After the "doom and gloom" that seems to be all over the news regarding the real estate and mortgage markets, NOW is the time to stop thinking about purchasing a home and get out there and actually BUY one!

It's time to stop putting it off. Contact your favorite real estate agent (or ask me to recommend one to you) and start shopping. Yes, the market is a bit crazy right now, but there are some big deals out there, and signs that it is stabilizing.

I have been in this business for over a decade and I can tell you that I have NEVER seen the amount of inventory that we have now. Some markets are reporting a backlog of six to nine months or more of real estate inventory. That is because no one is out there buying. They're apprehensive, they're nervous, and they're missing out on all the deals. Let their indecisiveness work to your advantage!

When I go to the car dealership to buy a new car, I like to have choices. I am not happy when I show up and there are only two or three cars on the lot. When there are limited choices, I feel like I am being forced to set for less than what I want.

The real estate market had been like that for years. Up until the past year or two, a client would call, we'd figure out price range and area of ​​interest, and there would be maybe three or four houses for them to look at and choose from. And if they did not act quickly, they could miss the boat completely. And price negotiating? Forget about it! With such little inventory moving so quickly, you needed to offer asking price (or more ) or you would not be taken seriously.

Now things are different. There are ten, fifteen, or even TWENTY properties or more to choose from! It is a buyer's market (meaning there are more properties available than there are buyers to buy them, which gives you the upper hand.) You will have an easier time finding exactly what you want and you will have a better chance of getting it for the price you want, too.

And do not be overly concerned with financing. Rates are still near record lows. Yes, many of the more aggressive mortgage products have been discontinued. The days of buying a home using 100% financing are just about gone, but there are still low down payment programs available. Look into FHA if you are a First Time Home Buyer or a 5% down Fannie Mae or Freddie Mac mortgage if you have owned a home in the past three years.

You should still be cautious when shopping for a mortgage, though. I recommend that you speak with your real estate agent. He or she will know exactly who the banks and mortgage companies are in your area that you can trust. Let them refer you and you should have no problem.

And if you are a First Time Home Buyer, do not forget about the $ 7,500 Tax Credit that you will receive if you purchase a home between now April 9, 2008 and July 1, 2009. Thanks to the Housing and Economic Recovery Act of 2008 , the federal government is rewarding you nicely for taking advantage of this market!

So the bottom line is to get out there! Talk to your agent, get pre-approved for your mortgage, and take advantage of all the deals that are available before it's too late!

Source by Nicholas Piscitelli

What is Adverse Possession? How can I obtain title to real estate?

In a nutshell adverse possession is a process where a person or an investor can obtain the ownership or title of real property from another person because the owner has abandoned the property. This is done by simply taking possession of that property in the manner prescribed by state law.

In doing so, you can, literally acquire ownership or title of the real property for just paying the back delinquent real estate taxes and the cost to file a quiet title lawsuit establishing that you obtained title to the property through adverse possession. In other words, you can take title of valuable property for a incredible discount.

The Law of Adverse Possession

The laws governing adverse possession is local state (or, in Canada, territorial law); consequently an Abandoned property investor must look into the specific laws of a specific state or Canadian territory where the real property is located. Since the laws are different dramatically from jurisdiction to jurisdiction and can often be confusing, anyone wishing to take title to real property through adverse possession should contact a knowledgeable attorney before attempting to do so.

In order for you to begin understanding the requirements of Adverse Possession let’s look at a specific example. Below is a closer look at th California Adverse Possession law. We will use this law to identify and explain some of the more common terms used in Adverse Possession.

California Adverse Possession Law

Briefly, California state law states that Real Estate investors wanting to obtain title to another person’s real property through adverse possession MUST satisfy all the following Requirements:

1.That the Abandoned property investor’s possession was held under either (1) a claim of right or (2) under color of title:

2.That the Abandoned property investor’s possession was actual, open and notorious;

3.That the Abandoned property investor’s possession was hostile, adverse an exclusive;

4.That the Abandoned property investor’s possession was continuous and uninterrupted for a period of five years;

5.That the Abandoned property investor paid th real property taxes during that five-year period.

