Black Friday Foreclosure Shopping

The foreclosure market continues to boom as no relief appears in sight for stretched subprime mortgage holders. As the economy shows more signs of a slowdown, this trend is likely to continue.

Although the real estate industry would prefer otherwise, foreclosures continue to make headlines. The latest data showed superficial relief, with September foreclosures down 8% from some 243,000 in August, but still more than double last year -- and still with more to come.

It may be a harsh analogy, but I often think of foreclosure buyers as the forest-floor ants consuming the dead wood to clean the forest.


That means three things. First, as I see it, the sooner we get through this credit mess, the better. Second, the faster properties get through the foreclosure process and find buyers, the sooner we'll get through the mess. So third, foreclosure buyers clean out the dead wood (I like) and get great bargains in the process (I also like).

I can save how much?
My recent column broadly covers the discount you can expect from market value if you buy a foreclosure. It varies by region, but using information published by real estate portal and foreclosure specialists RealtyTrac, I saw discounts ranging from 15% in Hawaii to 40% in Alabama, with 20% and 25% being a rule of thumb.

Not bad. So then the next question, incidentally raised by several readers, is "how do I find those bargains in my area?"

Finding the for sale signs

To locate specific foreclosures in your area, RealtyTrac is a good place to start. Visit the nations #1 site for foreclosures and find homes for half the price.
The site lists foreclosures by ZIP code and foreclosure stage, ranging from preforeclosure property to bank-owned real estate. It's a broad and fairly deep picture of foreclosure availability in your area.

Some have found RealtyTrac less than precise, as the task of keeping up with foreclosure listing activity across the company is large, to say the least. And to get specific information on the property, RealtyTrac requires a $49.95/month subscription after a seven-day free trial.

But realize that RealtyTrac sits behind other real estate sites, so sooner or later you'll probably run into RealtyTrac. If you're serious about foreclosure shopping, you might want to sign up.

Combining sources
If you aren't ready to make the financial commitment or "come out of the closet" as a registered foreclosure buyer, there are several other paths which work surprisingly well:

Bank sales. To their chagrin, banks and financial institutions are going into the real estate business in a big way. Too bad for them, but you can find a lot of bargains on their Web sites: Bank of America, Countrywide and U. S. Bank have good listings, to name a few. Countrywide, for example, has 300 listings in California alone priced under $170,000.

Agency sales. Banks sell their "REO" (Real Estate Owned) but often hire agencies to do the job. Such agencies include Keystone Asset Management, Lenders Asset Management Corporation and HomeEq Servicing. Some of these agencies may operate bank sites, so you may see a similarity.

Government and government-backed lender sales. Government agencies ranging from FHA and VA to HUD and the Department of Justice sell real estate, visible through a single portal. And government-backed Fannie Mae and Freddie Mac also operate sites. The variety of properties available is, shall we say, wide, but Fannie Mae in particular lists a lot of solid mainstream real estate values.

Auctions and auction houses. Local and regional auctions are becoming bigger as banks and others pile up inventory. A real estate auction specialist will announce an auction of dozens, maybe hundreds of properties in a large region or metro area. Auctioneers include Real Estate Disposal Corporation (REDC) and Williams & Williams. Experience helps in playing this game, although the auctioneer sites walk you through the process.

Local real estate specialists. A lot of agents know about action in a particular area and can hook you up with the sellers. Good agents have their eyes and ears to the ground at all times, and get tips and hear about stuff coming on the market. You can often Google "foreclosures (area)" to get local listings.

Don't forget: reward comes with risk
Remember that, while foreclosure properties often sell at a healthy discount, you may run into poorly maintained properties. There may be other foreclosures in the immediate area, hurting the quality and value of your investment. Double check other adjacent listings and visit the area if you can.

Remember: Good value investors buy assets at the right time in the right place at the right price. Real estate is no different.

