Monday, August 9, 2010
WE ARE MOVING OUR BLOG
We are moving our blog posts to our domain. For more articles please visit our Creative Real Estate Funding Site. We will no longer post to this site. We also buy mortgage notes.
Monday, August 2, 2010
Showing Your Home While Keeping Your Privacy In Tact
Showing Your Home While Keeping Your Privacy In Tact
Make no mistake about it, home buyers will open nearly every closet and cabinet within your home. In fact, you want to encourage buyers to move and touch things within your home, but you should also learn how to keep your private information hidden during an open house.
Any part of your home that will remain after the sale, is open for investigation. This means that built in cabinet drawers; dining room china cabinets (that will be sold with the house); and bathroom medicine cabinets are all beckoning buyers to snoop around. Well, technically, they aren’t snooping if they simply want to see how large a piece of furniture is, but you should still avoid leaving things such as comparative market analyses laying inside of a drawer. In fact, you should keep all personal information fairly well hidden at all times.
Never leave opened mail strewn throughout your house. Just imagine what sort of offer a buyer might propose if they see a stack of credit card bills awaiting payment. Buyers may also note letters from the IRS; mortgage payment notices; or anything else that may put you in a compromising position.
While most home owners leave mail stacked on the kitchen counter, place your mail safely inside of a desk drawer, and make sure that the drawer cannot be opened. When it comes to other personal items, make sure that you disguise them as well.
Believe it or not, a diploma or wedding photograph should not be kept on the wall. Why? Well, certain buyers will apply instant biases depending upon what sort of information they find. For example, if you leave a law degree plastered on the wall, some buyers may immediately feel as though a lawyer cannot be trusted. In the same manner, if a buyer sees a recent wedding photograph, they may start to form an opinion about the type of religion that you practice. It is best to keep all personal items (even books and music) out of sight. Also, keep your closets tidy and in tact.
You may think that leaving certain clothing items hanging in your closet is not a bad idea, but make sure that the items do not say anything too personal about you. While most home owners do not think about personal items, do yourself a favor and clear out your home prior to any open house.
Make sure all personal details are hidden, and make sure that your home does not tell anyone all about your life.
Our other Blog
Our Dog Blog
Our Foundation
Make no mistake about it, home buyers will open nearly every closet and cabinet within your home. In fact, you want to encourage buyers to move and touch things within your home, but you should also learn how to keep your private information hidden during an open house.
Any part of your home that will remain after the sale, is open for investigation. This means that built in cabinet drawers; dining room china cabinets (that will be sold with the house); and bathroom medicine cabinets are all beckoning buyers to snoop around. Well, technically, they aren’t snooping if they simply want to see how large a piece of furniture is, but you should still avoid leaving things such as comparative market analyses laying inside of a drawer. In fact, you should keep all personal information fairly well hidden at all times.
Never leave opened mail strewn throughout your house. Just imagine what sort of offer a buyer might propose if they see a stack of credit card bills awaiting payment. Buyers may also note letters from the IRS; mortgage payment notices; or anything else that may put you in a compromising position.
While most home owners leave mail stacked on the kitchen counter, place your mail safely inside of a desk drawer, and make sure that the drawer cannot be opened. When it comes to other personal items, make sure that you disguise them as well.
Believe it or not, a diploma or wedding photograph should not be kept on the wall. Why? Well, certain buyers will apply instant biases depending upon what sort of information they find. For example, if you leave a law degree plastered on the wall, some buyers may immediately feel as though a lawyer cannot be trusted. In the same manner, if a buyer sees a recent wedding photograph, they may start to form an opinion about the type of religion that you practice. It is best to keep all personal items (even books and music) out of sight. Also, keep your closets tidy and in tact.
You may think that leaving certain clothing items hanging in your closet is not a bad idea, but make sure that the items do not say anything too personal about you. While most home owners do not think about personal items, do yourself a favor and clear out your home prior to any open house.
Make sure all personal details are hidden, and make sure that your home does not tell anyone all about your life.
Our other Blog
Our Dog Blog
Our Foundation
Sunday, July 25, 2010
The Right Remortgage Deals – How to Decide
The Right Remortgage Deals – How to Decide
Following the decision to remortgage your home, choosing the right remortgage deal is the most important decision you have to make. To ensure that your deal offers you the greatest benefits, it’s important to make sure the deal is the most compatible for your unique financial circumstances. Remember to talk with market professionals in order to get the best advice. Until then, however, here are some basic features that may be available when choosing your best loan option.
