Glance info on probates

Probates

Probates are the legal documents which states about the assets and estates of  deceased persons .

To understand the depths in probate handling we should take the consideration of few important things which are, knowing about the probate estates,probate initiators,probate processing.

Probate etates are the entirety of the deceased person’s belongingings which may include all real and personal property,as well as other non-physical assets like bank account funds and securities.certain assets don’t pass through probate system and can be directly claimed by certain survivors.These are called “non probate assets. The fallowing list represents some non probate estates.

Non probate assests under common law:

Ø  Living trusts

Ø  Community property agreements

Ø  Joint tenancy property

Ø  Joint bank accounts (with “right of suvivorship”)

Ø  IRAS and other retirement funds

Ø  Employment benefit contracts

Ø  Life insurance plans

Some assets may be converted into non-probate status under state laws,such as:

Ø  Bank accounts and credit union accounts(up to certain amount)

Ø  Unpaid wages

Ø  Social security benefits

Ø  Some vehicles

Ø  Some US saving bonds

Ø  Certain IRS tax refunds

Again,the complete list of non-probate assets will vary according to state-specific laws.there will also be different requirements associated with each asset.

Probate initiators the prime role to initiate the probates is carried by an executor or ‘personal representative’is a person designated in the will by the deceased person(decedent) to distribute the decendent estate to heirs and beneficiaries. It is the executor of the estate who generally initiates the probate legal process.some of the crusial responcibilities carried out by the executors are they must locate the will and the death certificate.then they notifies all employers,government agencies,and financial organizations of the death.next the executor usually contacts an attorney to help to deal with the probate court and determine whether probate is even necessary.

Along with the executor any person with an interest in the estate can initiate probate if the executor has failed to do so.for example,with debtor estates,beneficiaries may have incentive to start probate,and so the creditors will have to step the process in order to get what little asserts remain.

probate processing it is the formal process that determines how the asserts of a deceased person are handled.understanding the probate process can be usefull to avoid various disputes and contests that may occur upon the death of the repective person.some important stages in the state probate includes:

Ø  Proving that the will of the deceased is valid

Ø  Identifying and appraising the property of the deceased.

Ø  Managing payment of all debts and taxes related to the estates of the deceased

Ø  Distributing the decedent’s property as defined by the will or state law.

Issues with the probate estate can offen be very demanding,since the process involves basically all the person’s bolongings.it is advisable to consult a qualified estate planning attorney in the respective area can ensure that the assets are properly protected according to local laws.The main function of a probate attorney is to help with estate planning and to draft a will,so that the estate will avoid the probate process after death.Estate planning involves many different tasks like identifying and classifying the different assets,and assigning them to the corresponding recipients.Probate attorney are often involved if there are contested wills or other diputes over property.

In other way probates can be avoided,because it involves a time consuming process that may result in serious disputes over property.A number of legal mechanism exist that enable a person to distributed property upon death while avoiding probate.for ex: a person can avoid probate by utilizing trusts,life insurance policies,and joint tenancy.

Coming to the intrest of real estators on probates is to serve the executors,attorneys and heirs.they also deals with the probate assets directly in the failure of executors efforts with the probates. The real estators can give a wide range of services to the persons dealing with the probates.the main support services provided by the realtors are probate evaluation,probate liquidation,probate cleaning,probate security,probate staging and marketing.

How to Choose the Bet Pre-NOD List For Your Real Estate Marketing Campaign

When I first started out in real estate investing (in 1999) - I had no idea where to start. Luckily, I had a "mentor" (if that's what you want to call him) that gave me some ideas on what I should do and who I should market to. Since I was primarily interested in wholesaling properties, he steered me in the direction of mailing postcards to homeowners who had code violations with the city. These were PERFECT candidates for the types of deals I was after. So I stayed up countless nights, printing postcards on my printer on 4 x 6 index cards and hand addressing them to this list of people.




Needless to say, it worked! Sellers started to call me, and I finally did my first deal. From them on, I was hooked! I knew that in order for me to make any money in the real estate business, I would have to target my audience and then mail, mail, mail. So I've been doing that ever since.



