In September 2002, the Discovery Channel debuted a new reality show called American Chopper with OCC as the center piece, greatly conrtibuting to the company’s rapid rise to fame. OCC motorcycles featured on the show included those produced for celebrities and corporate customers around a specific theme, with the Fire Bike among its most popular, designed to commemorate the New York firefighters who lost their lives during 9/11. But beneath the success facade ran an undercurrent of turmoil between Paul Teutul, Sr. and Paul Teutul, Jr. In November, 2010, rumors started circulating about an OCC foreclosure and an episode of American Chopper with a bold headline about OCC’s money troubles only served to propel the rumors into the limelight. Financial problems seemed to follow the Teutul family, which was accused of bankrutcy fraud in 2007.

OCC Headquarters Forclosure

GE Commercial Finance Business Property Corp. was the lender that financed OCC’s new headquarters in the town of Newburgh, New York., holding two mortgages worth $11 Million and $1.5 Million. The OCC foreclosure action alleged that OCC missed payments of $96,400 and $14,000 respectively due in July. With the lawsuit brought by Paul Teutul, Sr. against his own son, Paul Teutul, Jr. in full swing by this time, it became apparent that the Teutul clan may be starting down the road to becoming another statistic of the mortgage crisis.

However, Richard Mahon, the attorney representing Choppers, has asserted that the missed mortgage payments were not due to the company’s cash flow or profits but alluded to a rather novel line of defense, namely the terms of the loans. Mahon stated that OCC intentionally missed its payments as a form of contract renegotiation. Stopping the payments was intended to put pressure on the lender to modify the terms of the loans. The headquarters built in 2007 was at the time valued at $12 Million, but due to adverse economic conditions was now only worth to between $7 Million to $8 Million, according to Mahon’s estimate. The Orange County Industrial Development Agency is also named in the OCC Foreclosure action, since it technically owns the property under a payment-in-lieu-of taxes agreement with OCC, even though ithe IDA is not liable for the back mortgage payments due to a clause in the lease-back arrangement that indemnifies the IDA against default by Choppers.

Orange County Choppers Foreclosure

Thereby, following the logic of OCC’s attorneys, if property values drop, the terms and conditions of the mortgage can and should be renegotiated to reflect the new economic reality. As stated earlier, this is a very novel argument that might not stand up in a court of law. Small wonder that GE Commercial Finance Business Property Corp. decided it was in its best interest to proceed with a OCC Foreclosure lawsuit. Then again, the OCC business itself is not at risk of being foreclosed upon, only the building presently housing the headquarters.

Given that Paul Teutul, Sr. reportedly owns the property surrouding the headquarters, could the OCC Foreclosure still have a somewhat happy ending ?

Foreclosure Consequence if You Own Your Home

You will be forced to feel the foreclosure process if you are the home owner and you’re simply not able to make your mortgage payments. There are times when you can exercise a deal with your lender, but many of the time it will result in foreclosure anyway.

If you’re wondering how you can stop foreclosures it is advisable to talk to a foreclosures attorney but bare in mind if everything has progressed that far its the bank that will wish to take back possesion of the property.

The financial institution will put your home up for auction and then try to sell it as much as they are able to trying to get at least what’s owed on the property. When the property doesn’t generate enough money to pay off the debt then your bank can continue to hold you prone to repay the cash owed.

Losing your house, being not have the ability to purchase another house for 2 to Many years as well as being required to place up a huge deposit are some of the consequences that you’ll experience. Another major foreclosure consequence is the credit score will drastically fall. Foreclosure will be on your report for at least seven years and it will likely be an extended, hard route to get your credit rating ( this will demonstrate what yours currently is ) support.

Renters Foreclosure Consequence

If you be renting a property that you found through foreclosure listings and also the house owner eventually ends up foreclosing on that property there, most likely, will be some consequences that you will need to be ready for. Since under normal circumstances it requires 3 to 6 months for a foreclosure to undergo, you might not know about the foreclosure initially. When the house owner does not divulge any information to you, it is possible you won’t find out until a bank representative comes knocking at your door.

Should you signed an agreement with the property owner, and you are paying an acceptable amount of rent, the bank might try to work with you and accept the rent if at all possible until your lease expires. Once the lease expires, the financial institution will decide what to do then and it will be on the terms.

