SEIZED REAL ESTATE MARKET IS HOT! EVERY MONTH THOUSANDS OF PROPERTIES BECOME REPOSSESSED BY BANKS, STATE, FEDERAL AND PRIVATE ORGANIZATIONS THROUGH VARIOUS SEIZURE AND BANKRUPTCY LAWS. THOSE PROPERTIES COULD BE PURCHASED THROUGH AUCTIONS AT A FRACTION OF THEIR ACTUAL MARKET VALUE! FIND ONE FOR YOURSELF TODAY OR START BUILDING WEALTH!

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Almost forgot!

Larry does a fantastic teleconference for his students every Thursday.
Does it cost you anything?
Nope!

You can click here or save this link to hear and download this excellent free resource now.

THIS IS SUPER-ADVANCED STUFF FOR SERIOUS GUYS AND GIRLS ONLY BECAUSE IT WILL TAKE YOU DEEP INTO THE WORLD OF MAKING HUGE REAL ESTATE INVESTING PROFITS………..FASTER THAN YOU EVER DREAMED POSSIBLE!

AFTER YOU LISTEN TO THE TELECONFERENCE, IF YOU’D LIKE TO BUY HIS PACKAGE, PLEASE CALL US AT 518-786-8896, You’ll get a special deal for foreclosurefox readers only.

by Contributing Author
Todd C. Burnham, Esq.

The due-on-sale clause, also known as the mortgage acceleration clause, is a provision in a mortgage document which allows a lender to demand immediate full payment of the remaining loan balance once the property is sold or transferred. Due-on-sale provisions are enforceable under the “Garn-St. Germain Federal Depository Institutions Act” (12 U.S.C. 170-j). Once title is transferred the lender has the right to declare the loan due. Unless you have successfully negotiated with the lender to allow your loan to be assumable, your loan is FHA-insured and originated before 1989, or your VA-guaranteed loan originated before February 1988, chances are your loan contains a standard due-on-sale provision.

Why discuss the due-on-sale clause?

We discuss the due-on-sale clause because homeowners regularly violate this contractual provision when they allow investors to assume their mortgage without notifying the lender. Homeowners regularly engage in this practice because it allows them to “save” the earned equity in their homes rather than the property being sold at auction. Investors regularly take the property subject-to the existing mortgage because there are little to no additional closing costs. Traditional financing often requires money down, lender fees, attorney costs, property insurance and title insurance. Taking a property subject to existing financing typically requires little or no money out of pocket.

A homeowner who is facing imminent foreclosure may decide to enter into such an agreement if there are no other options available. The investor takes title to the property subject to the existing mortgage, immediately reinstates the defaulted loan by making any and all payments necessary to bring the loan current, maintains the property and makes necessary repairs and improvements, and sells the property for full market value. The investor and homeowner then share profits in accordance with their pre-transfer contract.

Is this practice illegal?

In my opinion, taking a property subject to the existing mortgage is not illegal; that is, unless you are in violation of criminal law, code or statute. Federal laws possibly applicable are 18 United States Code Section 1001 and Section 1010 and address falsifying material facts or representations and making false statements in regard to a loan insured by HUD, respectively. Applying either to a subject-to situation is a bit of a stretch, but nonetheless could be used against both the homeowner and the investor should the situation warrant the same. In New York State, the new Home Equity Theft Prevention Act specifically precludes this practice when engaging in a reconveyance arrangement with the homeowner (Section 11 (b) (iv)).

Investors that use this technique are susceptible to criminal liability when they engage in conduct that puts the homeowner in a worse position than they were before and/or they engage in practices that are unscrupulous and/or resemble bad faith performance. Such examples are:

• The payments to the lender were not made on time or were not made at all
• The investor did not inform the seller of the risks or adverse effects to the seller
• The investor gave legal advice
• The investor did not keep the seller informed or failed to return calls
• The investor implied a payoff in the near future
• The investor otherwise took advantage of an unsophisticated seller or made misrepresentations
• The investor acted in a dishonest and deceitful manner

Rest assured that the Attorney General will call you if you are even perceived as being a scam-artist or a predator, preying on those less fortunate than you. Those terms will likely be included on the front page of the newspaper when the story runs on the front page.

Civil Liability For Investors

While lenders may have a cause of action against you for tortious interference with contract, they will likely be content just reviving their non-performing asset. More likely is the investor who doesn’t do what he/she says he will, or who performs in a manner that takes advantage of the situation. Making a usurious loan, and the money owed to the investor being deemed so, is a more likely outcome. Of course there is always the very real issue of being sued by the homeowner/seller once the final transaction is complete. Missing one payment will expose you to a civil action by the homeowner and will expose you to the Attorney General’s involvement. Do you see where this is going?

Taking title subject to an existing mortgage is dangerous, for both you and the homeowner. Homeowners have a number of options available to them, such as loss mitigation and refinancing the property, before this last option should be considered. Even if successful, there is no guarantee that problems will not later arise for both parties. This column is for informational purposes only, and I strongly suggest that both the homeowner and the investor seek independent legal counsel before engaging in such practices…if at all.

Attorney Todd C. Burnham is also a member of NYREIA. (The New York State Real Estate Investors Association) If you would like to learn more about becoming a NYREIA member and investing in NY State, please contact Matt Landry at 518 956-4841

JUST CLICK HERE for a free list of foreclosures in NY.
(Other states available)

Want to learn more about investing in NY? Join us at the NY State Real Estate Investors Association every third Tues at the Bulmer Telecomm center at HVCC in Troy, NY.
Call Matt at 518 229 5784 for details.

Are you a business owner with a product or service for home buyers and sellers, for landlords, for investors, in the upstate NY area?