Possession must be held under either (1) a claim of right or (2) under color of title.

The California statutes governing adverse possession and as well as the statutes of most other states make a distinction between claiming adverse possession based upon a “claim of title founded upon a written instrument or judgment or decree” (often referred to as a claim under color title) and claiming adverse possession based upon “a claim of title exclusive of any other right, but not founded upon a written instrument, judgement, or decree” (often referred to as a claim as either a claim of right, see California Code of civil procedures Section 322 and 323. As to such claim under claim o right, see Code of Civil Procedures Section 324 and 325.

Basically a claim of adverse possession based upon color color of title is one where the claimant(Abandoned Property Investor) took in good faith possession under a deed (or some other written instrument) or judicial decree that appeared to transfer good title, but was defective. For example, a tax sale investor might take adverse possession through color of title for real estate bought at a California county tax-defaulted sale where the sale was conducted improperly and, consequently, the deed was void.

“Claim of Right” or “Claim of Title”

Abandoned property investors attempting to take title to real estate through the doctrine of adverse possession are generally more interested in taking such title through “claim of right” or “claim of title”. Under this doctrine, an investor merely needs to take actual possession of the property and hold that possession as required by appropriate jurisdictional law.

As might be expected, the requirements to establish adverse possession under a claim of right are (under California law and under the law of most all other states) are more strenuous than those associated with claiming under color of title.

In order to be accurate as the specific requirements for a claim of right refer to the specific state statutes. Again, to be safe consult with a knowledgeable attorney in the county where the property is located.

Possession must be actual

As will be seen below, an abandoned property investor claiming possession under the doctrine of adverse possession does not have to personally occupy or live on the real estate to be in actual possession of the property. However, actually living on the real estate is probably the strongest and clearest evidence that possession is actual.

Possession by tenant as actual possession

Real property can be occupied, lived on, and actually possessed by a tenant under a tenancy agreement. Take, for instance, if you look at the California appellate case of Traeger v. Friedman (1947) 79 CA 2d 151. In that case, the adverse possession claimant took possession of a apartment building through tenants and, then, managed and rented for five years. She evn paid the real property taxes out of the rent. The California court held that she had met the actual possession requirement needed to perfect title under adverce possession.

Possession is deemed actual if lands is “protected by a substantial enclosure”, “usually cultivated or improved”

If the adverse possession is claimed based on a claim of right, then California Code of Civil Procedure Sections 324 and 325 apply.

A abandoned property investor’s possession is deemed to be in actual, open and notorious possession of specific real property under a claim of right when that person has either

1.”protected” that property “by a substantial inclosure” OR

2.That person has “usually cultivated” OR

3.Has “improved” tht property.

If the real property being taken through adverse possession is a lot and acreage and cannot be actually possessed (i.e., lived on) then that property must be either “protected…by a substantial inclosure”, “usually cultivated”, or “usually improved”.

If the property is protected by a substantial inclosure, then the inclosure must be “substantial” enough to give the true owner notice of the investor’s Claim of adverse possession during the entire prescriptive period. Older Cases hold that the inclosure must be substantial enough and remain so throughout the prescriptive period of five years and protect all sides of the property claimed from intrusion by cattle or other animals. If the inclosure is so damaged as not to be able to protect all sides of the property from such intrusion, then the Abandoned property investor or claimant must promptly repair that damage inclosure or risk being found by the court to have not met this requirement.

Meeting ANY one of the three alternative, meets the actual possession requirements for adverse possession even though the Abandoned property investor or claimant does not live on the property.

Additionally, California cases have held that although “grazing” or “pasturage” is not mentioned in the Code of Civil Procedure Section 325 reproduced above, it is a method whereby an investor can take actual possession.