They do not have to simply accept anything and will have the to evict you against their home if the rent being paid each month isn’t acceptable towards the bank. Be careful whom you rent from since there is a foreclosure consequence if you’re renting a property that’s being foreclosed on.

Fannie Mae is also referred to as Federal National Mortgage Association. It is a government approved group that provides mortgage to families looking to buy own homes. The association was established in 1938 by the US government in order to promote home ownership by providing an alternative mortgage market.

Initially, Fannie Mae was owned by the government, but it has now been transformed into a private entity, thus making it possible for low and middle income households to buy their own homes.

Fannie Mae works by making it easy for households to buy foreclosed homes at very affordable prices. However, the entity does not provide loans directly to consumers. On the contrary, it works with mortgage and financial institutions to help households qualify for loans. If you are looking to own a home, then this is the perfect time for you. The current state of the economy has led to a decline in the price of home’s and as a result, the number of foreclosed homes has gone up. With Fannie Mae, you no longer have to wait to have the right amount of money to get your own home.

Fannie Mae is for Secondary Market Only

One thing you need to know before making an application for a Fannie Mae loan is that the program only works on the secondary market. What this means is that you can only get a home loan for properties that are foreclosed and are reselling and not those that are new. For you to qualify for the Fannie Mae mortgage or loan, you have to show proof of your employment. The program requires that all applicants must have been in employment for a period of not less than 2 years. Applicants who are in self-employment must show proof that they own at least 25 percent of the business.

In addition to meeting the above requirement, you need to approach a lender approved by Fannie Mae. Be careful when selecting a lender since not all of them are approved to provide Fannie Mae mortgage. You also must ensure that your debt to income ratio is not more than 28%. This means that your monthly instalments should not be more than 28% of your income every month.

Fannie Mae mortgage covers a wide range of properties such as town houses, condos and detached homes. It also includes homes that are found in both modest and expensive neighbourhoods. Keep in mind that Fannie Mae homes are offered for sale as-is condition. The condition varies from good, average to poor. At times, the homes are repaired so that they can be sold at relatively high prices while at other times they are left in their original condition.

To apply for these properties, Fannie Mae recommends that you do so through a local real estate agency. These agents make a list of such properties and can advise you on which properties best suit your needs. Thanks to the expanding housing market and Fannie Mae mortgage program, a large percentage of Americans are now able to afford their own homes.

The best place to find the latest information on foreclosed homes is from a foreclosure listing. The main purpose of a foreclosure listing is to provide reliable and timely leads on foreclosed homes available in the market. Thus, you need to pay special attention to such listings if you are planning to purchase a property.

You also need to consider the quality of the listing since it will determine whether or not your property will be valuable in the future. If you are entering the foreclosure housing market for the first time, you will realize that there are two types of listings; free and paid.

The first thing that anyone searching for a property wants to do is to minimize costs. If this is true for you, then you should consider using a free listing. The best place to find such a foreclosure listing is through the internet. However, just because the listing is provided free of charge does not mean that the information contained therein is reliable. You need to ensure that the foreclosure listing you use is accurate, reliable and up to date.

Obtaining Foreclosure Listing

With the help of the internet, obtaining a free foreclosure listing is simple. The listing should provide you with information on properties that are foreclosed or are about to be foreclosed. The online free listing should also allow you to easily search for properties by using several criteria such as price range among others. Keep in mind that free foreclosure listings have a higher chance of providing stale information.

The best source of information for foreclosed properties is from paid foreclosure listing. Examples of paid listing include online listings, bank listings and real estate listings. A paid, online foreclosure listing is managed by a team of professionals, therefore, it is known for its reliable and up to date listings on foreclosed properties. Definitely one of the better ones I have comes across is from foreclosuredeals.com – its updated daily and you can trial it out for 7 days for next to nothing ).

Moreover, since you pay to access this service, you are assured of receiving top quality leads on current and future foreclosed homes. In addition, majority of the paid listings have excellent customer support services and thus you are assured of getting assistance 24/7.

In order to determine the reliability and authenticity of an online paid foreclosure listing, you need to perform a background check on them. Review the history of the listing provider and what its past and present clients say about its services. There are some paid listings that provide trial offers. Take advantage of such offers before subscribing for the full service in order to determine the reliability of the listing.

