Newsletters

While it becomes everybody’s job to attend holiday parties and shop for gifts during the six weeks between Thanksgiving and Christmas, the last thing on people’s minds seems to be actual work.  

This is a bonus for Default Research clients because the foreclosures still continue to occur at the courthouse.  Default Research does not slow down in those six weeks as we continue to provide you with the freshest leads in the business and, as our productivity remains at a constant high level, your profits can increase.

See, the weeks between Thanksgiving and Christmas are an excellent time to be in the foreclosure market.  With many investors “pausing” during this time, it is an excellent opportunity to spread some holiday cheer for yourself and a family in distress.  By purchasing a property at a discounted rate from a family in distress you are helping them out of a terrible situation and putting profit in your pocket.   

For now, enjoy the newsletter and keep the great feedback and positive comments about our new educational Web site coming (http://www.newsletter.defaultresearch.com).  In this month’s issue, one of the highlights for Default Research is the transcript of our interview with Illinois State Senator Jacqueline Y. Collins (D—Chicago).  Collins sponsored Senate Bill 1167 that will significantly curtail the ruthless practices of some mortgage companies in Illinois.  The bill is still waiting to be signed by Governor Rod Blagojevich but Collins was happy to talk with Default Research about SB 1167 and her strong thoughts on the foreclosure crisis in Chicago and Cook County.

Remember, as the holiday season approaches, don’t slow down one bit.  As you can see from this months Homestand newsletter, foreclosures are still on the rise all over the country and will continue to provide opportunities in the next several months. 

Earlier this month, Default Research had the pleasure of talking with Illinois State Senator Jacqueline Collins (D – IL) about her role in SB 1167.  The Senator explained the purpose of SB 1167, which is designed to curb predatory lending in Illinois, and how important the legislation was to her state.  At the time of publishing, Senator Collins was eagerly waiting for Governor Rod Blagojevich to sign her very important bill.       

 DR: Senator, thank you for speaking with us about the very important topic of predatory lending.  It seems the nation is just waking up to the national foreclosure crisis, when did you first realize the problem in your district?

 Senator Collins: Two years ago the predatory lending problem was brought to my attention through community programs that were dealing with the high rate of foreclosure.  For example, the Southwest Organizing Project (SWOP) in Chicago, which is part of my district, was dealing with the growing problem.  Basically, it was a constituency based problem that I heard about through families.  We actually tried to bring out the issue two years ago but nobody felt it was that important or that it would have an impact behind the victims.  To get attention the issue has to have a residual effect on the prime markets and Wall Street.  Once it started impacting Wall Street, it became a national crisis and the Fed stepped in to help investors.    

DR: Can you talk to us about SB 1167 and what are the goals of the legislation?

Senator Collins: SB 1167 makes the law county wide but not zip code or credit score based.  The only requirement is that you are a first time home buyer who might be unfamiliar with the home buying process.  We have found that much of the abuse occurs at point of refinancing with no lawyer present so the buyers deserve and need some assistance in the complicated process.

DR: The foreclosure problem seems to stretch across racial lines, do you agree?

Senator Collins:  There was actually a use for sub prime products because communities of color were denied access to deal with banks.  Then, greed forced people to not consider the interest of the buyer and predatory lending began to take off.  This has been a problem for African Americans, seniors, low income families and minorities.  Most of those individuals make up the urban part of my district.  When greed enters the picture, it is not a color issue anymore.  My community members have fallen prey to the 3-5 years arms with the exotic teaser rates at the beginning and people do not understand what happens when they reset. 

DR: I know this is a tough question to answer, don’t the families who were preyed upon with these loans have some accountability too?

Senator Collins:  I think personal responsibility is important and I think that is why people have to be educated.  For some people, buying a house is a once in a lifetime experience and some people are so eager they might make mistakes.  Therefore, the lender and borrower need to shoulder much of the blame because it is so easy to be tempted as the middle man to act in self interest.  Once the contract is signed they are no longer responsible for the product and what might happen.  The focus of many of these predatory lenders was monetary reward and not to provide the consumer with the best and safest product.  There has to be more oversight.  If more mortgage brokers had been more concerned with the consumer we would not be facing this problem. 

