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Archive of posts published in the tag: Meeting Room For Rent
Oct
11

What Does a Lis Pendens Mean in the Foreclosure Legal Process?

One of the legal terms that homeowners in foreclosure often come across is lis pendens. They may initially find out about the term when attempting to refinance their house and the mortgage broker turns them down because of this type of document filed against the property. If a lis pendens has been filed, it will show up with the county recorder as a document affecting the title.

A lis pendens does not stop or prevent foreclosure at all, as it is merely a document serving notice upon any other party that is researching the particular property affected by the document. In most cases of a homeowner behind on the mortgage payments, the lender’s attorneys will file the initial foreclosure lawsuit with the court and a lis pendens will be sent to the county clerk or recorder’s office to indicate that a particular property is in the process of a pending litigation.

The term lis pendens is Latin for “lawsuit pending,” and the lawsuit that it is referring to is the legal process of foreclosure. If the lender was not suing for the property to be sold for payment of the defaulted mortgage loan, this document would never be filed in the first place, as no lawsuit would be pending.

In fact, a lis pendens specifically indicates that the property is facing foreclosure, and the document will show anyone, such as a title company or prospective foreclosure refinance lender, researching the real estate that it is involved in a lawsuit. So the lis pendens is meant to signify the foreclosure; it does nothing to prevent the foreclosure, but it does not itself affect the homeowners’ ability to save their home.

The most commonly used legal mechanism that would stop foreclosure is filing bankruptcy with the court, and even this only puts the process on hold while the creditor and debtor are coming to an agreement to negotiate a settlement of the debt.

Homeowners may also wish to consider getting rid of the lis pendens affecting their home by mounting a defense against the lawsuit that has led to the foreclosure process. This is a direct defense of the litigation, though, not an extra legal process like bankruptcy that may be used to put the suit on hold.

If a lis pendens is filed with the county recorder against a piece of property, this indicates that the house is already in some stage of the foreclosure process. The homeowners are no longer in the preforeclosure stage, or merely behind in payments. At this point, foreclosure can not prevented, as it is already being pursued by the lender and its attorneys — it must be stopped, and homeowners need to begin putting together a realistic plan and researching various ways to stop foreclosure, such as a mortgage modification, repayment plan, selling the house, or a foreclosure bailout loan.

Oct
10

Fix it and Flip it – How I Lost Money on Real Estate

I’ve known a lot of people who have lost money when they sold their homes. In fact, I’m one of those people, and it’s happened to me more than once.

There are a number of factors can cause a financial loss when you sell your house, including the need to sell at the wrong time due to divorce or an impending foreclosure, or a downturn in the local real estate market. However, it’s also common to lose money simply by making too many expensive changes to the house before putting it on the market. This is how I lost money on real estate, before I wised up.

My most resounding failure in the fix it and flip it market was a house I bought in Spokane, Washington. Knowing what I know now, I would have restricted myself to replacing the carpets and the kitchen and bathroom fixtures, painting inside and out, and buying new appliances. I probably would have replaced the old-style windows, too, to make the place look nicer and appeal to the energy-conscious buyer. These fixes could have been done easily within the two years I needed to live there to avoid capital gains taxes.

Since I didn’t know what I know now, I made major renovations, which included moving the bathroom. I did most of the work myself, but the materials alone cost more than I could get back when the house was sold. With the exception of repairs done to the house to make it eligible for an FHA loan and watering the grass, I doubt that any of my major projects really helped me sell the house or increased its value.

If a house is actually sound, with no structural damage or insect problems, the biggest reason it will sell for less than its worth is usually cosmetic. This was certainly true of the house I bought in Spokane. Dirty carpeting, and a wall in the living room covered with mirror tiles, kept most buyers from going any further into the house. I could see past the cosmetic problems and see the home’s full potential – but my imagination went a bit too far.

The floor plan was odd, and slightly inconvenient, but leaving the bathroom where it was would have been far more rational, financially. Why didn’t I do that? Because my emotions and my nesting instincts took over, pushing aside all thought of future gain or loss.

