FAQ
As you can imagine there are many frequently asked questions.
The following are just a few. If you don't see your question covered here, please contact us.
How does a home go into FORECLOSURE?
Foreclosure proceedings usually begin after a borrower has skipped three mortgage payments. The lender will record a notice of default against the property. Unless the debt is satisfied, the lender will foreclose on the mortgage and proceed to set up a trustee sale.
Harbinger Enterprises can help people either avoid foreclosure, if they contact us during their pre-foreclosure period, or at the very least, help them avoid ruining their credit. A short sale can help in the situation of a pending foreclosure. (see below)
What is a SHORT SALE?
A short sale occurs when lenders authorize the sale of properties that they had loans on (but have not yet foreclosed on) at a discount. In other words, they allow the properties to be sold for less than the total loan amounts. Therefore, the lender takes a shortage on his loan proceeds, in order to not have to take the property back in foreclosure and have it sit in his REO (Real Estate Owned) inventory.
People who own homes benefit from this method if they have no equity in their home, and selling it through a real estate agent would cost them money, or if they owe more on their home loan that the home is now appraised for (perhaps having had a sub prime mortgage) and are "upside down" in their loan to value ratio.
Harbinger Enterprises uses this method more and more in this era of foreclosures. Banks are very cognizant of having auditors come in and negatively assess the bank (and keep them from gaining good rates and more money) due to a high number of foreclosures on their books. Therefore, they are quite open to negotiation. The key is mutual trust between us and the seller, as they must provide us with the proper paperwork (including the deed) so that we can negotiate on their behalf for the bank to sell us the property and forgive the debt to the seller. This method is good for sellers who either have no equity (and thus selling through a realtor would cause them to lose money, which they don't have to lose) or who are "upside down," meaning that they owe more than the value for which the property is now appraised.
One of our specialties is SHORT SALES. Harbinger Enterprises saved one of our clients who had three homes in Florida from bankruptcy because we were able to negotiate with the banks and have them fully release our client from the debt. Contact us if you fall into one of these two categories. Don't ruin your credit with a foreclosure and/or bankruptcy!
What is a LEASE OPTION?
There are a variety of lease option situations. Following are a few:
Purchase Lease Option - Harbinger Enterprises utilizes this method in certain situations. The advantages of this method are that it allows us to buy a property and then lease option to a tenant buyer. The tenant buyer is responsible for repairs and upkeep. These clients have extra incentive to care for the home, since they have an option to purchase, and it is in their best interest to maintain the property. The option consideration is non refundable. The tenant buyer pays down SOME of the principal by renting the property at an amount that is higher than the normal market rents. The advantage for our clients is that the option payment (usually 3-5%) is smaller than a normal down payment (10-20%), with the price being locked in for them to exercise their option at year 1 or year 2. The lower option money allows people to qualify. No credit? No problem!
Sandwich Lease Option - Harbinger Enterprises utilizes this method when the seller has no equity in their home. We lease option that property and extend a lease option to a tenant buyer.
Fixer-Upper Lease Option - Harbinger Enterprises utilizes this method with distressed property. Our company can sell to an investor or homeowner who is interested in a lease to own opportunity that involves rehabbing a property.
What is WHOLESALE?
Harbinger Enterprises will sometimes purchase at wholesale, which means purchasing at a price significantly below market value. When we purchase property in this manner, we then quick-turn to other investors, to homeowners, or to the network of investors with whom we are associated throughout the United States and Canada. Interim financing for wholesale purchases make these a good investment opportunity for our private lenders. These properties can be bought in any area, in any condition, as they are bought and sold AS IS, with closing via assignment or double closing.
What is a PRIVATE LENDER?
Harbinger Enterprises will utilize the immediate cash of a private lender to have opportunities to secure a great deal the moment it hits the market. Our company will also utilize a private lender for a down payment on a high end property, where the seller has agreed to carry back the difference after significant (20-30%) down payment. Additionally, we will partner with private lenders who desire to forego interest on their investment in order to be an equal partner in the project, with investment being returned upon sale of project, plus half of the profits.
If you are a private lender and wish to partner with us in any way, please contact us! We enjoy creative solutions and partnership that produce win/win situations.
What is an OPTION WITHOUT A LEASE?
Harbinger Enterprises utilizes this method to gain control of a property and take advantage of appreciating markets. We utilize this method for land development. Our company can profit using this method with our "specialized" knowledge obtained from our research.
What is an ASSIGNMENT?
Harbinger Enterprises utilizes this method to get paid for negotiating a great deal, and passing it on to another buyer and/or investor. It allows us to access the immediate cash for investing in other property, should said property not be one our company desires to hold. Our company will profit with knowledge, without qualifying.
Click here for a website that answers many questions you might have.
- Contact Form
- Seller's Form
- Lease/Purchase Form
- 360-305-0909
- info@TheDeal4U.com
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