CT Foreclosure Process Rules

FORECLOSURE BY SALE STANDING ORDERS
1. Committee will be appointed by the Court from a list of approved attorneys.
2. Sale will take place at 11:00 am on the premises unless otherwise ordered by the court.
3. Inspection will occur one hour prior to the sale on the date of sale unless otherwise
designated.
4. The deposit is 10% of the fair market value as found by the Court. The deposit is waived for
the plaintiff unless requested otherwise. Deposit is to be paid by either bank or certified
check. Purchaser is to close within 30 days of the Court’s approval of the committee deed.
The deposit shall be forfeited if the purchaser fails to close within 30 days of the approval of
the committee deed.
5. Advertisement is to be published twice in a newspaper as directed by the court.
6. The sign is to be placed on the premises as directed by the court.
7. The size of the sign is to be approximately 3 feet wide and 2 feet high and must contain the
following statement: DO NOT REMOVE; VIOLATION SUBJECT TO PUNISHMENT BY
THE COURT.
8. Cost of the sign is not to exceed the amount customarily authorized by the court including
preparation, erection and photograph for inclusion in committee report.
9. Committee is authorized to replace the sign once without court approval, provided the sign
can be erected at least ten days prior to sale. DO NOT ERECT THE SIGN YOURSELF.
10. A disinterested appraiser will be appointed and will, under oath, appraise the property and
make return of the appraisal to the Clerk of the Court at least seven days prior to the sale. The
court will retain this appraisal.
11. Committee is to obtain liability insurance for the date of the sale in the amount of $1,000,000.
Premium not to exceed $275.00.
12. Except for filing an appearance, if the sale is more than two months in the future, the
committee should incur no fees or expenses until directed by the court.
13. The Committee is authorized to conduct a title search of the property. The expense incurred
in connection with the title search shall not exceed $200.00.
14. If the sale is cancelled for any reason after publication or erection of the sign, a written
announcement of cancellation should be posted on the site. The committee is to remain on
site in that event.
15. The following information is to be contained in the Court ordered letter to the nonappearing
defendant owner of the equity: a.) Clearly state at the beginning that the letter is being sent at
the direction of the Court; b.) State the results of the foreclosure judgement; c.) Inform the
nonappearing equity owner that he/she/they risk loss of the equity if he/she/they fail to take
steps to protect that equity AND THAT HE/SHE/THEY SHOULD CHECK WITH THE
COURT AFTER THE SALE TO LEARN IF THERE IS ANY MONEY THAT IS
DISTRIBUTABLE TO HIM/HER/THEM; d.) State that the nonappearing party should either
file his/her own appearance or have an attorney file one on his/her/their behalf in order to
protect his/her/their interest in the equity. This letter is to be sent by the plaintiff via certified
mail, return receipt requested. A copy of the letter and later the return receipt should be sent
to the Clerk of the Court. NO SALE WILL BE APPROVED OR FUNDS DISBURSED
WITHOUT PROOF OF MAILING.
16. The sale is subject to and an all liens choate and inchoate which are prior in right to the
encumbrance being foreclosed.
17. The committee is to follow the Uniform Procedures for Foreclosure by Sale Matters except as
modified herein. (JD-CV-81 Rev.1-03). Committee deed to be prepared on form JD-CV-74
only.
18. Standing orders regarding Standard form Newspaper Ads, Model Notice To Bidders and
Plaintiffs Bid at Foreclosure Sale are incorporated herein by reference.

Best Places For Real Estate Deals

Best Places For Real Estate Deals
By Matt Woolsey, Forbes.com
October 8, 2007

Home sales have sunk to their lowest levels since 2001. Investors are jumping ship, foreclosures are mounting and lenders are exercising caution.

Still, there are areas of the country where it makes sense for some to buy. That's because, in a market slump, sellers eager to unload their homes often accept less money from buyers. New construction also slows. Both bode well for buyers hoping to score a deal--if the market in which they are buying is expected to experience increased sales.

To find such places, we paired with Moody's Economy.com to research current home sales patterns and sales projections in the country's 40 biggest real estate markets. Based on models that estimated housing inventory, sales rates and turnover for 2008, we arrived at a list of markets that are experiencing price stalls or declines, but where over the coming year are expected to provide deals for buyers.