Let’s face it – most people don’t buy their own homes with the intention of making a profit, although they certainly hope the house will be a good investment. In fact, the emotional stress caused by the process of buying a house and moving into it can be enough to completely erase any thought of moving again a few years later. However, I know several families who have made a very good living by buying underpriced homes, living in them and fixing them up, and then selling them when the IRS will allow them to do …

Oct
9

What is the Title Company’s Responsibilities?

Buying and selling real estate is certainly not an easy proposition; innumerable factors have to be taken into consideration, exhaustive researches have to be conducted, important financial and legal matters have to be efficiently handled, and endless paperwork has to be done meticulously. In such a complex scenario, the helping hand of the Title Company provides the much needed relief and peace of mind.

What is a Title Company?

Before we deal with the definition of the Title Company, it is essential to understand the term Title. A Title is basically a document that confirms that a particular person or company is the owner of the property. It is very different from Possession, where a person just holds the property, irrespective of whether he has any right to do so or not. Title, on the other hand, confirms true ownership.

The company that looks for such Title Deeds is called a Title Company. In addition to this, the company examines the title thoroughly to validate its authenticity, and also tries to delve out all the legal and financial issues related to the property. Furthermore, it facilitates the smooth closing of the real estate deal.

What exactly are the responsibilities of a Title Company?

The primary responsibility of a Company tackling issues related to the title is to search for the Title Deed to ascertain whether the seller is the true owner of the property or not. Apart from the ownership details, the company also looks for possession details. False claims can adversely affect the deal; for this reason, Title research is crucial.

The next important responsibility of a Title Company is to find out all the legal and financial upheavals that are bordering the property. Pending litigations, back taxes, first and second mortgages, debt, mechanical liens, and so forth are the matters of grave concern. Although they have to be tackled by the seller, but when the deal closes, the buyer becomes the owner of the property and thereby inherits all these hassles. If you wish to acquire a clean and clear title, hire a Title Company without a second doubt.

Yet another significant responsibility of the Company checking titles is to help in closing the deal properly. When the deal is about to be closed, tons of documents have to be read and signed. A good company not only makes the process really easy, but also helps you to understand all the intricate terms and phrases. When you mind is clear of confusion, you can think about and enjoy your newfound landowner status.

Some additional duties that a Title Company performs

An important responsibility of the Company dealing with titles is to issue title insurance. A superlative company would leave no stone unturned to authenticate the legitimacy of the Title Document. However, if the company makes any mistake in finding the ownership details or tracking the legal and financial problems associated with the property, the title insurance would provide you all the protection. Thus, title insurance is exceedingly important, …

Oct
8

What is a Short Sale and How Does it Connect to the Foreclosure Process?

The term short sale has been brought up more and more in the real estate world as the property market has corrected to a more sustainable growth level. Depreciation of home values ​​over the last few years has led to homes that are worth less than the mortgages that were used to finance the purchase. This situation coupled with a nationwide recession that has created the need for people to sell their homes permanently being "underwater" has led to the recent popularity of short sales.

What Is an Underwater Loan?

A home loan or mortgage that is higher than the actual value of the home is said to be underwater. Over the last few years this situation has become a common occurrence as homeowners who bought at the peak of housing prices with little or no money down have seen their property values ​​decrease, sometimes dramatically. They began with a $ 300,000 loan on a home that appraised around that value, and now their mortgage amount is around the same, but that same house appraises for less than $ 250,000.

With the rise in unemployment, many homeowners who have found themselves in this difficult situation have been forced to sell their home because they can no longer afford the mortgage. The problem that occurs is that even if the homeowner sold their home for $ 250,000, they would still owe the bank the additional $ 50,000, which holds up the sales process. This hurts everyone involved because the original owners can not pay the mortgage, so they default on the loan. The new buyers who are excited about the home are not allowed to buy it at the new market price. Finally, the bank that holds the mortgage will not let the original owner sell, does not receive a payment each month for the mortgage, and must now go through an expensive and time consuming foreclosure process to get possession of a home they will only be able to sell for less anyways.

