A look at foreign real estate investment in the U.S.

The time for worrying is always behind us. Worry doesn't fix anything and is wasted time that could be better spent on productive thoughts and strategy. Besides, look at how much foreign investment there is in the US and think about what it will REALLY take to change that course. It isn't pretty. The best that we can hope for is that all of that American investment oversees is respected by foreign governments in the same way that ours respects theirs.

That being said, I find it ironic that the current attitude towards credit and easy money would only now be coming to discussion. After all, where do these investors think that the cheap money is coming from? Americans? Guess again.

Dear Mr. Trump,

I just finished reading a few of the postings on this site regarding the current state of the real estate market, the increase in foreclosures, the advantages of buying properties in distress, knowing when to buy/sell, when to negotiate with your bank for a lower rate, etc. But the most important question I have which remains to be answered by any recent tv program or print article I've read is: What do you do AFTER the bank has foreclosed on your property?

Here is a brief summary of my story...

At the end of 2001 I obtained my real estate licence in Massachusetts and set off on my adventure as a real estate agent. At that time, the market was doing pretty well in Boston (where I live) and properties were being flipped for $50k profit within 3-4 months of being purchased.

After a couple of years of witnessing the success of my clients & friends, I decided to jump on the wagon & purchased two homes - at the same time, 100% financing. One a 3-unit building as a rental property & the other a beautiful 2-unit building which I made my home.

I won't get into too many details but after a couple of years of having good & horrible tenants (a few that left without paying months of rent, left their apartments with tremendous amounts of damage, months of not having any tenants at all), both of my properties were foreclosed on at different times last year.

The 3-unit building went first. It had been empty, top to bottom, for about 6 months -depleting my savings account. I tried working out payment plans with the bank but nothing worked. They even told me once that I'd need to make an additional $4k a month in order to approve me for one of their payment plans. If I had the extra $4k a month, I would have been able to pay that mortgage and wouldn't need to work out a payment plan at all. Needless to say, the months of not paying my mortgage payment in full, and eventually not at all, seriously damaged my credit. Enough so that I was not able to refinance the 2-unit building before the adjustable rate kicked in & increased my mortgage payment by more than $1,000 per month.

The 2-unit building, my home, was foreclosed on a few months after the 3-unit building. When I had originally ran all the numbers (and the market - sales & rentals - was still doing well) the income from the 3-unit building would've paid the mortgage for the larger building & a good portion of the 2-unit building. With the foreclosure of the 3-unit building, I needed to come up with almost $3,000 per month to pay the mortgage on the 2-unit building. Not an easy task as I had credit card balances that increased while I pulled money from every resource to pay my mortgages while I tried to save my properties from foreclosure, not to mention the monthly payments to my college student loans.

So, very long story, a bit shorter, now I live with a family friend. And as I sit on my mattress (the box spring wouldn't make it up the tight stairway to the attic where my room is), I'm wondering how long I will need to wait before I can purchase another home. How long will one of the banks that I had a mortgage with continue to send me bills for an equity line that was solely used to refinance one of the mortgages? And when I file my taxes this year, will I be obligated to pay taxes on the almost $1million balance I was not able to pay and caused the foreclosures?

Any advice, recommendations or insight you or anyone else reading this can be provide will be incredibly appreciated.

Thank you.

In any situation, there are always solutions. Foreign investment offers greater buying power obviously to them, but it can be a positive, I believe. The foreign investors are going to be anxious to invest and capitalize.

That could mean perhaps savvy Real Estate Investors in America with definitive knowledge certain real estate markets or very familiar with property details a foreign investor would lack, the local savvy investor might about able to leverage that knowledge, skills, and more to gain access to more capital.

Foreign money ultimately could mean or spell opportunity to the savvy investor NOT worry. Besides, the issue of foreign money will not go away for a while, it is best to learn how to or create unconventional strategies to surf the new wave of foreign money due to our depreciating currency. --- Stanley Carter

I was thinking about this the other day when the TODAY SHOW was in South Beach; showing all of the properties, mostly waterfront condos, presently being bought up by foreign investors. Then, you have Hawaii, with an influx of Japanese buyers...since they weren't able to take it by force. Yes, it seems that the American Pie is being sliced and diced out to the highest bidders. At first, I was infuriated by this...the fact that we are "owned" by foreigners...Saudis, South Americans, Germans, etc. But, isn't this part of the American way? Major corporations "outsource" in order to create larger "short-term" revenues. If they weren't so greedy, they would keep the work in America, for Americans, and, perhaps, dowsize. In actuality, all they would have to do is pay their CEO's far less. Who developed that practice, anyway? That, of paying a few people a crapload of money, while the people doing the most work get little or nothing. That's mind-boggling that we, as human beings, allow this.

This has become our culture. Americans aren't concerned with old traditions and maintaining our land with patriotic pride. I think that there are just too many races and cultures to really have that type of country. It's difficult to get so many varying thoughts on the same page. Or, maybe not. Word travels fast, especially with technology as it is, today. We could have true solidarity, if we are given the proper information. There is too much media wasted on tabloid garbage and nonsense. We are a most undisciplined society, constantly in need of entertainment and stimulation of every sort.

It is a bit selfish to be upset over foreigners buying property in America. After all, we're all foreigners here. Imagine how the Native Americans felt. When you go back to the core, nobody really "owns" anything. That being what it is, and going forward...it would be nice if we conducted ourselves with more dignity, instead of "selling out" to foreign investors.