One important thing to remember is that deals revolve around the lender’s SVR, or Standard Variable Rate. Whether you’re paying the SVR or not, most loans and their interest rates relate to it. A common deal called a discount mortgage is a good example.. The benefit of the discount mortgage is that it offers a reduction on the SVR. If the rate changes, the amount you pay changes automatically to reflect that. The discount benefit of this type of home loan relies heavily on the length of the deal.. The shorter the period of the discount, the greater the discount.
The tracker mortgage is a comparable loan offer. If you have this type loan, you know for certain that your interest rates are in line with bank base rates. The benefit of this type is that even if there is a delay in reducing the lender’s SVR to reflect cuts in base rates, cuts are automatically applied to your loan’s interest rate. You see immediate change and your payments reflect the new, cheap rates instead of having to pay at an old rate while waiting for changes to kick in. Many tracker mortgages also offer fairly flexible terms that might be very appealing.
A flexible mortgage allows you to vary payments from month to month to reflect any changes in your finances. The options are to over- or under-pay, re-pay lump sums or take advantage of a payment “holiday” and pay for another major expense instead. It may be possible to take advantage of more than one of these offers instead of having to choose only one. The best feature of these incentives is that generally there are lower or no fees associated. These types of benefits are dependent on certain conditions, such as being in good standing on current payments or exceeding the terms of your payment schedule.
When you research and compare remortgage options, you may be surprised to find that more than one deal could benefit you. You can choose a plan for its cheap interest rate or for the absence of fees; it doesn’t matter because there are multiple options for your unique desires. If it’s not working for you, you don’t have to be locked into a mortgage plan.
Our Foundation
Our Other Blog Has Different Posts Pleas Visit And Comment
Our Dog Blog All Things Dog
Following the decision to remortgage your home, choosing the right remortgage deal is the most important decision you have to make. To ensure that your deal offers you the greatest benefits, it’s important to make sure the deal is the most compatible for your unique financial circumstances. Remember to talk with market professionals in order to get the best advice. Until then, however, here are some basic features that may be available when choosing your best loan option.
One important thing to remember is that deals revolve around the lender’s SVR, or Standard Variable Rate. Whether you’re paying the SVR or not, most loans and their interest rates relate to it. A common deal called a discount mortgage is a good example.. The benefit of the discount mortgage is that it offers a reduction on the SVR. If the rate changes, the amount you pay changes automatically to reflect that. The discount benefit of this type of home loan relies heavily on the length of the deal.. The shorter the period of the discount, the greater the discount.
The tracker mortgage is a comparable loan offer. If you have this type loan, you know for certain that your interest rates are in line with bank base rates. The benefit of this type is that even if there is a delay in reducing the lender’s SVR to reflect cuts in base rates, cuts are automatically applied to your loan’s interest rate. You see immediate change and your payments reflect the new, cheap rates instead of having to pay at an old rate while waiting for changes to kick in. Many tracker mortgages also offer fairly flexible terms that might be very appealing.
A flexible mortgage allows you to vary payments from month to month to reflect any changes in your finances. The options are to over- or under-pay, re-pay lump sums or take advantage of a payment “holiday” and pay for another major expense instead. It may be possible to take advantage of more than one of these offers instead of having to choose only one. The best feature of these incentives is that generally there are lower or no fees associated. These types of benefits are dependent on certain conditions, such as being in good standing on current payments or exceeding the terms of your payment schedule.
When you research and compare remortgage options, you may be surprised to find that more than one deal could benefit you. You can choose a plan for its cheap interest rate or for the absence of fees; it doesn’t matter because there are multiple options for your unique desires. If it’s not working for you, you don’t have to be locked into a mortgage plan.
Our Foundation
Our Other Blog Has Different Posts Pleas Visit And Comment
Our Dog Blog All Things Dog
Due Diligence For Real Estate Investors
Due Diligence For Real Estate Investors
Protect yourself and your investment by doing some things that could pay off big down the road when you are looking for the right properties to buy.
Real estate investors must be very careful and knowledgeable in order to protect their financial investment and get the best deal possible. Savvy buyers, no matter what they are buying have a set of shopping rules when making a purchase…the best price possible…haggle…inspect carefully (buyer beware)…best quality you can afford…so why not do the same for a really big purchase like real estate you buy as an investment?
