Auctionrealestatesales
Auction Real Estate Sales

Whether you are an investor that would like to get into buying foreclosed homes for your personal use or to flip the property or if you are having your home foreclosed on, you should know what to expect at a foreclosure auction. Of course, the actual steps that will be taken can vary a bit from state to state and from house to house, but its good to know what you will be getting into when you go to a foreclosure auction. Foreclosure auctions can be exciting, even fun, but knowing what to expect will help you make the most of the experience, whether you are an investor or a homeowner that is trying to get your house back.

Before the Auction

Youll likely find out about the foreclosure auction in a local newspaper and on the flier may be information to pre-qualify for bidding. This will allow you to put down a deposit so that the auctioneer knows that you are a serious bidder and can fulfill your bid if you are the winning bidder. Being pre-qualified just sort of speeds up the process so that you dont have to mess around with the deposit on the day of the auction. During this time you should also do some research on the house by looking into any liens that may be against the property, how much the property is worth, how much it has appreciated in the last few years, as well as property values in the area. If the home looks as though it will need some repairs, you should consider this as well when trying to come up with how much you will be willing to pay for the house. Without this research, no amount of knowledge about what goes on at a foreclosure option will help you because you wont know where to start when it comes to actually making a good bid.

What Happens At the Auction

The auction will typically start with the auctioneer reading legal notices as well as a legal description of the property. The auctioneer will usually then begin taking bids on the property. If the auctioneer has pre-qualified bidders the process is more streamlined, if not, each time a bid is made the auctioneer will then ask for the bidders deposit check, which is typically right around 5,000 for residential auctions. After each bid the auctioneer will attempt to solicit bids for higher amounts. Each auction is different, but the auction increments usually are set by the auctioneer and may be by 100, 500, or 1,000 per bid. The auctioneer will continue to solicit bids by this increment until it is clear that the highest bid has been reached. Then, the auctioneer will announce, Going once, going twice, three times, sold! indicating that the auction is over and the property has been sold to the highest bidder.

Once the bidding has ended a foreclosure deed and purchase papers will be drawn up and validated by the new owner or purchaser and the mortgage holder. A grace will likely be given to allow the purchaser to find financing or to come up with the funds to cover the full amount of the bid. This grace period is usually 30 days unless the purchaser and the mortgage holder agree to other terms. After the grace period a closing will take place, so that the new owner can formally take the title to the property.

What Happens, Now?

The purchaser can do what he or she intended to do with the property, whether it is to move into the home or to sell it for full market value. The money paid by the purchaser will be distributed in order of priority, first of which would be taxes. After taxes money will be paid to the mortgage, then the second and third mortgage if applicable. If there is still money after paying these debts, remaining money will be paid to lien holders and creditors. There is a very slim chance that there will be money left over after all of the debts are paid, if this is the case then the monies will be paid to the former home owner.

What about the Original Owner?

The original owner will often be at the auction so that they can bid on their home, and this is legal as long as they have the deposit required. If the owner of the home that has been foreclosed does bid on the home they must remember that the deposit is not refundable and the deposit assumes that they will be able to finance the home within the grace period. Owners must also remember that if they buy the property back old debts may merge and become reinstated such as second and third mortgages that became void when the first mortgage foreclosed on the property unless one has filed bankruptcy and is truly free and clear of these debts. Owners will often drum up the funds to make the deposit so that they can have another 30 days to try to save their home. Owners may or may not be successful in their attempts to save their home at a foreclosure auction.

As you can see, there are a lot of things that go into a foreclosure auction, but none of them are all that difficult to understand, but knowing about them makes the auction more enjoyable. The auction itself is not all that complicated, but it can be very fast paced. At some foreclosure auctions there are a lot of people, at others there are only a few because of the location or just the debts attached to the property, or even the state of the property. If you are serious about the property you should pay close attention when bidding starts so that you are sure that you can get your bid in when you feel its time so that you have the best chance of being the top bidder.

