When the foreclosure goes wrong.

According to the Oregonian Story on June 29th 2011, a Vernonia woman who fell behind on her mortgage payments, was foreclosed on December 2010.  The first lien holder put the home up for auction and the 2nd lien holder purchased it to protect their interest in the debt collection.  However, the owner wasn't moving out.  She hired an attorney and what they discovered was the first lien holder never had the right to foreclose.  They actually never had a recorded deed of trust. 

Something has been occurring in our industry, where lenders will sell the loans to other banks, and then never officially record the deed transfer in a county record.  They have developed an electronic system to keep track of these transfers.  It's called MERS.  It seemed to be a fine system for them to keep track, but as of late, investigators are uncovering a sloppy mess of disorganization.  The original notes and deeds have been getting lost.  And now, when challenged, if a bank that actually foreclosed on a property, never was truly in possession of the original trust deed of the property, they may have not had the right to foreclose.

As in the case with the Vernonia woman.  A judge just ruled that the bank didn't have the right to take back her house.  But they sold it?  Good thing they didn't sell it to another couple who was trying to move in...  No one knows what is going to happen next.

The editor's note:
Something has to be done to control the banks. This is most important.  However, does a person who defaults on the obligation have the right to have their home back too?  NO.  You don't pay, you cannot stay.  It's that simple.  Do we, as US citizens, let murderers out on on the streets, just because someone accidentally tampered with the evidence?  NO. oh wait...  yes we do.  Good luck fixing this one America.

http://mobile.oregonlive.com/advorg/db_/contentdetail.htm?contentguid=yljDufJC&full=true#display

Can you find the REO in this REmOdel?

A beautiful REO transformation from the uninhabitable, to a home you could let your mother live in.

A live example of "One man's junk is another man's castle."

Below is a picture presentation of the before and after remodel project on an REO in Tracy, California.



Properties like this are being reformed all over the CA market, done by the NorthPoint REO teams.

What Do You Get For Nothing?

Normally, you get what you pay for right?
No effort, no return. No pain, no gain. No risk, no reward.
Okay, no more cliche' analogies...
But, there are some investment opportunities where you can literally, put nothing down, and still have gain for little invested.
Yes, It's Real Estate. Nice Real Estate. With Tenants. Nice Professionally Managed Tenants. Not some college town 5 hours away from the nearest airport. A real populated desirable cosmopolitan metro.

Take a look at a low down, high return investment in one of the nations largest and fastest growing areas.

Foreclosures don't have to be ALL CASH buys

Usually, you have to pay all cash to get some of the best deals in the foreclosure realm.

Below is the webinar presentation from 1.22.09, where we show you how you can buy great foreclosures with little to nothing down.

Inside are examples of New Properties, Bank Owned, and REOs that are remodeled and rented.
There are also examples of portfolio financing and 30 year fixed conventional financing, specific to individual properties. We have solutions for clients that have over four investment loans too.

Importantly, where do we have these opportunities? Inside the presentation, 3 markets are presented. Atlanta, Charlotte, and Memphis.




For more information about properties, financing and market specifics, please email me at Steve@NorthPointGroup.com

New Construction, Bank Owned and Financed at low down

Total Down at closing = $2,000
$175,000 Price. Appraised $195,000.
Originally priced well above $200,000
Builder could not sell in time before the bank took them back. Now the bank wants to finance for you, Owner or Investor, for $2000 down.

Located on a quiet street in Atlanta Metro, Georgia.
These are big 2000+ square feet, 5 bedroom, 3 bath houses.
Complete move in ready, blinds, fridge, landscaping.
If you want to rent it out, or rent it, the market rent is $1200.
2 Homes just like this are rented for $1200 in the neighborhood.
The Mortgage payment will be $948 for the next 3 years.

If you live in Atlanta, you know about the wonderful reasons to live there.
Which is why over 1 million people have moved there in the last 7 years.
The most growth for any city in the US during the same time.