It starts with picking your target location. What do you need in a target area where you want to invest? If you are investing in single-family homes or apartments, you might look for the best possible schools along with convenient shopping. A professional might want office space. An entrepreneur might want a store space and living space in one where lots of shoppers gather. Narrow down your needs and desires. Then decide what area fulfills your list of needs and wants and start deciding what you can afford.
Some commercial ventures may not be location sensitive. You might find something cheaper further out, but still in the path of development and changing zones from rural or residential to commercial. Or you might find a good location that’s improving from previously depressed values. If you can see the improvement coming it could be a great decision.
Then get your financing in order and pre-approved before you narrow down your target properties. No Realtor will take you seriously if you don’t take this step. We all have to be realistic about what we can afford.
A good Realtor will listen to you. If they show you a lot of properties that don’t seem like good matches, you may need to consider changing to someone who listens better.
When you have found a property that seems to fit your needs, make the Realtor prove value. Ask to see a market analysis of properties VERY close by that have sold and closed in the last 60 days. You may find that the property you’re buying is significantly over or under priced. This data is available from “Multi-list” or at the local tax office.
Study selling prices in your target area to make sure you know enough about prices, especially if you want a fixer upper. Fixers need to sell low enough to justify the cash you plan to invest in remodeling. Any good appraiser will tell you asking prices are often very different from selling prices. Don’t believe everything you hear. Get the facts.
When you feel like the time is right, make an offer contingent on an inspection and obtaining financing. Inspections can cover a number of issues that could cost you money, like pest infestations, environmental issues, and broken stuff. Do them all. With this data in hand you can go back to the seller and HAGGLE big time. Try to get the seller to lower the price, not make the repairs. Any work the seller does at this point WILL be quick and dirty. If a structure is in pretty bad condition you can make a really low offer, one that would justify the amount of work you have to do. It might be accepted. You never know. And you might find something that would make you pass on the property. If you have the right contingency contract you only pay for the inspections.
If you make a deal be sure and get a title search and title insurance, preferably the day of closing. This is especially important if you are to have a clean title free of workman’s liens, tax liens or other debts that you would have to repay in order to have a property you could resell. It’s the single most important thing that happens to protect the investment you make that many buyers don’t see a need to pay for. It is worth it.
Another thing that’s worth the money you spend on it is a survey. You need to know if there is any encroachment or easement on your property. Many of these things could involve expenses for you. A municipality might expect you to accept liability for water damage to other owners below your property. You don’t want this kind of problem. Know these things ahead of time.
The point is you have to really study hard and go in armed with knowledge. A real estate purchase may be the biggest investment people ever make in their lives or businesses. In the current real estate market, capable buyers have an advantage. Maximize your advantage by being well educated. Knowledge really is power.
Visit Our Blog For More Articles
Our Dog Blog
Our Books about Dogs
Protect yourself and your investment by doing some things that could pay off big down the road when you are looking for the right properties to buy.
Real estate investors must be very careful and knowledgeable in order to protect their financial investment and get the best deal possible. Savvy buyers, no matter what they are buying have a set of shopping rules when making a purchase…the best price possible…haggle…inspect carefully (buyer beware)…best quality you can afford…so why not do the same for a really big purchase like real estate you buy as an investment?
It starts with picking your target location. What do you need in a target area where you want to invest? If you are investing in single-family homes or apartments, you might look for the best possible schools along with convenient shopping. A professional might want office space. An entrepreneur might want a store space and living space in one where lots of shoppers gather. Narrow down your needs and desires. Then decide what area fulfills your list of needs and wants and start deciding what you can afford.
Some commercial ventures may not be location sensitive. You might find something cheaper further out, but still in the path of development and changing zones from rural or residential to commercial. Or you might find a good location that’s improving from previously depressed values. If you can see the improvement coming it could be a great decision.
Then get your financing in order and pre-approved before you narrow down your target properties. No Realtor will take you seriously if you don’t take this step. We all have to be realistic about what we can afford.
A good Realtor will listen to you. If they show you a lot of properties that don’t seem like good matches, you may need to consider changing to someone who listens better.
When you have found a property that seems to fit your needs, make the Realtor prove value. Ask to see a market analysis of properties VERY close by that have sold and closed in the last 60 days. You may find that the property you’re buying is significantly over or under priced. This data is available from “Multi-list” or at the local tax office.
