Foreclosed Property
Foreclosure
Foreclosure is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue homeowners' association dues or assessments.
The mortgageholder can usually initiate foreclosure at a time specified in the mortgage documents, typically some period of time after a default condition occurs. Within the United States, Canada and many other countries, several types of foreclosure exist. In the U.S., two of them – namely, by judicial sale and by power of sale – are widely used, but other modes of foreclosure are also possible in a few states.
Foreclosure by judicial sale, more commonly known as judicial foreclosure, which is available in every state (and required in many), involves the sale of the mortgaged Government Foreclosed Property under the supervision of a court, with the proceeds going first to satisfy the mortgage; then other lien holders; and, finally, the mortgagor/borrower if any proceeds are left. Under this system, the lender initiates foreclosure by filing a lawsuit against the borrower.
Foreclosure by power of sale, also known as nonjudicial foreclosure, is authorized by many states if a power of sale clause is included in the mortgage or if a deed of trust with such a clause was used, instead of an actual mortgage. In some states, like California, nearly all so-called mortgages are actually deeds of trust. This process involves the sale of the property by the mortgage holder without court supervision (as elaborated upon below).
Other types of foreclosure are considered minor because of their limited availability. Under strict foreclosure, which is available in a few states including Connecticut, New Hampshire and Vermont, suit is brought by the mortgagee and if successful, a court orders the defaulted mortgagor to pay the mortgage within a specified period of time.
The mortgageholder can usually initiate foreclosure at a time specified in the mortgage documents, typically some period of time after a default condition occurs. Within the United States, Canada and many other countries, several types of foreclosure exist. In the U.S., two of them – namely, by judicial sale and by power of sale – are widely used, but other modes of foreclosure are also possible in a few states.
Foreclosure by judicial sale, more commonly known as judicial foreclosure, which is available in every state (and required in many), involves the sale of the mortgaged Government Foreclosed Property under the supervision of a court, with the proceeds going first to satisfy the mortgage; then other lien holders; and, finally, the mortgagor/borrower if any proceeds are left. Under this system, the lender initiates foreclosure by filing a lawsuit against the borrower.
Foreclosure by power of sale, also known as nonjudicial foreclosure, is authorized by many states if a power of sale clause is included in the mortgage or if a deed of trust with such a clause was used, instead of an actual mortgage. In some states, like California, nearly all so-called mortgages are actually deeds of trust. This process involves the sale of the property by the mortgage holder without court supervision (as elaborated upon below).
Other types of foreclosure are considered minor because of their limited availability. Under strict foreclosure, which is available in a few states including Connecticut, New Hampshire and Vermont, suit is brought by the mortgagee and if successful, a court orders the defaulted mortgagor to pay the mortgage within a specified period of time.
What Do I Need To Know to Stop Foreclosure
Day 1 – “The Start-Up”
* - Learn about the growing need for Foreclosure Cleanup & Property Preservation firms and how you can get your piece of this $2.1 BILLION dollar a year industry
* - Find out what you can expect as a business owner for each of the three types of services you can provide
* - How to legally set up your business so that you’ll be officially “open for business” as quickly as possible (in some states you can literally go from zero to business bank account in four hours)
* - Information on how to access the direct links for all of the official forms you’ll need to fill out in each state
* - How to quickly get an EIN # and a business license
* - How to determine if you’ll need a Contractors’ License
- Learn about what types of insurance are required and properly set up your policies so that you’ll be adequately covered and meet standard vendor requirements
Day 2 –_”Setting Up Shop”
- Learn what equipment you’ll need and what supplies to purchase (we even give you a shopping list so you can stay within budget)
- Determine how you can easily ‘staff’ your operations with independent contractors
- Use the sample “Independent Contractor Agreement” and the “Non-Compete Agreement” forms to ensure that someone who works for you doesn’t just “learn the ropes” and then turn around and compete against you for contracts
- How to pay the people that work for you so that you can efficiently manage your own cash flow
- Know how to schedule properly so that you allow sufficient time for each job while maximizing your profit potential
* Become familiar with OSHA and Safety Standards as well as the health & safety hazards associated with this industry so that you can avoid accidents and costly fines
* Keep your staff safe with the mini-“Safety Training Topics”. Working safely is paramount to the health of your staff and the reputation of your business (and also keeps your insurance premiums low)
Day 3 – “Foreclosure Cleanup 101 (and 202 and 303…)”
- Learn about the actual physical junk-outs & cleanup process (more on how to land jobs in Day 6) How to do Initial Inspections and how they can increase your bottom line (the “Initial Inspection Checklist”
makes it easy)
- Learn strategies for taking before & after photographs in such a way that they will be 1) acceptable, and 2) adequate for estimating. The “Photo Checklist” is an invaluable resource for making sure you don’t miss any necessary shots
- Understand HUD/FHA Guidelines as they pertain to junk-outs and cleanups
- Find out how to deal with personal Property and debris removal
* How to estimate just how much junk you’ll have to haul out
* Learn what constitutes Household Hazardous Waste and what to do with it
* How to handle pest-control issues
* Discover what types of junk you are and aren’t permitted to bring to the landfill and why you absolutely need to keep your dump receipts (hint: you won’t get paid if you don't)
* Learn about the legalities of removing abandoned vehicles and the "how-to" part of getting them off of the property
* Learn how to estimate how long a job is going to take with the “Labor Hours Cheat Sheet” as well as make sure your staff clean in accordance with standard cleaning times
* Understand the difference between “Broom Sweep” and “Open House Clean/White Glove Clean” and how to do each one (this will save you much time, energy and headaches!)
