Beverly McMillon Realty
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Real Estate Terms and Resources
1031 Exchange - Allows an investor to defer paying capital gains taxes on an investment property when it is sold, as long as another like-kind property is purchased with the profit gained by the sale of the first property.
Tax Lien Certificate - is a 1st position lien on real estate due to delinquent property taxes. Once property taxes on a property are 1 year delinquent, the county government will offer a tax lien certificate on the property. It pays fixed rates of returns from 8% to 36% interest per year depending on which county you’re investing in. The price of the tax lien certificate is the amount of one years back taxes and penalties, and can range in price from under $100.00 to hundreds of thousands of dollars. It is secured by the property, similar to a mortgage, except by law, and takes priority over a mortgage.
Judicial foreclosures - This means that in order to foreclose, a lender must file a lawsuit in the state court in the county where the property is located. With a non-judicial foreclosure, the lender does not have to go through state court. To fully understand how a judicial foreclosure works, you must understand the difference between a complaint, a summons, and a notice of lis pendens.
Complaint for foreclosure. The complaint sometimes called a petition - lays out the claims of the foreclosure suit. It will describe; the mortgage, the promissory note, the property to be foreclosed, the default, the amount due, and the defendants, along with their interest in the property. The complaint will also state what the lender seeks called the relief in the judgment from the court, that it wants to foreclose, and will ask for the right to sell the property and apply the proceeds of the sale to the mortgage debt. It may also ask for a deficiency judgment if the proceeds at the foreclosure sale do not fully cover the total debt amount. Summons - A summons is issued for each defendant who is named in the foreclosure lawsuit. Typical defendants in a foreclosure lawsuit are; homeowners (borrowers), lienholders, 
judgment holders, and occupants (if any). It also informs the defendant that he or she must file an answer to contest the allegations of the lawsuit and states how many days the defendant has to respond with an answer, usually 20 to 30 days. Notice of Lis pendens - This notice of is recorded in the county land records. The purpose is to inform the public that a lawsuit involving the property is pending. The document includes the legal description of the property and states that a foreclosure has been initiated.
Loan Reinstatement - If you have the resouces to bring your mortgage current by paying off the delinquent amount in a lump sum, your mortgage contract might give you a period of time during which you can reinstate and stop a foreclosure.
Loan Modification - Is a permanent restructuring of the mortgage where one or more of the terms of a borrower's loan are changed to provide a more affordable payment. the lender may agree to do one of more of the following to reduce your monthly payment; reduce the interest rate, convert from a variable interest rate to a fixed interest rate, or extend of the length of the term of the loan.
Refinance - If you want to restructure your loan with another lender all together, this is the way to go. If you're struggling to make your mortgage payments and worried you might eventually go into foreclosure, you might be able to get a loan you can afford by refinancing through HARP. You must be current on your mortgage, with no 30-day (or longer) late payments in the last six months and no more than one late payment in the past 12 months. The home must be your primary residence, a one-unit second home, or a one- to four-unit investment property. Your loan must have originated on or before May 31, 2009. Your current LTV ratio must be greater than 80%. 
Fannie Mae or Freddie Mac must own your loan.
Deed in Lieu of Foreclosure - You give your home to the lender (the "deed") in exchange for the lender canceling the loan. The lender promises not to initiate foreclosure proceedings, and to terminate any existing foreclosure proceedings. looks better on your credit.
Forbearance - You make a reduced payment, or no payment, for an agreed-upon period of time. Usually, the lender requires you to make up the difference at a later time. The lender is most likely to agree to this if you can demonstrate that you will soon receive a bonus, tax refund, or some other extra cash.
Short Sale - You get permission from the lender to sell your house for an amount that will not cover your loan, (the sales falls "short" of the amount you owe the lender). The lenders can sue homeowners even after the house is foreclosed on or sold, to recover any remaining deficiency. A deficiency occurs when the amount you owe on the home loan is more than the proceeds from the sale (or auction)—the difference between these two amounts is the amount of the deficiency, which is called the Deficiency Judgement.

If you are experiencing any of these items listed above or need help in any way, give us a call, there is no fee for these services by us. You don't have to go through any of this alone. We are discreet and confidential. Call Mon-Sun anytime.