If you’re looking to get into the game of flipping homes, sure distressed homes are a good option. Distressed homes are sometimes sold for pennies on the dollar. The right neighborhood and selling price of the home could land you a lucrative rental property, or home to flip and sell. At the same time, with a company like Premier Real Estate NYC, you will be giving a New York resident a way out of the awful process of foreclosure.

What is a Distressed Property?

First, let’s examine what a distressed home really is. It is a home that is receiving regular calls and written notices from the lending institution that is looking to regain its asset, which is your home. However, because of the homeowner’s poor financial state, the home’s value may have decreased. They may have let the property go unkempt, or it may have been vandalized. The owner could have stripped the home of its appliances and materials themselves.

What Can You Do With a Distressed Property?

If you’ve landed a distressed property in a great neighborhood, it’s like finding a gem. You just shine it up and pass it along. Some investors who purchase foreclosures in Brooklyn, for example, choose to live in these properties and fix them up themselves. This is a great idea for a beginner investor. You can keep an eye on the property while making the improvements. Leasing is another great idea for a distressed property. You may even find someone that is great with updating homes and you two can work out a deal. Once the home is livable, they can move in and make the rest of the updates. Then you can continue to lease the home to them.

However, after performing the necessary repairs and minor upgrades, most investors sell the home. This can generate you a lucrative profit. You can invest those funds into another project right away. Remember, your goal with distressed properties is to make money. So be sure you work with a real estate agent that specializes in foreclosed homes. They not only can help you find them, but will also find out any unpaid taxes, mortgages, or other judgments against the home so you are not left with surprises. On top of this, you will be giving the previous owner a fair way out of financial crisis.

Those during the 2008 housing crisis had to find alternate living arrangements. Once their credit reports a foreclosure in  NYC , purchasing a home is out of the question. It’s difficult to rent an apartment as landlords run credit checks, are unsure of allowing someone with a foreclosure in NYC rent from them, and pay on time. So, hotels have been an option. It may seem strange and you think more expensive than renting an apartment, but could a hotel be an option for you?

No Credit Checks
Moving into a hotel requires no credit checks. You also have no application fees, high security deposits, nor HOA fees to worry about.

No Lease Commitments
A hotel does not require a lease commitment. In fact, you may be able to negotiate a discounted rate if you plan to stay three months or longer.

Utilities Are Included
This is where you really can save money. Hotels cover your utilities, including cable, internet, phone, electricity, and water costs. If you are used to working at home, another perk is that the hotel may have a business center. So you may have access to free faxing and copying services. This reduces office supply expenses such as ink, toner, and paper.

Hotels also are fully furnished. If you will be staying awhile, you can avoid high storage fees by selling off your own furniture and saving those funds.

During the 2008 housing crisis, NYC residents were lost and confused. They could not concentrate on work, taking care of their family, and understand the entire foreclosures NYC process. Often, homeowners were in denial, leaving one important matter on the backburner – packing their home.

Usually, foreclosed homeowners aren’t prepared for the move and must downsize. NYC has expensive housing and the moving costs are expensive as well. If you have been thrown by a foreclosure in NYC process, and are looking at last minute preparations to move, here are 3 quick packing and moving tips while saving money in the process.

Avoid Cleaning
Instead of trying to clean your items and neatly arrange them, focus on categorizing your items. It’s an unorganized process, as you’ll have to worry about cleaning later, but it will make packing faster.

Make Two Piles
Make two piles in each room of your home. One pile should be items to keep and the other pile is items to sell. Whatever you can’t sell should be donated, of which you can use the write-off during tax time. Contact a charity to pick up your items to save time and focus on your move.

Packaging and Supplies
The number one rule in packing a foreclosures NYC home in a hurry, is that everything can be used as a transportation item. Boxes are handy, but avoid paying for one at all costs. Ask supermarkets and stores in the area if they can save boxes for you to pick up later. Use different color markers or stickers to mark your boxes. This saves you time of labeling each room on them.

Other great packing items include your laundry baskets, plant pots, and drawers. Line them with towels or clothes and pack your breakable items in them. Other items can be placed in garbage bags. Place all your clothing (hangers and all) on your bed and fold the sheets and tie the ends together. This will make organizing your new closet simpler.