Apart from online paid listings that are provided by individuals, there are some that are provided by banks. Even though they are limited, bank operated foreclosure listing is known for its reliability and usefulness. Some banks provide such lists on their websites while for others, you have to physically visit their premises and request for a paid listing.

Real estate agents also have good information of the property market and as such, have their own foreclosure listing. These agents use the criteria you give them to provide you with a personalized foreclosure listing that will guide you in choosing a good property.

The Federal Housing Administration ( FHA ) is an instution that provides loans to individuals who want to buy their own homes. Over the years, it has increased the number of loans it provides, and this can be attributed to tightening of credit by mainstream financial institutions.

According to housing data provided by the institution, more than 20 per cent of new home purchases are made through FHA approved loans. FHA loan provides low income American families the opportunity to purchase their own homes.

Unlike conventional mortgages, these loans are insured by the Federal government and are provided to lenders who avail them to consumers.
These loans were first introduced during the Great Depression as a way of shielding lenders from losses that occurred as a result of high cases of foreclosures.

FHA Mortgage Insurance

One of the main advantages of FHA mortgage insurance is that it is available even to individuals with poor credit ratings. In addition, you can still apply for the loan even if you are bankrupt. However, applicants who have faced foreclosures or bankruptcy are only allowed to apply for the FHA mortgage loans 2 years after the event. In addition, you need to provide complete documentation that supports your income status. Such documentation includes tax returns and W2’s. This mortgage allows you to benefit from low down payments and no prepayment penalties.

FHA Down Payment

FHA mortgage insurance requires that you place a down payment of 3 per cent. This is very affordable when compared to the 20 or 30 per cent down payment required by financial institutions for conventional loans. Furthermore, FHA does not set interest rates on the loans. Of course, since the loans are insured by the government, they become attractive to buyers and this makes them have very competitive interest rates.

The criteria for applying for a FHA mortgage loan are a lot simpler when compared to other forms of loans. In addition, the loan can help you refinance your present mortgage. For you to qualify for the loans, you are not required to be a first-time homeowner. However, you only need to apply for a single FHA loan at a time.

To apply for the loans, you need to approach a FHA approved lender, who will go through your application to ensure everything required is provided. Since the loans are insured by the Federal government, most lenders do not hesitate to approve them. This is because the Federal government promises to pay back the amount loaned in the event that the borrower defaults.

Most people get confused when it comes to funding of these Federal mortgage loans. Although the mortgages are insured by the Federal government, they are funded by multiple sources. It is for this reason that you need to shop around searching for the best terms and conditions on the loans. Each FHA approved lender will have different requirements and conditions that need to be met before approving the loan. To obtain better rates, it is advisable to compare FHA mortgages from two or more lenders.

Nowadays, the popularity of HUD homes is on the rise. This is because the process of buying such properties is simple and the homes are provided at very good bargains. HUD homes are properties that are provided by the government to families with low or medium income.

The properties are provided through various housing programs started by the government with the aim of allowing low and medium income families to experience home ownership.

So what does HUD homes mean? First, HUD refers to the US Department of Housing and Urban Development. This is the lead agency that supervises the housing sector and is involved in initiating programs that are geared towards improving housing. It provides affordable loans and grants that allow families to buy affordable homes.

HUD homes are those that have HUD mortgage and are repossessed if the owner fails to make payments for the mortgage. HUD then tries to sell the home via real estate agents and contractors as quickly as possible and at a good market value.

A HUD home can be found in nearly all neighborhoods all across the country. The homes are available to anyone who can pay cash, although they are mostly reserved for low income and middle-income families. Any person who qualifies for a loan is also eligible for the HUD homes. Even employees and relatives of HUD employees are eligible for the homes but must first receive written permission from HUD’s director.

Affordable HUD Homes

Even though HUD homes are eligible for those who qualify for them, investors can still find good homes at affordable rates. The department of housing sometimes sets priorities on the homes from specific sectors of society. For example, fire-fighters, police officers and teachers can get the homes at half the market price of the property. Other specific people who are given priority over the homes are single mothers and people with disability.

