Foreclosure and Acceleration clause

In this topic I will try my best to explain some clause that can lead to unknown problems in case of any unforeseen financial crisis. Usually people do not have much knowledge about small clauses when they are investing. That’s why I have tried my best to explain some important things here. If you have any strange situation and cant get hold of any good adviser, ask here I might be able to help you. I will be explaining how to take title later on but for now little peep in foreclosure and Acceleration clause.

An Acceleration Clause Allows a Lender to call the entire NOTE due , on occurrence of a specific event such as Default in payment, taxes or insurance, or sale of property.
A lender may use the acceleration clause to call entire note due if the borrower doesn't pay the loan payments, the real property taxes or insurance premiums, or if borrower sell the property. In order to pay off the outstanding loan, a lender will foreclose on the loan.

Default and foreclosure:
Foreclosure is the legal procedure used by lenders to terminate all rights, title and interest of the trustor or mortgagor in real property by selling the property and using the sale proceeds to satisfy the liens of creditors

There are 2 ways to foreclose.
1) Power of sale clause
2)Foreclosure by Court.

1) POWER OF SALE CLAUSE:

• Non judicial

• Trustee sale
• Trustee waits 3 months
• after Notice of Default there is 21 days to post notice on property
• after 3 weeks advertising period trustee can invade
• loan could be reinstated up till 5 days prior trustee sale

2)JUDICIAL FORECLOSURE:

• Mortgagor has one year for redemption After Court Foreclosure
• Title is held by mortgagor
• deficiency judgment is available

Any trust deed or mortgage with a Power of Sale Clause may be foreclosed non judicially by trustee sale or judicially by court procedure.
Without power of sale clause the only remedy lender has is judicial foreclosure.

Trustee Sale (Non Judicial)
Usually lender will foreclose as it is quickest and easiest way taking almost 4 months.
First the lender notifies the borrower of default and request trustee to record notice of default.
Then wait till at least 3 months, then advertises Notice of Sale once a week for 21 days and post notice of sale on the property.
The loan could be reinstated (bring current) prior to 5 days to trustee sale.

Foreclosure by Court(Judicial)
Happens when there is no power of sale clause. The lender goes to court and gets order of sale. After publication and posting of the sale notice, court appoints a commissioner who sells the property to the highest bidder. Buyers gets Certification OF Sale After the sale, the borrower gets to keep the possession of the property and has one year to redeem the property by satisfying the loan in full including court costs and any interest. This is called Equity Of Redemption. If after one year the mortgagor doesn't redeem the property, a Sheriff's deed is issues to new buyer.

FSBO For sale by owner

Here I would like to help some "FSBO" For Sale By Owner.
Though studies show that for sale by owner eventually end up getting 26 % less what they could have received if they had worked with some agent. But still some people want to do it themselves. And thats not at all a bad idea but needs little help so they know which direction to move.
Here are few tips that might help you sell your home yourself.

1) ADD but where?
In local news paper, but which day is important? from my experience Wednesdays is better as add doesn't cost that much and only SERIOUS buyers contact.
Remember always include area of town, the price, number of bedrooms and bathrooms. These are most important considerations for a buyer.

2) Local Publications
Consider an add in local publications for instance recycler, pennysaver , homes and land etc.

3) Flyers
design flyer or brochure for your property. A Black and white photo and description of home is important.

4)Financing
Know at least 3 different methods available to finance the sale of your home. Assumable loan, seller financing,variable rate loan, adjustable rate loan and a fixed rate loan are good examples. buyers want to know the rate cash down payment, including. Closing costs and monthly payments.

5) Taxes
Know your current annual taxes and homeowner insurance premium amounts. Are they paid from an impound account or by some other method?

6) Interest rates
What are the current interest rates and points on fixed and adjustable rate loan?

7) Appraisal
Consider having an appraisal done on your home to determine the current value. Buyer typically offer less than you are asking because they know a savings of the commissions is often built into the price. Your are trying to save the commission and so are they. You need to know the fair market value is.

8) When buyer shows
When a prospective buyer visits your home, follow these guidelines:
* set appointments at their convenience .
*Always prepare the home before it is shown, even if you have to leave work to do it.
*Have your property brochures available.
*Introduce yourself at the front door.
*Let them tour the home with as much privacy as possible. Buyers feel uncomfortable making
comments in your presence. When they complete the tour of your home, ask them if they
would like to go back for a second look.
*Be Prepared; Most people may not be that interested in your home. Buyers shop by
comparison and there are usually a great number of homes for them to consider.

9) Offer
In the event you receive an offer from buyer, have then put it in writing, Including an earnest money deposit. Be prepared to pay attorney to review the legalities of such a contract.