Study selling prices in your target area to make sure you know enough about prices, especially if you want a fixer upper. Fixers need to sell low enough to justify the cash you plan to invest in remodeling. Any good appraiser will tell you asking prices are often very different from selling prices. Don’t believe everything you hear. Get the facts.
When you feel like the time is right, make an offer contingent on an inspection and obtaining financing. Inspections can cover a number of issues that could cost you money, like pest infestations, environmental issues, and broken stuff. Do them all. With this data in hand you can go back to the seller and HAGGLE big time. Try to get the seller to lower the price, not make the repairs. Any work the seller does at this point WILL be quick and dirty. If a structure is in pretty bad condition you can make a really low offer, one that would justify the amount of work you have to do. It might be accepted. You never know. And you might find something that would make you pass on the property. If you have the right contingency contract you only pay for the inspections.
If you make a deal be sure and get a title search and title insurance, preferably the day of closing. This is especially important if you are to have a clean title free of workman’s liens, tax liens or other debts that you would have to repay in order to have a property you could resell. It’s the single most important thing that happens to protect the investment you make that many buyers don’t see a need to pay for. It is worth it.
Another thing that’s worth the money you spend on it is a survey. You need to know if there is any encroachment or easement on your property. Many of these things could involve expenses for you. A municipality might expect you to accept liability for water damage to other owners below your property. You don’t want this kind of problem. Know these things ahead of time.
The point is you have to really study hard and go in armed with knowledge. A real estate purchase may be the biggest investment people ever make in their lives or businesses. In the current real estate market, capable buyers have an advantage. Maximize your advantage by being well educated. Knowledge really is power.
Visit Our Blog For More Articles
Our Dog Blog
Our Books about Dogs
Sunday, July 18, 2010
Ways to Sell Your Mortgage Notes
If you want to sell your mortgage note click here for a free quote. We buy mortgage notes!
It happens to many Americans, that when they sell their house they still carry a mortgage. Each and every year, the same question is asked ” How can I sell my mortgage note and get the cash I need?” If you are the holder of mortgage notes for sale, this information may be of assistance.
Annually, millions of real estate transaction are done without the involvement of a real estate agent or bank. Often a home owner can make a lot more money, when he decides to do the financing himself. Properties that are normally discounted under normal conditions and properties that are under standard, can now fetch top dollar in the market. But when they do the financing, they sell to people that either don’t want to or can’t get bank financing.
Completing this step, makes a real estate note. The new home owner makes the monthly payments to the person that has the cash flow note, so the seller becomes the bank.
The seller may want to cash out the real estate note after a certain amount of time if he so decides depending on his circumstances. Now when you have a cash flow note for sale you have a couple of options. You don”t have to sell the whole real estate note. You can just sell part of it to raise the cash you need.
A dependable private real estate investor with cash to purchase your real estate note is needed in order to sell real estate notes. The key to finding the value of your mortgage note lies in finding an investor who can determine its worth.
Those who buy notes professionally won’t charge you for speaking about your cash flow note, especially if this first discussion takes place over the phone. But you will find out a lot about how to cash out a real estate note.
Always keep in mind that the note buyers have to buy the notes at a discounted price and that too it should be large enough to cover the inflation and the risk. The real advantage to you of a transaction like this is that you recieve the money immediately.
Discovering the value of your real estate note is fairly simple, and private real estate investors compete for mortgage notes for sale, so peruse real estate investors’ websites if your finances require it. Ask them for information on how to cash out that real estate note you have. We often have a tendency to make things harder than they actually are, just because we lack certain knowledge or do not feel like asking questions. Availability of internet has made the knowledge conveniently accessible in today’’s world.
Our foundation
Our Books
Our Blog
It happens to many Americans, that when they sell their house they still carry a mortgage. Each and every year, the same question is asked ” How can I sell my mortgage note and get the cash I need?” If you are the holder of mortgage notes for sale, this information may be of assistance.
Annually, millions of real estate transaction are done without the involvement of a real estate agent or bank. Often a home owner can make a lot more money, when he decides to do the financing himself. Properties that are normally discounted under normal conditions and properties that are under standard, can now fetch top dollar in the market. But when they do the financing, they sell to people that either don’t want to or can’t get bank financing.
