401K's, the economy and Nan

by Nan Woodward

So are you one of the folks like me that has a 401K? I pulled out of the market before the actual sinking. I'm in a better position than many. But, I realized a while ago that 401K's aren't the answer to retirement.

I'm building multiple streams of income. Are you??? If you aren't, why not?

I am a Real Estate Investor who dabbled around. I'm now seriously working this biz. I have excellent connections for buying investment property in several states. I'm currently building a list of investors and jv partners for all types of real estate ventures.

What are you doing to help yourself? Real Estate is a good way to diverse your business. there are good buys in Real Estate both residential and commercial today. With good credit, you can finance property.

so what are you waiting for? Hasn't the roof fallen in on your 401K and pension? For more information on real estate investing and/or properties available contact me with Real Estate in the subject line.

Nan Woodward
nanwood@yahoo.com

Real Estate today

So where are we now?

Thats a complicated question actually. I believe home prices will continue falling just not as quickly. I think sales will start to increase but the major boom of customers won't be here in 2009.

At this moment, we have inventory excesses of existing and new homes while a bad economy and credit crunch are simulataneously happening. So you should expect prices to fall.

Do I think prices will eventually increase, of course. Just at a more reasonable pace.

This is Nan Woodward's comments for today.

Premier Seminar - Raising Money for Real Estate

This event is limited to the first fifty who register. Top people in the industry are participating. Networking is expected.

THERE WILL BE NO SELLING AT THIS EVENT. Leave your checkbook home.

Come with your business cards to learn and network with the best.

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How to set up an organization that generates profits on the very first transaction
How the syndication business works and how money gets made
How to leverage your real estate knowledge into massive wealth
How to create and generate profits 8 to 12 different ways on every deal
How to position yourself as a syndication expert
How to raise money (capital formation)
How to minimize your tax exposure and other potential liabilities
How to deal with the legal ins and outs
How to work with professionals (securities attorneys and accountants)
How to know which deals not to syndicate and make money on the deal anyway
And much, much more!

Register for this blog and receive the preview call.

Real Estate Information

by Nancy Woodward

I'm certainly into Real Estate. I've been working with Foreclosures in the last year. I'm now troubled over the constant increase in the number of foreclosures in the UNited States.

I believe, in an effort to help my clients, I shall begin also offering information and resources on the current state of the market with regard to Real Estate, financing and refinancing information and more.

If I can help you find more resources to help, I shall.

Current Real Estate and Mortgage Financing Status

By Nancy Woodward

Financing is becoming more of an effort these days. Lenders are scrutinizing all loans closely. All loans includes investor loans, as well as, homeowner loans. As an investor, I suggest you talk to your mortgage lender and test the waters.

Did you know that you can move some of your investments into an LLC which will remove them from your credit report? Since lenders penalize you for having more than ten properties, consider moving them into an LLC. You will find it easier to obtain financing.

In a time of declining values you must know if your investment is in an area considered declining values. You certainly would not want to purchase any property in these areas today. You can find a report – The House Price Index – at http://www.ofheo.gov

As normal, do your due diligence prior to investing in anything.

Short Sale - What happens afterwards?

by Nancy Woodward

When real estate is sold, normally there is a profit for the buyer. When the buyer has less equity than the current selling price of the home, it is necessary to do a short sale to avoid foreclosure.

This definitely leads to tax consequences for the seller. They may owe taxes to the government on the amount that was forgiven by the lender. This can be acapital gains.

Many of the homeowners I have spoken to in an effort to help them - don't understand or believe this concept. They tell me ' other investors don't tell me this'.

You should make yourself aware of this situation and how the process actually works. The lender has several ways of handling the deficiency:

1. They can attempt to collect this amount from the seller

2. They can require the seller to sign a promissory note.

3. They can just cancel this amount.

Now we need to see how the IRS handles this process. They consider any amount of mortgage debt ordinary income once it is forgiven. This means income taxes will have to be paid.

More to follow --

What should I do to Avoid Real Estate Foreclosure?

What should I do to Avoid Real Estate Foreclosure?
By Nancy Woodward

If you are in this position, you have certainly experienced financial difficulties. You may or may not be behind in your mortgage payments. When you realize you are having problems, you should make a list of your creditors and begin contacting them.

The worst thing you can do is to ignore the situation and assume it will take care of itself. Lenders and creditors do not want to take legal action. They are willing to work with sincere people who are experiencing temporary problems.

So, you should:

1. Write a complete list of your creditors
2. Find documentation of your loans to obtain the following information -
a. Your loan number
b. Payment amount
c. Due date
3. Calculate your current living expenses.
4. Determine if you need to decrease expenses and/or payments of liabilities and for who long.
5. Call your lenders

While this sounds simple in theory, you may experience problems reaching persons in authority who can help you. You need to find the right department and person who are handling your account.

Create a spread sheet. Track all calls you make and the conversations you have with lenders. You should know the name of the person you are talking to and what their position is in the company. You need to follow up yourself.

Ask your mortgage lender for help and information. Perhaps they will allow you to refinance your mortgage, take out an equity loan, or pursue forbearance. Once you make it clear that you are willing to work with them, you will stand a better chance of avoiding foreclosure.