Staged To sell

Fast and Affordable Fixes.
Do you know how much time it takes for a home to make impression in the eyes of buyers? The first 1 minute. If you walk in a home to buy and you can not see yourself living in that home, would you buy it?? Answer is no. Now a days Real Estate market is very competitive. Here are few ideas that will do wonders and by the way, staged homes sell 6.9% more than the homes that are not staged.

1) Make an Entrance.
Dress with Paint, furniture arrangements, art and accessories can be all carefully designed to highlight the home’s strengths. Whether you’re designing to sell or designing to dwell, here’s how the home-staging pros get that "I have to have it!"The outside of your home is the first thing guests see. It should be clean, you can put some tiles or bricks to make way and the path can be made prominent by putting some planters with or with out plants. With plants is + point.

2) Clean Clutter.
Admit it, this is the house you have been living in for a long time and don't have heart to throw stuff out. Your Treasure is someones Trash . Take3 big boxes label them TRASH TREASURE and CHARITY. If you have much stuff so, put these boxes outside the room you are battling, and put stuff in front of those boxes. SEPARATE trash from treasure and treasure from charity.Treasure is obviously going in but with a style. I mean with some pre planned space to live.

3) Less is Better.
Here is a rule to follow, 2 for 1. I mean 2 pieces of furniture against one wall. Your furniture arrangement should always play to the focal point of the room. For instance, if a fireplace is the selling point of your living room and your set-up currently evolves around the television set, you will need to redirect attention to the fireplace. Start with the obvious. In the living room, a sofa, love seat, and club chair might be the basic furnishings. Placement of these heftier pieces will determine the rest of the layout. Pulling major furnishings at east eight inches into the room gives the space dimension. Keep your layout open and airy, adding interest through angles, dimension, and height variation. Allow visible wall space behind and between furnishings.

4) Rediscover "Lost" Spaces
A big part of what stagers do is create fantasy spaces: An exercise room, a meditation space, an art studio, a family game room.take that unused space on the third floor or in the basement and turn it into something you’ve always dreamed about having.Move those boxes to a rented storage space and create a space.drape fabric on the walls of your basement, lay inexpensive rubber padding or a carpet remnant on the floor, and toss in a few cushy pillows. woo!! Your new meditation room or yoga studio.

5) Windows and Drapes.
We always like heavy drapery but when selling, you should always go with lighter materials and colors, so let that sun shine in.This ushers in natural light and makes a previously closed-in space seem larger. Simple sheers on a tension rod are great for screening an unattractive view and providing a bit of privacy

6) Lightening.
You wouldn't imagine what wonders does lightening do. Take it from a regular dinner to a candle light dinner, If you can understand the difference between the two you are half interior decorator. you can make your home warm and welcoming by playing the right way with the lights.To remedy the problem and make your home more inviting, increase the wattage in your lamps and fixtures (aim for a total of 100 watts for every 50 square feet).Then dimmers do wonders, you can vary light levels according to your mood and the time of day, and the best part is you can do it yourself, its pretty simple.Be sure to replace old switch covers with crisp white ones.
Don’t depend on just one or two fixtures per room.Having lights on different planes provides good illumination and makes the room interesting. One thing I always do is put an old lamp behind big plant and it looks so dramatic you wouldn't imagine. Place mirrors, silver or glass bowls, or other reflective objects near lamps to bounce light around the room and make it glow even more.

7)Dress home.
As I said dress home from outside. It is as important to play with color inside too. Painting is the cheapest and a the easiest way to give home new face.
how to pick a color? very easy do it from a pillow, textile, or piece of art you love.The background color is often great for walls, and you can pull out the other colors for accents around the room You can paint a wall with contrasting color. Still complementary color for example a rich red flanked by taupe walls or a more intense version of the paint used in the rest of the room, like a deep butterscotch that will play off the soft camel walls surrounding it.
If you are scared to use colors, go with a safe back ground. These days, the definition of "neutral" extends way beyond beige– from warm tans and honeys to soft blue-greens. On this safe back ground use some warm colored accessories, like pillows, throws, drapes, vase etc.
Beside walls furniture is also important. White has always given a fresh look but black does wonders too.

8) Aroma.
Vanilla is best and widely used. you can put a drop of vanilla essence on aluminum foil and place in oven and turn it on warm. Keep air fresheners handy. So if unexpected buyers come in you are all set to show. In a crystal bowl pour boiling water on cinnamon sticks would give a nice aroma too.

My experiment:
I transformed my friend's old kitchen to modern up to date in under 400 dollars. I put laminate tiles, used pre cut granite tops over old tiled counter. Replaced yellow double sink with silver double sink. Glued silver metallic laminate sheet on old refrigerator, dish washer and compactor. Painted old cabinets from brown wooden color to black stain. And a new black and silver kitchen make the house sell $36000 over the asking price.
Little effort pays you a lot.

I will be gathering information and posting here. If you have any problem room and need a quick fix please feel free to ask.
for more help, I like one website where you can get tips like this free www.homelahome.com