When youre going shopping for real estate in the middle of an economic recession you can pretty much guarantee that whatever you purchase, youre going to be able to make a profit. There are certain parts of the country that take a little longer to be affected when a recession strikes, but sooner or later every place is going to start to feel the pinch-which means you can basically stick a pin in the map when youre trying to decide where you want to make your investment.
Of course, just because you can make a profit just about anywhere doesnt mean that you shouldnt take measures to maximize that profit. If you were sitting in the middle of a giant room of sweets that were yours for the taking absolutely free, would you go for the Godiva chocolate or the M&Ms? When you have the choice between a property that youre going to make a minimal investment on and a property that you will make an incredible profit on when the economy starts rising up again, go for the property thats going to bring you the best return!
Where are you going to find the best deals? Urban properties and homes in the suburbs of these urban areas are always more highly in demand than those that require a lengthy commute to get to lifes essentials. Homes in the suburbs of Washington, D.C. are going to sell for a greater profit (and much more quickly) than a home in a small town like Rexville, NY. (Dont worry if youve never heard of it-most of the rest of the world hasnt either!)
When you first begin investing its usually recommended that you pick a property close to home, where you know the neighborhood, the general ambiance and, most importantly, what sells! If you choose to do your own rehab this is particularly important, as there are many areas in the country that are particularly prized for their historical value and which will bring a much lower return on your investment if theyve been stripped and decked out in the latest style than if theyd been carefully restored. An experienced rehabber will know this. A beginning investor will not.
Other factors you may want to take into consideration before closing the deal are:
The quality of the neighborhood. Unfortunately, all urban areas have their slums. An area with a high crime rate, a wide-spread amount of graffiti and property damage, regular drug activity and daily visits from the police is going to be much less desirable to a prospective buyer than a home situation in a nicer part of town, where they can safely allow their children to step out the front door without having to worry that they wont come home.
The condition of the house. There have been many, many investors that have plunged right in to the world of real estate and rehabilitation and bought a handymans special only to discover that by the time they got done paying for the repairs to the property the profit margin was considerably less than what they were hoping for-and what they would have made investing in a property that needed a little less work.
Before you commit to buying a property, take the time to have the home inspected carefully. Certain factors, such as a leaky roof, faulty foundation, termites and extensive mold, are going to be both difficult and expensive to fix. Unless you can quite literally get the property for a song, justifying the amount of time and expense youre going to put into the restoration project, it may be best to allow that one to pass you by.
What you plan to do with it afterwards. This is probably the biggest factor when it comes to real estate investing, because what you plan to do with the property after you purchase it makes all the difference when youre determining what types of properties are suitable and what are not. If youre planning on rehabilitating a property, then reselling it as a single family residence, purchasing a small ranch house on the edge of the city may be a perfectly profitable proposition. Youll likely be able to sell the property for more than you paid for it and justify the investment.
On the other hand, if youre planning on renting the property out youre going to want to investigate the current rental rates of the neighborhood before youll be able to determine the success of the investment with any degree of accuracy. There are some areas where income based housing drives the average rental price of the neighborhood down, which is good news for renters but could result in major inconvenience for the investor who has paid hundreds of thousands of dollars for a property that they are only going to be able to rent for a couple hundred dollars a month.
The moral of our story? Take the time to carefully consider your options and do your homework before closing the deal, no matter how appealing that deal may be.
Of course, if youve been investing in real estate for the past ten years none of this is news to you! Experienced investors who are familiar with things like market trends and identifying weaknesses in potential properties will find the buffet of low priced real estate spread out before them a tempting proposition, and reaching beyond their immediate demographic boundaries may offer a new wealth of possibilities for tremendous profit gain.
Just remember that investing during a recession is a slightly different proposition than investing when the economy is booming. Youre going to hear me say this over and over again, because it cant be emphasized enough-when youre investing in real estate during a recession youre investing in the long term. Many of todays real estate investors have made their fortune in the market by taking advantage of todays Now, now, now! mindset and investing in and disposing of real estate in a very brief amount of time. When the economy is strong its not at all unusual for an experienced investor to be able to purchase and flip a property within the space of a week-experienced rehabbers in a month of less. Any property that you invest in during a recession may remain in your possession for several months before you are able to realize a maximum return, because the whole point of investing during a recession is to purchase an asset at the lowest price possible and sell it when the economy goes back up.
Its rare for the experienced investor to find themselves in this situation, but its entirely possible to spread yourself too thin when the temptation of pages upon pages of available property was just too much to resist. Suddenly theyre responsible not only for the amount theyve paid for the initial investment to purchase the property in the first place, but for the taxes, rehabilitation and maintenance required to keep it maintained and prepare it for sale.
Try to limit yourself with a realistic expectation of what you can afford in the long term. If as the recession continues you find you have more than enough capital in hand to pick up a couple more properties you always have that option, but disposing of a property you can no longer afford during a recession can be more difficult than taking a submarine and going diving for Atlantis-which is the reason that investing in real estate during a recession is so lucrative to begin with.