What is Forbearance?

Real Estate Foreclosures – What is Forbearance?
By Nancy Woodward

Forbearance is a process taken by a lender which allows the borrower to temporarily stop or decrease the amount of their payments for a period of time. The lender may allow the borrower forbearance of principal, interest or actually both.

Forbearances have a limited time span. Twelve months is the maximum amount of time allowed. This process allows the borrower time to get on his feet again.

Lenders are not required to offer forbearance to borrowers. They may choose to do so for a good client experiencing temporary problems. It generally is considered for those who are willing to make their payments and are suffering a temporary problem that would be helped out with this process.

If your problems have had an adverse effect on your credit, pursuing forbearance will not change anything related to this. I would suggest you contact your lender and creditors before your problem gets out of hand. Many lenders and creditors will work with you once they know how sincere you are.

Foreclosures are a Reality of Life Today

Foreclosure is now a sad reality of life for many homeowners
By Nancy Woodward

Foreclosures in general have been on the rise for over a year. At this time, sub prime borrowers are scrambling to refinance their loans. They payments have now skyrocketed and homeowners realize they must find a way to reduce the loan payment now. Tighter lending standards put into place by Federal Regulators in recent months are making it more difficult to refinance subprime loans.

According to Brett Warren, president of Buyer’s Home Mortgage Inc., as recently as six months ago, most requests to refinance were from homeowners wanting to reduce their interest rates or take equity from their property. Today, most requests are coming from subprime borrowers trying to reduce payments.

Many of these homeowners obtained loans with teaser rates and high fees. Some now find themselves in a position where the equity in their home is negative. As the number of resetting loans increase, so will the foreclosure rate.

Philadelphia and New Jersey have a majority of mortgages in the prime rate area. These seem to have a lower foreclosure rate according to Mortgage Bankers Association. The highest increases in foreclosures last month were in California and Florida, followed by Ohio and Michigan. The firing of employees in the automotive industry had a direct impact on this.

While this number will continue to increase, homeowners should seek help before they reach the foreclosure point. There are ways to solve the problem.

How do I receive proceeds of a Reverse Mortgage?

Reverse Mortgages - How do I receive the proceeds of my Mortgage?
By Nancy Woodward


There are several ways for you to obtain cash from your home using a reverse mortgage without having to repay the loan at all. When you obtain a normal mortgage, you decrease your loan thereby decreasing your liability and increasing your equity. Since this type of mortgage(Reverse Mortgage) works exactly the opposite of a normal mortgage, it essentially increases your liability to the lender and decreases equity in your home.

Four ways to receive the proceeds of your loan:

1. Lump sum - You can take all of the money at one time in a single lump sum of cash.
2. Cash advance – You can take a regular cash advance – i.e. monthly
3. Credit line - You can use an account that will allow you to take cash when you want it up to a maximum amount.
4. Using one or more of the above ways – this gives you the freedom to choose when and how much you want to take. This way can be used to effectively reduce the interest added to the balance of your loan.

After you qualify for your loan and receive funds, no one will have to repay this loan until you die, sell your home, or move out of your home on a permanent basis. You will have to qualify for the loan:

1. You must own your own home
2. You must live in this home
3. You must be 62 years of age or older.
4. Generally you must not have a mortgage loan on your home – generally Reverse Mortgages must be the ‘first’ mortgage.

While Reverse Mortgages can help you remain in your home, you are still the property owner. This means you must pay your property taxes and homeowner insurance, and making repairs on the property.

While you cannot have another first mortgage, it is possible to pay off existing debt, both in your home and credit debt, and with the money you obtain from your Reverse Mortgage proceeds.

As Americans are aging, society is seeking more ways to help them maintain their lifestyles by remaining in their home as long as possible. This is a way homeowners can obtain the necessary income without additional expenses.

As in any financial arrangement, I suggest you do your due diligence. Investigate the subject, talk to your attorney and perhaps your relatives and friends prior to moving forward.

Mortgage Loan Rates may Rise

Mortgage Rates May Rise – if Inflation risk Increases
By Nancy Woodward

According to Charles Plosser, President of the Federal Reserve Bank of Philadelphia, the Federal Reserve may need to raise the benchmark interest rate as recent stronger US economic growth increases the risk of more than moderate inflation.

Mr. Plosser discussed the growth prospects in a speech to the Greater Philadelphia Chamber of Commerce. He feels we may not see stability without an increase in the rate to avoid inflation.

The Fed has not changed the benchmark interest rate which stands at 5.25 percent. This is the fifth straight meeting they where there has not been an increase. The benchmark rate affects the rates which bank charges for loans to individuals and business customers.

The Fed is concerned over inflation. Possner thinks it is possible that moderate inflation will continue although he is concerned over the 3.5 percent annual pace the economy expanded in the last quarter.

Greater growth than expected fuels the fear of inflation when the economy is strengthening. Let’s hope the fears are unfounded. Rising inflation affects all of us, particularly the Real Estate – Home Loan Market.

If you are in the market to buy Real Estate, you should keep an eye on this. You will win on the value of the home you buy now, but you can offset that win with a greater than expected interest rate.