In Pictures: Best Places For Real Estate Deals



A buyers' market in the purest sense is one where there are far more sellers than buyers, creating a supply and demand dynamic that benefit those looking to invest in a home. However, by that definition, a floundering market like Detroit is a good buyers' market because prices are dropping and inventory is high.

"A market with declining prices and few sales is a strong buyers' market," says Anthony Sanders, professor of real estate finance at Arizona State University. "But it is also a risky market given that prices could decline further."

With that in mind, we required the slumping or neutral markets on our list to have expected volume and turnover increases, based on sales and inventory models run by Moody's Economy.com.

The results turn out three types of markets and three types of deals.


Attractive Arrangements

The first are undervalued, affordable markets like Fort Worth, Texas, which haven't felt huge post-boom price corrections, but where there is an expected acceleration in sales volume, making now the time to buy.

Second are markets like Long Island, N.Y., and Washington, D.C. These are traditionally strong markets that are recovering from speculation, especially in the D.C. condo market and by Long Island's second-home buyers. Once these areas stabilize, the market as a whole should return to health.

"Long Island is continuing to slip, but a modest amount," says Jonathan Miller, president of Miller Samuel, a New York-based real estate appraisal and consultancy firm. "In [Long Island] the upper-end market was the market of choice for speculation and tear downs."

But economists caution that while over the next year the dust may settle in these 10 spots, buyers should be prepared for future swings. This is especially true in the case of riskier markets like Orlando and Las Vegas, where the expected increase in sales volume and housing turnover doesn't necessarily mean that the price trough is imminent.

"Housing market activity revives when house prices decline sufficiently to restore housing affordability and entice buyers to step up and make a purchase," says Mark Zandi, chief economist at Moody's Economy.com. "Some markets are already approaching those price points, in many others prices will have to decline much more to get to that point."

10 tips to add value to your property

10 Inexpensive Ways to Add Value to Your Rental or Rehab Property
It's easy to fix up your properties if you have unlimited cash. However, you need to keep your repairs to a minimum to stay profitable. You also need to keep your properties in good shape to attract tenants or buyers. There are the basic improvements, such as carpet and paint, but these can still costs thousands of dollars. The following are some inexpensive ways to improve your properties with very little cash.

#1) New Electrical Switch Plates

This is such a minor, yet overlooked improvement. Most rental owners and rehabbers paint a unit and leave the old, ugly switch plates. Even worse, some even paint over them.

New switch plates cost about 50 cents each. You can replace the entire house with new switch plates for about $20. For the foyer, living room and other obvious areas, spring for nice brass plates. They run about $5 each - not much for added class.

#2) New or Improved Doors

Another overlooked, yet cheap replacement item is doors. If you have ugly brown doors, replace them with nice white doors (you can paint them, but unless you have a spray gun it will take you three coats by hand).

The basic hollow-core door is about $20. It comes pre-primed and pre-hung. For about $10 more, you can buy stylish six-panel doors. If you are doing a rehab, the extra $10 per door is well worth-it. For rentals, consider at least changing the downstairs doors.

#3) New Door Handles

In addition to changing doors, consider changing the handles. An old door handle (especially with crusted paint on it) looks drab. For about $10, you can replace them with new brass finished handles. Replace the guest bathroom and bedroom door handles with the fancy "S" handles (about $20 each).

#4) Paint/Replace Trim

If the entire interior of the house does not need a paint job, consider painting the trim. New, modern custom homes typically come with beige or off-white walls and bright-white trim. Use a semi-gloss bright white on all the trim in your houses.

If the floor trim is worn, cracked or just plain ugly, replace it! Home Depot carries a new foam trim that is pre-painted in several finishes and costs less than 50 cents per linear foot. Create a great first impression by adding crown molding in the entry way and living room.

#5) New Front Door

You only get one chance to make a first impression. A cheap front door makes a house look cheap. An old front door makes a house look old. If you have nice heavy door, paint it a bold color using a high-gloss paint. If your front door is old, consider replacing it with a new, stylish door. For about $125, you can buy a very nice door.