Using Foreclosure Auctions To Buy A House At Below Market Value

Buying a house below market value is a good way to get more profits as a real estate investor. One way you can find property at below market value is a foreclosure auction. Real estate goes into foreclosure when an owner of that real estate does not pay their mortgage on time. When real estate payments are not up to date it is a distress property. Nothing physically can be wrong with the house and it can be classified as a distress property. If the payments are not up to date that is enough to make a house a distress property. When a house is in distress status the owner is given a certain amount of time to bring the payments up to date. If the property owner does not bring the house up to date the bank that holds the mortgage can foreclose on the property.

When the bank takes control of a house that is when a distress property is classified as a foreclosed property. When the bank forecloses on a house, the bank will try to sell the house in a foreclosure auction. In a foreclosure auction the person with the highest bid will take control of the house from the bank. If the price is too low the bank will not sell the house. Some foreclosure auctions start at the price the bank is willing to sell the house for. Finding these auctions can take some work. Some places you can find foreclosure auctions are the newspaper and online. One other thing you can do is buy foreclose property lists for your area online. It is important to do research on the properties to see witch ones you will be interested in. It is important to research the property so you wont over bid. One way of doing this is going and physically taking a look at the properties you think you will be interested in and do an assessment of there value.

Most likely you will not get to see the inside of the house, but you can make an assessment of the house from the outside. You should stay off the physical property if you can. You will not want to get charge for trespassing. It is recommended that you take pictures and write notes about the property; this is a good way to help you to make the decision of what properties you will want. It can also help you to make an assessment on the highest you will pay. When it is time for the foreclosure auction stick to your assessments and do not over bid. You may not get your first choice but it is better to get your second or last choice at below market value than to over pay for your first choice. Buying foreclosure properties does take some work, but the money you will save is worth it.

Use Real Estate Loans To Finance A Commercial or Residential Property

Real estate is one of the most lucrative investment options. Besides using it for investing, people acquire real estate to have a comfortable and sprawling residence. Real estate is also used to further a persons business and commercial interests. Although enticing, buying a desired real estate is beyond the financial capabilities of most of us. Without the real estate loans to finance the purchase, the dream of owning the real estate would essentially remain unfulfilled.

Real estate loans can be taken to purchase a commercial property or a residential one. Commercial real estate loan can be taken for properties like guesthouses, hotels, restaurants, pubs, shops, nursing homes, warehouses, industrial facilities and leisure resorts etc. Residential real estates loans can be taken for the purchase of mansions, bungalows, farmhouses, apartments and other dwellings.

www.get-secured-loans.co.ukbest_rates_for_secured_loans.htmlReal Estate Loans use the property in consideration as the collateral. It means that the borrower has legally agreed to put the real estate as the security for the loan. The lender will be holding the title deed of the real estate with him and the borrower gets it only after he has repaid the entire loan with interest. If under any circumstances the borrower is not able to keep up with the repayment schedule, the lender is free to sell the real estate and recover his amount.

