Archive for November, 2011
Nov
30
Sub-prime Mortgage Lenders Account for Over Half of UK Repossessions
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Over half of the UK’s repossession orders are being brought by sub-prime lenders, according to a BBC report. These lenders cater for borrowers with poor credit histories and account for only 6% of the total mortgage market. Radio Five Live’s Wake Up To Money programme conducted an investigation of 1,200 cases going through 18 County Courts in January of this year and discovered that more than 10% were brought by two sub-prime lenders owned by US investment bank Lehman Brothers. 148 cases named the two branches, Southern Pacific Mortgage Limited or SPML and Preferred Mortgages, whilst two of the UK’s biggest sub-prime lenders, GE Money and GMAC-RFC, appeared in over 100 hearings.
All the mortgage lenders involved stressed the increased probability of their customer base to default on payments. A spokesman for GMAC said: ‘It should come as no surprise that those lenders dealing with borrowers with past credit problems are likely to have to deal with more cases of default amongst their borrowers. Comparing lenders like GMAC-RFC with high street lenders is a bit like comparing apples and pears.’
Whilst acknowledging the truth of this statement, experts still assert that the percentage is disproportionately high considering the tiny market share that sub-prime lenders control. However, the cases in the sample are possession claims hearings rather than actual repossessions and the sub-prime lenders in question are keen to point out that the majority of these hearings are resolved before repossession becomes unavoidable. ‘The figures are based on possession claims hearings and are therefore not representative of actual repossessions, which are a lot lower,’ said a spokesman for SPML and Preferred. ‘Of proceedings started, where solicitors become involved, five out of six are resolved without having recourse to repossession.’ The recently nationalised Northern Rock was one of the most prominent of the mainstream insurers in the sample along with Bradford and Bingley and Britannia.
This is not the first report to cast sub-prime lenders in a damning light. In January of last year the Citizens Advice Bureau conducted a study entitled Set Up To Fail, which concluded that the behaviour of this group of lenders was aggressive and irresponsible and led to a steep increase in mortgage arrears and repossessions.
Citizens Advice Chief Executive David Harker said: ‘The cavalier behaviour of some brokers and sub-prime lenders is seriously undermining home ownership and hitting the most vulnerable borrowers hardest. Our research suggests that many aspiring home owners have been mis-sold unsuitable and costly home loans that are doomed to fail from the start.’
The report found that many sub-prime lenders were needlessly inflexible and hard-headed in negotiating possible solutions with their borrowers. Harker went on to say: ‘Many sub-prime lenders are flouting the rules on responsible lending by granting loans when it’s clear the borrower will not be able to afford to repay it from the very outset, then getting tough immediately things go wrong. Far from providing housing security and a valuable asset, home ownership has proved a fast track to debt and homelessness for many vulnerable borrowers on low incomes.’
Rent Back Fast
Nov
30
Foreclosure Rates are Climbing When Will They Stop
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January 2008 saw another large jump in foreclosure filings. Nationwide, filings for foreclosures jumped 57 percent, causing 45,327 homeowners to lose their homes to bank repossessions. This is yet another indication that our national real estate markets fears are far from over.
Although this increase was only a modest increase from the month previous, the increase demonstrates that despite recent attention paid to reducing the foreclosures, the financial issues in the real estate and mortgage industries are only deepening.
While there are an increasing number of mortgage assistance programs being developed at both the state and federal level, many of these efforts are only giving borrowers the opportunity to pay back their missed payments instead of lowering the monthly payments through interest rates and helping stop foreclosure. In essence, these programs could be a short term fix and ignoring the larger problem of interest rates that are too big for the borrower to afford. Lenders are claiming that they are restructuring their mortgages to offer lower or temporary fixed interest rates to reduce balances to help people save their homes for now.
Florida, California and Nevada had the highest rate of home foreclosures, which was not surprising with their real estate and mortgage industry histories. All three states showed record price increases and saw a large number of homes sold to investors versus primary residence owners. Nevada reported one out of every 167 homes was in a stage of foreclosure in January alone.