Now let's talk about today's market and how you can drill down to your perfect audience. With foreclosures at an all time high, there is a great need for people to help homeowners who are facing foreclosure. Whether it be with short sales, loan modifications, or other solutions, there is a specific mailing list that you can purchase to increase your seller leads, and dominate your local market!



What I'm referring to is the PRE NOD List. This is a list of homeowners who are behind on their mortgages. You can filter this list by many different search criteria, including mortgage balance, zip codes, number of days late on their mortgage, available equity, and more! Just recently, the feature has been added to even filter these lists by lender. That is great news for short sale specialists that do not want or like to deal with Bank of America/Countrywide.



Here are some of the best features and benefits of using the Pre NOD list in your real estate marketing plan:oMore than 3% of homeowners on the Pre-NOD list are not Living in the House. That's right! That means that they are VACANT HOUSES



- More time to work with the homeowners. If you wait until the foreclosure is underway, you're racing the clock.



- Very little competition - since it not public record, you get first dibs on the "cream of the crop"



- More than one way to buy the houses from owners who are late on their mortgage payments



- Pre-NOD Leads are affordable. When you consider the cost per lead vs. the profit from one deal - it's a JOKE.



So you're probably thinking - so should I buy the leads that are 30 days late, 60 days late or 90 days late, right? That's a good question. And I have some answers (you should've known!)



When people are 30 days late, they're just not quite motivated enough for me. They are still in denial and not ready to make a decision on what they're going to do in their situation. However, you can start to market to them when they're thirty days late, and follow up with repeated mailings and even phone calls. Some states do not allow you to market to these people once they're more than thirty days late, so be sure to check the rules in your state before ordering.



Homeowners who are 60 days and 90 days late are perfect candidates for short sales and loan modifications. They start to feel the pressure by their lenders, and know that now they need to make a decision quickly on what to do with their house.



Choosing the right list is really a business decision. I always tell my real estate marketing clients the same thing - EVERYTHING WORKS- as long as you implement and stay consistent.



Tracy Caywood has been investing in real estate since 1999, focusing on wholesaling properties and short sales (certified in Loss Mitigation and Foreclosure Prevention). She also provides a cutting edge, extreme direct mail marketing campaign for real estate investors.

The Real Estate Short Sale Process By Ricardo Castro

The short sale process can be a daunting experience for many homes sellers. Not only are many faced with making a difficult decision. Now they have to go through a complicated sales process that will take much more time than a standard sale.

Well start by covering what a short sale is. That name practically says it all. A short sale is exactly that, a sale where the sale price of the home is lower or short, to cover the mortgages and expenses of the sale. An easy example of this is a homeowner who bought a home at the peak of the market, lets say for $500,000. Now with the economic downturn that homeowner is in need of selling the home but its now only worth $250,000.

The homeowner has an existing loan on the property of $450,000, the $200,000 difference would be the deficiency to settle on this debt and be able to sell the home.

The short sale process is the steps that have to be taken in order to have the Lender or lenders agree to forgive the debt and accept payment in full from the proceeds that can be gained from selling the home at the time of sale. Going back to our example, our lender would accept to receive $250,000 as payment in full, forgiving the $200,000 balance owed.

The process is simple but time consuming.

First, the seller decides to short sale. Many times this decision is reached after the homeowner is in default on mortgage payments but it's not necessary to be in default. Better yet if the seller is current. This can open the doors to short selling the home and buying a new home much sooner than actually being in default.

Once this decision has been made, you contact a trusted real estate professional, preferably well versed on short sales and the process. Many who know what they are doing will have support for the seller and possibly a legal team that can help. The best can offer this at no cost to the seller.

From here the short sale starts to take shape. The property is prepared for sale. Placed on the market at its fair market value, this is very important to ensure the short sale is approved. Once offers are negotiated, they are submitted to the lender or lenders with supporting documentation showing the lender(s) it's in their best interest to approve the sale Usually this is proven with a hardship letter written by the seller and supporting documents, if there is not enough income to support the continued payments of the property.