Buying and Selling a Home with a Short Sale

This is where short sale comes into play. In a short sale the original homeowner who is underwater will get an agreement from the bank to complete a short sale and put their home on the market at the current local price. When a buyer decides to purchase the home, the bank agreements to let the sale take place and take a loss on the original mortgage. Ultimately, this type of legal settlement allows the homeowner and bank to avoid a costly and credit damaging foreclosure process. The owner will still take a hit on their credit score and the bank will lose some money on the transaction, but the overall solution is much better than foreclosing on the home.

Foreclosures and Short Sales

Short sales are becoming more common with our current correction in home prices and high unemployment, but many bands still make the process very difficult for the owners because they do not want to …

Oct
7

What You Should Know About Property Management of Commercial Properties

Now that you have made an offer to acquire a commercial property and are waiting to close escrow, you may want to start looking for a property manager to professionally manage the property. Your real estate investment advisor should present you with 2 or 3 local companies, each with its own proposal. Your job is to decide which company you will hire. The property manager will be the main point of contact between you, as the landlord, and the tenants. Her main job is to:

  1. Receive and collect the rents and other payments from your tenants. This is typically simple until a tenant does not send the rent check. A good property manager will somehow get the tenant to pay the rent while a lousy one will throw a monkey on your back!
  2. Hire, pay, and supervise personnel to maintain, repair and operate the property, e.g. trash removal, window cleaning, and landscaping. Otherwise, the property loses its appeal, and customers may not patronize your tenants’ businesses. The tenants then may not renew their lease. As a consequence, you may not realize the expected cash flow.
  3. Lease any vacant space.
  4. Keep an accurate record of income and expenses, and provide you with a monthly report.

A good property manager is critical in keeping your property fully occupied at the highest market rent, the tenants happy and in turn helps you achieve your investment objectives. Before choosing a property management company, you may want to:

  1. Interview the company with focus on how the company handles and resolves problems, e.g. late payment.
  2. Talk to the person who will manage the property day to day as this may be a different person from the one who signs the property management contract. You want someone with strong interpersonal skills to effectively deal with tenants.

The property managing company normally wants a contract for at least one year. The contract should spell out the duties of the property manager, compensation, and what will require the landlord’s approval.

Agent’s Compensation: you will have to pay someone to manage and lease the property. You may have one company to manage the property and a different company to lease the property. However, it’s best to work with one company that handles both managing and leasing to save time and money.

  1. Management fee: the fee varies between 3-6% of the base monthly rent for a retail center, depending on the amount of work needed to manage the property. For example, it takes much less time to manage a $2M retail center with just a single tenant than a $2M retail strip with 12 tenants. So, for the center with 12 tenants, you may have to pay a higher percentage to motivate the property manager. You should negotiate the fee as a percentage of the base rent instead of the gross rent. Base rent does not include NNN charges. Ideally, you want a lease in which the tenants pay for their share of property management fee.
  2. Late fee: when a tenant
Oct
6

Retail Malls and Shopping Centres – How to Make a Leasing Proposal Really Work

Retail investment property is special when it comes to leasing. There are special elements to handle in the marketing package if you are a real estate agent.

When leasing and managing a shopping centre, the creation of a marketing package for leasing is a frequent event. What we can do here is help you with that lease process and marketing document.

To start off we should say that the leasing of retail premises is not just about the rent and the area to be leased. A retail property is an investment to not just the landlord but also the tenant. The tenant runs a business and the retail property has to help them do that.

This is where the marketing package has to really handle the opportunity for the tenant. A well designed marketing package can also be reflected in the design of a brochure or flyer that is distributed to your target market of tenants.

Here is a checklist to help you design a great marketing package for the retail property vacancy.

  1. Area of the premises together with plans
  2. Details of the permitted fit out designs and qualities of finishes and materials to be used
  3. Rental asked and a breakdown of expenditure or outgoings that are in addition to the rental
  4. Details of the term of lease sought and any available options for the tenants
  5. Site plan including car park detail, access roads, and public transport drop off points.
  6. Demographics of the local shopper that visits the centre and the surrounding area
  7. Definition of trade area where 80% of your trade is sourced
  8. Tenant Mix across the property including plans of and to those locations
  9. Customer counts on different days of the week
  10. Trade patterns by retailer type over 12 months
  11. Trade patterns by days of the week
  12. Details of services and amenities available to the tenants and the customers
  13. Details of changes and improvements to the property that are known or expected
  14. Details of the common area and usage patterns.
  15. Details of property promotion and marketing for the tenants
  16. Details of signage and tenancy design as it applies to the subject tenancy
  17. Details of the anchor tenant and their lease permanence.