California is suffering the largest number of foreclosures with more than 57,000 on file. Florida trailed shortly behind with 30,000 filings of its own. Unfortunately, other states are now also seeing an increase in foreclosures, including:
Maryland 430 percent increase in foreclosure filings
Virginia 634 percent increase in foreclosure filings
Rhode Island 279 percent increase in foreclosure filings
Of course, these three states have relatively low foreclosure filing rates to begin with, but these percentages show a startling trend towards increasing foreclosures in the area. Although Virginia has the highest rate of increase here, their numbers are still a quarter of the foreclosures that are seen in Nevada.
Lending laws and foreclosures are greatly varied from state to state, influencing the foreclosure filings significantly. However, with record filings being issued, many of the influences from non traditional mortgages are starting to show in markets nationwide. Some of these non traditional mortgages include subprime or hybrid adjustable rate mortgages that have mortgage rates that reset much higher often utterly unaffordable rates after two or three years with the lower rates. For this reason, borrowers are caught off guard and will default after just a few months after the rate reset. Interest only loans and option adjustable rate mortgages are also contributing factors to the foreclosure problems.
Although these non-traditional mortgages have all but disappeared from the market now, their effects are still being seen throughout the current real estate marketplace. They will lead to more increases in foreclosure filings in the future. Many say that the effects from these mortgages wont be straightened out until the end of 2009 at the earliest.
If you are in a home selling situation and are close to loosing your home to foreclosure you do have house selling options. Contact your local home buyer or local real estate investor see determine what option is best for you. Local home buyers existing in every major city in the nation and they purchase homes off all sizes, price range and condition.
Quick Property Sale
Nov
29
How To Find The Best Repossession Companies For The Best Eviction Advice.
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There are around 100,000 mortgage possession actions instigated by banks and other lenders every year, many of which could have been stopped by prompt action, such as arranging a new mortgage with a repossession company.
If you are facing imminent repossession - or even if you are in mortgage arrears then it’s important to take action quickly. The problem is what action should you take and where should you look for repossession advice?
Overwhelmingly these days people looking for repossession help or repossession companies turn to the Internet. There is a massive amount of information on debt, debt relief, how to get out of debt and in particular articles and websites offering repossession advice (like this one!)
Perhaps the most important repossession advice available is to act quickly. Even one missed payment on your mortgage can be enough to start a downward spiral that quickly leads to a mortgage possession order.
If you’re only facing mortgage arrears, you may wish to turn to a remortgage company. By remortgaging your home you can free up equity from your property that can be used to relieve your debt problems; unfortunately most High St lenders will not lend to you if you face mortgage arrears - that’s why it’s worth scouring the Internet for a remortgage company who specialises in lending to people with credit problems. Try using search phrases like “remortgage help” or “remortgage advice.”
If you have missed several payments then your mortgage lender may instigate repossession proceedings. They will issue a claim form with a N11M, a further form that allows you to explain your position and what you intend to do about your debt. This is the time to act quickly - again, a remortgage company may be able to help you by finding a new mortgage that satisfies the courts that you are doing something about your debt AND gives you the cash to alleviate your debt.
Believe it or not, even if proceedings have gone further than that, there is still something you can do about it - searching for “repossession company” or “repossession help” can furnish you with a great deal of information about what to do in your situation, but essentially, even though it may seem like the last minute to you, a remortgage company can often stop repossession in its tracks - even if an eviction order has been issued.
The bottom line is that courts and mortgage lenders don’t want to take your home away from you - they would far rather the debt is paid off and you are able to continue living in your home. If you can demonstrate that you have the ability to pay off your mortgage arrears then the repossession proceedings will be stopped.
Once things get to the stage of a possession order or even an eviction warrant, you may be left with very little choice in terms of what you can do about it. Unless you can demonstrate a large source of income very quickly your only other recourse would be to a remortgage company who can contact the courts and show them that you have a new payment vehicle in place.
Whatever you choose, it’s important to get the most accurate and appropriate repossession advice available - find a repossession company with trained advisors who can give you professional help for your situation.