DR: Seems like both sides need to be responsible in the future so the predatory lending is not able to continue?

Senator Collins:  Yes, people need to be educated and be aware of what they are signing and the lenders need to educate.  We don’t want to stop them from going ahead with the loans because these loans do serve a certain classification of ownership - just be aware of what they are signing.  We need a system of checks and balances where the broker takes extra steps so that when an ARM resets, the consumer will be able to pay.  Again, there needs to be more accountability on both sides at this time.  People want to blame the victim but if most people understood what they are getting into, they might take a step back.  The statistics speak for themselves with Illinois foreclosures up 55 percent and those stats show there is something amiss in the process.  It is not a perfect piece of legislation, but we are trying to step in and curtail the predator lending process.  We know though that some people are still going to lose their homes. 

DR: Default Research firmly believes in educating our clients and any other consumers who might be at risk.  Your thoughts on our work?

Senator Collins: I think anything that serves as a consumer protection is a valuable service to have in this country.  It helps to know there are resources out there.  Most people have access to the Internet and this is a phenomenal tool to gain necessary, impartial information, like what Default Research is offering.  This increases the possibility that people will not be taken advantage of and will benefit them going into these contract situations where they are very vulnerable.  I purchased my house four years ago and I went through our neighborhood housing services to understand what I would be confronted with.  I found a lot of items I did not like in the contract and got them changed.  The better a consumer is armed with information the better decisions that can be made.  And, this is not only for the individual buyer but it also benefits everybody because foreclosure hurts everybody.  Families hurt, we lose investors in the district with a high foreclosure rate and it really destroys people’s lives.  Well educated people makes for a better democracy and it allows people access to the American dream of home ownership without it reverting to a nightmare.

DR: Thank you Senator Collins and we look forward to seeing Governor Blagojevich sign your important bill.

Senator Collins: Thank you!

Foreclosure Rates Provide Opportunity To Help And To Profit    

Foreclosure filings since September 2006 in Arizona have increased 310 percent, while in California they rose 422 percent and Florida’s foreclosures are up 316 percent, according to Default Research (www.defaultresearch.com), the fastest growing foreclosure research company in the nation.      

The company is also reporting that over the past month, the counties in each of those states that lead in new foreclosure filings are Maricopa County in Arizona (an increase of 2,127), Los Angeles County in California (5,940 new filings) and Florida’s Broward County (1,141 foreclosures).

“In our extensive national coverage, these three states had some of the largest foreclosure increases in the past year,” said Serdar Bankaci, President/CEO of Default Research. “Many properties around the country -- and especially in Arizona, California and Florida -- are being returned to the banks through the foreclosure process.  With escalating home inventories up, home sales down about 13 percent from last year and median home prices remaining relatively stable, the market is pretty dismal.” 

The outlook is not bleak for Default Research customers.  Bankaci is quick to point out that this is actually a perfect time for the savvy real estate investor to turn a foreclosure into profit. 

“Residential vacancy rates have dropped in 2007 and that has created a demand for rental homes,” said Bankaci, whose company provides foreclosure leads two to three weeks ahead of the competition.  “You can earn rental income and also reap profits from appreciation as the market begins to turn in the coming years.  Rentals will continue to be desirable as homeowners may be unable or unwilling to obtain credit from lenders.”

While Bankaci and Default Research are always trying to offer their clients foreclosure advice to help families in distress and realize a profit, the company does not see inflating foreclosure statistics as an appropriate method of increasing their own business.  In fact, Bankaci proudly points out the accuracy and dependability of his foreclosure statistics as some major newspapers around the country begin to report that certain foreclosure research firms are over-reporting statistics for self gain. 

 “While our numbers seem lower or conservative compared to other foreclosure research companies, I know they are accurate and I am confident that each foreclosure property is counted only once,” said Bankaci.  “I have known for years that many firms report the same property in their statistics between five to ten times, which severely over-inflates their numbers.  Default Research only reports a specific property once as it proceeds through the foreclosure process, and this is a much more accurate representation of the current market.”

For a full listing of all of the foreclosure statistics in the counties covered by Default Research, please go to www.newsletter.defaultresearch.com.  With an emphasis on educating people about the foreclosure crisis, Default Research also offers extensive foreclosure resources, links to free informational teleseminars, and a link to their growing national monthly foreclosure education newsletter, The Homestand. 

