Archive for January, 2012
Jan
26
Use Your Storage Rental While Waiting on Your House to Sell
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Selling a house can be an extremely stressful process. Dealing with multiple walk through appointments, talking to your real estate agent, and making preparations to move all add to the confusion that is selling a home. One way to cut down on some of the stress is to invest in a storage unit while waiting for your home to sell. Why on earth would anyone want to rent a storage unit while waiting for their house to sell? It will help give them a head a start on their own move in the future while making their house more appealing to potential buyers.
After selling a house many sellers find that they have only 30 days to completely pack, move out of, and clean their old home. This might be doable for some hone owners but many home owners have a hard time especially if they are parents that have many children who are unable to help with the move. Investing in a storage rental unit will help get a head start on all of the chaos.
Before putting your house on the market, or immediately afterwards, invest in a storage rental unit if you do not already have one. If you do have one but it is a small one used for storing a few valuable items talk to your storage rental facility about upgrading to a larger unit. Then clean out your new unit and begin moving your furniture out of your home and into the storage unit. Focus on moving the furniture that you do not immediately need out of the house first. This can include couches, extra beds, desks, televisions, etc. Anything that you and your family do not need to survivor or do not use on a daily basis.
Next, start packing up your belongings that can be spared. This can include everything that is decorating your home that is pretty to look at but not immediately useful. Start packing up pictures, paintings, and other things that are hanging on the walls. This will give you a chance to fix any holes that might cause a problem with potential sellers while giving you a head start on minor repairs that will be necessary. Then start packing up extra clothing. Place all of the clothing in tight plastic containers that have been filled with paper to avoid moving and moth balls to avoid damage. Leave only enough clothes in your house that is necessary to get through work and casual activities. Always remember that you can go to your storage unit at anytime to retrieve anything that you placed inside by accident.
After you have packed everything into boxes or plastic containers that can be packed including clothes, books, and pictures start packing up all extra kitchen appliances. Once you have everything out of the way you can begin giving your home a thorough cleaning. This will help your home sell because visitors will see a nice, spacious, residence that is clean and well cared for. Also you will no longer have to worry about strangers coming through your home while you are gone and being able to go through all of your personal belongings.
Lastly, using your storage unit while you are waiting for your house to sell will make it easier for you and your family to move once your house has sold. As soon as your house has sold and you are able to move you will be able to easily have your remaining furniture moved to your new residence and your home made available to the new owner. This will help avoid an awkward transition between owners where the new owner must wait impatiently for the old owner to completely vacate the premises. By using a storage rental you will be able to quickly move into your new house and then slowly move your items out of storage into your new home. No more scrambling around trying to plan a last minute move from one home to the next.
Another benefit of using your storage rental when you are waiting for your house to sell is that it gives you the opportunity to get rid of junk that you have been holding onto. Many people are pack rats meaning they love to hold onto to things even if they aren’t immediately useful. Packing things up and moving them into storage gives families and individuals two chances to go through their belongings in search of things to throw away. They have one chance when initially packing and moving things to storage and another chance when moving things out of storage into a new home.
Real Estate Professionals
Jan
25
How Do Quick Sale and Rent Back Companies Work?
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For those people requiring a quick sale or wanting to sell and rent back their properties there is now a whole plethora of specialist homebuying and rent back companies to chose from. The problem is that until regulation comes in (which will hopefully be shortly after the FSA have finished their investigation in the practices and best way to regulate the sector) then many unscrupulous companies will be allowed to exist.
How does the quick sale process work
The home buying company will buy your property directly from you. They are not an estate agency of middleman and they take full ownership of the property. They will typically offer you between 75-85% of the market value of the property in exchange for a quick (4 weeks or less) guaranteed sale. They will then rent out the property or sell it on.
Given the buying and selling costs are about 5% each then these companies may only make 5% profit on each property if bought at 85% and less if they can not sell it for months. This is why they need to buy at a discount.
How does rent back work
If you need to sell but want to stay in your property (i.e. because you need to pay off arrears or avoid repossession for example) then renting back your property could be the ideal solution.
This involves you selling the property to a specialist company and then them renting it back to you (most home buying specialists offer this service). The sale price will normally be between 75-85% of its market value just like in a quick sale situation.
The rent you would be charged would be similar to the market rent of that property. This rent normally works out less than previous mortgage payments and loan outgoings so that the person stays in the their property and reduces their outgoings.
When you rent back your property will most normally be on an assured shorthold tenancy agreement (AST). This is the standard contract between tenants and landlords. The maximum term of this contract can only be 12 months so it is imperative this has a clause added to this agreement giving you the right to renew this contract on it expiry. They should also specify how much the rent will increase each year (normally with inflation or set % amount).
A good company will insert a right to renew clause in the tenancy agreement. This gives the tenancy the right to renew their tenancy each year as long as conditions are met (i.e. the rent is paid, the property is kept in satisfactory condition).