Quick House Sale
Nov
29
How to Sell Ground Rents
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Ground Rents are created when a developer creates long leasehold titles to new apartments or houses, and retains the freehold interest. This provides an annual ground rent income to the owner, and is often kept as a retirement ‘nest egg’ . When drafting leases to the new leasehold interests, the developers solicitor rarely seeks to maximise the value of the residual ground rent interest.
A balance must be found between making the leasehold units attractive to purchasers, and maximising the investment value of the developers retained ground rents. In this article I will highlight desirable elements of ground rent leases, and give guidance on how one can sell ground rents.
The rent review pattern for a ground rent lease is key. Increases should be a frequent as possible to maximise the Net Present Value of the income increase for the owner. As such a 5 year review pattern is ideal. The mechanism for reviewing the rent should be as aggresive as possible, tracking the Retail Price Index is desirable. At the time of writing (June 2008) this is running at c4% p.a., a good return when combined with 6% initial income.
The right of the landlord to appoint managing agents is also desirable. This ensures their investment is effectively managed, and that ancillary insurance income can be assured. Additionally any disputes with lessees deter investors. The presence of a tenants management company is a moot point, one is very dependent upon the organisation of it to pay the ground rent annually. It can reduce administration costs however, as only one rental demand has to be send out.
When selling ground rents Section V notices have to be served on lessees, unless the properties are houses. Most ground rent investors will do this at no charge to the vendor.
Quick Property Sale
Nov
28
Stop Foreclosure on Your Fort Lauderdale House Fast With Your Lenders Permission
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Fort Lauderdale, Florida - 2009
Homeowners in Fort Lauderdale, Florida and other major cities face a serious problem that is plaguing the country and that problem is the foreclosure crisis. Everyone is hearing about the big lender bailouts from the government and lenders are being affected by the foreclosure crisis as well.
Fort Lauderdale neighborhoods are sinking in value since lenders are repossessing homes and the same lenders place the same houses on the market for thousands and tens of thousands less than the average homeowner. Homeowners with a house that has little to no equity have little success putting their house up for sale, so they choose to contact a real estate agent. Real estate agents are falling victim to the foreclosure crisis as well and are up to their eyeballs with listings that sit on the market for month after month and sometimes up to a year or longer. Result is real estate agents are turning homeowners away and letting them take up for themselves.
Foreclosures are a big problem in Fort Lauderdale and other cities in Florida that is why lenders are becoming more proactive with finding solutions to end the crisis. Lenders are aware that a majority of homeowners have little to no equity and are coming up with ways for owners that want to sell their house rather than hold on to it. One way that lenders came up with is a process called the short sale.
A short sale is when the homeowner’s lender agrees to reduce the mortgage balance owed to allow a quick sale on the owners house and to make it more marketable. Short sales are beneficial for homeowners because it helps a homeowner sell their house fast and walk away from a home they can no longer afford to keep. Plus when a homeowner decides to buy another home some lenders back by Fannie Mae and Freddie Mac may lend to them within 2 years rather than 5 years if the homeowner let their house go to foreclosure.
Lenders are doing short sales in Fort Lauderdale Florida and really any city in the US. Lenders agree to a short sale also because it allows them to cash in or the note they are holding so they can put their money to use in another performing loan. The also save money on doing a short sale because taking a mortgage to foreclosure can be costly and reselling the home can take a half of year easily.
Short sales are becoming a fast way for lenders and homeowner as one stop the foreclosure process while giving a buyer a good deal on a house that wouldn’t normally go for a good price.
Sell and Rent Back
Nov
28
can i still get a mortgage at a decent rate if i have bad arrears problems?
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Nov
27
Sell My House Tips For a Quick Home Sale
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Clutter can be a house selling nightmare. Show off how large and beautiful your home is. Even if you dont have a lot of space, you dont want to send the signal to future buyers that you dont have enough storage by putting your clutter everywhere.
If you need to, put boxes and things in the trunk of your car or ask a friend who has room if you can leave a few things at his/her house for a few months.