Are Sheriff’s Auctions Right For You?

By:  Jeffrey Ringold
Copyright 2004.  All rights reserved.

Public Auctions or Sheriff’s Auctions are not for the novice real estate investor.  Generally they are the most risky time to purchase foreclosed property.  This is not to say that they can’t be an overwhelming profit center.  There is no doubt that auctions can yield major returns.

What happens at an auction is generally very similar in all states.  Some states will auction the property in a courtroom and others will literally auction the property on the courthouse steps.

At an auction there will typically be a referee who handles the bidding.  Most likely there will be a representative from the bank that is foreclosing, and there will be some investors present, and others just interested in what is happening.

The bidding at an auction will start at whatever is owed to the bank, plus legal fees. Like preforeclosures, auctions are a good time to buy property at below market value. Buying below market value will give you equity.  I have seen properties sell for half price at auctions!

You can find great deals at auctions, but there are also many pitfalls, particularly for novice investors. One major obstacle with auctions is you generally need to pay cash, on the spot, for the property. This alone eliminates 95% of people from buying at auction.

Another drawback to auctions is that the homeowner is given a redemption period. Typically, the redemption period is six to twelve months. From the time the house sells at auction, the homeowner has the right to buy it back for what it sold for plus interest.   This means you could buy a house at auction and might have to sell it back to the original owner during the redemption period. Additionally, if the homeowner does not move out at the end of the redemption period, it becomes your responsibility to remove the tenant through the eviction process.

Public auctions are very easy to find. Just call your local county assessor’s office and ask whom you need to speak to regarding sheriff’s auctions.

About The Author:

Jeffrey Ringold is the author of ‘How To Build A Massive Fortune Through Real Estate Foreclosures’.  He is a licensed real estate agent and investor who has bought or sold over $12 million in real estate over his 7 year career.  He is consulted by leading real estate developers and investors almost daily.

For more information on real estate investing and foreclosures, visit his web site at: http://www.MassiveForeclosureProfits.com

Order the freshest leads from any Default Research county for six or more months and receive a free copy of, “The Pre-Foreclosure Real Estate Handbook: Insider Secrets to Locating and Purchasing Pre-Foreclosed Properties in Any Market.”

Be sure to check out the forward in the free book written by Default Research President/CEO Serdar Bankaci.  Again, to get your free copy, order any county for six months.  To order please call 888-211-8396

513 New Foreclosures Filed in One Month in Mecklenburg County

The number of foreclosures in Mecklenburg County in September 2007 has increased from 511 to 513 new filings over the same time last year, according to Default Research (www.defaultresearch.com), the fastest growing foreclosure research company in the nation.  The company’s very current foreclosure statistics also showed that Mecklenburg County decreased last month from 560 foreclosures in August to 513 in September.

“Truth is, while several major cities around the country are suffering through a foreclosure crisis, Charlotte has actually avoided the problem and is fortunate to still have home prices continuing to increase,” said Serdar Bankaci, President/CEO of Default Research.  “It is also important to note that many of the Mecklenburg foreclosures are ‘starter’ homes, purchased by people who realistically could not have afforded them in today’s market.”

Homeowners’ being forced to sell presents a win-win for Default Research clients in Charlotte because an investor with the Default Research leads can be the first to approach the owner, help them out of financial trouble and also profit by buying the property at a discounted price.   

“Keep an eye on Mecklenburg County’s north and east sides for great purchases where the properties are already a bit cheaper,” said Bankaci, whose foreclosure leads arrive two to three weeks ahead of the competition.  “With our leads, a person can very easily buy a home for less and in a location that, according to the US Census Bureau, is one of the top 100 fastest growing counties in the country.  And, you can’t find those deals in many other areas in the country.”

Default Research is the national leader in foreclosure research. More information about Default Research can be found at its Web site: www.defaultresearch.com.  For complete Default Research foreclosure statistics, an informative newsletter and educational resources please visit http://www.newsletter.defaultresearch.com.

"Imagine Being Able to Consistently Get Seller's To Sell At A 20% to 50% Discount!"