The time delays with the short sale process are usually due to the internal process the short sale must take once submitted for approval. The lender will verify value of the home by doing BPO's and possibly full appraisals, depending on the lender and the position they're in. If there are seconds or thirds, written agreements have to be secured from the other lenders, agreeing to the settlement amount being offered, if any, by the first lien holder.

The process usually takes from 45 to 60 days depending on the number of loans and the skills of the person contacting the lender(s), though it can take as long as four months.

Short Sale Tips By Deb McMillan

In today's tough economic times, there are many ways to lose a home. But signing away ownership of your home can be embarrassing and destroy your credit.

For those who can no longer pay their mortgage payments, there are alternatives to foreclosure and bankruptcy. One of those alternatives is "short sale."

A "short sale" is a sale can happen when the outstanding loan against a property is more than the market value of the property itself. The bank will agree to take an amount under the amount owed for payoff. And a short sale can only take place if the buyer, seller, and bank all agree to the terms.

If you are a real estate investor looking to help a homeowner with a short sale, the best tip, I can give you is to remember you are working with a homeowner is losing their house. Treat the person with respect and keep your word. Work your hardest to get your homeowner the best deal possible.

Below you will find several more short sale tips for selling and buying

1. Value of the property: Have a real estate agent perform a Comparative Market Analysis (CMA).

2. Figure out the costs associated with the property. A few to consider include calculate advertising costs, any broker fees/commissions you may occur, closing costs, and don't forget any lawyer fees.

3. Total Loan Value so you know how much is owed

4. Consider hiring a lawyer: Legal advice is always good. Find a Buyer

5. Involve Lenders: Let them know you are interested in doing a "short sale". Sometimes you will need to call several lenders who will jump on this deal
Tips for Buying
The tips for buying are very similar to buying
1. You will want to contact both a Real Estate Lawyer and an Accountant for advice and tax ramifications.
2. Contact lenders: You want to make sure you talk with the individual capable of making decisions.
3. Submit Letter of Authorization: You will receive better cooperation if you write a letter giving permission for the lender to talk with specific parties about your situation.
4. Preliminary Net Sheet: This sheet is an estimated closing statement that shows sales price, what you are expected to receive and all the costs of the sale, unpaid loan balances, real estate commissions, late fees and outstanding payments due.
5. You will also want to include the following: Hardship letter, Proof of Income and Assets, and copies of Bank statements.

REO Vendors Trades Are Exploding By Megan Griffin

As the economy went south a couple of years ago and the housing bubble burst, there was a huge amount of foreclosures slamming into the banks and real estate markets. For most people in construction or real estate, it signaled widespread layoffs and unemployment. At the same time, in the arena of REO vendors, the opposite thing happened. REO vendors were slammed with more work than they usually had and it became a challenge for most to keep up with the demands on repossessed or foreclosed properties. Someone has to step in and perform these services.

Vendors in the REO world come in a number of trades from appraisers and inspectors to clean-out and moving and storage trades. Each REO vendor has to document precisely what was done and provide detailed pictures and reports to back it up. As this industry began to ramp up a couple of years ago, there was some sloppy reporting because of the pressures of so much work being thrust into the marketplace. For example, a simple winterizing could pay approximately $100. It would require pictures of the antifreeze actually going into a drain for each drain or toilet and then there are stickers placed on each plumbing fixture and the main shutoff valve is sealed and tagged.

The point is that there is a prescribed procedure from FHA and specific REO lenders, but there were about 50% of the time when the pictures were improper or the passed the deadline or something happened to backlog the huge amount of work on all these new foreclosures. The result was that more displaced construction workers or real estate sale people who were out of work, felt that they could capitalize as an REO vendor. The market became flooded with these inexperienced workers who had no training in the art of documentation of work in the REO world.

A number of entities have created a sort of cooperative for them so that those in need of specific services can simple go to specialized websites and find an REO vendor. One example is REOallstars.com. They can match one for a particular area and specialty. This is a great help in the industry because it should weed out some of the less experienced providers who really don't know what they are doing. Choosing the experienced REO vendor can save a lending institution lots of time and money in getting the job done right the first time.

