We povide real estate solutions, whether you are a homeowner experiencing financial difficulties, a first time home buyer or an investor looking to invest in real estate we offer guidance through the whole process.
The current U.S. housing market and national financial crisis has caused untold stress and heartache for many American families. Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. The options available to Los Angeles -area residents for foreclosure are many. Following is a brief explanation of these solutions, including their benefits and drawbacks:
Reinstatement
A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender's approval and will 'reinstate' a mortgage up to the day before the final foreclosure sale.
Forbearance or Repayment Plan
A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.
Mortgage Modification
A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.
Rent the Property
A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, is able to convert their property to a rental and use the rental income to pay the mortgage.
Deed in Lieu of Foreclosure
Also known as a 'friendly foreclosure', a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.
Bankruptcy
Many have considered and marketed bankruptcy as a 'foreclosure solution,' but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.
Refinance
If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.
Servicemembers Civil Relief Act (military personnel only)
If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief.
Sell the Property
Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.
Short Sale
If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.
This represents only a summary of some of the solutions available to homeowners facing foreclosure. Please call me today for a free confidential evaluation of your individual situation, property value, and possible options.
Investment Strategy - Real Estate Investment
TPG’s investment objective is identifying opportunities in real estate or real estate related investments.
Real Estate Investment Considerations:
Capitalize on Market Dynamics and Inefficiencies – TPG constantly monitors the real estate markets, identifying themes by asset class or geography. By focusing on these themes, TPG has been able to invest ahead of trends.
Favorable Current Cash Returns – TPG targets investments in assets that provide its investors with stable, favorable current cash returns.
Create or Exploit a Competitive Advantage – TPG believes that its reputation, built over many years, combined with its extensive network of relationships provides TPG with proprietary transaction opportunities and a competitive advantage in many situations.
Conservative Underwriting – TPG pursues a disciplined real estate investment approach identifying attractive opportunities with significant upside potential and controllable downside protection. TPG utilizes rigorous due diligence, conservative assumptions and careful assessment of downside scenarios before acquiring a property.
Prudent Use of Leverage – TPG aggressively manages the capital structure of a real estate investment, utilizing prudent leverage, obtaining financing on the best terms available in the market in order to provide transactions with increased downside protection.
Real Estate Investment Focus – Due to its size and reputation, TPG is presented with thousands of opportunities per year. However, it focuses only on deals that fit its strict real estate investment parameters.
Exit Strategies – TPG only commits to investments that offer clear, realistic multiple exit strategies primarily through refinancings, sales to private investors, institutions or public REITs. TPG believes that a disciplined approach at the time of investment enables it to better assess exit alternatives as they arise.
Purchasing a new home is a big step, especially for first–time buyers. Most people’s concerns center on affordability, so take a look at your financial situation.
Crunch the numbers to decide if this is the right time to buy.
Mortgage rates are historically low, and homes are well off their highs of a several years ago. That’s great for buyers!
With interest rates near historic lows, now is the terrific time to apply for a home mortgage or refinance an existing one.
Consumers must choose a loan that’s most appropriate for their financial circumstances. Here is an overview of today’s most common mortgages.
Most markets changed significantly during the last several years, and they’re changing again. You need top representation to navigate today’s real estate opportunities and challenges.
Titan Pacific Group knows your market, and is keen on home valuations, comparable sales and negotiations, as well as marketing and home staging. Working together, you can place your home in the best light, and at the right price, that will have you packing for your new home.
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