Real estate loans are available for huge amounts. Residential real estate loans can range from 25000 to 100000 and upwards. The commercial real estate loans are capable of funding real estate purchases up to 1000000. Lending amount is restricted by the value of real estate, the repayment capacity of the borrower and his credit history. The APRs (Annual Percentage Rates) on real estate loans range from 6% to 20%. A borrower has the option to choose between a fixed rate and a floating rate interest regime. The real estate loans can be repaid in 30 years. However, the borrower can choose a repayment period of 25, 20, 15 or 10 years. The shorter the repayment period for the real estate loan the lower will be the loan cost. However, the monthly installments towards the repayment will become higher as the repayment term decreases.

Lenders require that the borrower should contribute some percent of the entire value of the real estate. This is known as down payment. Lenders prefer if the borrower is able to put at least 20 % of the total value as the down payment. The balance of the real estate loan will be divided in equal monthly installments according to the repayment term. Paying a higher down payment will result in a smaller loan amount and smaller monthly installments.

Applying for a real estate loan becomes very simple if the online method is used. Online lenders do not have any application fee as compared to regular lenders. In addition to this the online application process is streamlined and does not require hefty documentation. The variety of real estate loans and their repayment options can be easily researched by using the lenders websites.

Whether a borrower gets the best or not on his real estate loan will depend on how carefully he chooses his lender. Since, a real estate loan is a long-term commitment to repay a substantially high amount, any hidden clause or fine print that threatens to drive things in the favor of lender can be detrimental to the borrowers interest. To remedy such a situation a borrower must hire a competent real estate attorney and scrutinize the fine prints carefully. Thus, by negotiating the best deal a person can get the right real estate loan to finance his dreams.

If youre a golfer, you know theres no better time to golf than when youre on vacation. Maybe youre just passing through, or maybe youre looking for permanent golf property in Spain. Whatever your needs, theres sure to be a perfect golf course for you.

In Andalucia alone, there are over 60 courses. Half of those are on the Costa del Sol. The natural beauty of the area, coupled with the warm, sunny weather, make this a great location to enjoy a great game of golf. With all the choices of accommodations available, you might find it prudent to purchase real estate or simply rent a hotel room close to the golf course of your choice.

If youre looking for golf property in Spain, look no further than the Costa del Sol. This area on the eastern coast of Spain, on the Mediterranean Sea, is home to a number of luxurious golf clubs. The fabulous weather and gorgeous environment make for an enjoyable vacation.

Choices of Golfing Properties

The internet has opened a whole new world to the vacation shopper. You can browse properties at your leisure, and compare accommodations for the best fit for your needs. Not only will the internet save you the time youd spend calling around to different hotels, or working with a travel agent, but it might also save you money. You can find great golf packages online. Golf packages generally include airfare, hotel accommodations, rental car and green fees for at least one game of golf. You might even benefit from booking close to the time of your vacation. If properties have rooms available, often times they discount them at the last minute. You can browse, choose a vacation, pay for your trip, and even print documents without leaving home.

The great thing about golf resorts in Spain is that most of them offer first-class accommodations, indulgent amenities and exciting nightlife. So after spending the day on the links, you can return to your resort and enjoy a massage or a body treatment, before heading out to dinner or dancing.

If youre interested in visiting Spain regularly for golfing, it may make more financial sense to purchase a property rather than rent one. You can enjoy the pride of ownership, while enjoying the comfort of knowing youll always have a place to stay the next time you want to golf in a warm, sunny climate and enjoy an exciting nightlife.

Auctions have been around for a long period of time and they are steadily gaining in popularity as the way to buy and sell property effectively over the Internet. The majority of people attending a Texas Real Estate Auction are the ones building up a property portfolio but there are also many people seeking out their dream house.

Texas is one of the most populous states and has more than 478 cities and towns and people here in towns and cities look for the investment options and participate in online or offline auctions.

The online Texas Real Estate Auction provides a new and unique system that allows prospective buyers to view properties and bid online for any property offered. There are lot of advantages to an Texas Real Estate Auction among which are included: feasibility, better prices and quick sales. With online auctions, you can purchase the desired property from the comfort of your own home. Also, you can buy properties below market value and make a fast sale as everybody interacts over the Internet.