Foreclosures without the headache

$128,000 priced
You Pay = $98,000 = Discount


Down = $2,000 = Low Down
Rented = $1,000 = Cash Flow
1 Yr Lease = Removes Vacancy Factor
Remodeled = No Additional Capital Needed

Finance 75% of original price and only put $2000 down.
The remainder is your discount on the house. 24% discount!!!

Rented $1000 per month until Jan 31, 2010.
Positive Cash Flow by $83-$163 per month after all expenses and management fees

Since its rented for the first year, which means no vacancy, then $163 x 12 is $1956
That’s the down payment back right there, returned in 1 year

6831 Collier
4 bedrooms
Remodeled
Close in Atlanta, 15 min. to downtown
1 mile to Walmart-Publix-RiteAid-Hollywood Video-Riverdale Plaza
Already Rented.

Atlanta Top 10
1. Georgia gains the 4^th most population in 2008. US Census.
2. Atlanta adds 1 million people in the last 7 years. Highest Growth in the US.
3. Atlanta is home to the world’s busiest airport,
4. 22 of the Fortune 1000 HQ. 5^th highest concentration of the Fortune 500
5. One of the most preferred cities to open or expand corporations by CEOs
6. Huge Rental Demand. Nearly 50% of residents are renters.
7. HQ for many mega-corporations like: CNN, Coca-Cola, UPS, Home Depot, Delta, Turner, COX and more.
8. Lots of Government jobs including, GA State Capital, Military Bases, Federal Reserve Bank, and the CDC (center for disease control)
9. Home to 5.1 Million people
10. Attractions for all, such as: NFL Falcons and Major League Baseball Braves, SIX Flags Amusement Park, Nascar at
Atlanta Speedway, and the Nations Largest Aquarium

Click to Enlarge the Cash Flow Analysis.

Put up $2000, and receive $100 per month in return

How about this for a business opportunity?

1. You invest $2000, up front
2. In return, you will get between $89-$163 per month in return
3. You will have your $2000 back in 1.6 years.
4. You keep receiving payments until you ultimately own a $118,000 asset
5. At which point, your monthly receivalbe will now increase to $600 per month
6. Each year, your monthly income may increase 3%, depending on market conditions
7. Each year, the value of your asset could also increase about 3% per year depending on market conditions

Yes, this is a Real Estate Transaction, and it sounds too good to be true.
But it’s not. Take a look at this example:

Just under 10 miles from downtown Atlanta

$118,000 home for $90,000,
That’s $2,000 down and $88,500 borrowed at 6% 30yr fix.
WE CAN FINANCE THESE TERMS
Rents are $925 for similar properties
Beautifully remodeled.
Previously foreclosed on, provides for deep discounts.

Georgia gains the 4^th most population in 2008. US Census.
Atlanta is home to the world’s busiest airport, and 22 of the Fortune 1000 HQ.

Steve Roesch
Market Advisor
Cell: 503-318-6351
steve@northpointgroup.com

Low Risk Foreclosures for $7,000

Let's talk foreclosures...

What's on your foreclosure wish list?

1. Deep Discounts
2. I don't want to buy bulk
3. Built in Quality Tenants with Cash Flow
4. No Surprise Liens
5. No Repairs Needed
6. And I want the ability to use financing for leverage

The majority of foreclosures usually come with a discount. But you're lucky to get one other item off the wish list. And, the deepest discounts are usually found if you buy in bulk.

Everybody wants to get a deal.
But if you have to go Deep into your pocket, to get a Deep discount, it's not much of a Deal.

Let me show you how you can acheive your foreclosure wish list and still have a Great Deal.

Example:
Foreclosed Duplex
Wholesaler Acquires in Bulk for Deep Discount
Title Cleaned, Property Rehabbed, Professionally Placed Tenants.