#6) Tile Foyer Entry

After the front door, your next first impression is the foyer area. Most rental property foyers are graced with linoleum floors. Consider a nice 12" Mexican tile. An 8' x 8' area should cost about $100 in materials.

#7) New Shower Curtains

It amazes me that many landlords and sellers show properties with either no shower curtain or any ugly old shower curtain in the bathroom. Don't be cheap - drop $40 and buy a nice new rod and fancy curtain.

#8) Paint Kitchen Cabinets

Replacing kitchen cabinets is expensive, but painting them is cheap. If you have old 1970's style wooden cabinets in a lovely dark brown shade, paint them. Use a semi-gloss white and finish them with colorful plastic knobs. No need to paint the inside of them (unless you own a spray gun), since you are only trying to make an impression.

Americans spend 99% of their time in the kitchen (when they are not watching TV). A fancy modern faucet looks great in the kitchen. They can run as much as $150, but not to worry - most retailers (Home Depot, Home Base, etc) often run clearance sales on overstocked and discontinued models. I have found nice Delta and Price Pfister faucets for about $60 on sale.

#9) Add Window Shutters

If you have ugly aluminum framed windows, consider adding wooden shutters outside. They come pre-primed at most hardware retailers and are easy to install. Paint them an offset color from the outside of the house - (e.g., if the house is dark, paint the shutters white. If the house is light, paint them green, blue, etc.).

#10) Add a Nice Mailbox

Everyone on the block has the same black mailbox. Stand out. Be bold. For about $35 you can buy a nice colorful mailbox. For about $60 more, you can buy a nice wooden post for it. People notice these things....and they like them!

Learn how to Flip and Rehab

Learn how to Flip and Rehab from Armando Montelongo from the hit A&E show , Flip This House.

Internet millionaire Armando Montelongo of armandomontelongo.comlaunched a new site called Armando Montelongo.com.

This site is catered to one market,entrepreneurial people and business opportunity seekers.
"The site is there for all types of people who want tomeet with other who have some of the same business interests. It caters to any type of opportunity, investment clubs, franchises, Network opportunities, Day traders, you name it and the site caters to it.

With so many filters on the internet, even legitimate subscriberemail is getting blocked, which unfortunately rendering newsletters somewhat ineffective leaving opportunity seekersno valid or cost effective way to find or communicate with each other.

ArmandoMontelongo.com is very different in that it allows people to communicate in real time audio and video conferencingin a secure environment.

People can join free knowing that others on the site will enjoyhearing about their opportunities.
You can visit the site at http://thenoteservice.armandomontelongo.com

Sub Prime Lending

Subprime Lending

Typically, subprime loans are for persons with blemished or limited credit histories. The loans carry a higher rate of interest than prime loans to compensate for increased credit risk.
Many have questioned why minorities appear to be over-represented in the subprime lending market. Studies reveal that even in upper-income African-American neighborhoods one is one-and-a-half times as likely to have a subprime loan than persons in low-income white neighborhoods. In neighborhoods where Hispanics comprise at least 80 percent of the population, they were 1.5 times as likely than the nation as a whole to have a subprime mortgage loan.

Some allege this disparity to be attributed to subprime lenders purposefully marketing to African-American communities-what some have called reverse redlining. They allege lenders will provide loans to these communities, but at a higher cost and with less favorable conditions.

Some facts about subprime lenders:

• Home refinance loans account for higher shares of subprime lenders' total origination than prime lenders' originations
• Subprime lenders originate a larger percentage of their total originations in predominately black census tracts than prime lenders
• Subprime lenders are more likely to have terms like "consumer," "finance," and "acceptance" in their lender names

Proponents of subprime lending

Individuals who have experienced severe financial troubles are often labelled as higher risk and therefore cannot obtain conventional financing. These individuals may have had job loss, previous debt or marital problems, or unexpected medical issues. Often, these events were unforeseen and cause a major setback in finances. As a result, late payments, charge-offs, repossessions and even foreclosures may result.

Due to these previous credit problems, these individuals may be precluded from obtaining any type of loan for an automobile. To meet this demand, lenders have seen that a tiered pricing arrangement, one which allows these individuals to pay a higher interest rate, may allow loans which otherwise may not occur.

