The foreclosure process can be confusing. Many individuals are left not knowing exactly how the process works. Here is a month by month estimate of what happens to give you a better understanding of what happens. Remember that each situation is unique.
Month 1
Day 1 – Mortgage payment is late
Day 15 – Late fee charged if not yet paid
Month 2
Day 30 – Collection calls begin, loan is now in default status
Day 45 – Late charges accrue
Month 3
Day 60 – Lender gives deadline to bring all months current
Day 61 – If you have a conventional mortgage, the loan is sent to attorneys for foreclosure to begin
Month 4
Day 90 – Mortgage payments 1-4 are due
Day 91 – If you have a FHA mortgage, the loan is sent to attorneys for foreclosure to begin
Day 100 – Borrower receives acceleration letter from attorneys. ’30 day intent foreclose’
Month 5
Day 130 – Acceleration letter expires. Foreclosure by advertisement runs in the paper for six weeks. The borrower now has that period to pay back all late payments. Attorney fees are added to the arrear of loan
Day 144 – Occupant of the property will be served with notice of foreclosure
Month 6
Day 174 – Final day to pay back arrears
Day 175 – Sheriff’s sale occurs at the courthouse in county where property is located
Redemption Period
The redemption period usually is 6 months long, there may be exceptions. During this period the owner has a couple of options, they can either sell the house or refinance to try and remain in the property.
Day 355 – If the loan is not paid off in full or possession is not kept, the owner must surrender the property
As you can see the process takes close to a year. If you are behind on payments, the best thing to do and do it right away is contact your lender. They will work with you to restructure or modify the loan. The longer you wait, the less and less chance you have of the lender doing so.
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Better Homes & Garden is the latest real estate franchise to come to the Twin Cities area under the Better Homes & Garden Area Leaders name.
BHG Area Leaders helps both buyers and sellers, as well as provide leasing strategies for people looking to rent property.
BHG is a progressive brand, technology centric brokerage that effectively promotes digital media and a positive change in the industry that has long needed it. They’ve only been around a few years but already located in 23 states and 200 offices. To be able to grow in this “down market” speaks volumes about the company.
If you are interested in learning more on what Better Homes & Garden Area Leaders can do for you and help you reach your real estate goals, please reach out here.
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Opus Development has recently announced plans for a new luxury multifamily apartment tower in downtown Minneapolis on Nicollet Mall and 5th Avenue, otherwise known as the Power site. Opus’ original plan years ago was a condo tower for the site but it never materialized.
The cost of the project is in the area of $100 million and 33 stories high. Located next to a light rail station, this would be the first transit oriented development that the downtown Minneapolis real estate market would see.
For individuals or families looking for the flexibility of renting rather than owning but all the luxuries that a downtown condo would have, this would be your destination.
The first two floors of the building will include about 25,000 square feet of retail and include fine dining with skyway connections.
If all goes correctly, construction should start in the Spring of 2012 with completion date targeted towards the Fall of 2013.
]]>Just click on the image below for a buying vs renting calculator, remember I can help you with both decisions. Feel free to contact me at anytime.
The first one is The Vanilla Shell. By far I spend most of my time here. This is a site I created and with Steven Ladin and it has turned into a great multi author blog that features some of the best that the Twin Cities has to offer. Bloggers come from many different backgrounds such as residential, commercial, mortgage, lawyers, architects, interior designers and more. We are truly trying to make the best site for local information.
I also launched a commercial real estate podcast called crePodcast and it runs once a week with my co-host Duke Long. The idea behind this site is to gather some of the biggest leaders in commercial real estate for a conversation that is worth listening to. We are creating a library of information about all aspects of the commercial industry.
I’m also involved in getting the Adam Commercial blog off and running that focus on hyper-local activity in and around Minneapolis. This blog borrows from a commercial real estate term called Positive Absorption.
And last but not least there I write a bi-weekly column for Minnesota Business magazine that involves commercial real estate and business chatter.
I’m not exactly sure where this site is heading but for now, you can catch up with all the happenings on the sites listed above! See ya around!
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It’s something that no business owner wants to face, after all most business owner’s think their first location is their last. Times change along with people and business that make for challenging decisions.
Relocating a business or moving is one of the biggest stresses around and if not done properly can leave your business handcuffed. Unlike a Broadway play, there really is no way to rehearse.
Moving a business does come with some short-term costs, whether moving costs or employees leaving because of distance and rehiring – the list is long.
Reasons For Moving Business
There are many reasons that a business might pick up and move its operations to a different location. Given the current economic conditions, many businesses are moving to different locations and taking advantages of lower rents. Something they might have not been able to get into a few years ago comes into play. Newer building, better amenities for employees, larger space for cheaper than current rent; the list could go on. Businesses are also downsizing or working on renewing leases to lower rates to better allocate funds.
Maybe you thought your landlord was on your side but now they decide to raise the rent on your current lease. Maybe your business is bursting at the seems in a tiny space and you’re trying to get every inch out of your current space. Saving Getting closer to your core business users like customers and vendors is another reason that you might decide to move.