Expect the potential tenant in a retail property to visit your property before they make a decision to lease. Any retailer knows that trade varies on different days of the week and they will want to check that themselves and with other tenants.

Given that tenants in a retail property always talk to each other, the high value of good tenant relations with the landlord and property manager cannot be understated. Unhappy tenants in a property can detract or derail your endeavours to lease any vacancy.

This marketing package for a retail lease vacancy is comprehensive and will answer many of the tenant’s questions before they raise them. It also shows you to be the professional retail leasing expert.

Oct
5

An Introduction To Real Estate Property Management Software

The real estate market is a booming industry. The success of the industry is a result of competition and the intervention of modern technology. Most people in the business prefer to use real estate property management software to stay ahead in the race. This software has been designed to cater to commercial and residential property, office buildings and apartments.

Real estate property management software is an effective and easy-to-use tool. This software helps people understand the real estate business. It is a quick response application that can store each detail of every transaction. This helps study non-payments and full-payments of rent, and maintains a detailed report of rent receipts and invoices.

Property owners are able to key inputs as and when required. The secured system is intelligent and allows changes from authorized personnel. Real estate property management software can evaluate an unlimited number of properties and units simultaneously. The software stores detailed data related to rent payments for all individual properties. This systematic approach eliminates any problems due to taxation.

Real estate property management software generates automated reports in cases of wrong payments and non-payments. The software does away with the practice of owners waiting for rent payments. All maintenance expenses or any extra revenue statements are regularly updated. The software also stores tenant information.

Residential property managers must select property management software that is most suited for their work. These applications are available with one-month money-back guarantees.

The residential property management system is considered to be time- and cost-effective for a manager and resident. The application can create a personalized website for an individual company in a relatively short time. This allows prospective and existing customers to visit the web site. This is a convenient method to view pictures of property, pay rent and submit maintenance requests.

Oct
4

Bank of America Doctor Loan is No Longer Available – Now What?

For a long time the Bank of America Doctor Loan was the best and, in some cases, the only option available as financing for doctors and medical residents who wanted to buy a home. On April 1, 2009, Bank of America indefinitely suspended their Doctor Loan Program due to the economy and the impending restrictions on risky lending practices. This has made finding financing for the purchase of a new home very difficult for young physicians, especially those still in residency. There are other programs available, but they are often hard to find and nearly always limited to specific geographical areas. If you can find a lender who offers Doctor Loans in your area, then it is worth checking out because the advantages of owning your own home can often make it more affordable than you think.

As a Realtor that specializes in real estate for doctors I can personally attest to the fact that, for medical residents and young doctors, the most important question when buying a home is whether or not you can afford your own home at this point in your life. With so much student loan debt, many young doctors don’t even consider homeownership until a few years after residency. And many that do are often easily discouraged. However, with the right financing, the mortgage payments for a home can often be more affordable than renting a similar property. The bottom line is that, if you plan on staying in the same city for the next several years, then homeownership is definitely something you should consider, and you should start by learning about Doctor Loans.

So, what is a doctor loan? The Bank of America and similar programs were built on the idea that young doctors do not fit into the conventional profile of homeowners. They have lots of student debt and a comparatively lower income. According to conventional lending practices, they would be very risky borrowers. Lenders offering Doctor Loan Programs understand that a physician with a lot of debt isn’t less creditworthy, that’s just what it means to be a young doctor.