$130,000 appraisal

Numbers of the Deal:

$104,000 Price and Only $7,000 Down
$1150 Rent Per month, Total for both sides
$165 ++Cash Flow per mo. after all necessary expenses and foreseen maintenance

$7,000 is the total cash investment for Down Payment, repairs, lease up expenses, start up vacancy, etc
$97,000 is the loan with 30 year fix loan at 6% rate (rates change daily, not guaranteed)

Where are these Deals located?

We have similar programs like this in several markets across the US.

This duplex is located in the Atlanta Metro. Specifically, Covington GA, just 30 minutes East of downtown Atlanta.

Atlanta Accolades

One of the highest ranked cities for jobs and population growth in the country
over the last decade.
Huge Rental Demand. Nearly 50% of residents are
renters.
Home to the World's Busiest Airport and HQ for many
mega-corporations like: CNN, Coca-Cola, UPS, Home Depot, Delta, and more. About
27 of Fortune 1000 are HQ here.
Lots of Government jobs including, GA State
Capital, Military Bases, Federal Reserve Bank, and the CDC (center for disease
control)
Home to 5.1 Million people, and attractions for all, such as: NFL
Falcons and Major League Baseball Braves, SIX Flags Amusement Park, Nascar at
Atlanta Speedway, and the Nations Largest Aquarium.

Call me for more Markets and Deals, or Follow the Blog

Jacksonville, Florida. Great Investments.

Jacksonville appears to have suffered less real estate pricing volatility than most Florida markets. The pricing correction has appeared to slow down in its decline, and many submarkets have actually seen small month over month increases. (study by DataQuick 12/08)

Would I say buy? Yes, But, Buy at a discount!

Reasons Jacksonville is different than other markets:

1. Diverse Economy= Government, Military, Distribution, SeaPort, Financial, Manufacturing, Retail Headquarters, Medical and Telecom


2. 7 of the Forbes 1000 are Headquartered in city of Jacksonville. 2nd most in Florida behind Miami


3. 3rd most population growth in Florida from 2006-2007. Above Tampa, Orlando, and Fort Myers.


4. #8 Best Place for Real Estate Bargains. Forbes Magazine 2008


5. #3 Best City in US for Jobs. Forbes Magazine 2007


6. 9.5% Population Growth 2000-2007

Here are some statistical demographics on the area:

1. 12th Largest city in the US. 805,000. 1.5 million in the MSA


2. Median Home Price $175,000


3. Median Household Income $50,000


4. JaxPort (international foreign trade zone) supports 43,000 jobs


5. US Navy supports 35,000


6. Home of Fidelity Nationa Financial Headquarters


7. Home to PGA Tour Headquarters


8. Home to NFL Franchise -- Jaguars


9. Hosted 2005 NFL Superbowl

Many cities of similar size are not considered for an NFL Franchise, let alone considered sufficient to support a Superbowl.

Jacksonville has an economy strong enough to support and attract amenities that some major markets cannot.

Its location on the coast increases the quality of life component, with less fear of the hurricane factor. Jacksonville waters are a cooler temperature than the rest of Florida, and it is located North of the Gulf Stream. No hurricane has come close since approximately 1964, therefore the insurance rates are lower, making this a better cash flow investment than other cities in Fl.

Where to buy in Jacksonville:

• West of the city. East is pricier because it's coastal. The median income is a tad low for the median home prices. To buy conservative, you want to invest where it is most affordable for the majority of home buyers.


• Near the 295 Loop. Most of the jobs are downtown and at the Ports. JaxPort has 3 major locations and the Naval Bases have two. Commute to all 3 job sectors is best near this major arterial freeway.

Property Profile:

Remodeled Foreclosures, allow you to purchase at discount, without the headache of repairs, extra liens on title, and large capital investments. Companies, NorthPoint, can help find the safest investment, complete with improvements and with tenants already in place.

Be ahead of the curve.

Steve@NorthPointGroup.com
503-213-3550
rushsteve1 @ skype
http://www.linkedin.com/in/steveroesch