the vagaries of the lending market.

        The first step in getting a particular lender to consider YOUR short sale offer is to have your own ducks in a row. Before the lender will even discuss an offer with you, you’ll need a signed purchase contract and a letter of permission from the seller allowing the bank to discuss his loan with you) You’ll also need to make sure that you’re talking to the right person at the right bank—sometimes the place that the seller is sending his payments is not the lender at all, but just a loan servicer. And there’s usually only one person within a given institution who’s empowered to take offers to the board, so discussing your offer with anyone else is a dead end. And don’t even bother to call the attorney who’s handling the foreclosure—there’s absolutely nothing he can do for you.

Assuming you’ve done your homework and are talking to the right paper-pusher, there are a number of other factors that could affect how open the lender is to your offer. One is where the loan is in the foreclosure process. If the borrower is just a few months behind—or if the auction is happening in 3 days—the bank might not be terribly motivated to take a major discount. In the first case, they may assume that they can work out a payoff with the owner: in the second, they’ve already invested a great deal of money in legal fees, and may feel that it’s better to take their chances on getting the property back and reselling it on the open market.

Another issue is the condition of the property. Most lenders are hesitant to take back a property that needs major work, or that has building orders, or that could become an “attractive nuisance.” In other words, the nastier the house, the better the chance that the lender will deal.

Of course, the lender’s position as creditor is another big factor: 2nd and 3rd mortgagors are usually much more willing to discount—and discount BIG—than a 1st mortgagor. Think about it: the seller may have no equity thanks to a 75% 1st mortgage and a 30% 2nd, but the 1st mortgagor has 25% equity if he has to take the property back.

The requirements of the lender’s private mortgage insurance company or of FHA and VA insurance also influence its decision about how much to discount, as does the housing market, difficulty of foreclosure in a particular state, number of bad loans the bank is dealing with, likelihood that the owner will declare bankruptcy, and many, many more variables. So the short answer is, there’s no short answer.  Make your best offer, keep following up, and don’t get discouraged!

Reprinted from the Real Deal, a monthly newsletter for Real Life Real Estate Investors with permission of Vena Jones-Cox. Get a free 3-month trial subscription by logging onto www.regoddess.com. One per household, please.

Here is the site where you will be able to find all of the foreclosure laws for the United States http://www.foreclosurelaw.org/

Related posts:

1. Real Life Real Estate Investing Q & A What To Do When Your Can’t Find a Buyer for Your Wholesale Deal
2. Real Estate Investing Techniques: Wholesaling
3. P.A.S Real Estate Investing Marketing Formula – Episode #23

Special guest week continues on here at http://reitvshow.com

In this episode Jon Zorrer and seasoned investor and national speaker Jerry Fink show you how to inspect a property to see if they can negotiate a deal on a R.E.O. property. Jerry is the author of Rehabbing Right, For Rental and Resale. Today is part 3 in a 3 part series of how to know what to look for in vacant R.E.O. property when inspecting them.

Related posts:

1. How to Increase Your Profits $5,000 to $10,000 on Every Wholesale Deal with Jerry Fink Episode #60
2. Wendy Patton and Jon Zorrer Like To K.I.S.S. Episode #40
3. No in Real Estate Investing Got A Swagger Like US – Episode #18

This is the Short & Simple Story of the Crisis Of Credit created by a guy named Jonathan Jarvis. This is an awesome video!!! A clever animation explaining the credit crisis and the journey of a subprime mortgage.

Please leave some comments because I am interested in your thoughts on this.

NEXT WEEK IS SPECIAL GUEST WEEK See you tommorrow!

Related posts:

1. Can you use the 8k First Time home buyer tax credit as downpayment?

There are so many people right now that are facing foreclosure it is even spilling  over into our cartoon shows. Homer Simpson even has to worry about the dramatic effect adjustable rate mortgages have on families ability to make their monthly mortgage payments.

Now I know this a is just a show but this is a great example of how most Americans are feel when they try to deal with the bank to end foreclosure. Mortgage companies do not care about homeowners facing foreclosure. They just want their money and by any means necessary!

Related posts:

1. How to Buy Tax Liens and Tax Deed in Foreclosure with Michael Keefe – Episode #36
2. You are Wasting your Time Doing Short Sales Like This – Episode #46