NOTES with Jay Conner Success
UNDERSTANDING THE FORECLOSURE PROCESS
W hen Carol Joy and I a system of buying foreclosures that made $456,000 in six months. To this day, foreclosures make up 25 percent of the deals we close. I have spent a lot of time teaching my students how they should use foreclosures in their real estate investing strategies, and there are many misconceptions people have about what the foreclosure process is. In this article, I want to make sure everyone understands what foreclosure is and what the process looks like from beginning to end. Preforeclosure started our business 15 years ago, we created
“I have spent a lot of time teaching my students how they should use foreclosures in their real estate investing strategies, and there are many misconceptions people have about what the foreclosure process is.”
do this by having notice of default or a summons delivered to the property owner.
Stage 1 of the foreclosure process is what we call preforeclosure. This is when the owner of the property has fallen behind on their payments. There are federal laws in place that prevent the banks and mortgage companies from beginning the foreclosure process until the borrower is at least 90 days in arrears with their payments. If the account is not brought current, the lender moves on to the next step in the foreclosure process. Substitute Trustee and Summons Once the lender, be they the bank or the mortgage company, pulls the trigger and officially begins foreclosing on a property, they hire a substitute trustee. The substitute trustee usually comes from what we call a “foreclosure millhouse,” which is a large law firm whose only focus is representing banks and mortgage companies to handle the foreclosure process. It’s the substitute trustee’s job to begin the foreclosure process, and they
This summons is not delivered through the mail. It’s actually delivered by the deputy sheriff in person. They physically go the property and knock on the door. If someone comes to the door, they hand them the notice of default. If no one is there, the deputy sheriff will tape it on the door. At this point, the property is in foreclosure. Now, the borrower still owns the property. There’s a period of time after the notice of default during which the borrower can still make good on their payments and stop the foreclosure process. Hearing In most states, the next part of the foreclosure process is what’s called a hearing. During the hearing, the clerk of court goes through a whole checklist to determine if the bank has the legal right to foreclose on this property. If they find that, yes, the bank can foreclose on the property, then they move forward to the next step. Continued on page 3 ...
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Fortune Favors the Bold by Tony Pearl
Almost two thousand years ago, Roman leader Julius Caesar used three bold words to describe a quick victory he accomplished in a war: “Veni, vidi, vici,” which means “I came, I saw, I conquered.” The fact that we, as a species, know who Caesar was, know what he said that long ago, and still hold him in high regard is a testament to the great things he did in his time … and it’s because he acted boldly . So how the heck does that apply to you as a real estate investor? Or anything else, for that matter? It actually applies in many ways. You see, Caesar was the kind of guy who didn't really mess around. He went to work and handled his business. If Julius Caesar was a real estate investor today, he'd probably be someone similar Donald Trump. Wait — did I just compare Caesar to Trump ? Yeah, I guess I did! In fact, I believe that any time anyone did anything worthwhile, they were acting boldly.
According to Dictionary.com (my favorite fast resource), the word “bold” is an adjective that means “not hesitating or fearful in the face of actual or possible danger or rebuff; courageous and daring” or “beyond the usual limits of conventional thought or action; imaginative.”
Hmm … “Courageous,” “daring,” and “imaginative.” I like that!
So, why be bold? What's in it for YOU?
Okay, let's consider the alternative. If you just want to be like everyone else, then I guess you don't have to be so bold. But where does that leave you? Mediocre. Average. Normal. And boring. Financially speaking, that would leave you poor to lower-middle-class. Great. (Not!) But when you act in a bold fashion, you have more confidence. When you have more confidence, people recognize that about you. You not only become more attractive to other people, but you also become more attractive to other things, such as opportunities and money. Hey, I didn't make up the expression “Fortune favors the bold” — I'm just quoting another great Latin expression: “Fortuna audaces iuvat . ” (Literally translated, it means “Fortune favors the brave,” just so you know.) By the way, doesn’t Latin sound cool? So, there you have it. The good news? We all have a choice about how we choose to act — timidly or boldly — every single day. We can choose to pick up the phone and make the calls we know we need to make. We can choose to reach out to people and help them. We can make more offers on houses. And when you have that bold confidence about you, sellers, buyers, and even private lenders WILL respond to you. They will likely be thinking, “What does THIS guy (or gal) know that I don't?” So, be bold. Have fun with it. Stand tall, and say things with a smile on your face and with confidence in your heart! Because if you truly want to create an even better life for yourself and your family, one of the best ways you can quickly make that happen is by being BOLD! On a personal note, I started shaving my head back in 2002. This gave me a very unique look that was quite different than before. Shortly after I started shaving was when I began having much success in real estate. So, I guess you could say that “fortune favors the BALD ” too! Ha!
Want to run for president? At any level, you've got to be BOLD.
Want to get a job? Be BOLD.
Want to start a business or do a deal? Be BOLDER.