The HUD homes are sold as foreclosed or new properties. Regardless of the type of home you are looking for, the information is easily available from online listings and property dealers. The information about the HUD homes is also available from construction companies contracted by HUD.

The process of buying HUD homes is straight forward. The first step is to find a HUD real estate agent who will guide you through the process of selecting a good home. Usually, HUD provides a weekly list of homes that are available for sale. The real estate agent will take you to visit the property and provide you with all the information you need about the property.

The next step to take is to place a bid on the HUD homes. The agent should work with you to prepare the necessary documents. If your bid is selected, the agent will inform you and avail to you a contract that must be returned to HUD within 42 hours. You can then pay for the homes with cash or apply for a FHA loan. Keep in mind that HUD will allow you a period of 45 days to fulfill your financial obligations for the HUD homes.

The popularity of buying bank owned homes – REO is on the rise. The current state of the economy has led to a fall in the price of houses. Therefore, very many households have been forced to foreclose their homes.

Foreclosure has created numerous opportunities for people to buy houses at discounted prices. REO refers to real estate owned, usually by the bank. This is a situation whereby a bank takes possession of a property due to the failure of the homeowner to pay the mortgage.

When the home or property has been repossessed by the bank from the original lender of the mortgage, it is referred to as REO or real estate owned. Usually, when a homeowner defaults on the mortgage, the bank auctions the home. In the event that home is not bought, it is declared an REO. Banks have specific departments that deal with people buying bank owned property – REO, thus you are assured of receiving the right advice.

Advantages of Buying Bank Owned Homes – REO

The main benefit of buying bank owned property – REO is that the homes are offered at a significantly lower price. In fact, majority of the REO are priced at 10 to 20 percent below the home’s market value. This is one of the reasons why such homes are a good investment deal. Unlike in foreclosure, where the ownership of the home takes long before being transferred to the owner, REO homes are offered with clean title. The transfer of ownership is also a quick process.

When bidding for a home in foreclosure auctions, it is sometimes difficult to carry out a detailed inspection of the property. Contrary, when buying bank owned property – REO, the buyer is given the opportunity to inspect thoroughly the property before buying. Even though some of these REO properties require minor repairs, the low-cost of the home makes it easy for the buyer to pay for repairs. Banks usually sell properties that require major repairs at very low prices.

Buying bank owned property – REO, is a less overwhelming process when compared to buying the same property through a foreclosure auction. Unlike in foreclosure auctions where you are supposed to make fast decisions with limited information, buying bank owned property – REO gives you adequate time to make your decisions and view the property.

When buying bank owned homes, you are likely to benefit from flexible terms and conditions. This is because banks are much more willing to negotiate for the terms and conditions of the properties. With REO, banks will provide you with better financing options compared to what you would get from traditional property deals.

If you are looking for a good deal on a home, you should consider buying bank owned property – REO. You can get in touch with bank agents who will provide you with a list of properties to choose from. When buying bank owned property – REO, make sure to carry out thorough research by visiting the various REO property listings provided by the banks.

Understanding the difference between short sale vs. foreclosure is important. Unlike the term foreclosure, short sale is a term that most people are familiar with. This is because it is more common to hear of short sale transactions and rarely about foreclosures.

Short Sale Vs. Foreclosure Dissected

In the real estate business, more and more people tend to opt for the short sale vs. foreclosure. The short sale is increasingly used as an avenue to forestall a foreclosure. It is no secret that more and more property owners are increasingly finding it difficult to meet their tax obligations.

Opting for a short sale vs. foreclosure is when one chooses to make an offer of a much lesser amount than what is owed to the creditor. There are a few more factors that surround the entire transaction before it becomes legally binding. When all is said and done short sale is a much better alternative than waiting for a foreclosure.

The negotiations and deals that surround this whole process are quite complex, and unless one is a professional, it may be difficult to navigate through. Processing the paper work normally takes several weeks; therefore, it is always a good idea to take as short time as possible.

If you are trying to make a decision between short sale vs. foreclosure, one will be in a much better position if they understood what foreclosure is. It is not a very common process since most people always prefer the short sale to it. The real estate experts will often advise an individual on ways to prevent a foreclosure.

It is very rare for anybody to benefit from a foreclosure. This is the reason why it is a rare occurrence. People would rather choose the short sale rather than foreclosure. In order to prepare for the worst, it is fundamental to understand what foreclosure is.

