Also, if you haven’t done so yet, please join the NYREIA Facebook Group where we post useful articles and share other useful nuggets  of information.

See you there.

1) What each term means.
2) Who the current owner is
3) What the process to purchase the home involves
4) Does the deal make sense

There are lots of bargain properties on the market today.  Not all of them are distressed properties, nor are all distressed properties bargains, once you factor in costs of making them livable and up-to-date.  Here’s some background information to help you begin to make sense of distressed property investing.

What is a Short Sale?

A homeowner offering a short sale is trying to sell the property to avoid foreclosure and is likely to be delinquent or in default on their mortgage for several months due to a qualified hardship. Also, this means the home’s value is less than the mortgage amount the homeowner still owes the lender. Besides the seller and buyer agreeing on a contract, the mortgage holder must also approve the short sale which can involved a lengthy wait.

What is a Pre-Foreclosure?

Pre-foreclosure homes may or may not be short sales. The current owner may be delinquent or in default on their mortgage and is trying to sell before a foreclosure process begins.

What is an REO?

A real estate owned (REO) property is a home owned by an institution (lender, government agency, company) that now posesses the property instead of  an individual. Perhaps the property did not sell at a foreclosure auction or the company acquired the home from a relocating employee and it is now listed for sale by a real estate professional. Many of these properties are sold “as-is” meaning the seller will not repair or replace any problems found be an inspection.

What is a Foreclosure Auction?

A foreclosure property results when the homeowner defaults on the mortgage and the lender puts the property up for sale through a “trustee’s sale” or a “sheriff’s sale.” Many of these property are not open for tours or inspections. Auction properties come with unpaid liens, back taxes, and title problems, and eviction proceedings may not have been completed – all problems that become the purchaser’s responsibility to remedy.

What is an Equity Sale?

An equity sale is a normal sale by a homeowner/borrower who has sufficient equity to pay back all lien holder.

As you can see there are different types of distressed properties. What type to invest in really relies on your level of knowledge, risk threshold, and time frame.  If you are interested in learning more about investing in foreclosures please attend our “Winning with Foreclosures” workshop on July 29, 2010 from 6:30-8:30 at the Keller Williams Offices at 935 New Loudon Road  Latham , NY 12110. The cost to attend this workshop is just $20.00/

NYREIA is pleased to announce our affiliation with RealtyJoin the first true social networking site for the real estate industry.  Real estate investors, service providers, and other professionals are already finding deals and opportunities on RealtyJoin. Realtors are finding new clients, flooring companies are receiving orders, electricians are getting hired by investors, and countless other investors and vendors are benefiting as RealtyJoin grows…simply by posting their profiles. RealtyJoin also keeps members up-to-date on the latest real estate news, ideas, and opportunities, both locally and nationally.

Unlike most services and products that are available to assist real estate investors and vendors, RealtyJoin is 100% free to the real estate community. I believe that as RealtyJoin grows, it will be a tool that will help many vendors and investors in the real estate industry make thousands of dollars by finding deals and customers…at the click of a mouse on RealtyJoin.com.

There is no charge to use RealtyJoin. SIGN UP NOW.

1) Six realities driving the distressed property opportunity
2) Myths about the market and realities to help you succeed
3) How distressed property deals are different and what to expect 
4) How to get your offer accepted and contract closed
5) How to be a winning buyer in today’s market 

Date: Thursday July 29, 2010
Time: 6:30-8:30
Location: Keller-Williams Offices 935 New Loudon Road Latham, NY 12110
Cost:  $20.00

Register at:

The tenant from hell can cost you thousands of dollars in repairs, damages, and non-paid rent

All of this can be avoided with proper tenant screening. Proper tenant screening provides you with past behavior trends that can predict future behavior trends. If you see several late payments on their credit report, you can be sure that rent to you will never be paid on time. More importantly, proper tenant screening protects your investment and sanity.

Here are the basic items for each adult applicant you must include when screening tenants:
o Identity verification: Usually a drivers license or military ID
o Social Security Number verification
o Employment & Income verification
o Prior Address Verifications
o Credit report
o National and state criminal history and sex offender searches
o Eviction records checks
o Terrorist list check
o Previous two landlord references – Always go for two as their last landlord might tell you they are the model tenants just so he can be done with them.

There are people who are “professional” renters out there. If you do not do your due diligence you are putting an awful lot at risk. Tenants don’t care that you won’t be able to make the mortgae payment if they don’t pay you on time. Your rental applicatin process helps establish the type of relationship your tenant can expect from you. If they see you as a sucker from the start, they will treat that way. If they see you as a no non-sense property owner, chances are they will know they can’t pull the things they have done in the past. Most importantly, good screening will make sure the problem tenants never rent from you.

We know there is a lot of  ”junk” on the Internet so the purpose of this channel is to provide you with the relevant and specific  information you need to succeed. If you have questions you want answered or topics you’d like us to cover, please leave a comment below.  We want to provide you with the information and resources needed to succeed.

Bookmark our channel and check back frequently: http://www.youtube.com/user/nyreia

“In some states, including California and Texas, lenders can pursue foreclosures outside of the courts. With the lender in control, the pace can be brisk. But in Florida, New York and 19 other states, judicial foreclosure is the rule, which slows the process substantially.

In Pinellas and Pasco counties, which include St. Petersburg and the suburbs to the north, there are 34,000 open foreclosure cases, said J. Thomas McGrady, chief judge of the Pinellas-Pasco Circuit. Ten years ago, the average was about 4,000. ‘The volume is killing us,’ Judge McGrady said.”

Read the full article here:   http://www.nytimes.com/2010/06/01/business/01nopay.html?pagewanted=2&hp