* Effectively run & manage your crews without having to be at every single job
* Learn what you should do if you get into a sticky situation (for example, irate neighbors harassing you)
Day 4 – “Property Preservation 101 (and 202, and 303…)”
- Learn about what types of property preservation & maintenance services are typically provided (information on how much you should charge for your services can be found in Day 5)
- Understanding HUD/FHA Guidelines as they pertain to various property preservation services
- Accessing Properties – How to quickly & easily gain access to vacant property without damaging the property and incurring additional expenses
- Learn the requirements for securing a property and how to comply with guidelines, including lock changes
* Learn how much you can charge for a temporary roof repair
* Discover how to correctly board windows and door in compliance with HUD Guidelines, including what techniques to use, what type and thickness of wood to use, etc.
* Learn about pool securing guidelines and the different pool services you can provide
* Understanding the process of draining a pool, including determining whether you require a city permit to drain the pool, what to do with the excess water and knowing when you need to hire a licensed pool contractor
* Learn all about landscaping and yard maintenance, including what needs to be done on the initial cut and what is required on subsequent re-cuts. You’ll also learn how often landscaping should be done and how to deal with oversized yards.
* Learn about snow removal, the required frequency, the areas in which you need to remove the snow as well as what precautions you should take when doing so
* Learn about winterization, including how to properly winterize a property, when winterization is required, when to winterize/de-winterize and HUD Guidelines for winterization
* Learn about the pros and cons of selecting quality contractors as well as when you are legally required to do so if you aren’t properly licensed
* Find out how to request bids from licensed contractors using the sample “Bid Request Form” and learn how many bids you should get on each job
Day 5 – “Show Me the Money! How to Bid Jobs so that You Win Them”
- Learn how the bidding system works in the property preservation industry and what makes for a winning bid
- Learn all about HUD/FHA Guidelines as they pertain to cost structures for property preservation services and how to work within these guidelines so that you can earn the work yet stay profitable
- See why it’s important to visit a property in order to generate a competitive
- Make the most of your time by hiring someone to take the photos for you (using the “Photo Checklist”, of course so that no photos get missed) and learn the “quick & dirty” method of bidding properties from photos so that you can quickly turn out bids
* Learn how to size/re-size photos and how to label them using free software or software you already have on your computer
* Use the valuable proprietary Foreclosure Cleanup Cash Bidding Spreadsheets (included FREE!) quickly and easily with step-by-step instructions
* Use the spreadsheets to instantly create competitive bids and professional-looking estimates that earn you work time after time again
* Discover detailed information on how you should price foreclosure cleanups, property preservation services and property maintenance services as well as what the going rates are for contracted services so that you can stay competitive and consistently win bids
Day 6 – “Marketing: Quickly, Cheaply & Effectively Promote Your Services
* - Learn what type of marketing materials get the attention you need to become an approved vendor and earn bid opportunities
* - Learn exactly how to get in touch with the Asset Management Companies (AMCs) that subcontract out work to vendors (contact names, phone numbers, addresses, email addresses and websites)
* - How to get on AMCs preferred vendor list and how to manage your relationship with AMCs so that they keep sending you more and more business
* - How to find and secure relationships with the Realtors that are given the REO listings so that you can to bid and win even more work
* - Use our sample “Over-the-Phone Price Estimate Spreadsheet” to effectively sell your services (this is a great tool if you have someone working for you in your office – simply give them the spreadsheet as a guideline and you’re ready to sell your services!)