From a servicing standpoint, these loans have higher collection defaults and experience higher repossessions and charge offs. Lenders use the higher interest rate to offset these anticipated higher costs.

Provided a consumer will enter into this arrangement with the understanding that they are higher risk, and must make diligent efforts to pay, these loans do indeed serve those who would otherwise be underserved. The consumer must purchase an automobile which is well within their means, and carries a payment well within their budget.

Criticisms of subprime lending

Capital markets operate on the basic premise of risk versus reward. Investors taking a risk on stocks expect a higher rate of return than do investors in risk-free Treasury Bills, which are backed by the full faith and credit of the United States. The same goes for loans. Less creditworthy subprime borrowers represent a riskier investment, so lenders will charge them a higher interest rate than they would charge a prime borrower for the same loan.
To avoid the initial hit of higher mortgage payments, most subprime borrowers take out Adjustable-rate mortgages that give them a very low initial interest rate of around 4%. But with annual adjustments of 2% or more per year, these loans typically end up charging around 10%. So a $500,000 loan at a 4% interest rate for 30 years equates to a payment of about $2,400 a month. But the same loan at 10% for 27 years (after the adjustable period ends) equates to a payment of $4,470. A 6-percentage-point increase in the rate caused slightly more than an 85% increase in the payment.

RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties

RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties, with over 1 million properties from nearly 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.




“Foreclosure activity subsided somewhat in June after hitting a 30-month high in May,” said James J. Saccacio, chief executive officer of RealtyTrac. “And the drop in activity was fairly broad, with 33 states reporting month-over-month decreases. Still, the foreclosure rates in most states remained substantially above last year’s levels.”

Foreclosure Filings Still Up 87 Percent From June 2006

Foreclosure Filings Still Up 87 Percent From June 2006


A total of 164,644 foreclosure filings - default notices, auction sale notices and bank repossessions - were reported in June, down 7 percent from the previous month but still up 87 percent from June 2006. The national foreclosure rate for June was one foreclosure filing for every 704 U.S. households. "Foreclosure activity subsided somewhat in June after hitting a 30-month high in May," said James J. Saccacio, chief executive officer of RealtyTrac. "And the drop in activity was fairly broad, with 33 states reporting month-over-month decreases. Still, the foreclosure rates in most states remained substantially above last year's levels."

Your Options Against Foreclosure

Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, you also would owe HUD an additional amount.

Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if possible.

Q: What Should I Do?
DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems making your payments, call or write to your lender's Loss Mitigation Department without delay. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.
Stay in your home for now. You may not qualify for assistance if you abandon your property.
Contact a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources. They frequently have information on services and programs offered by Government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.
Q: What Are My Alternatives?
You may be considered for the following:

Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

Partial Claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.

You may qualify if:
your loan is at least 4 months delinquent but no more than 12 months delinquent;
you are able to begin making full mortgage payments.

When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.

The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.

Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

You may qualify if:
the loan is at least 2 months delinquent;
you are able to sell your house within 3 to 5 months; and
a new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.

Deed-in-lieu of foreclosure. As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure.

You may qualify if:
you are in default and don't qualify for any of the other options;
your attempts at selling the house before foreclosure were unsuccessful; and
you don't have another FHA mortgage in default.

For More Info, check out The Note Service

Fico Score and Credit Score - Difference?

This is a great question and one that's been a very hot topic on our FICO Forums. The reason you're seeing a discrepancy is because you purchased scores from two different scoring systems. The score you bought from TransUnion is their consumer version of your credit score, but it's not your FICO® score. Many different websites sell credit scores to consumers, but only myFICO.com and Equifax.com sell actual FICO scores to consumers. In fact, you may be surprised to know just how many different credit scores are sold to consumers – most of which are never used by lenders.

This is not to say that getting your credit scores from online vendors is a bad idea. Checking your credit scores from a trusted seller can often serve as a guide for pointing you in the right direction. If you pull your credit score from a reputable source and find that you have a very high score, then more often than not, you'll have a good FICO score as well. Just be sure to check your actual FICO score before applying for a loan – this is the best way for you to know what the lenders will base their terms on.

