| If you've gone through any part of the | | | | etc are a great market because typically they have |
| pre-foreclosure process, had a lis pendens filed | | | | roommates. Charging them by the room makes |
| against you (a notice of default - you promised to | | | | sense. So instead of taking market rate for rent for |
| pay a mortgage, and secured that promise with the | | | | a family of 3 (lets say $900/mo in some areas), you'll |
| deed to the house you mortgaged), or have been | | | | rent a 3 BR/2 BA for $400 a bedroom, giving you |
| harassed by the bank as their interest rates reset on | | | | $1,200. If you mortgage was around $1,000/mo, you |
| your home loan, trust me, you are not alone. Millions | | | | could theoretically make $200/mo which would be |
| of homeowners who have gone through or are | | | | applied to the outstanding part of the loan. Being |
| about to go through the untimely process of having | | | | indebted to the bank for only a few months can |
| the bank try to recall a loan are probably feeling just | | | | cost a lot, but can be paid off quickly with $200/mo. |
| as lost as you are right now. Here are some helpful | | | | Also, you have bought yourself a lot of time and |
| resources to open up tons of options for you, after | | | | now a short sale negotiator can help. Oh and by the |
| all, YOU are still the homeowner | | | | way, you've also started the path to greater credit |
| Bring it on! - | | | | and you are keeping the house and MAKING IT PAY |
| Seriously, for whatever financial straits you are in, | | | | YOU. You see? |
| know that home ownership is the golden key to | | | | Investors - |
| creating wealth for you and your family. 99.99% of | | | | Want to know one thing: Do you have equity in the |
| the world's millionaires have one thing in common: The | | | | house? There are 2 types of investors in this |
| are owners! Giving up that right is not in your best | | | | market, the bad and the worse (just kidding!). |
| future interest. Your best interest is to sack up and | | | | Investors can take the financial burden off you long |
| deal with whatever reason it is that you came to this | | | | enough to straighten up your finances. They can do |
| point. If you've lost your job or had an unexpected | | | | this through many options, but they all will want a |
| emergency, consider yourself lucky (yes, lucky), for | | | | piece of ownership in your property. It's my |
| these things are temporary and can be overcome. | | | | prediction the most popular will be leasebacks, in |
| As it relates to your impending foreclosure, know | | | | which an investor buys the house on a markdown |
| that these are the best situation to deal with and the | | | | from you (i.e. - takes a piece of your equity), lets |
| recovery rates for homeowners are extremely high | | | | you lease it from them, and then sells it back to you |
| who have only had temporary setbacks. It's here | | | | at a set "option" price. In this situation, buyer beware. |
| also, that a short sale professional is most effective, | | | | Work with a trusted source with lots of referrals and |
| that in a bit. | | | | testimonials. Most short sale negotiators are investors |
| Why not rent? - | | | | themselves or have a whole line of them that they |
| OK, this one deals with moving out of your home, | | | | feed deals to. Notice, I've never once said this will be |
| but it relates to my last commentary about being an | | | | free. People will make money, it's up to you to |
| owner. Loss mitigators and banks who are willing to | | | | decide if they money you are losing working with an |
| restructure the loan will still want to be paid | | | | investor is work the black credit later, the fees the |
| eventually. Everything short of selling the property | | | | bank will charge, and the financial gridlock you may |
| means you are still responsible for it. With the rental | | | | be in later. Investors are full of creative options, and |
| market on the rise and so many options available, | | | | the most financially freeing deals I have seen are |
| renting is a plausible end-game for those who have | | | | with investors. Trust a good one, and they'll be able |
| the will to do it. First, it shows up as a performing | | | | to work out other debt, such as car payments, |
| asset on your credit report, something the banks | | | | medical bills, etc. |
| love to see (however, typically they will depreciate | | | | There are many ways to dealing with the bank in the |
| around 25% your rental income as debt, they | | | | event you become behind in your payments. Banks |
| assume you'll spend that much to maintain the | | | | are institutions, and are governed by many rules. |
| property) so you'll need to make that money as | | | | Trying to buck those rules (IE - ignoring the bank) will |
| income. This will make your credit skyrocket. | | | | only result in more of a mess. Your best bet is to |
| How to do it? Well, one small trick that has helped | | | | work with creative solutions such as these suggested |
| me is to break down market rates by the room and | | | | above. |
| rent them that way. College students, grad students, | | | | |