Be careful which company you deal with
Anyone who says they can show you how to “Sell your property in 7
days or less for full market value” is LYING!! They just want to get into your front door and soon the offer of buying at full market value disappears. If you think about it, how could they make such an offer and make money as a business and why would they not just go to estate agents and buy up all the properties in the
windows? If it sounds to be good to be true it normally is!
Some unscrupulous companies have tarnished the image of sale and
rent back by evicting tenants when they did not want to leave. Please contact previous customers of the company and check online for reviews of them to make sure you are not dealing with such a company. Also check to see if they are a member of a recognised association which has a strict code of conduct such as the National Association of Sale and Rent Back (NASRB).
Why would a rent back company throw me out?
The vast majority of rent back companies love having previous owners stay in the properties for the long term as they do not have to advertise for new tenants each year and have periods when their property is empty.
In addition, sale and rent back tenants treat the property with great care as it still s feels like their house and not rented accomodation. They tend to respect properties better than normal tenants and most companies do not want to lose them.
Also, a good sale and rent back company will give some assurances about future increases in rent. For example, they may stipulate that rents will only increase with inflation each year or at the same rate as market rents. This should be in the contract. If not, there is a danger they could increase the rents massively each year to the point where it is effectively forcing their tenants out.
Option to Buy Back
Some companies will also give you the option to buy back your property at a fixed price in the future. This is agreed before you sell and this contract is registered at the land registry. This gives you a legal right, but not obligation, to buy your property at a preagreed price over a set timeframe.
Regulation of sale and rent back
The Office of Fair Trading are conducting a study that will determine whether existing consumer laws can keep homeowners adequately informed and protected, and could recommend that sale and rent back is fully regulated. Any further protection will be great for reputable companies and rent back customers.
Sell House Quick
Jan
25
Tips for Stopping Repossession
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If you are trying to stop repossession of your property, there are several things you can do to help the process.
First and foremost, you should take good care of the property. One of the worst things you can do if you are trying to stop repossession is to destroy the interior of the house.
Many people strip their house clean of valuable items in order to ensure that the lender receives as little of their personal belongings as necessary.
However, this will not stop repossession of your home. In fact, it can have the opposite effect as a property devoid of heating, carpets, kitchen appliances etc will be worth less when it is being sold.
Considering the proceeds of the sale of the property will be used to pay off the balance of the loan and any mortgage arrears that have accrued, you should do all you can to ensure that the lender achieves the highest price possible when they sell the property after repossession takes place.
Another important thing to do when trying to stop repossession of your home is to be honest with the lender. If you are completely broke then you should tell them.
It will cost the lender money to pursue you for your outstanding debts so they may not be so inclined to continue chasing you if you make them aware that there is nothing to chase.
This does not mean that you will successfully stop repossession by eliminating the debts you owe, however it can help to relieve the pressure of constantly being hounded for payments that you cannot make.
One important step in the process required to successfully stop repossession of your home is to check your credit file. Lenders will use this file as a tool to help determine whether you have enough money to pay them.
In fact, it is important to check your credit file regularly anyway to ensure that there are no unauthorised checks on your file from credit issuing companies.
If you have received a shortfall letter from a lender you should check your credit file to discover whether they have already performed a search.
Legal issues may arise from such an act that could weigh in your favour. It is, of course, necessary to consult with a repossession solicitor to determine whether this has any bearing in your particular case.
Every individual in the UK has a right to privacy and it is possible that an unauthorized credit search may breach this right.
Please consider the information above if you are hoping to stop repossession of your home.
Real Estate Professionals
Jan
24
CSA Back payments arrears / Assessment calculations help?
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I am a 44 year old male with 2 children from my previous marriage the children are 18 yrs old and 15 yrs old.
I have a 25% equity share in the matrimonial home which is payable when my youngest turns 18 yrs old.
I had accrued some arrears several years back and the CSA had agreed a monthly payment of around £60 per month on top of the normal maintenance payment. In all I have been paying £370 per month including arrears, I have just been re-assessed and the payments are going up to £550 per month, partly because I have been reassessed and my wages have gone up slightly (pitty they don’t reduce them when the cost of living goes up) And secondly because my arrears now have to be paid within a set period, which has taken it up by another £30 per week.
This has put me in an impossible situation, I am on the old system ie. 30% less certain expenses like my mortgage. I have since re-married but my wife as strange as it seem will not move in as she refuses to have anything financially to do with my children.
So heres the question…. can they ramp up my payments without any regard to my financial commitments?
My take home pay is £1850 monthly I have an £800 mortgage, council tax £100 per month + every day living costs, I have been accessed at £86 per week if I took out a pension (which at the moment I havent got one) would that reduce my maintenance payments?