Completing this step, makes a real estate note. The new home owner makes the monthly payments to the person that has the cash flow note, so the seller becomes the bank.
The seller may want to cash out the real estate note after a certain amount of time if he so decides depending on his circumstances. Now when you have a cash flow note for sale you have a couple of options. You don”t have to sell the whole real estate note. You can just sell part of it to raise the cash you need.
A dependable private real estate investor with cash to purchase your real estate note is needed in order to sell real estate notes. The key to finding the value of your mortgage note lies in finding an investor who can determine its worth.
Those who buy notes professionally won’t charge you for speaking about your cash flow note, especially if this first discussion takes place over the phone. But you will find out a lot about how to cash out a real estate note.
Always keep in mind that the note buyers have to buy the notes at a discounted price and that too it should be large enough to cover the inflation and the risk. The real advantage to you of a transaction like this is that you recieve the money immediately.
Discovering the value of your real estate note is fairly simple, and private real estate investors compete for mortgage notes for sale, so peruse real estate investors’ websites if your finances require it. Ask them for information on how to cash out that real estate note you have. We often have a tendency to make things harder than they actually are, just because we lack certain knowledge or do not feel like asking questions. Availability of internet has made the knowledge conveniently accessible in today’’s world.
Our foundation
Our Books
Our Blog
Wednesday, June 23, 2010
More Borrowers Quitting Obama Mortgage Program
It seems that borrowers are not satisfied with the efforts of the government to help homeowners who are on the verge of losing their homes. Reports said more than a third of the 1.24 million borrowers who have enrolled in the Obama administration’s mortgage modification program have dropped out.
Data showed that a total of 436,000 people have dropped out of the $75-billion program since it was launched in March 2009. In May alone, some 155,000 people stopped trying to get loan modifications. The number of borrowers, who have received permanent loan modifications, meanwhile, stood at 340,000.
According to market analysts, the program did little to ease the plight of borrowers. “The foreclosure-prevention program has had minimal impact. It’s sad that they didn’t put the same amount of resources into helping families avoid foreclosure as they did helping banks,” National Community Reinvestment Coalition chief executive officer John Taylor said.
One of the reasons blamed for the high turnaround rate is the documentation of income required for homeowners who want to get loan modifications. To apply for the program, a borrower should submit two recent pay stubs to banks at the start of the process. Because of the new application procedures, the number of borrowers wanting to get loan modifications declined dramatically. According to reports, around 30,000 homeowners started the program in May, down from more than 100,000 people who signed up each month starting last summer.
Industry experts believe that the country’s problems with foreclosed properties could worsen if more people are going to exit the program. They also warned that it could further weaken the housing market and impede with the economic recovery.
Friday, June 18, 2010
Seller financing aids the seller and buyer
Seller financing is one field of the real estate industry that aids more than the house purchaser and the individual house seller. Home mortgages held by sellers are likely customers for investors that purchase seller financed home mortgages. For many people outside the real estate industry, this little observed market is large business for many. In order to understand how this market works, we have to recognize both sides of the business of owner will carry financing.
In a down market such as we are experiencing now, credit freezes up and conventional lenders inside the mortgage industry approve very few new mortgages unless the candidate has higher than average credit. For those people with less-than great credit, acquiring a loan thorough traditional channels is non-existent. Fortunately for these people, there is a large quantity of houses on the market with sellers willing to unload.
Some of these sellers are ready to offer what is called owner will carry financing which means they will operate as the lending institution. Rather than having to pay a credit business each month the customer will pay his monthly mortgage to the home seller. When financial times are good and lending institutions are offering creditowner carry financing is at a low. More people can obtain credit thorough conventional means.
The seller will carry the note until the note is paid or he sells the cash note to someone else, in this case a mortgage investor. Mortgage note investors are people that specialise in buying and selling money transactions. Notes come in many different varieties. Just about any transaction where a agreement is signed and a repayment plan is the mode of repayment, can be bought and sold.
Seller financed notes are the most widely recognized with the mortgage industry as they are real estate based. The market is built easily enough as sellers many times desire to free up the cash they have tied up in the cash note they are holding on the property. The seller may need the capital for any amount of reasons. He may want to make further investments with superior returns. Crisis conditions might have come up that force him to liquidate his holding. Children might need to go to university. The motives are endless.