Rehabbing a REO Property By Shah M Karim

Bank owned or REO properties represent ideal opportunities for international investors, as they are sold at heavily discounted prices and all outstanding liens are paid by the bank.

The benefits of REO properties are that bank will ensure that all liens are paid when they take title. This will ensure good title without added expenditure for the investor.

The strategy used by REO investors is simple. Firstly, they purchase the property at a substantial discount. Secondly, they fix up the property and then re-sell it at an affordable price to attract first time buyers. First time buyers in Detroit are able to take advantage of the tax credit and other government backed schemes to get first time buyers on to the property ladder.

Unfortunately, some investors get it this simple strategy wrong by overlooking the obvious. Investors that do not perform the correct due diligence or use a reputable investment agency can suffer the harsh consequences.
For example, a foreign investor brought a REO property for $7,500, renovated the property by spending another $5,000 and placed it on the market for $20,000 for resale. But, after several weeks of unsuccessful marketing, the property was reduced to $15,000 and it still remained unsold. However, a quick drive through this neighbourhood pointed out that in just one street there were eleven boarded properties, three fire damaged property and numerous abandoned buildings. What this investor failed to appreciate was that when considering Detroit for property investment you capitalise the first three rules of property 1) LOCATION, 2) LOCATION, 3) LOCATION.

Location is the first and foremost factor especially when considering Detroit neighbourhoods and do not get blinded by the low prices for REO properties.

In contrast, there is a successful foreign investor who owns several properties in the various good neighbourhoods around Detroit. However, he used a different investment strategy - buy to hold to cashflow.

This particular investor purchased good quality properties for around $25,000. Rather than selling it, he rented the properties at around $900 per month. This allowed the investor to successfully cashflow the properties and potentially resell it until the market spiralled upwards.

Probate Versus REO Business By Gary DiGrazia Sr

I have had many questions regarding my Probate Real Estate business and how it compares to REO's. This is a great question so I want to spend some time on this. As a Probate Agent for the last 23 years I have also done REO's and my point is you don't have to choose one or the other as they both have the same result; earning a commission!

Probate Real Estate Investing or only acting as a Probate Agent is a year round good or bad market business and this is a key point. The REO's come and go and YES there are always REO's but not like we have seen where agents are doing 50 to 200 deals a year, expanding to teams to handle all the workload. This is a great place to be but what you have to realize is when you do this kind of production you do nothing else. Of course you are making BIG money but when the REO market ends which it will, what happens to your business then. If you are smart and place most of the money away for passive income then working REO's hard for 2-5 years could set you up comfortable when it's over and you have your monthly nut covered once we return to a normal market. The point is many agents who have a huge REO business right now will be hurting when it's over if they don't plan and use the money wisely. Many agents today with huge productions did not have this kind of production before the REO boom and have not built a steady business. Once we return to a normal market they will have to start over and could be in for a surprise. Don't take this wrong as I also have REO accounts but I manage them to complement my entire business. My REO's is about 30% of my business, Probates are 50% and the other 20% is my general client business (past clients, referrals). I'm using my REO business to enhance the retirement portfolio while my probates and regular business maintain my lifestyle.

Probate Real Estate and being a Probate Agent is steady business year in and year out. It is not conditioned on the market like REO's as there is always business. It doesn't matter if we are in a sellers market or buyers market when working Probates as this is Free money and the estate wants to close this probate and distribute the net proceeds according to the decease requests as soon as possible. Some will keep the properties but this is where we build our farm for future business. Probate Real Estate as either an investor or Probate Agent is a Six Figure per year opportunity most investors and agents are not looking at. Also, my probate system takes about 5 hours per week to do and now I don't do it personally as my team members do the research but even if I still did my own tracking it would only take about 5 hours of my time per week. How much time do you spend on your REO business. If you are doing 50 plus deals per year I would imagine it's 6 days a week about 10 hours per day to stay on top of this REO routine. I know I have been there and I let half the accounts go so I could have my time back and keep a balanced business.