What does the difference in the two scores you pulled mean to you? Well, don't demand a lender's best rates based on your TransUnion credit score of 733! Your FICO score of 689 is the score you should be basing your expectations on. Generally, a FICO score above 720 will qualify you for good rates on most loans. To see how better scores translate to savings on home and auto loans, click here.

Before getting a loan for a major purchase, such as a home, you should check all three of your FICO scores. Most lenders will look at all three FICO scores – one from each major credit bureau – when evaluating your loan application. At that point, don't try to save a few dollars by buying the cheapest credit score you can find. Knowing your FICO scores can help you estimate what your monthly mortgage payments will look like and help you determine if you can truly afford a home.

We know credit scores can be confusing enough without having to figure out if you're buying a real FICO score. Many credit scores even try to mimic the FICO score range so they look very similar to FICO scores. Remember that FICO scores always say "FICO" when describing the score. We hope this helps you make sense of your credit scoring options.

Sincerely,
myFICO Team

Three Reasons to Invest in Foreclosures in 2007

Three Reasons to Invest in Foreclosures in 2007
(with or without your own money or credit)

1. We Have More Motivated Sellers than Ever.

Foreclosures are up over 65% in 2007 versus the same period for 2006. This surge has come as those Creative Mortgage "teaser periods" expired and homeowners now have to make fully amortized payments. If their income didn't rise to meet those new payments, they are in a world of trouble. And you can help them.

2. The Real Estate Market is Healthy.

Former Fed chairman Alan Greenspan was right when he said the worst is behind us... "Weak housing markets aren't over yet, but they're getting stronger with the help of a drop in unsold inventories and interest rates at 45-year lows."

3. Investors: This is as Good as it Gets!

"Although it's impossible to know exactly when we hit the bottom on this price correction, I firmly believe that when the market heats up again this spring, we'll look back at this winter season as our best buying opportunity in six years, and wish we bought more property..." Alexis McGee.

U.S. Foreclosures Up 19 Percent in January

A total of 130,511 new foreclosure filings were reported in January, an increase of 19 percent from the previous month and an increase of 25 percent from January 2006. The report also shows a national foreclosure rate of one new foreclosure filing for every 886 U.S. households.


“January’s foreclosure number represented the highest monthly number we’ve seen since we began issuing this report two years ago,” said James J. Saccacio, chief executive officer of RealtyTrac. “The month-over-month increase is similar to what we saw last January, when foreclosures shot up 27 percent from the previous month; however, the year-over-year increase of 25 percent is well below the 45 percent annual increase we saw in January last year.”

Commercial Real Estate Futures

The Chicago Board of Trade, the No. 2 U.S. futures mart, said on Monday it will launch commercial real estate futures on Feb. 21.

The new contract, based on the Dow Jones U.S. Real Estate Index, will allow market participants to bet on changes in the real estate sector of the stock market and manage commercial real estate exposure, the CBOT said.

The futures will reflect the value of the index, which is comprised mainly of real estate investment trusts, securities that track the underlying commercial real estate market.

Contracts will be cash-settled and trade on CBOT's electronic platform. The exchange plans a market maker program to create liquidity in the new product.


CBOT should get its product to market before the Chicago Mercantile Exchange, the largest U.S. futures exchanges, launches a related product.

CME said in September it was teaming with Global Real Analytics to launch commercial real estate futures and options based on a series of GRA indexes — national and regional, and for four separate property types. A launch is still expected in the first quarter.

CME already trades a suite of housing derivatives based on the S&P/Case-Shiller home price indices.

Loan Broker

Loan Broker

The Loan Broker Program
Yes -- Now you can arrange residential loans and commercial loans without a license and without experience!