Whatever the case may be, there are loads of investors eager to acquire these seller held mortgages. These investors purchase these money transactions largely for investment motives growing their portfolios. Though, income streams are the major purpose. By getting just a few notes the investor can generate a significant monthly income stream that will continue until the contracts are fulfilled or sold to another person.
In come instances, these mortgage notes are defaulted on at which time the investor forecloses on the house, keeps all the funds he has collected on past repayments then sells the property to another buyer. Seller financing aids many individuals involved in a real estate transaction. Individuals that can not acquire a mortgage through established means, single sellers as well as those investors within the notes industry.
Find out realistic recommendations about the topic of internet marketing – please make sure to read the site. The times have come when concise information is truly only one click away, use this possibility.
Visit our other blog for more info
email for more information
In a down market such as we are experiencing now, credit freezes up and conventional lenders inside the mortgage industry approve very few new mortgages unless the candidate has higher than average credit. For those people with less-than great credit, acquiring a loan thorough traditional channels is non-existent. Fortunately for these people, there is a large quantity of houses on the market with sellers willing to unload.
Some of these sellers are ready to offer what is called owner will carry financing which means they will operate as the lending institution. Rather than having to pay a credit business each month the customer will pay his monthly mortgage to the home seller. When financial times are good and lending institutions are offering creditowner carry financing is at a low. More people can obtain credit thorough conventional means.
The seller will carry the note until the note is paid or he sells the cash note to someone else, in this case a mortgage investor. Mortgage note investors are people that specialise in buying and selling money transactions. Notes come in many different varieties. Just about any transaction where a agreement is signed and a repayment plan is the mode of repayment, can be bought and sold.
Seller financed notes are the most widely recognized with the mortgage industry as they are real estate based. The market is built easily enough as sellers many times desire to free up the cash they have tied up in the cash note they are holding on the property. The seller may need the capital for any amount of reasons. He may want to make further investments with superior returns. Crisis conditions might have come up that force him to liquidate his holding. Children might need to go to university. The motives are endless.
Whatever the case may be, there are loads of investors eager to acquire these seller held mortgages. These investors purchase these money transactions largely for investment motives growing their portfolios. Though, income streams are the major purpose. By getting just a few notes the investor can generate a significant monthly income stream that will continue until the contracts are fulfilled or sold to another person.
In come instances, these mortgage notes are defaulted on at which time the investor forecloses on the house, keeps all the funds he has collected on past repayments then sells the property to another buyer. Seller financing aids many individuals involved in a real estate transaction. Individuals that can not acquire a mortgage through established means, single sellers as well as those investors within the notes industry.
Find out realistic recommendations about the topic of internet marketing – please make sure to read the site. The times have come when concise information is truly only one click away, use this possibility.
Visit our other blog for more info
email for more information
Saturday, June 12, 2010
Q. I own my single-family home with no mortgage outstanding, and I'm gainfully employed in a secure government position. I plan to retire in about five years. I have lived in my home for the past 20 years, but now find it to be more burden than haven. I am planning on selling it and renting a nearby townhouse condominium. I listed my home with we thought was a competitive price. But it has been on the market for nearly six months, and I've received only two low-ball offers. I reduced the price twice.
I've been told the banks are causing a problem. There are a lot of self-employed folks with cash who cannot get mortgages. I am thinking about offering my house for sale with 70 percent seller financing. My hope is to get it sold for full price, earn 5.5 percent interest on my money and, if the buyer defaults, get my house back down the road. I can do a 5-, 10- or even 15-year balloon mortgage based on a 30-year payoff schedule. I have been told that I am not obligated to accept any buyer; if I don't like their credit, I say no.
I believe offering seller financing will give my listing an edge and might get some action. I am thinking of insisting that the buyers prepay the first year of homeowners' association dues and an estimated water bill because I understand that these items can become liens against the property. I am also planning to ask the buyers to pay into an escrow account each month to cover the semiannual real property taxes and the annual hazard insurance premium when they become due. That way, I can ensure that these critical bills are paid because I will be paying them from the escrow account.
What's your opinion?
A. I strongly endorse this seller-financing approach, as long as you get a substantial down payment. And, since you indicated you will be getting 30 percent down, that should be sufficient. This plan will also provide you a regular monthly source of funds for many years, depending on how long you are willing to wait to get all your money, plus interest. Although the principal portion may or may not be taxable (because you are selling your principal residence, you are entitled to exclude the first $250,000 of capital gain from your taxable income), the interest portion of each payment will be taxable to you.