Home foreclosure can be initiated immediately after somebody misses the first payment. There is no time frame that has been set within which it can commence. It is a decision that a lender has to make based on the indicators that have been set. Therefore, understanding the different types of foreclosures available will help whoever is initiating the process to choose the best alternative.

When it comes to choosing between short sale vs. foreclosure, it is also beneficial for the defaulter to understand the available options. This will put one in a position to negotiate for what they feel is convenient for them.  However, it is also good to point out that there is no pleasant foreclosure process. The home owners are rarely enthusiastic about the whole process, and as a result, they will not be willing to disclose their details.

If one intends to purchase property that is foreclosed, It is good to know what goes on behind the scenes between a short sale vs. foreclosure. This will insulate an individual from making decisions that will expose them to significant losses when going for a foreclosed property. Having prior knowledge of the circumstances that surround a short sale vs. foreclosure will help one make informed decisions.

Tax lien certificates are an inevitable part of the real estate business. Explaining what it is may not be a very easy thing to do.

However, one of the best ways to understand it is by knowing that all real estate property is normally taxed by the respective municipalities or counties. Depending on the administrative units that have been set up, you will pay taxes to them.

The taxes are normally collected for the purpose of offering other services to the residents. Property taxes are one of the main ways that governments raise revenue. This is where tax lien certificates come into play.

Who Issues Tax Lien Certificates ?

If an individual defaults on his property tax obligations, the taxes payable increase with each default. Eventually, it will reach a level that will force the municipality to auction the property in a bid to recover the monies owed to it in the form of property tax. It is at this point of giving notices of auction that tax lien certificates are issued.

Issuing of tax lien certificates is the legal way of dispossessing an individual of their real estate property. Without issuing such certificates, any transaction on the said property will be deemed illegal.

It is this tax lien certificates that give the local governments the legal basis on which to collect property taxes to use in running the affairs of government. This document is the one that shows the taxes that are due on a certain piece of property.

Potential investors can then use it to pay the necessary taxes on the property. Both parties benefit from this arrangement in that the government gets revenue, and the investor gets a low-risk certificate. This certificate has very high yielding interest rates that normally range from ten to fifty percent.

The risks that surround tax lien certificates are not many. It is for this reason that they attract relatively high interest rates. However, it is unwise to rush into buying tax lien certificates without taking the time to understand how they operate and what they represent. This can very easily lead to significant losses on the part of the investor.

As an investor, one can very easily end up with a property that has been overpriced, or offers very little return on the investment made. It is, therefore, importance that one takes a lot of time and does thorough research before bidding on any tax lien certificates. It is your responsibility as per the law for a potential investor to check the zoning of properties to ensure that they are usable.

The fact that an investor buys tax lien certificates does not give them the ownership rights of the property. This is simply a legal platform on which people can buy the rights to use certain pieces of property for a specific period of time. It is fool hardy for an investor to think that they now own the property covered by tax lien certificates cover. It is also good to know that profits generated from the use of that property are not tax exempted. Whatever one engages in, the relevant taxation laws apply. Finally, if you are smart, tax lien certificates are an ideal investment.

This marks the beginning of the foreclosure process. The public default notice is also known as Lis Pendens (suit pending) or a Notice of Default.

The other side of the coin of course is how to stop foreclsoures. There are four main different ways to stop the foreclosure process:

• The borrower or defaulter pays off the amount of the default during the grace period or pre-foreclosure period. By doing so, the borrower or defaulter recommences the loan.

• During the pre-foreclosure or grace period, the borrower or defaulter is allowed to sell off the property to a third party. The proceeds from the sale could be used to pay the usurer or lender’s loan. The borrower or defaulter will not have foreclosure on their credit history.

• At the end of the pre-foreclosure or grace period, the property could be put up in an auction. If it is sold to third party, the proceeds will go to the usurer or lender. This would instate a foreclosure record on the borrower’s or defaulter’s credit history.

• The usurer or lender repossesses ownership of the property, with means to re-sell it. There are two ways for the usurer or lender to take ownership of the property, either by making an agreement with the borrower or defaulter, or by purchasing the property back at the public auction.

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