Place food items in large coolers. Coolers are also great for transporting bathroom items like liquid soap, toothpaste, and bath wash. Stuff your pillowcases with pots and pans, picture frames, and shoes.

Tax time is exciting for those receiving a tax refund. If you are considering a short sale in NYC, instead of taking a family vacation or using this as a down payment for a new vehicle, it’s time to make your tax refund check work for you.

Pay Off Your Credit Cards

You can use your tax refund check to pay down or off credit card bills. Having a low debt-to-income ratio is important because it tells creditors you can manage your finances and makes you a great candidate to extend credit to. Also, if you run into any sticky situations down the line, you have emergency funding available on your credit cards.

Put a Down Payment for an Apartment

Since you are going through a short sale, you will need to rent for two years or longer. If your short sale has affected your credit already, use your tax refund check as a good down payment. A larger down payment combined with a year or longer lease may be just the motivation landlords need to rent you a wonderful place.

Start an Emergency Fund

Finally, you may have felt as though you were in a tight bind and that was your incentive to sell your home in a short sale.

It’s time to start an emergency fund just in case you run into further problems down the line. An emergency fund is different than your retirement fund. It provides instant access in true emergencies.

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Since the 2008 housing crisis, families everywhere have been devastated due to foreclosures. Families in New York City were hit twice as hard between the 2008 housing crisis and Hurricane Sandy – between these two catastrophes; homeowners in New York City have been living in despair for quiet some time now.

Many people have become depressed, and feel they have no hope for the future. Lives change from a foreclosure, and there seems to be no way out. If you are facing foreclosure in NYC, do something about it before it’s too late. Seek counseling for yourself and your family. Premier Real Estate NYC is offering free consultations for homeowners in New York City, and Long Island.

Counseling for Couples

Couples are hit the hardest through a foreclosure. Each may blame the other for getting behind in the mortgage and other bills. Poor financial decisions are the number one reason for divorce in America. Working with a counselor can help you both find ways to stop the blame and work towards building a promising and responsible future.

Children May Not Understand

Your children are affected by foreclosures and moving forcibly from your home. The only thing they are concerned with is staying in their school and neighborhood with their friends. Changing schools and meeting new people is an adjustment, so counselors can be the one they communicate their anger to.

How to Deal With Family and Friends

You may feel embarrassed about your situation. How do you tell your family and friends you fell behind so bad in your mortgage that you now must move. It’s hard enough for your own family to accept. You don’t need judgment and ridicule from outside family members. Counselors can help you deal with the pressures of explaining your situation and the negativity you’ll receive from outsiders.

Many people in NYC have felt the pressure of the 2008 housing crisis. They have worked hard at trying to keep their mortgage payments up to date, medical bills paid, and other credit card debts in order. Seeing how people were going through foreclosures NYC was stressful, especially seeing their own friends go through the process.

Unfortunately, with so much effort, people still have undergone foreclosures in NYC. It was only a matter of time due to the state of the economy. If you’ve found yourself in this situation, and have exhausted your savings, there is still hope if you act now.

Create a Budget and Stick to It
Your home mortgage loan is your main debt to cover monthly. Seek out other government programs to cover utility and food costs. Find cheaper methods of transportation such as carpooling, taking the train, or biking to work.

Rent a Room
Everyone needs housing and you more than likely know of a college student or newcomer to NYC. Rent a room in your home to someone needing it. This is a great way to boost your income without tiring you out with a second job.

Enroll in a Credit Counseling Program
The majority of these programs are free. They can help you with the overwhelming creditor phone calls and create a debt management program where you will see relief instantly. The money you are saving to pay your other debts can be transferred into paying your mortgage.

Refinance Your Home
If you start in time preventing your home from going into a foreclosure, your credit should still be intact. Check to see how much equity you have in your home. You can refinance and get a good rate. You may also be able to take out a home equity loan to get you through this tough time. Be sure to take only what is necessary so you don’t find yourself buried in more debt than you can handle.