Day 7 – “Managing Your Business For Profits”
* - Learn how to actively manage your company so that you can consistently improve your service and profitability
* - Learn why it’s critical that you maintain a Property Audit Trail and how to do it so that you get paid for your work (and keep the work coming)
* - How to organize your daily service schedule for maximum efficiency and profitability (scheduling jobs, dispatching crews, sending/receiving work orders, etc.)
* - Find out how what accounting software is the easiest and what is the best way to keep track of your estimates, invoices and expenses so that you know exactly how much money you’re making
* - Learn how to keep good records and reduce the chances of an IRS audit (there are a few things you absolutely must do to cover yourself in this type of business)
* How to nurture and grow your customer relationships so that the jobs keep coming to you
* - Learn about the growing need for Foreclosure Cleanup & Property Preservation firms and how you can get your piece of this $2.1 BILLION dollar a year industry
* - Find out what you can expect as a business owner for each of the three types of services you can provide
* - How to legally set up your business so that you’ll be officially “open for business” as quickly as possible (in some states you can literally go from zero to business bank account in four hours)
* - Information on how to access the direct links for all of the official forms you’ll need to fill out in each state
* - How to quickly get an EIN # and a business license
* - How to determine if you’ll need a Contractors’ License
- Learn about what types of insurance are required and properly set up your policies so that you’ll be adequately covered and meet standard vendor requirements
Day 2 –_”Setting Up Shop”
- Learn what equipment you’ll need and what supplies to purchase (we even give you a shopping list so you can stay within budget)
- Determine how you can easily ‘staff’ your operations with independent contractors
- Use the sample “Independent Contractor Agreement” and the “Non-Compete Agreement” forms to ensure that someone who works for you doesn’t just “learn the ropes” and then turn around and compete against you for contracts
- How to pay the people that work for you so that you can efficiently manage your own cash flow
- Know how to schedule properly so that you allow sufficient time for each job while maximizing your profit potential
* Become familiar with OSHA and Safety Standards as well as the health & safety hazards associated with this industry so that you can avoid accidents and costly fines
* Keep your staff safe with the mini-“Safety Training Topics”. Working safely is paramount to the health of your staff and the reputation of your business (and also keeps your insurance premiums low)
Day 3 – “Foreclosure Cleanup 101 (and 202 and 303…)”
- Learn about the actual physical junk-outs & cleanup process (more on how to land jobs in Day 6) How to do Initial Inspections and how they can increase your bottom line (the “Initial Inspection Checklist”
makes it easy)
- Learn strategies for taking before & after photographs in such a way that they will be 1) acceptable, and 2) adequate for estimating. The “Photo Checklist” is an invaluable resource for making sure you don’t miss any necessary shots
- Understand HUD/FHA Guidelines as they pertain to junk-outs and cleanups
- Find out how to deal with personal Property and debris removal
* How to estimate just how much junk you’ll have to haul out
* Learn what constitutes Household Hazardous Waste and what to do with it
* How to handle pest-control issues
* Discover what types of junk you are and aren’t permitted to bring to the landfill and why you absolutely need to keep your dump receipts (hint: you won’t get paid if you don't)
* Learn about the legalities of removing abandoned vehicles and the "how-to" part of getting them off of the property
* Learn how to estimate how long a job is going to take with the “Labor Hours Cheat Sheet” as well as make sure your staff clean in accordance with standard cleaning times
* Understand the difference between “Broom Sweep” and “Open House Clean/White Glove Clean” and how to do each one (this will save you much time, energy and headaches!)
* Effectively run & manage your crews without having to be at every single job
* Learn what you should do if you get into a sticky situation (for example, irate neighbors harassing you)
Day 4 – “Property Preservation 101 (and 202, and 303…)”
- Learn about what types of property preservation & maintenance services are typically provided (information on how much you should charge for your services can be found in Day 5)
- Understanding HUD/FHA Guidelines as they pertain to various property preservation services
- Accessing Properties – How to quickly & easily gain access to vacant property without damaging the property and incurring additional expenses
- Learn the requirements for securing a property and how to comply with guidelines, including lock changes
* Learn how much you can charge for a temporary roof repair
* Discover how to correctly board windows and door in compliance with HUD Guidelines, including what techniques to use, what type and thickness of wood to use, etc.