Be Realistic and Do Your Homework
Nothing’s worse than having a few good months of growth and deciding to move into a new shiny corner office that with a 5 year lease and realize you bit of to much. Budget accordingly so you can support the new lease that you signed.
Understand the location that you are interested in relocating to. Even if it takes a year or two until you decide. You’ll be there for a while and you want to make sure the location is perfect.
Here are some quick thoughts to take into consideration when trying to decide if a move for your business makes sense. Tour property with tenant rep and take notes of each properties characteristics to minimize as much risk as possible. If traffic is important, make sure to get a traffic count on the number of vehicles that pass by each day. The cost of the rent; is it a gross service lease where every thing is included or something like a triple-net (NNN) that has a base price plus the tenant is responsible for taxes, insurance and operating costs. What are the build out costs for the space going to be? Can this be negotiated with the landlord paying some or all?
Is there space for growth? What are the condition of surrounding buildings or traffic?
Does the landlord carry a good reputation? Just like the saying “A happy wife is a happy life”, you could relate this to a landlord-tenant relationship.
Plan, Plan, Plan
The moving date will sneak up and fast.
As the business owner, you like to do everything yourself. Probably not a good idea in this situation and delegation of tasks is the way to go.
Create lists that tell everybody the plan; 3 months out, 2 months out, 1 month out, then weekly if need be all the way down to the day of move. Breakdown responsibilities for every employee ranging in tasks from paper plates to web servers.
Most companies now rely heavily on internet connectivity. Seek out the correct IT advice to ensure everything is working properly the day you need it to.
One of the best resources to ask is other business owners that have been through the process, they can answer a lot of questions. Their input could be the greatest because they’ve survived it.
Make your move rewarding and important step towards the growth of your business endeavors.
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You thought you would make it easy on yourself when looking at property. Driving around for hours searching for the right property for your business and realized its not the same as looking for residential home. Data and information is impossible to come by and realized the industry just hasn’t evolved. You didn’t want to bother anyone to show you property so instead you went straight to the listing agent. The deal gets done but not to your liking, you realize you just got screwed.
In today’s ever changing commercial real estate market, businesses need direct access to the best information available. No holding back. It’s a constant battle as both sides grapple for the upper hand when it comes to negotiations.
Why Tenant Rep
If you are unfamiliar with what a tenant rep, the best way to put is someone that only exclusively represents tenants or business owners. Conflict of interest is inevitable in a real estate transaction. Why mess around with it when it comes your livelihood?
A good tenant rep is not only skilled in negotiation but also well educated with current market conditions. Are some areas of the commercial sector struggling right now, sure. Some might not be as bad off as a lot are making it seem. As with all, its local. Maybe the office market in Minneapolis outperforming the St. Paul? Would you get this information if you went to a listing broker in a Minneapolis high-rise and wanted to know about a property in St. Paul? Your odds might be higher at the blackjack table.
Some Tenant Rep advantages
Strategic planning and financial analysis are many roles that a tenant rep has. We can provide help with decision making in complex business environment to help you decide if you need to relocate or renegotiate your current lease and expand or downsize.
- See ALL the properties! Not just ones the listing broker wants you to see. Broaden your search that fit your business objectives.
- A tenant rep has fiduciary responsibility to your business and no one else. You would never have an attorney represent both sides of case or you hire a CPA for your financials. Bringing on a tenant rep to help navigate your business in the complex real estate transaction almost seems like a no brainer.
- Can save you time and money by allowing you to focus on your business and customers.
- Provide an in-depth market analysis to make sure all needs are fully met. Present and future. There are lots of variables that can impact market conditions that need to be examined (ie: foreclosures, new developments, landlord motivations, et al).
- Advise in the best lease terms, rental rates, free rent, expansion and renewal options, construction or tenant improvement allowances, much more.
Money In Your Pocket
Saving money to invest in other places. Isn’t that what all owners like to hear? Maybe by using a tenant rep you can save your company $20k, $50k or more, then allocate costs to sectors of your business that matters. Don’t waste the time by trying to do it yourself, focus on what matters which for most business is the companies bottom line.
Most tenant rep fees are paid for by the seller or landlord at closing, just like a residential transaction. You could argue over the course of the lease the tenant will pay but landlords have all these costs already worked in. So easily put, no up front fees in most cases. However, make sure you fully understand where the fees are coming from before signing anything.
So here’s my question: if a tenant rep can save your business occupancy costs over the terms of the lease (sometimes up to 40%), then isn’t it worth it?
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Come and hang out on Friday May 14th from 4pm to 7pm at Flat Earth Brewery and grab some food/apps from Stella’s Fish Cafe.
Can’t think of a better way to roll into the weekend than meeting new people, enjoy some great local craft beer from a company that is growing and getting a lot of press and have some appetizers from another great local company.
The cost is $10 for all you can drink and eat (within reason of course or until it runs out).
Can’t beat it, less than your regular happy hour.
Here is a link to the invite. Please RSVP so Stella’s Fish Cafe knows how much grub to bring.
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