Since the 2008 housing crisis, infomercials, radio ads, billboards, and many community presentations have opened homeowner’s eyes to see that their future is not doomed to a foreclosure. In fact, many specialists have worked in the real estate and loan mortgage industry for years and know how to deal with saving homeowners’ homes. They work with them to help them understand their options should they decide they just want to start over and not be held under water during such a tough time.

Unfortunately, the option of a short sale has received much negative publicity. One of the worst rumors is that sellers have, no rights, and little leverage when they undergo a short sale to prevent a foreclosure. That’s why it’s important to deal with a professional. They can get you on your way to a better future.

Your lender is not in charge – you are! All the lender can do is approve or deny a contract. They are not the ones placing your home up for sale, nor do they have the authority to decide who will sell your property or whom it will be sold to. You can treat the short sale process as thus, a sale.

You also have control over what offer to accept and deny. Never let anyone lowball you, even in the process of trying to save your home. This is why you are taking the route of a short sale. Because in the end, your mortgage lender can send to the IRS the difference and that will be your responsibility as taxable income. Don’t let anyone destroy your financial future.

If you have been afraid of joining the millions of Americans that have fallen into the foreclosure process, it’s time to act now. The foreclosure crisis has hit hard in New York City. Some homeowners are only starting to learn about their options now. Here are a few tips on understanding the loan modification process and why it’s important to work with a professional who is experienced in dealing with one. Going through hardships are sometimes out of our hands, and to be displaced because of it is a tragedy. Premier Real Estate NYC has helped hundreds of homeowners in New York City climb out of the foreclosure process.

What Exactly is a Loan Modification?
Simply put, a loan modification is a way to make a homeowner’s mortgage more affordable. Interest rates, late fees, the length of the loan, and other processes are put into place to help with the monthly payments.

Do I Need Documentation to Submit with My Loan Modification Application?
Yes. Your lender will go into more detail with you. However, some of the documentation you should expect to have included your home valuation are the following: W2’s, bank statements, federal tax returns, and paycheck stubs. You’ll also need to prepare a hardship letter.

Having all the necessary paperwork and completing the application is key to being approved quickly. That is why many NYC residents turn to a specialist like, Premier Real Estate NYC, to help them complete the process.

What Value Can a Loan Modification Specialist Bring to the Table?
A loan modification specialist will not only help you complete your application, but see you through the end of the process. Should you not be eligible, they can help you with other options, such as a short sale.

Many issues can arise from trying a loan modification program, including the terms changing after your trial period, documents being lost, and backlogs for applications. A specialist can help negotiate your terms. This can buy you the time you need to catch up on payments and stop the foreclosure process.

Just remember, the loan modification process can be overwhelming. Therefore, having an experienced processor to go over your options can help ease your stress and worries. They are there to help you through the process and be successful in completing the loan modification program.

Most residents in New York City are aware that staying away from foreclosures in NYC is the best thing to do. There was so much media attention on foreclosures, and short sales during the 2008 housing crisis, that we all know the pitfalls of a bad housing market. However, just because you know a few options that exist, does not mean you understand how to make them work successfully. One of the most well known options is to get a loan modification.

Since loan modifications adjust your current mortgage interest rate, and the duration of your loan, to name a few factors, the purpose is aimed at lowering your loan enough so you can comfortably pay it. Here are 3 tips to avoid your home from being another statistic in the foreclosure epidemic in the New York today.

Don’t Wait – Start the Process Today
You do not need to wait until you are underwater to start the home loan modification process. Ask any homeowner that has lost their home in New York City, and they will tell you, they saw it coming, yet still hoped for the best. You don’t have to wait until you have hit default. Some programs work with just being 30 days behind.

Seek Professional Help
Don’t try to save money by doing it yourself. Hiring an experienced agency that handles loan modification processes is the best route to go. Companies like Premier Real Estate NYC, not only have years of experience helping homeowners with successful programs, but can offer other successful options to explore. One common, and highly efficient program is a short sale.

Be Honest and Transparent
You are going to be asked many questions, some of which you feel are too personal to uncover. However, for an approval, you must be transparent in what tough financial situations you are going through. So if it’s an addiction, bad investments, being fired, you must let your lender and home modification specialist know so they can help keep you out of your impending foreclosure.