The online Texas Real Estate Auction opens up a favorable condition for the buyer and it gives him the opportunity to search for his needs and select the best option. For the seller, it gives a chance for many sales channels and generate interest in his property.

Real estate differs from one state to the next. When buying real estate in Texas you should know the laws and rules that will effect you. Some things, however, are universal and apply to anyone buying real estate anywhere. These things are also important to know before getting into a real estate transaction.

Understanding the rules of a Texas Real Estate Auction is vital to winning the bid and saving some money. Sellers should also play their part and answer any given questions correctly and truthfully. In their answers, it is important to not give long descriptions; on the contrary, they should be short and concise.

In the state of Texas, you will find a number of auctions take place annually and the owners of the property are able to sell their property at much higher price on some of the occasions. Therefore if you think that your property is at the prime location in one of the town or city or even in rural area, you can take help of one of the auctioneers in Texas and offer the property for sale. Most of the time Texas real estate auctions are able to attract large number of bidders and you can expect the best price of real estate in one of the auction.

There are two relationships between buyers and agents in Texas, Buyers Agents and Transactional Brokers. A buyers agent is a representative of the buyer. The buyers agent is required to look for the best interests of the buyer. They must tell the buyers everything about the real estate transaction and follow any direction of the buyer. A transactional buyer does not represent the buyer. They are there to sell real estate. They are not required to tell the buyer everything about the transaction. For specific information regarding a buyers rights in Texas you should contact the Texas Real Estate Commission.

State real estate auctions sell off real property that has been seized, abandoned, or forfeited. The Department of Treasury has been designated as the state department to handle such auctions. Typically, they conduct 100 auctions a year.

The funds obtained at state real estate auctions help support local and state police and other areas of the city. The placement of a successful bid at a Department of the Treasury auction establishes a legally binding contract between the successful bidder and the Government.

Here are some basic rules and policies:
To be eligible to bid you must be 18 years of age and not an employee of the state.
You cannot be the contractor, subcontractor or vendor or their agent who has access to information about the property.
A bidder registration form must be submitted for approval. If bidding for someone else, the form must be notarized.
Buyer is to inspect property prior to placing a bid.
Changes may be made on the day of the sale.
The Government reserves the right to withdraw from sale any of the property listed.
The buyer understands the property is sold on the AS IS basis.

A lot of rules and regulations govern state real estate auctions, and it is wise if you take the time to research them prior to attempting to attend. Each registered bidder will be issued a bidding number. This is your lifeline to what is important on that day. Don’t loose it.

Most importantly enjoy yourself at a state auction. The properties auctioned off are very valuable and should bring you a good return.

Please visit some of my other site at Real–estate–auctions.blogspot.com” title=”Real Estate AuctionsReal Estate Actions and government-Real-estate-auctions.blogspot.com” title=”Government Real Estate AuctionsGovernment Real Estate Auctions

If you want a home for the summer, something to rent out for extra income, or a place to retire than look no farther than real estate Torrevieja. With its close location to Alicante, you cant loose in this pristine spot. When you buy a property in Torreviaja, Spain you will not be making the wrong choice. Torrevieja is a lovely tourist destination where you can spend the winter and rent out your place during the summer with no problem!

If you want to rent out a property or buy a property to live in then you should go to Torreviaja several times before you make your final decision. You will need to see the difference between villa life and apartment life before you settle down and pick out something right for you.

You should explore different parts of the city and the outlying areas when you are in Torreviaja. This will help you know the different areas that you may want to buy something in and you will also know the areas to avoid when you are on your search. You should also visit during different seasons so you can get a vibe for the different times of year.

You will want to note all the amenities and different things located on and near your property. Are you close to the shopping area or hot places to eat? Do you want to be near the beach and boost your rental value? Will you be living there or renting it so do you need something warm for the winter to live in?