Want to ask a girl (or guy) out? Yep! Be BOLD, baby!
Here's a big one: Want to be a successful real estate investor? You'd better believe you've got to be BOLD! ’Cause if you're not, someone else will be … and guess who's going to get that deal? I think you already know the answer … The Bold One. Now, I'm not saying that you always have to be bold. Heck, we all have to sleep at some point!
But when it comes time to handle your business, you know what you've got to do.
So, what does “being bold” really mean?
It can be a relative term; it doesn't have to mean that you're yelling and screaming at people, thumping your chest, or anything like that. Well ... maybe sometimes .
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... Cover article continued
Public Auction Assuming at this point in time that the owner of the house has not brought their payments current, now comes the actual sale of the property. This will be a public sale that takes place on the courthouse steps. The same law firm or substitute trustee that is representing the bank will conduct the sale. The lender sets a minimum bid, and if there’s a buyer who makes that minimum bid and purchases the house, then the process is finished. However, if there is no buyer at the courthouse steps, then we enter the final stage of the foreclosure process. Bank-Owned Properties If the owner of the house is not able to bring up their payments and no one buys the property at the public auction, then the property is taken back and becomes what we call “bank owned.” The bank will get in touch with a Realtor to sell the property through the multiple listing service (MLS). A lot of students have asked me, “Jay, how can I contact banks and buy bank-owned properties directly from them?” Seldom is this an option for us real estate investors. You’re just going to have to wait until
the property reaches the final stage of foreclosure and hits the multiple listing service. There you have it, the foreclosure process from preforeclosure all the way to bank-owned property. Now, it’s worth noting that while you can’t buy a bank-owned property until it is listed with a realtor, there are different ways you should approach an owner in foreclosure and negotiate the deal, depending on what stage of the foreclosure process they are in. Be sure and watch for an upcoming article where I’ll explain how negotiation techniques and buying strategies change during the stages of the foreclosure process.
Have You Heard the Good News … As it relates to The Birth of Jesus?
Matthew 2:1 "Now after Jesus was born in Bethlehem of Judea in the days of Herod the king, magi from the east arrived in Jerusalem…" John 1:14 "And the Word became flesh, and dwelt among us, and we saw His glory, glory as of the only begotten from the Father, full of grace and truth." Matthew 2:11 "After coming into the house they saw the Child with Mary His mother; and they fell to the ground and worshiped Him. Then, opening their treasures, they presented to Him gifts of gold, frankincense, and myrrh."
Until next time ... be bold (or bald )! Tony Pearl Copyright 2018 Tony Pearl | All Rights Reserved
BIO: Tony Pearl is a writer, speaker, copywriter, mentor, marketer, coach, musician, poet, ballroom dance instructor, world traveler, father, fiancé, internet marketer, voiceover artist, and real estate investor. He’s also a Politically-Incorrect Insomniac with ADHD who specializes in adding massive value to people’s lives by helping them overcome limiting beliefs, have more fun, and make more money while improving lifestyles through investing in real estate!
Go sign up for his FREE Newsletter at TonyPearl.com.
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INSIDE THIS ISSUE
What Real Estate Investors Need to Know About Foreclosure page 1 Fortune Favors the Bold page 2 Henriette Klauser’s Secret to Getting What YouWant page 4
‘Write It Down, Make It Happen’ Henriette Klauser’s Secret to GettingWhat YouWant
We’ll soon be celebrating the new year, and there are plenty of New Year’s resolutions to be made — and then forgotten by March. It’s no secret that writing down your resolution is the first step to success, but it’s not enough to scribble your goals in a notebook and leave it on your nightstand for eight months. In her book “Write It Down, Make It
What I really liked about Klauser’s techniques is that when you make a habit of writing down what you think you want, you can discover what you actually want out of life. In Chapter 20, “Handling Breakdown,” Klauser shares a story about a friend of hers who really wanted a new job. He wrote about it every day, but in the end, he didn’t get it. At first,
Happen,” Henriette Anne Klauser, Ph.D., explains how the habit of writing about your goals every day can make all the difference. Klauser is a leading expert on communications and writing productivity. In her research, she has studied what happens to our brains when we write and how that translates into consistent action. Writing stimulates the reticular activating system, the part of the brain that sorts information and decides what is important. By writing about your goal and what your life will be like when you achieve it, you are telling your brain, “This is important! Do this!”
this guy was embarrassed to look back on everything he’d written. But as he reread his own words, he determined that he wasn’t really after that specific job. What he wanted was the ability to pay for his son’s college education and take trips with his family. With this realization, he adjusted his focus and found a job closer to his home with a company he liked more. There are a lot of self-help books that promote the importance of focus and visualization, but the simple tips and real stories shared in “Write It Down, Make It Happen” make these exercises doable in everyday life. If you have a lifelong dream you want to finally achieve or a New Year’s resolution you are determined to keep this year, this book can help you write your own path to success.
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