I recommend preparing an amortization table to show you and your buyer how much of each payment is principal and how much is interest. Amortization tables are available at sites such as Bankrate.com.
Seller financing is an excellent means of obtaining the best price for your home, but it is not without risk. One concern is that a 5.5 percent interest rate might look fine now, but rates can fluctuate wildly. Ideally, you wouldn't want to hold that 5.5 percent note for more than a few years. If you think interests rates will fall, you should consider imposing a prepayment penalty in your promissory note. Prepayment penalties are governed by state laws.
If you think interest rates will rise, consider offering to take back an adjustable rate mortgage. An ARM is a mortgage that has a fixed interest rate for a certain period of time, after which the rate changes at set intervals. In your case, assume that the 5.5 percent interest rate would be fixed for five years. At the end of the first five-year period, the interest rate would adjust annually. This adjustment feature protects you should interest rates rise five years down the road.
The adjusted interest rate is a function of an index (assume the prime rate as reported by The Washington Post) plus a margin of one to three percentage points, for example. On the adjustment date specified in your loan contract, you would add the margin to the index to get the adjusted interest rate. You might want to consult a financial planner or stockbroker to assist you in determining which index and margin to use.
Make sure the promissory note that the buyer signs is fully negotiable, that is, transferable to another party. There is a fairly brisk market in these types of seller-financing notes. Once the note is seasoned, with the buyer having made regular payments for six to 12 months, you will be able to sell it (albeit at a discount) if you ever want the pile of cash. You will also want to make sure the loan is secured by having your buyer sign a deed of trust. Have that deed of trust recorded in the land records office as a lien against the home. That way, if the buyer defaults, you can foreclose and get the house back.
I'd recommend insisting on an automatic debiting feature so monthly payments are taken from the buyer's checking account and deposited into your separate "My Old House Note Account." That way, you can go online every month and monitor the payments.
You should do a credit check with all three credit-reporting bureaus and obtain your buyer's FICO score from Myfico.com. Prior to the closing you should insist that the attorney conducting the closing provide you with a closing-protection letter from his title insurance underwriter. The letter protects you against any problems with the settlement attorney.
At settlement, make sure you obtain a lender's policy of title insurance at your buyer's expense. Finally, have the buyer pay all credit report and closing costs, including the expense of having the promissory note and deed of trust prepared and the deed of trust recorded.
This is not legal advice and should not be acted upon without obtaining your own legal counsel.
Visit our Blog
We BUY Mortgage Notes
List Your Note
I believe offering seller financing will give my listing an edge and might get some action. I am thinking of insisting that the buyers prepay the first year of homeowners' association dues and an estimated water bill because I understand that these items can become liens against the property. I am also planning to ask the buyers to pay into an escrow account each month to cover the semiannual real property taxes and the annual hazard insurance premium when they become due. That way, I can ensure that these critical bills are paid because I will be paying them from the escrow account.
What's your opinion?
A. I strongly endorse this seller-financing approach, as long as you get a substantial down payment. And, since you indicated you will be getting 30 percent down, that should be sufficient. This plan will also provide you a regular monthly source of funds for many years, depending on how long you are willing to wait to get all your money, plus interest. Although the principal portion may or may not be taxable (because you are selling your principal residence, you are entitled to exclude the first $250,000 of capital gain from your taxable income), the interest portion of each payment will be taxable to you.
I recommend preparing an amortization table to show you and your buyer how much of each payment is principal and how much is interest. Amortization tables are available at sites such as Bankrate.com.
Seller financing is an excellent means of obtaining the best price for your home, but it is not without risk. One concern is that a 5.5 percent interest rate might look fine now, but rates can fluctuate wildly. Ideally, you wouldn't want to hold that 5.5 percent note for more than a few years. If you think interests rates will fall, you should consider imposing a prepayment penalty in your promissory note. Prepayment penalties are governed by state laws.
If you think interest rates will rise, consider offering to take back an adjustable rate mortgage. An ARM is a mortgage that has a fixed interest rate for a certain period of time, after which the rate changes at set intervals. In your case, assume that the 5.5 percent interest rate would be fixed for five years. At the end of the first five-year period, the interest rate would adjust annually. This adjustment feature protects you should interest rates rise five years down the road.