THE NUMBER ONE FINANCING REQUEST IN EVERY STATE!
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YOU WILL BE A REALTOR'S DREAM COME TRUE!
Are you aware of how many houses are sold each month in your city? If you contact your local real estate multiple listing service, you will be astonished to find out how many houses are sold in your city each and every month. Two or three hundred houses for a city of 100,000 population is average. The realtors who sell these houses must help arrange financing for their clients in order to have their sales closed. Can you imagine what an asset you would be to realtors for their sales? Only a few realtors referring their sales to you can mean 10, 20 or 30 clients per month, which in turn CAN MEAN $2,000, $4,000 OR $8,000 PER MONTH EARNED AS A RESIDENTIAL LOAN BROKER. Some residential loan brokers today are processing $1,000,000 in loans per month and at only 1% loan fee, the earnings would be $10,000 per month. You can earn from 1% to 3% of the total loan amount of each deal closed.
THAT'S ONLY THE BEGINNING OF THE HUGE FEES THAT CAN BE EARNED WITH THIS PROGRAM!!
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Owning a home has been a dream and major goal for every American family and residential loan requests are in bigger demand today than ever before. THERE HAS NEVER BEEN A BETTER TIME TO ARRANGE REAL ESTATE LOANS THAN TODAY! Since interest rates are lower than they have been in a long time, more homes are being sold and more residential starts in new housing construction is evident throughout the country. Realtors, builders, developers, buyers, and sellers will ALL be needing your service. A GREAT DEAL OF MONEY IS WAITING TO BE MADE BY SOMEONE LIKE YOU. The Residential Loan Broker Program can mean enormous profits and a huge success for you. You can get in on the ground floor of this high income opportunity now.
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one to four family homes
residential: owner occupied
residential: non-owner occupied rental properties
loans for the purchase of foreclosed properties
You will learn how to prequalify loan requests in only a few short minutes. Our program will teach you the basic formula used by Fannie Mae underwriting lenders. ...And, are you a homeowner and need financing, or are you in the market of purchasing one to four family homes? You will be able to arrange your own financing and save!
Mortgage rates are lower today than they have been in a long time. All of the homes that have been built and/or purchased are financed at a higher rate than you can obtain today. Even at two percent interest savings on a $75,000 mortgage can mean savings of as much as $125 per month on mortgage payments. That is approximately a $45,000 savings over the life of a 30-year fully amortized mortgage. This simply means that millions of homeowners are just waiting to refinance their homes so that they can enjoy the savings on their mortgage payments.
OUR PROGRAM INCLUDESNO LICENSE, NO EXPERIENCE ANDMULTI-STATE FUNDING CAPABILITIES!
Our complete easy-to-follow, step-by-step instruction manual includes absolutely everything needed to get started immediately.
1). Glossary -- Terms and abbreviations most commonly used in real estate.2). General overview of The Residential Loan Broker Program.3). Setting up your office -- can be done at home.4). Choosing a business name.5). Registering your new business.6). Code of ethics.7). Stationery and business cards.8). All forms needed to submit a residential loan request.
A). Residential Loan ApplicationB). Request For Verification of EmploymentC). Request For Verification of DepositD). Loan Processing ChecklistE). Lender Guideline SheetF). Schedule of Real Estate OwnedG). Fee AgreementH). Credit Report AuthorizationI). Loan Submission Form
9). Residential loan organization guide.
A). Loan-to-value ratiosB). Prequalifying clientsC). Conforming loan amountsD). Usable income and verificationE). Qualifying ratiosF). Amortization chartG). Calculating PITI payments
10). How to determine the amount of loan a client qualifies for.11). Private mortgage insurance.12). Samples and detailed explanations for completion of forms.13). How to find borrowers.
A). Newspaper advertisingB). Word-of-mouthC). RealtorsD). Direct letters
14). How to find lenders.
A). Our Residential Lender Directory lists the major lenders that fund the following type of loans: confirming, non confirming, credit problem, home equity, high LTV, and more.B). Lending sources in your communityC). Direct letters
15). Processing a loan request.
A). MarketingB). Documentation needed for a loan submission
16). How much can you charge?17). Loan closings.18). Lien instruments.
A). What is a mortgageB). What is a trust deedC). Difference between the two
We are proud to include the following testimonialsfrom people who have registered with our program.
"I can't say enough about how much I like your program. It is easy to understand!" -- G.J., Little Rock, Arkansas
"I would like to take this opportunity to thank you for sharing your knowledge and resources of the mortgage business with me. It is because of people like you that make America what it is today." -- M.M., Rapid City, South Dakota
"I must tell you this, I have seen a lot of written training materials and I have been involved in preparing similar material myself, and your brokerage package is excellent. I am truly impressed!" -- W.M., Westville, Indiana
ARE YOU SINCERE IN IMPROVING YOUR FINANCIAL POSITION? Whether you are after $2,000.00 per month part-time, or $5,000.00 - $8,000.00 and up per month full-time, THIS UNIQUE EXCITING BUSINESS OPPORTUNITY CAN CHANGE YOUR LIFE! Residential loans are the number one loan requests in the United States today! Here is your chance to grab your share of the HUGE PROFITS AVAILABLE in this BIG DEMAND broker business. Take advantage of our professionally compiled program today!