Passive Income
Jan
23
Should You Rent Or Buy Your First Property?
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When you first leave home, you are faced with the daunting decision of whether to rent or buy your first property. Both have their merits, but which one makes the most financial sense?
A major factor behind this decision is the current state of the property market. At the moment we are in a major slowdown here in the UK so if you buy now you run the risk of your mortgage being higher than the value of the property, ie negative equity, if you subsequently sell it in the next few years.
This is a position you definitely do not want to find yourself in, but is nevertheless potentially a possibility if you buy now, so renting in this instance could be worth considering.
Another factor worth taking into consideration is your current and future employment because if you think you may be relocated in a few years time, for example, then negative equity could be a reality if you buy now because property prices may be slightly lower than they are now when you come to sell.
Renting may also be the better option when rental prices are generally a lot lower than mortgage costs for properties in your local area.
In general though you have to remember that in the long term property prices trend upwards, so if you are renting a property for any length of time you are missing out on any potential capital gains in the meantime.
Although the property market is flat at the moment, house prices will eventually start to rise again and you don’t really want to still be renting at this point.
My own opinion is that in general you should try and get on the first rung of the property ladder as soon as possible, because if you look at the bigger picture, house prices generally double every 7-10 years, so the earlier you can buy, the more capital gains you can realise, and the quicker you can secure your financial future.
As a first-time buyer, you are in a strong position because there is no chain involved, which is favourable to sellers and means you can negotiate a better price, particularly in the current market.
Furthermore by buying a property in need of redecoration or renovation, you can not only buy a more affordable property, but you can move up the property ladder quicker by doing it up and adding value, and you can also protect yourself to some extent from falling property prices in the short term.
So overall I personally think that as a first time buyer you should always look to buy your first property if at all possible. The only exception would be if you are planning to move within a year or two, in which case renting would potentially make more financial sense in the current market.
Sell House Quick
Jan
23
The Fastest Way to Stop Home Repossession
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Whenever you take out a loan to buy a house, you can face repossession. Falling behind on your payments can lead to the loss of your home, especially because mortgage companies or banks have very strict conditions of payment. They have to ensure that your debt does not rise beyond several months. However, there are situations when the borrower has failed to pay the mortgage for several months and thus he is faced with a difficult situation.
The mortgage company or the bank offers you the possibility to repay the money and get back on track, but for most people the period of time is too short and the amount of money is too large. Even if you want to pay off your debts, the financial situation you are in makes you unable to do so, and then you face repossession. To stop repossession, you need a considerable amount of money, which you can obtain by selling your house fast to quick sale investors.
Quick sale agents can give you the necessary amount of money in less than a week if everything goes according to plan. For example, I have missed my payments for several months now and unless I pay a considerable amount of money, I stand to lose my home. To stop repossession I need to sell my house really fast. But if I sell my house, where will I live and how will I get the money to buy another home? Well, this is easier than I thought. In order to stop repossession I must contact a quick sale investor. He or she will buy my house for cash, which I then use to pay my debts. Moreover, by contacting a quick sale investor to buy my house for cash, I retain the right to rent this house and even buy it whenever I want.
The investor will buy my house for cash in a couple of weeks and even sooner if time is pressuring me. I use the money I receive on the house to pay the debts and thus I stop repossession and with it the chance of never being able to take another loan again, all this without having to move out of my home. After I have finished with the loan problems, I can establish a short term or long term rental of my house, with or without the buy back option. The rental period depends on my financial status and the buy back option is suited to my financial needs as well. The monthly payments I have to make are lower than before.
There are many ways to stop repossession, but when losing your home is inevitable, selling your home fast is the easiest way to get rid of all your problems. Specialized companies and experienced people will guide you through the process and make sure that at the end of day, you will be able to live in your home and have a decent way of life, while trying to improve your financial situation.
Repossession
Jan
22
Mortgage and Financial Knowledge is Power
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Why do the CeMAP? In the current economical climate the media is reporting daily on what is going on in our banking systems, lending provisions and how the Monetary policy, Fiscal policy and other legislation are being adjusted to ‘get banks lending’. But do you understand what is being said? The economy affects us all on a personal and daily level, however the understanding in the public about what is going on is lacking. Therefore, by educating ourselves we can have a positive impact on our own lives and use the knowledge to help our own finance. And remember, the economy is a cycle and it will go up, therefore nows the time to get the knowledge.
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Money Laundering
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Borrowers
Mortgage and property regulation and law
The house-buying process
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The economic and regulatory context of mortgage advice
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The role of a Mortgage Adviser
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Guarantees and additional security
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Mortgage repayment methods
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Repossession
Jan
22
Strategies for Stopping Foreclosure
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Before you get started with purchasing a foreclosed property, you need to understand some basic foreclosure information. According to Investopedia, repossession of a home, is defined as ‘a situation in which a homeowner is unable to make principal and/or interest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract’.