Possession Must Be Open And Notorious

Basically, an owner of real estate will not lose that real estate through the doctrine of adverse possession unless the manner in which the investor holds actual possession would provide reasonable notice of that possession if the owner inspected the property. Repairs and improvements made to houses such as painting the ouside of the house, keeping up the outside ground, etc. are examples of such actions.

However, an owner can lose title to real estate through adverse possession even through he or she is never actually aware of the possession because the owner never visited the real estate to discover the improvements made by the abandoned property investor.

Possession Was Hostile, Adverse And Exclusive.

Basically, if the abandoned property investor or claimant is in possession under color of title, then that possession is deemed to be adverse and hostile to the true owner and it is not necessary to offer any further proof.

However if the Abandoned property investor or claimant is in possession under claim of title, then the claimant must prove that the possession was hostile and adverse. The word “hostile” does not mean that the possession was “overtly antagonistic” to the owner; it means simply that such possession is “inconsistent” with that of the true owner.)

It must be shown that the possession was in violation of the true owner’s property rights and that it should give rise in the owner a reason to begin an action to terminate the Abandoned property investor or claimant’s possession or use.

Possession of the property with the owner’s permission is not hostile or adverse. see California Civil Code Section 813 which provides a better legal explanation of this process.

Basically what the California Civil Code Section 813 means that the owner of the property can give permission for the use of that property by the general public or specific individuals. The statute further states that: “In the event of use by other than the general public, any such notices, to be effective, shall also be served by registered mail on the user.

The claimant’s use must also be exclusive, use of that property by the legal owner or any other person except the claimant or abandoned property investor or a tenant of the claimant or abandoned property investor holding possession on behalf of that person will probably defeat a claim of title through adverse possession.

Possession Was Continuous And Uninterrupted For Five Years.

This requirement can be found in Civil Code Section 1007 when read together with Code of Civil Procedure Sections 318, 319, 321, 322, and 325. Most specifically, Code of Civil procedure Sections 325 provides:

“provided, however, that in no case shall adverse possession be considered established under the provisions of any section or sections of this code, unless it shall be shown that the land has been occupied and claimed for the period of five years continuosly, and the party or persons, their predecessors and grantor’s, have paid all the taxes, state, county, or municipal, which have been levied and assessed upon such land.”

The requirement does not mean, however, that the investor must be physically on the land every day for five years. For instance, if actual possession of a home or other rental real estate is held by tenants on behalf of the adverse possessor or abandoned property investor, then ordinary vacancies will not disrupt the continuity of the possession.

So, if an investor were to take possession of rental property, for example, and there were normal vacancies that occur, these vacancies would not be considered a violation if the five year occupancy requirement. It also means that the investor does not have to live on the property to make this claim. That means you can claim adverse possession at multiple properties as long as the property is safe and liveable for tenants. That means a positive cash flow while waiting in the prescribed period and also without your physical stay at your property.

Claimant Paid The Real Property Taxes During That Five Year Period.

See Code of Civil Procedure Section 325 which governs this requirement

The Abandoned property investor or claimant must prove that he or she has paid all taxes that have been levied and assessed against the real property claimed during the entire five year period. A failure to pay taxes assessed for any one year will defeat a claim for adverse possession. Then the claimant must also pay any delinquent taxes outstanding for years prior to the start of the claim for adverse possession. For more details please refer to the case of Los Angeles v. Coffey (1963) 243 CA 2d 121,125.

Under the law of the state of California, if a Abandoned property investor meets all the requirements of the law of adverse possession under claim of title, then that person becomes the true legal owner of the real estate that has been abandoned. If the legal title of the real property was held by the former owner with no outstanding liens that superceeds the tax lien, then the investor will have acquired the real estate for, basically, just five or more years worth of back delinquent real property taxes or for just a small investment.

So, What Should A Abandoned Real Property Investor Look For?

The two most important principles of the law of adverse possession is that a Abandoned real property investor wants to see are the following:

1.The ability to take adverse possession under Claim of right or claim of title as opposed to color of title and

2.A relatively short prescriptive period. The period of time the Abandoned property investor must adversely possess the real property before that investor can obtain title to the real property.