http://www.thenoteservice.com

Buying A Home - Mortgage Information

The decision to buy a home can be one of the most valuable and important investments one can make. Therefore it is important that you are familiar with the mortgage process so that you can wisely finance your home. Essentially, a mortgage is just a loan that is used to finance the purchase of property. The property itself is used as security to ensure repayment until you have repaid the entire amount plus interest. There are many types of mortgages on the market and finding the right one can be an overwhelming project. The best approach is to divide the process into manageable tasks. Sit down with a mortgage professional and examine the advantages and disadvantages of all available options to determine which product is best suited to your current situation and future plans.

How to Find the Right Mortgage

Estimate how long you expect to live in the house. If the answer is less than three to five years, consider an Adjustable Rate Mortgage (ARM), which typically starts out with a lower rate. If you plan to live in your new home longer than five years, a fixed-rate mortgage offers protection against rising interest rates.

Shop around for mortgage rates. Banks, credit unions, and mortgage companies all offer mortgages. Compare at least six lenders in your area.

Add up all the costs for each lender. Include fees, points, closing costs, etc., to arrive at the total mortgage cost for each lender.

Mortgage Terms

Amortization Period:The period of time after which, if all monthly payments are made on time and in full, the loan will be paid out.

Down Payment:The amount of money provided by you, the purchaser toward the price of the property (not including legal fees or other acquisition costs).
I
nterest Rate:The actual cost of borrowing money, charged as a percentage of the outstanding amount owed. Usually compounded on a monthly basis.

Mortgage Amount:The total amount of money to be borrowed by you, the purchaser, and applied toward the price of the property.

Prepayment Privileges:The right of the borrower to pay out all or part of the outstanding principal before it comes due.

Term of the Mortgage:The period of time during which the loan contract is active. During this period, you the Borrower makes periodic payments (usually monthly) to the lender and at the end of the term the balance of the loan becomes due and payable.

Interest Rates

What will happen to the interest rates? Some mortgage brokers are believing that the rates will fall a little in the next couple of months. But other analysts believe that rates will not fall due to inflation. Houses have seem to hit the bottom with two consecutive rises, although small, but still rises. The White House needs to stimulate the economy to get away from war issues. My belief is that interest rates fall about a 1/2 % in the upcoming months.

Home Business Opportunities

Working from home is the ultimate experience. There are many different fields and choices to choose from. Travel to real estate, online stores to ebay, and the list goes on. When deciding on this profession, one must choose a pay scale and a working time frame. A budget is also a good idea. Advertising is a key component. There are big hitters and there are nickel and dime run of the mill work from home opportunities that will give you slow but enough income. For more info, check out http://www.thenoteservice.com/home-business-opportunities.html for some great starting points.

Real Estate Investing Knowledge.

If you are looking to get into the real estate market, there are different forms of investing. Foreclosure, pre - foreclosure, for sale by owner, tax liens, flipping, renting. Most of these topics are covered in detail at our website http://www.thenoteservice.com here you can see which pertains to you. There are different types of loans. Private financing is the way to go. Knowledge of real estate investing is the key to success. So check out our free info, and we will be glad to offer any other advice we can. Thank You.