At the worst, you might need to rent a small storage space. Although most homeowners would balk at the idea of renting a storage unit while selling their home, removing the junk and clutter can have a huge impact on your home-selling possibilities.
If your buyers cannot see the walls, they cant appreciate the little things that helped to sell your house to you in the first place.
Another sharp tip to selling your home faster is by organizing your closets. Nothing distresses buyers more than opening a closet that is packed and messy. It sends the signal that you cannot find room for your own clothes so how will they?
Try to put your clothes and things in boxes and hide in the attic or in another closet to make the closets appear larger. Buyers want storage space.
Put away knickknacks, family pictures and other sentimental things to avoid drawing your buyer away from the home to look at your pictures. You want them to picture themselves in your home so that they will buy it.
Although it might seem harsh to put away family pictures for the entire time that your home is on the market, but it can help your buyers see what they want a new home for themselves to create memories.
Do your walls need a fresh coat of paint? Interior paint purchases can be a wise move for homes whose walls have dulled. You might not even realize how much your walls have faded over the years until you put a fresh coat of paint on.
Grab some friends and towels to cover the furniture and floors and get to work on putting a fresh coat on. You will be amazed at the difference.
Now that you have tackled the walls, how are your floors? Do you need to replace cracked tiles or chipped floors? Take the time to make the changes now in order to sell the property faster in the future.
Bathrooms and kitchens are huge selling point and there is nothing worse than seeing someone elses grim in your future bathroom. Kitchens and bathrooms need to shine brilliantly if you want the home to sell, including grout cleaning, fresh paint, clean appliances and scrub the tub or shower floor until it gleans.
These little tricks can go a long way in renovating and improving your home. Best of all, they dont cost a ton of money, but will make your house stand out from the competition. Implement some of all of these tips and you are on your way to a faster home sale.
However, if you do not have the money or do not want to put the effort into fixing up your home and putting it on the market you can always receive a free offer from a professional local home buyer.
They exist in every major real estate town and you have no obligation to accept their offer. You can sell your house quick for sale with owner and have no real estate costs.
Quick House Sale
Nov
27
Ways to Stop Repossession of Your House
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When you get a loan from bank to buy a house, you sign an agreement giving an authority to the bank to take that house back from you if you miss payments. This is known as “Repossession”. Repossession is a legal process that occurs when a bank obtains a court order to take possession of a property due to non-payment of the mortgage.
When banks have threatened to step in and repossess your home, it can be an extremely difficult and emotional time in anyone’s life. One of the worst things anyone could possibly face in his life is to be told that the roof over his family’s head is going to be taken away from him and he has absolutely no choice in the matter.
However, the truth is that there are ways that can be taken to stop repossession. The following steps can be taken by all home owners facing or about to face repossession:
Consult Your Bank Immediately: If you know that you are struggling from financial problems for some time and there is a chance that you could miss a payment in the next one or two months, consult your bank and let them know about your situation. The banks are usually understanding and will do everything in their power to help you out.
Request for Grace Period: This is usually 3 to 6 month period which the bank will grant you whereby you need not make any payment at all. The reason behind this is to give the home owner a grace period in order to sort his financial problems and get things back to normal.
Consult a Property Buyer for Help: This can be one of the best options if all the above mentioned options fail. There are property buyers who actually specialize in buying houses and help to stop repossession of your home. These property buyers are usually very flexible; they can buy your property from you and rent it back to you, allowing you to remain in your house after the sale. This can be helpful particularly when the home owner would like to remain in the same geographical area due to schools, jobs, etc.
Quick Property Buy, one of the leading property buyers in UK can help you to stop repossession of your house. The company can complete a quick property sale which is guaranteed, without facing the uncertainties of the housing market which could put your home at risk.
To know more Repossession, please visit the site http://quick-property-buy.co.uk
Sell House Quick
Nov
26
What evidence do you have to produce to make a first registration of land?