With our economy struggling the way it is, this is becoming a reality for more and more people. For a homeowner, this is a pretty scary word. But sometimes it can actually be a blessing in disguise. There is more to it than the bank coming and repossessing your piece of property. There are ways to avoid repossession and ways to make it work in your favor.
Most lending institutions are willing to work with their customers and will provide some basic foreclosure information to them in order to come to an agreeable solution that does not include repossession proceedings on their homes.
The property owner needs to ask their lenders exactly how they do their foreclosures if no other solution is available. There may be instances where a lender is willing to accept a lower payment for a brief period of time to keep the loan from getting any deeper into default.
If you know that you are not going to be able to save your property from foreclosure, then you need good information to be aware of the many different options you have in order to protect your credit.
One of the easiest things to do is request a chance to sell your home before it goes up for foreclosure. Many lenders are willing to allow their customers the opportunity to put their house on the market and sell it for a price that is agreeable to all parties.
Other foreclosure information includes using a reverse mortgage. People over the age of 62, who are looking at a repossession of their property, may have the option of securing a reversed mortgage to pay off the debt. Basically what a reversed mortgage does is take the current equity in the home or property and turn it into usable cash without having to secure another debilitating loan.
Other useful foreclosure information includes documenting everything. No matter what else happens, make sure you document every conversation with your mortgage company that you have.
Repossession procedures usually take three to six months to run their course from start to finish. As long as you remain in contact with your lender and are either; making an attempt to work out an agreeable arrangement to bring your mortgage to date, to pay lesser amounts as agreed or attempting to sell your home, you have a legal leg to stand on if for some reason you need to fight the lender in court.
Some lenders offer the property owners a redemption period. This is a period of time after the bank has repossessed the house and the homeowner has to find a way to pay the debt in full, whether by refinancing or sale. Usually eviction proceedings follow after the redemption period is offered.
The best thing anyone can do when faced with foreclosure is to remain in contact with their lenders, so that they can investigate what legal options they have in saving their homes. This will enable them to work out an agreeable solution between themselves and the bank. If you don’t ask for the information on your foreclosure, the help won’t come to you. Remember, saving your home may be as simple as making a phone call.
Rent Back Fast
Jan
21
The house was surrendered the house due to arrears, but only a few days ago. I now want to re-buy the house for my friend then sell it to get the equity out of the house and return the difference to the friend. Buying the house for me is not an option, neither is a family loan, they never work. The house was a council house which they now own.
Q1. Would a mortgage company refund the difference to the owner if/when the house sells for more?
Q2. Would the mortgage company allow us to pack back the arrears, now?
Q3.Is there a time limit to sell an ex-council property and not have to pay something to the council?
Help please… got to get this sorted and get the max equity out for the friend.
Sell House Quick
Jan
21
Consolidate Credit To Stop Getting Turned Down
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If you ave been applying for credit and always being turned down, that is because your credit report has negative information on it. Time to do something about that! Your credit file is the information kept by credit reporting agencies concerning your record of payments to creditors. There are three major credit reporting agencies who perform these services for companies who are interested in finding out how good or bad a risk you are. Whenever you apply for a loan, try to rent an apartment and even apply for a job, you can be sure your credit report is being looked at. Time to do something about your personal finances if you have a bad credit report and you get declined for any of these.
Your credit file is built up over the years by the credit reporting agencies who keep track of all of your bills and your bill paying habits. If you have been in the habit of missing payments, being late, or just forgetting to pay, that will all be in your credit file as marks against your credit. These will result in lower credit scores, and lower credit scores mean you will not have a very good chance of getting a loan, or some other things you might be interested in, such as an apartment or a job. The opposite will also happen: if you are consistently a good payer, you can be sure you will be able to get a car loan, mortgage, credit card line or just about anything else from a lender.
With so many people filing bankruptcy these days, or using debt management programs, the lending companies lose money. So they want to avoid risks with people who may end up in bankruptcy. A bankruptcy ruling will stay on your credit record for ten or fifteen years. Debt management companies help you temporarily, but you are extending your debt and paying more fees, so it is harder to get out of debt.
You do have some protection under the law, but if you have bad credit, you will never really breathe easy until you can completely clean it up. In addition to a negative credit report and low credit number, we are also going to be facing judgements, foreclosures on a home, or repossession of goods, and even perhaps lawsuits. No one wants to risk being homeless and penniless. You know you have to find a way out.
What if you are in a situation where you cannot make a living, such as if you are on welfare or on disability? Look at any option you can to repair your credit. If you car is too expensive, find a cheaper one. If your home is too expensive, you may have to size down to one you can afford. Once these big expenses are eliminated, you can start to pay down debt and get your credit report back on track. This is the only way you will stop being turned down for credit.
Rent Back Fast