If you want to live there all year round then you want to make sure that it is warm enough in the winter and cool enough in the summer. If you just plan on using it for summer rentals then you dont have to worry about the winter months and the heating situation. Is the property on a high floor where you will need to carry things up and down it regularly? Could this be a turn off to you or renters?

You need to shop around for loans to get the best deal for your money. The prices of homes in Spain are not as cheap as they used to be and youll want to make sure that you can qualify for a good loan before you get to serious about buying a place. Compare Spanish loans from loans in your home country.

If you choose to go for a loan in Spain, then you will want to be familiar with the laws about real estate in Spain. You can hire a lawyer who speaks both English and Spanish to help you with your situation. You will need him to help you apply for a mortgage and understand everything detailed in it.

You should also be prepared for all the paperwork that will follow this process. It will all depend on what country you are from, but the basics are usually a copy of your passport, pay stubs, the past three years tax returns, statements from your bank, and proof of your income level.

Real Estate Training Guide- How to become a successful real estate agent

Real estate training is essential for the people who want to become a successful real estate broker. It helps them to learn all about real estate business. Real estate business requires some time, some basic knowledge of the business and skill to perform all transactions. Real estate business will be one of the good carriers for a hard working person. Real estate training suggests them all the ways to achieve their goals.

License is the basic requirement to become a real estate agent. Even it is an essential thing to conduct real estate business. Real estate Internet is the best option to join real estate business. Some states provide online training courses that will help you to complete pre-license requirements. Before joining real estate business people should satisfy some pre-license requirements. They should; be of at least 19 years, be managed a proctored exam, have high school diploma or some equivalent to it, pass a state exam, have completed a least approved course.

Generally real estate training gives some guidelines to understand some real estate basics. They can easily learn about ownership transfer, real estate law and math with the help of real estate training. They are taught how to deal to with real estate transactions during their course. Real estate training enables them to understand the tips and tricks of the real estate contracts. People who want to join some state approved courses should have initial license.

Anyone can be a successful real estate agent after completing real estate training. They can run a successful business only if they have great professional habits, good salesmanship and the enthusiasm to learn more about real estate. Real estate business requires great working skill.

People can learn about real estate business with some related books. They can also join some online courses that provide information via Internet. Nowadays several people are making money in real estate business. Real estate brokers should be kind, knowledgeable, efficient as well as trustworthy. They should know the skill how to attract more customers. They can also take some suggestion from the experienced real estate agents.

Real estate business may be wonderful business but only thing that it requires real estate training.

Real Estate Investing 101 Understanding the Different Types of Lenders

The changes in financing options available for residential investment properties over the last 5 years are staggering. Lenders have relaxed the credit and income guidelines for qualification that formerly deterred many would-be investors from entering the real estate. In addition, the down payment requirement has been eliminated for borrowers who qualify. This article surveys the landscape for lenders offering residential investment financing products.

Types of Lenders:

The lender landscape can be broken into the following broad categories:

Conforming
Alt-A
Non-Conforming or Sub prime
Hard Money

Each of these offers loans for residential investment properties ( 1-4 unit properties).

Conforming
Conforming lenders are the A-Paper mortgage banks that cater to borrowers with excellent credit history and the ability to document income. Conforming banks offer loan products that can be considered plain vanilla in todays world of interest-only ARMs and low down payment loans. In terms of investor loans, conforming lenders offer full doc and stated loans up to a 90% LTV. A loan from a conforming lender with an LTV greater than 80% will incur private mortgage insurance, or PMI. (Learn more about PMI at: http:www.andersonlendinggroup.comfaq_a16.html ) Conforming lenders always require a minimum of a 620 credit score, and use a computerized underwriting process to determine approval. Besides credit score, other important factors for approval include: payment history for mortgage and revolving accounts over the last 24 months, debt-to-income ratio, employment history, amount of down payment, and the amount of liquid reserves.

Some examples of leading conforming lenders are Countrywide, Wachovia, Suntrust, and Flagstar. While these are national lenders, any local bank or savings and loan would fall into this category.