You are probably asking yourself, Why?

Because in the state of California, the period or prescriptive period is five years based upon the California Code of Civil Procedure. However in some states the period can last from 10, 15 or 20 years until you get title through adverse possession.

Source by Josue Zengotita

Investing in residential homes, condos, apartment buildings or whatever you'd like to do within real estate, there are several creative payment methods. My favorite just happens to be SUBJECT TO, as it does not get any better. Where else can you purchase your dream home and five others, without ever tapping your own credit, assuming you have good credit and closing on all five within a matter of days. So the advantages and disadvantages of my favorite method below.

Advantages

1. Speed ​​& Time: The number one advantage to subject to deals is that they are just SO DARN FAST TO close. With a traditional home buying process you have to wait anywhere from 15-60days before you'll ever get qualified for a mortgage or hard-money loan, let alone find the contract that meets your needs and buying power. With a subject to, you are simply limited in the time that it takes you to find a motivated seller with a deal of investment.

2. No money down – In some cases of finding the best deals, sellers may often times pay you to purchase their house. That's right, its true when you hear people talk about no money down deals. The way this happens is when the market value and loan value (LTV) are reliably equal. When that happens the sellers homes are "Upside down" with little to no equity to cover the closing costs. In a typical buyers market the sellers HAVE .. let me say that again HAVE come up with closing assistance, which at a minimum should cover your area's, transfer and recordation taxes. When this happens, they pay you and you might even walk away with cash in hand, if you are a good negotiator. Now, just because you can get closing assistance for no-money down deals, if a house and area are great, you might take the risk and cover the cost. Me, never pass up free money if a seller can and is willing to assist.

3. Got bad credit – WHO CARES: With subject to deals, you get the best of both worlds, the property you want and none of the credit burden. If you've had a couple of bad marks, filed for bankruptcy, had a divorce or for whatever reason you have less the superb credit, it does not matter. Acquiring properties subject to the existing financing are excellent for investment properties or your personal residence. Now, that being said, if the cause of your credit challenges are you inability to pay on time or just plain forgettable then we advise that you go out and get financial planning assistance. That being said your credit will not stop you from acquiring an investment property.

4. Take over existing payments – If you are lucky and smart, you'll find great deals with motivated sellers that secured homes with OUTSTANDING interest rates and VERY LOW payments. Once you get those low payments and get a home under contract through closing, now you get to take over the current mortgage payments but since you are smart, you'll never pay them, as your TENANTS will pay the monthly mortgage payments for you, plus a hefty increase to generate you a POSITIVE monthly cash flow. Unless you have an aching for pain, DO NOT take over payments if you can not at a minimum get a buyer / buyer to cover the total amount, otherwise you will begin to lose money immediately.

5. Assign or not to Assign – Now, since you were smart and secured the deal, you can either purchase it yourself and play landlord to create generational wealth or you can wholesale (or some investors refer to this an option the property to another investor ) for a quick cash fee. This CASH is yours with NO SERSS attached or ownership in the property. The new investor will cover the rest, closing cost and more.

Disadvantages

Well, like with most things in life, using the Subject To method, has a few challenges too. Here are the top 2 challenges, but I can certainly list a ton more but you do not want to spend your weekend reading this article.

1. Integrity, Honesty and Ethics – When you begin to talk to motivated sellers or buyers / investors, you'll have deal with one thing … EARNING THEIR TRUST. No matter how motivated the seller is they are not just buying your good lucks, the sellers are trusting that you will honor your word, pay the mortgage and of course buy their house. The disadvantage is not all investors are trustworthy and ruin it for the folks that are true investors and NOT out to take advantage of people. Not only that, but some of us need help and training in the honesty department.

2. Ugly mortgages – Heard of ARMS or Negative AM ??? Yikes. For some of us, we do not find out that mortgages are bad until we've spent too much time in the process. Change your process number one, but STAY AWAY from ARMS !!!

Source by E Barley