It's almost as if America is one big "VEGAS." Foreigners come here to have fun! Even if foreigners buy up the whole of America, they aren't making the rules. Or, are they? Who really controls our media? And, it also seems as though the Bush family sold off the entire country to the Saudis a long time ago. Maybe they're just transitioning in slowly.

We seriously need to get a handle on this economy, now heading toward stagflation...get the real estate situation in check, and, on, and, on... We, Americans, need to pay attention! To other countries, most Americans are perceived as a bunch of bumbling idiots, easily bought or controlled. It is no wonder that all of this is happening...life is one big party for most people. However, if enough people really buckle down and do the right things necessary to get our country back on the right track, we don't have give in to foreign influences.

Don't we owe it to Lincoln...to all of the veterans of all of our wars...to maintain our pride in America, by not giving it away! Or, buy selling it off...piece by piece, by piece. Thank God Mr. Trump does own a lot of America... at least he is a proud American! And, a sober one, at that! That's another problem with Americans...too many drunks...drunk on alcohol, power, sex, money...whatever! Whatever it may be, Americans are over the top with it. We need to just chill out with the excesses. It's out of control.

A lot of rich people don't mind the economy being this way, and mortgage situation being what it is. After all, they have more money than they can ever spend in several lifetimes, so what difference does it make to them what is happening to other people? Money doesn't buy common sense and substance. Mr Trump proves time and again that he can relate to, does care about, and, is interested in all facets of life. That is what is so fascinating about him. I wait, with baited breath, to see what he will do next,

There are positives and negatives we can draw upon in every siutation.

To me this is good because the Foreign Investors believe America will one day boom again, and the largest economy in the world has its attractions - capitalism, political shelter and a proven fortress of their wealth. It is better to have foreign money than to have no money flowing into America.

On the other hand, if such trend were to continue (most likely this won't happen), many Americans & businesses will end up paying rent to foreigners, while living and conducting business in their own country?! America will become, in a much larger degree, a global playground for capitalists.

Whether it is good or bad its really up to Americans becoming more educated and able in the subject of Finance and Wealth management. Money is what money is, it flows to where there is profit, whether it is China, India or USA.

In reference to member 1738391

"What do you do after the house has foreclosed on your property"?

Bank will propose: 1-of 3 options

1. 1099 C

2. Charge off / written off

3. New note un-secured

Under the 1099C you will need to higher a CPA and or an accountant . A CPA will be able to advise on the write off, the deficiency amount vs. the property losses. If you take the charge off amount and hold it , it will be on your credit for 6years and 9 months. You will need to pay it off and you will be able to apply 12-24 months after paid in full for a new loan. If you don't pay you will not be able to purchase another property in less he goes private money, hard money, and or has greater then 50% of the funds.

Other options before foreclosure:

The home owner can give a deed in Liu of Foreclosure.

The borrower/owner reinstates the loan by paying off the default amount during a grace period determined by state law. This grace period is also known as pre-foreclosure.

The borrower/owner sells the property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history. (short sale the property)

A third party buys the property at a public auction at the end of the pre-foreclosure period.

The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction. Properties repossessed by the lender are also known as bank-owned or REO properties (Real Estate Owned by the lender).

My thoughts are that foreigners who are willing and able to purchase US real estate, especially if they can get into more purchases of single family residential homes which are currently in the majority of the foreclosure category, this may actually stem the current housing crisis! The problem is that most foreigners who consider such purchases, say buying a nice single family residence in a beautiful Florida location, would want to know that they can enjoy all the priviledges of having their American residence. But as soon as they find out the hustle of getting a Driver's license as a foreigner, ensuring that they do not overstay their 30day Visa stay or 6 month stay etc, and forever applying for Visas/extensions whenever they want to experience their "American Dream" for any length of time, really is the cause for them to dislike the idea of picking these properties up. My suggestion is that, beginning with reasonable threshold value homes, and for approved locations, the US should introduce a program much like the EB-5 visa/greencard program, but in this case, it will simply provide for any foreigner (of course having met certain preconditions, background checks etc), should be able to get a Greencard, once completing purchase of a US home approved under this program (Say one that is valued at over 200k USD, has been on the market for at least 6months or so with no US buyers etc)... THIS IS A GREAT WAY TO STEM THIS HOUSING CRISIS and will most likely bring in a fresh breed of immigrants that are most likely not going to be dependents sucking funds from the system but will inject much needed FOREX and will also probably be capitalistic minded folks who will probably bring in new business ideas with Capital etc. Show support for this idea at: www.greencardhouse.com e-mail: greencardhouse@yahoo.com

Year 2009 was a difficult one for many, in varied ways. For stock investors, it went down as a traumatic, even disastrous. Most investors picked huge losses that wiped substantial portions of their portfolio. That wasn’t in anybody’s bargain, for sure, but life throws up the good, the bad and even the ugly. Good investment advice is always sought after. Good investment advice is even more critical since the stock market has tanked. It would seem after Jon Stewart pilloried Jim Cramer and Rick Santelli, CNBC isn’t the greatest source for good advice on Wall Street. Payday loans are doubtless starting to look more attractive. Santelli and Cramer were taken to task with vicious satire for their lack of journalistic integrity, bad stock advice, and glorification of Wall Street firms that were given lavish bailout funding at the taxpayers’ expense. It seems CNBC shouldn’t give investment advice at all.

Check out this article: http://personalmoneystore.com/moneyblog/2009/03/13/stewart-cramer-wal...