Checklist Checklist

Category: Mortgages & Real Estate Finance

  • #44 MORTGAGE FORECLOSURE HELP Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    1. “Foreclosure help” can describe legitimate professional services or scams.
    2. Verify exactly who is offering assistance.
    3. A government-sounding name does not prove government affiliation.
    4. Do not pay someone merely for promising to communicate with your lender.
    5. Never assume a modification is guaranteed.
    6. A lower payment can involve a longer repayment period.
    7. Delayed payments can sometimes be added to the loan.
    8. Interest can continue accumulating.
    9. Fees may be added.
    10. Escrow changes can alter future payments.
    11. A temporary forbearance is not necessarily forgiveness.
    12. You may still owe deferred amounts.
    13. Loan modification documents must be read carefully.
    14. Never sign incomplete documents.
    15. Keep copies of everything submitted.
    16. Verify all communications with the actual servicer.
    17. Don’t transfer title to someone simply because they promise to save the property.
    18. Don’t send mortgage payments to an unverified third party.
    19. Don’t ignore foreclosure notices while pursuing assistance.
    20. A legitimate professional should explain the limits of what they can accomplish.
    21. Lawyers, housing counselors and other professionals may perform different functions.
    22. Compare the cost of assistance with the value of the proposed service.
    23. Ask what happens if the lender rejects the proposal.
    24. Ask what happens if the foreclosure deadline arrives before a solution is reached.
    25. The most important question is “What exactly am I paying this company to do?”

    B. PREMIUM BUYER CHECKLIST

    PROVIDER

    ☐ Legal name
    ☐ Physical/contact information
    ☐ Licensing/credentials where applicable
    ☐ Complaint history where available
    ☐ Written contract
    ☐ Fee structure
    ☐ Refund/cancellation terms

    MORTGAGE

    ☐ Current balance
    ☐ Interest rate
    ☐ Payment
    ☐ Arrears
    ☐ Escrow
    ☐ Notice status
    ☐ Foreclosure status

    PROPOSED SOLUTION

    ☐ Modification
    ☐ Forbearance
    ☐ Reinstatement
    ☐ Refinance
    ☐ Sale
    ☐ Short sale
    ☐ Other

    DOCUMENTS

    ☐ Mortgage statement
    ☐ Loan documents
    ☐ Notices
    ☐ Payment history
    ☐ Income documentation
    ☐ Expense documentation
    ☐ Prior modification documents

    RED FLAGS

    ☐ Guaranteed result
    ☐ Large upfront fee
    ☐ Pressure to sign immediately
    ☐ Request to stop paying lender without clear basis
    ☐ Request to transfer property title
    ☐ Refusal to provide written terms
    ☐ Fake government affiliation

    FINAL QUESTION

    If this company disappears tomorrow, what actual legal or financial progress have I made?

  • #27 REAL ESTATE INVESTMENT Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    1. “Real estate always goes up” is not an investment strategy.
    2. Leverage magnifies both gains and losses.
    3. Cash flow projections can be manipulated by assumptions.
    4. Appreciation is uncertain.
    5. Location quality is more complicated than a popular neighborhood.
    6. Population growth does not automatically mean investment success.
    7. Rental demand can change.
    8. New supply can reduce rents.
    9. Property taxes can increase.
    10. Insurance can become unexpectedly expensive.
    11. Maintenance is unavoidable.
    12. Major capital expenditures can arrive together.
    13. Vacancy can destroy thin margins.
    14. Property management can be harder than expected.
    15. Tenant problems can consume time and money.
    16. Transaction costs reduce returns.
    17. Selling isn’t free.
    18. Refinancing isn’t guaranteed.
    19. Interest rates can change.
    20. “Passive income” may require substantial management.
    21. Partnerships create additional risks.
    22. Syndications require serious due diligence.
    23. Promised returns are not guaranteed returns.
    24. Tax treatment can materially affect results.
    25. Your investment thesis should survive a bad year—not just a spreadsheet showing a great year.

    B. PREMIUM BUYER CHECKLIST

    DEFINE THE STRATEGY

    ☐ Rental
    ☐ Fix-and-flip
    ☐ Development
    ☐ Land
    ☐ Commercial
    ☐ Short-term rental
    ☐ Syndication
    ☐ REIT/public exposure
    ☐ Other

    UNDERWRITE THE ASSET

    ☐ Purchase price
    ☐ Comparable properties
    ☐ Current income
    ☐ Market income
    ☐ Vacancy
    ☐ Operating expenses
    ☐ Capital expenditures
    ☐ Taxes
    ☐ Insurance
    ☐ Management

    UNDERWRITE THE MARKET

    ☐ Population
    ☐ Employment
    ☐ New construction
    ☐ Rental supply
    ☐ Rental demand
    ☐ Major employers
    ☐ Infrastructure
    ☐ Regulatory environment

    UNDERWRITE THE FINANCING

    ☐ Loan-to-value
    ☐ Interest rate
    ☐ Term
    ☐ Amortization
    ☐ Refinancing assumptions
    ☐ Fees
    ☐ Guarantees
    ☐ Prepayment
    ☐ Default consequences

    UNDERWRITE THE DOWNSIDE

    ☐ 10% lower income
    ☐ 20% vacancy
    ☐ Major repair
    ☐ Higher insurance
    ☐ Higher taxes
    ☐ Higher interest rate
    ☐ Lower property value
    ☐ Six-month vacancy
    ☐ Delayed sale

    FINAL TEST

    If the investment cannot survive reasonable downside assumptions, it is speculation disguised as an investment.