NYREIA (The NYS Real Estate Investors Association) and Professional Real Estate Investor Magazine can help put your product or service in front of thousands of active investors and homebuyers in the Capital Region area of NY at a very low cost.

NYREIA holds large investor events at the Bulmer Telecom Center at HVCC every third Tues. We draw hundreds of investors every month to these events and our weekend workshops and more.

If you have a product or service that would benefit the investors and landlords that make up our membership, please consider joining the association as a business member so that you could host a vendors table at our events and benefit from many other ways to get your company in front of our membership.

Additionally, I produce the Professional Real Estate Investor Magazine, which is entirely property investment focused and is also used to promote events and encourage attendance at our monthly events.

We use a professional distributor and now have over 500 locations where the magazine is available monthly for free in Albany, Saratoga, Schenectady, Fulton, Montgomery, Warren and Dutchess counties. It is not necessary to be a NYREIA business member in order to advertise, although you’ll receive a discount for ads if you are a member.
The ad deadline is the 17th of every month for the following month.
We also mail magazines to our own membership and to the membership of SSSAR.

UPDATE: Pro Real Estate Investor has been discontinued. If you would like info on Infinia Media’s most current magazine, please see http://www.518list.info

JUST CLICK HERE for a free list of foreclosures in NY.
(Other states available)

Want to learn more about investing in NY? Join us at the NY State Real Estate Investors Association every third Tues at the Bulmer Telecomm center at HVCC in Troy, NY.
Call Matt at 518 229 5784 for details.

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JUST CLICK HERE for a free list of foreclosures in NY.
(Other states available)

Want to learn more about investing in NY? Join us at the NY State Real Estate Investors Association every third Tues at the Bulmer Telecomm center at HVCC in Troy, NY.
Call Matt at 518 229 5784 for details.

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JUST CLICK HERE for a free list of foreclosures in NY.
(Other states available)

Want to learn more about investing in NY? Join us at the NY State Real Estate Investors Association every third Tues at the Bulmer Telecomm center at HVCC in Troy, NY.
Call Matt at 518 229 5784 for details.

Pack your lunch, because you’re going for the ride of your life and we’re not stopping!

Buyers Choice and 1st Metropolitan Mortgage are lining up several properties for us to go out in the field and see. We’ll have a home inspector on hand to let us know what’s wrong with them. We’ll have an appraiser to tell us what they are worth in their present condition and what they’ll be worth after they’re fixed and ready to flip! Buyers Choice will make the offers for us and 1st Metropolitan will get us the money. This is going to be fun! If you’re afraid to make the offer than tag along and see how the pros do it.

We’ll leave at 9 AM sharp and hit several properties in the Capital District. Who knows we might even end up owning a few of them.
GET ON THE MONEY BUS!

Don’t forget to bring your flashlight, wear decent “work boots”, dress appropriately because a vacant house with no heat is colder inside than it is outside.

Not sure if you want to go because you’re afraid that maybe the property won’t be in “your” target area. A deal is a deal no matter where it is. You’ll have some real pros with you who would partner up with you on the project and who knows you might even be able to flip the property on the bus! Don’t forget to pack your lunch, because we’re not stopping.

Call Matt at 518 956-4841 for reservations or just email mlandry@nycap.rr.com

JUST CLICK HERE for a free list of foreclosures in NY.
(Other states available)

Want to learn more about investing in NY? Join us at the NY State Real Estate Investors Association every third Tues at the Bulmer Telecomm center at HVCC in Troy, NY.
Call Matt at 518 229 5784 for details.

JUST CLICK HERE for a free list of foreclosures in NY.
(Other states available)

Want to learn more about investing in NY? Join us at the NY State Real Estate Investors Association every third Tues at the Bulmer Telecomm center at HVCC in Troy, NY.
Call Mat at 518 229 5784 for details.

If you are in the Albany NY area on 3/17 9am to 4pm – $69.00 members $99.00 non members .
If you’re tired of being a landlord but still want a good monthly cash flow, or if you’re a real estate note investor who can’t find any good-yielding paper, or if you just want to make MORE MONEY, you need to attend this workshop!

You’ll learn in detail how you can earn yields of 50% to 175% on mobile homes. Learn to buy, sell, and finance used mobile homes for big profits and generous cash flow.

This workshop covers everything you need to get started earning awesome yields with minimum hassle, including:

* The best kinds of mobiles to buy
* Eight ways to find low-priced mobile homes
* How to negotiate an even lower price
* How to determine necessary repairs (tips and tricks to save even more money on the rehab)
* How to create a sellers market when it’s time to resell
* How to get started with as little as $3,500
* And much more

If you’re tired of tenants, or 12% real estate paper, or if you just want to make more money, register for this workshop right now.

Call Matt at 229-5784
or email mlandry@nycap.rr.com to reserve your seat or sign up as a member.

ALBANY, NY– (02/14/2007; 0955)(EIS) — The New York State Real Estate Board will conduct a public hearing on general real estate issues on Wednesday, March 14, 2007 at 10:30 a.m. at Department of State, Alfred E. Smith State Office Building, 80 South Swan Street, 10th Floor Exam/Conference Room, Albany, NY. The Board will hold an open board meeting immediately following the public hearing at the same location.

Should you wish to participate in the public hearing, attend the board meeting, or require further information, please contact Carol Fansler (cfansler@dos.state.ny.us) at 518-486-3857. Please always consult the Department of State website (www.dos.state.ny.us/about/calendar.htm) on the day before the meeting to make sure the meeting has not been canceled. If you plan to attend, please consult our web site (www.dos.state.ny.us/lcns/licensing.html) for instructions on pre-registering in order to gain access to the meeting location.