* Learn about pool securing guidelines and the different pool services you can provide
* Understanding the process of draining a pool, including determining whether you require a city permit to drain the pool, what to do with the excess water and knowing when you need to hire a licensed pool contractor
* Learn all about landscaping and yard maintenance, including what needs to be done on the initial cut and what is required on subsequent re-cuts. You’ll also learn how often landscaping should be done and how to deal with oversized yards.
* Learn about snow removal, the required frequency, the areas in which you need to remove the snow as well as what precautions you should take when doing so
* Learn about winterization, including how to properly winterize a property, when winterization is required, when to winterize/de-winterize and HUD Guidelines for winterization
* Learn about the pros and cons of selecting quality contractors as well as when you are legally required to do so if you aren’t properly licensed
* Find out how to request bids from licensed contractors using the sample “Bid Request Form” and learn how many bids you should get on each job
Day 5 – “Show Me the Money! How to Bid Jobs so that You Win Them”
- Learn how the bidding system works in the property preservation industry and what makes for a winning bid
- Learn all about HUD/FHA Guidelines as they pertain to cost structures for property preservation services and how to work within these guidelines so that you can earn the work yet stay profitable
- See why it’s important to visit a property in order to generate a competitive
- Make the most of your time by hiring someone to take the photos for you (using the “Photo Checklist”, of course so that no photos get missed) and learn the “quick & dirty” method of bidding properties from photos so that you can quickly turn out bids
* Learn how to size/re-size photos and how to label them using free software or software you already have on your computer
* Use the valuable proprietary Foreclosure Cleanup Cash Bidding Spreadsheets (included FREE!) quickly and easily with step-by-step instructions
* Use the spreadsheets to instantly create competitive bids and professional-looking estimates that earn you work time after time again
* Discover detailed information on how you should price foreclosure cleanups, property preservation services and property maintenance services as well as what the going rates are for contracted services so that you can stay competitive and consistently win bids
Day 6 – “Marketing: Quickly, Cheaply & Effectively Promote Your Services
* - Learn what type of marketing materials get the attention you need to become an approved vendor and earn bid opportunities
* - Learn exactly how to get in touch with the Asset Management Companies (AMCs) that subcontract out work to vendors (contact names, phone numbers, addresses, email addresses and websites)
* - How to get on AMCs preferred vendor list and how to manage your relationship with AMCs so that they keep sending you more and more business
* - How to find and secure relationships with the Realtors that are given the REO listings so that you can to bid and win even more work
* - Use our sample “Over-the-Phone Price Estimate Spreadsheet” to effectively sell your services (this is a great tool if you have someone working for you in your office – simply give them the spreadsheet as a guideline and you’re ready to sell your services!)
Day 7 – “Managing Your Business For Profits”
* - Learn how to actively manage your company so that you can consistently improve your service and profitability
* - Learn why it’s critical that you maintain a Property Audit Trail and how to do it so that you get paid for your work (and keep the work coming)
* - How to organize your daily service schedule for maximum efficiency and profitability (scheduling jobs, dispatching crews, sending/receiving work orders, etc.)
* - Find out how what accounting software is the easiest and what is the best way to keep track of your estimates, invoices and expenses so that you know exactly how much money you’re making
* - Learn how to keep good records and reduce the chances of an IRS audit (there are a few things you absolutely must do to cover yourself in this type of business)
* How to nurture and grow your customer relationships so that the jobs keep coming to you
Here is some of the critical stop foreclosure information provided
Bank repossessions represent a great way to find a fantastic deal on a home. governmentforeclosedproperty.com adds new Foreclosure Listings everyday.
* The Single Most Important Resource You Can Use To Stop Foreclosure
* Three Most Common Mistakes You Must Avoid
* Avoid This Crucial Mistake That Will Absolutely Cost Millions Their Homes
* Learn What It Takes To Qualify For Each Option Including Loan Modification, Forbearance Agreement, Partial Claim, and Others!
* The Actual Eligibility Formula Many Lenders Use For Loan Workout Approval
* Easy To Use Software Auto Calculates and Auto Populates Forms Making It Super Fast and Error Free
* The Single Most Important Resource You Can Use To Stop Foreclosure
* Three Most Common Mistakes You Must Avoid
* Avoid This Crucial Mistake That Will Absolutely Cost Millions Their Homes
* Learn What It Takes To Qualify For Each Option Including Loan Modification, Forbearance Agreement, Partial Claim, and Others!
* The Actual Eligibility Formula Many Lenders Use For Loan Workout Approval
* Easy To Use Software Auto Calculates and Auto Populates Forms Making It Super Fast and Error Free
