Happy Labor Day to all! Enjoy your last picnic of the summer from all of us at Wise Women Investor!

In states like Florida, foreclosures are running well over a year from the time the foreclosure papers are served until the completion of the actual foreclosure. Florida is a judicial foreclosure state. Courts are back logged. This is good news for homeowners facing foreclosure but yet another horror story for the real estate investor who can’t keep their head above water.

Why is the investor in trouble? Because there are so many homes in foreclosure, the banks are in no hurry to take them over as they would become responsible for insurance, taxes, HOA fees, utilities and upkeep.

So what is a real estate investor to do? Do they continue to pay the other expenses? Is retaining an attorney to represent the investor a worthwhile move? Not if you are trying to move the bank along. They are not going to listen to your attorney.

Would a short sale work? What about deeding the property back to the bank in lieu of foreclosure? If the lender is underwater on the loan, these are not good options for them. Despite the numerous short sales listings out there, unless you are in the “know” with a local lender or your deal is close to what the lender owes, forget it.

Real estate investors often fail to take foreclosure laws into consideration when they buy. Besides the monthly mortgage payments there are also those other monthly obligations that a real estate investor is responsible for such as the insurance, HOA fees, maintenance, property taxes, utilities, etc. Not only could your credit be ruined, but should any damage or other liable situation occur on the property, and you have not adequately protected your property or yourself, you could lose much more then your credit rating.

So investors, please be aware in these risky times because “it ain’t over until it’s over”.
Find a way to pay for the upkeep and the other financial obligations in addition to the loan. Keep current on those obligations, and try to find someone to take over your payments knowing that you probably still won’t break even.

Here’s a little lightness to start your Wednesday

I recently read a survey that was reported in USA today that states that one in four women say they love cleaning their homes or find it relaxing. Personally I like to iron. I find it therapeutic and it allows my mind to wander as I sharpen a crease or run the iron around the buttons. But cleaning? What exactly is there to “love” about cleaning? Mopping floors, cleaning out the fridge, cleaning toilets?

I love a clean house but can’t say I love to clean it! However, if you do like to clean, drop me an email to let me know what it is about the process you enjoy!