Alt-A
Alternative A credit lenders, or Alt-A, offer aggressive loan financing products catering to borrowers with credit scores from 660 and up. While these lenders offer programs to borrowers with scores down to 620, the aggressive programs are typically not available to borrowers below a 660 middle score. Alt-A banks have driven the creation of innovative loan products over the last few years.

These programs include the many interest-only products, the Option Arm loan, loans requiring as little as 5% and now no down payment, as well as standard fixed-rate and arm products. The big difference with these lenders is the relaxed debt-to-income ratios available, the reduced income documentations (stated income, no income no asset, and no doc), and the ability to add interest-only to most products. Alt-A lenders have popularized the use of 80-10 and 80-15 loans for investors to avoid PMI.

Some examples of leading Alt-A lenders are Aurora, GreenPoint, SunTrust, First Horizon, and IndyMac. Besides these, there are literally hundreds and hundreds of lenders that have emerged to fill certain niches.

Non-conforming Sub prime
Non-conforming or sub prime lenders fill a growing niche borrowers with past credit problems. These lenders offer fixed and adjustable loan programs for borrowers with bankruptcies, foreclosures, judgments, tax liens, charge-offs, and many other credit blemishes.

These lenders typically price their loans using a matrix that evaluates credit score in relation to loan-to-value. Sub prime lenders will offer financing to borrowers with as low as a 500 middle score, and even have programs that cater to borrowers with excellent 700+ scores. The sweet spot for most of these lenders is a 580 or better middle, as they will provide 100% financing for owner-occupied properties at that score. For investors using sub prime lenders begin to offer products for borrowers with a 550 credit score.

The important thing to understand about these loans is that they are priced much higher than a conforming or even Alt-A loan.

The most popular product with these lenders is a 2-year Arm, with the idea being the borrower will refinance or sell the property in 2 years. Also very common with these lenders is a mandatory 2 or 3 year pre-payment penalty.

Some examples of leading Sub prime lenders are LongBeach Mortgage(division of Washington Mutual), Fremont Investment and Loans, Meritage Mortgage (division of NetBank), and New Century Mortgage. Besides these, there are literally hundreds and hundreds of lenders that have emerged to fill certain various sub prime niches.

Hard Money
Hard money lenders serve a very simple purpose they allow the purchase of fixer-upper or rehab properties with no money down. These lenders offer programs that none of the

Hard money lenders are typically private individuals or small companies that make very high interest rate loans (between 12% and 18%) based on the after repaired value of a property. They will lend the money to both acquire and fix-up the property, up to a LTV of 65% or 70%. The loan term for most hard money lenders is 6-mos.

These lenders are a great, albeit expensive, way to purchase rehab properties. After doing the renovation, one can refinance out of the hard money loan with a conformingAlt-ASubprime long-term loan.

A good national hard money lender is InvestWell — learn more about them at: www.pleaseclose.comandersonlending .

Wide Range of Products
Some of the various products that are available today include:

100% investor loan 1 loan or 8020
Credit scores begin at 660 only available from Alt-A lenders
95% investor loan 1 loan or 8015
Credit scores begin at 600 available from Alt-A and Subprime lenders
90% investor loan 1 loan or 8010
Credit scores begin at 620 for Conforming and Alt-A lenders and 560 for Subprime lenders
80% investor loan
Credit scores begin at 620 for Conforming and Alt-A lenders and 560 for Subprime lenders

All of the above can be found in either a fixed or ARM, and can usually have an interest-only option added to help maximize cash-flow. While any loan with a LTV above 80% will typically incur PMI, you can avoid this unnecessary expense by piggy-backing a first and second mortgage together eg. 80% first and a 15% second.

The above is a real brief introduction to the residential mortgage landscape, and should help orient new investors to the available lenders and products available.

Author: Brian Anderson, Broker, Anderson Lending Group. You can contact Brian directly at: brian@andersonlendinggroup.com. Learn more about Anderson Lending Group and the wide variety of investor loans available by visiting: http:www.andersonlendinggroup.com . You can apply online and receive a pre-approval within hours.