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My friend needs to sell her house and I would like to try and buy it.
she has lived there since 1978. She acquired the house in 1988 after her divorce. She financed to buy her ex out. She has refinanced since but for some reason none of the lenders have made the first registration and no charges are registered. She has a sub prime lender who has the deeds. She doesn’t appear to have anything that would evidence her title. She is in arrears with her mortgage and has absolutely no money at all for fees of any sort. I know that the land registry will charge her about £160 but that’s if she gets far enough to make the registration. She needs to know what documentation she needs to try and locate and if there is a way you can make a first registration without documentary evidence. She seems to be unable to get papers from her old solicitor who dealt with the divorce due to non payment of their bill(!). As it was in 1988 they may not have kept the file, especially if she didn’t pay them!
Quick House Sale
Nov
26
Top 10 Inexpensive Tips to Getting your Home Ready to Sell
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1) Leave - This is THE most important thing you can do as a seller. Nothing will make a potential buyer feel more uncomfortable than you being in the house. If the buyers like the house then they are picturing themselves living in the house, picturing if their furniture will fit in the house, and picturing what rooms their children will choose. If the seller is in the house they can’t do any of this because they feel like a guest. This is the last thing you want your buyers to feel - GET OUT!
2) De-Clutter – This is another simple thing that you can do that will make a huge impact. Most sellers have been in their house for many years and have collected all kinds of things. You need to either get rid of them or store them; this will make your house seem larger than another house that is cluttered with the same square footage. You are planning on moving anyway, so why not start a little early and make your house more sellable?
3) Clean – Believe it or not, this is a different category than de-clutter. This is one of the hardest things to do but also one of the most important. If a buyer comes to look at your house and the bathroom is dirty, the carpets are a mess, and it has a bad aroma, it just leaves a bad impression. Clean up the kid’s toys, put away anything that will fit into a drawer or a cabinet and make it look as if you don’t live there. Clean and pickup every time someone is coming to look at your house.
4) Paint – This is another cheap and very effective tool that can help your home sell quickly. Painting is one of the best returns on your investment when you are selling your home. There are two issues that should be addressed when getting your home ready to sell. The first is the easiest: make sure you touch up all the paint on the interior and exterior of your home. The second may call for you to be a bit more objective about your home. What kind of colors you have selected? Do you have eight different colors in your house? Unless you are an interior designer, you really need to consider repainting all of your rooms to a neutral beige or brown color. While this may be a feature of your home that you love, the average buyer will not like your color selections. Paint your walls a neutral beige or brown color which will make your house appear larger and will also appeal to the majority of buyers.
5) Landscape – Everyone has heard this before “curb appeal”. It is a cliché, but it makes a huge difference. Buyers begin to form their opinions of your house when they see it from the outside. Make sure your grass looks perfect - pull any weeds, edge the sidewalks and driveway, plant some inexpensive annual flowers that add color to the landscaping, and put some new mulch down in the plant beds. This will not only add curb appeal to your house but also add VALUE when they are driving their friends and family by to “check it out”.
6) Wallpaper – TAKE IT DOWN!!! Wallpaper has made a bit of a resurgence lately; but for the most part it is outdated and with the myriad of selections out there, it is extremely personal. Most buyers will prefer a different selection, so go to Home Depot or Lowes and buy some DIF (wallpaper remover) and get rid of it.
7) Closets – Like it not, buyers are going to look in your closets and this can be a major selling point for some people. So when you are de-cluttering don’t throw everything in your closets! With the many different options out there you can rent a “POD” system, a storage unit, or simply store it in a friend/family’s home while your house is on the market.
Carpets – Get them professionally cleaned. It is not that expensive and can make a world of difference.9) Pressure Wash - Pressure wash the exterior of your house, your sidewalks and your driveway. It just makes everything sparkle and seem newer. Remember, CURB APPEAL!
10) Remove Non-Essentials – The idea here is to make it so that the buyer can see themselves living here – not your family. Remove your family photos and get rid of any large furniture that does not add to the look of the house or the room. Try to make it look like a builder’s model home.
© Michael Taylor
Rent Back