The adjusted interest rate is a function of an index (assume the prime rate as reported by The Washington Post) plus a margin of one to three percentage points, for example. On the adjustment date specified in your loan contract, you would add the margin to the index to get the adjusted interest rate. You might want to consult a financial planner or stockbroker to assist you in determining which index and margin to use.
Make sure the promissory note that the buyer signs is fully negotiable, that is, transferable to another party. There is a fairly brisk market in these types of seller-financing notes. Once the note is seasoned, with the buyer having made regular payments for six to 12 months, you will be able to sell it (albeit at a discount) if you ever want the pile of cash. You will also want to make sure the loan is secured by having your buyer sign a deed of trust. Have that deed of trust recorded in the land records office as a lien against the home. That way, if the buyer defaults, you can foreclose and get the house back.
I'd recommend insisting on an automatic debiting feature so monthly payments are taken from the buyer's checking account and deposited into your separate "My Old House Note Account." That way, you can go online every month and monitor the payments.
You should do a credit check with all three credit-reporting bureaus and obtain your buyer's FICO score from Myfico.com. Prior to the closing you should insist that the attorney conducting the closing provide you with a closing-protection letter from his title insurance underwriter. The letter protects you against any problems with the settlement attorney.
At settlement, make sure you obtain a lender's policy of title insurance at your buyer's expense. Finally, have the buyer pay all credit report and closing costs, including the expense of having the promissory note and deed of trust prepared and the deed of trust recorded.
This is not legal advice and should not be acted upon without obtaining your own legal counsel.
Visit our Blog
We BUY Mortgage Notes
List Your Note
Wednesday, June 9, 2010
Importance of Mortgage Calculator in Real Estate Business
Mortgage calculator solutions can enable best in class debt management solutions in no time. One of the much aspired benefits of mortgage calculator based solutions is their intrinsic ability to provide prevalent interest rates to debtors in a unified and fair manner. As a result debtors can easily make smarter decisions based on mortgage calculator solutions on the go. Online solutions should also be explored while trying to explore mortgage calculator based solutions in a seamless manner. Real estate market across the globe is picking up. The prices of plots, apartments and condos are expected to head northwards. Home loan financing can be better addressed through mortgage calculator based solutions over shorter span of time on the go in a seamless manner.
Real estate business has taken an altogether new meaning with mortgage calculator based solutions. With an increased competition in the market, home financing solutions can be availed across various service providers at competitive rates in no time at all. A mortgage calculator solution will enable one and all in calculating mortgage financing quote based on their risk factors and assumptions in a seamless manner. Simple inputs such as current liabilities, assets and income sources can enable one and all in customizing mortgage calculator based quotations.
Prospective home owners can consult reality agents, realtors or bankers for enabling mortgage calculator based solution for powering their home loan needs. A competitive home loan can provide longer term solutions in no time at all. However, risk factors and assumptions should be properly understood and assessed while calculating liabilities with the help of mortgage calculator based solutions.
Service providers generally assign different weight structures to the assumed risk factors on the go. As a result, each service provider may provide their set of unique mortgage calculator based quotes in no time at all. Real estate solutions are being powered by mortgage calculators. Service providers and debtors can get to benefit from the endless potential that is being offered by mortgage calculator solutions in a seamless manner. Get going and benefit from mortgage calculator based solutions from day one in no time at all.
Real estate business has taken an altogether new meaning with mortgage calculator based solutions. With an increased competition in the market, home financing solutions can be availed across various service providers at competitive rates in no time at all. A mortgage calculator solution will enable one and all in calculating mortgage financing quote based on their risk factors and assumptions in a seamless manner. Simple inputs such as current liabilities, assets and income sources can enable one and all in customizing mortgage calculator based quotations.
Prospective home owners can consult reality agents, realtors or bankers for enabling mortgage calculator based solution for powering their home loan needs. A competitive home loan can provide longer term solutions in no time at all. However, risk factors and assumptions should be properly understood and assessed while calculating liabilities with the help of mortgage calculator based solutions.
Service providers generally assign different weight structures to the assumed risk factors on the go. As a result, each service provider may provide their set of unique mortgage calculator based quotes in no time at all. Real estate solutions are being powered by mortgage calculators. Service providers and debtors can get to benefit from the endless potential that is being offered by mortgage calculator solutions in a seamless manner. Get going and benefit from mortgage calculator based solutions from day one in no time at all.
Subscribe to:
Posts (Atom)