Dr. Loans and other similar mortgages:

  • Offer 100% financing that requires no down payment
  • Do not require Private Mortgage Insurance (PMI)
  • Offer flexible Debt-to-Income ratios that don’t count deferred student loan debt against the applicant
  • Offer competitive interest rates that do not penalize the applicant for increased risk indicators

What options are still out there? There are some large lenders out there that offer Physician Loan Programs or Doctor Mortgages. They can get you the financing you need and might even be experienced working with doctors, but they operate at a national level and may not have any loan options in your specific area. For instance, there are very few options available in the Chicago area, and those that exist have proven difficult to find for homebuyers. Be careful, though, because many of these mortgage brokerages and lenders cropped up over night after the Bank of America Program was suspended and some …

Oct
3

Foreclosure Defense Procedure in Florida

Foreclosure typically begins once you have missed your first mortgage payment, for whatever reason. After a certain period of time, your lender will typically send you a letter called a Notice of Default. This letter will explain that you are behind on your payments, and tell you how much you currently owe your lender. If you do not pay the amount due, and continue to not make mortgage payments, your lender will send you a Notice of Intent to Accelerate, which states that if you do not pay the amount owed and due of missed mortgage payments, then the lender will call the full loan amount due. This letter is typically send out at least 30 days prior to a foreclosure case being filed in the courts.

If you still do not reply to your lender or arrange payment, then the lender will hire a law firm to file a foreclosure case in court against you. The lender will have its law firm draft a Complaint for damages against you, which will state generally: 1) the address of the property and county it is located in; 2) that you owe more than $15,000 to the lender; 3) that you signed a note and mortgage; 4) that you failed to pay that note and mortgage; 5) that you will owe the lender’s attorney’s fees plus interest on the loan balance.

The lender will be required to serve a copy of the complaint, with and attached copy of the note and mortgage, on you, your spouse, any tenant, or any other person with an interest in the property. If the lender cannot serve any of these parties in person by process server, then it will typically serve those parties by what referred to as “service by publication.”

Occasionally, the lender will include a count for a “lost note” or “re-establishment of lost note.” This occurs when the lender cannot reasonably locate your original note and mortgage, but still wishes to enforce their terms. The lender will plead a lost note count pursuant to § 673.3091.

The lender will typically file an affidavit stating that the note and/or mortgage was in its possession but lost or destroyed by no fault of the lender. The lender then can introduce any copy of the note and/or mortgage in place of the original to prove the terms of these documents. Shocking to most homeowners, this is the low standard that the lender must meet to foreclosure when it does not even have the note and/or mortgage in its actual possession at the time it files a foreclosure.

Once a copy of the summons and complaint is served on you, you get 20 days to respond to the allegations in the complaint. You can do this by one of two way: 1) file a motion to dismiss; or 2) file an answer with or without affirmative defenses.

A motion to dismiss challenges the complaint on various grounds; be it jurisdiction of the court, form of the complaint, …

Oct
2

Chicago Condo Hotels: Luxurious, Easy to Manage Investment Properties

Changes in options for home ownership, Chicago Condo-hotels! What could be more perfect that having a five-star home at a landmark resort and receiving rent revenue whenever you’re not using it? Chicago Condo hotels are the newest real estate trend, combining a lavish lifestyle and comfortable ownership with investment potential.

Chicago Condo hotels diverge from owning a traditional Chicago Condominium or Chicago home. Chicago Condo Hotels offer services and amenities that a standard home owner cannot have the luxury of looking forward to. They are fabulously-furnished Chicago Condominium units located in some of the most famous hotels in Chicago. The properties are usually large, high-rise, upscale hotels celebrity like the Ritz Carlton, Trump, Hyatt or Hilton. Chicago Condo Hotels Generate Revenue to reduce the costs of ownership. Owners can participate in programs much like vacation home rental programs by capitalizing on hotel popularity. How? Chicago Condo Hotels can generate revenue when occupancy is available by offering the unit for rent to others who wish to stay for long periods of time in a non-traditional hotel setting.

Similar to vacation rental services, owners can use the name recognition, popularity and reservation system of the hotel to secure a higher income from this investment than general home owners would. Participating in a revenue generating program such as this can assist Chicago condo owners in reducing the costs of their Chicago Condo-Hotel unit. Managing this type of income is even easier as the hotel management company sees to the needs of guests and maintains the unit.

Why? Chicago Condo Hotels appreciate at a higher rate than traditional homes. The services and standards are parallel to none. Easy maintenance and cost is distributed.