Author Archive
May
19
Mortgage Renewal Problem & Loss of Income?
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If your mortgage is coming up for renewal but as a result of an accident you no longer have the Income you were getting from Self Employment can they refuse to re-mortgage your house? The monthly mortgage payments have always been paid every month and never in arrears. Are there any options for these kinds of circumstances? Will they consider your accident is pending a future settlement and lawyers are looking after the case?
Quick Property Sale
May
18
Sell House and Rent Back Option Prevents Home Foreclosure Auction Sale
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Life can throw surprises at you that require you to sell a house quickly . If due to financial crisis you are not able to pay monthly mortgage payments, then you can solve your problem by selling your house quickly. Credit shortages are forcing an increasing number of people to opt for the recent phenomenon called “Sell House and Rent Back”.
Making your mortgage payments can be a difficult task, especially if you are having financial problems. In case your home is facing foreclosure auction sale because you have defaulted in paying your monthly mortgage installments to your banker or lender, you have limited options in your hand. One of the options is that you could allow the lender to put your home on foreclosure auction sale; alternately you could either sell your home yourself or look at the possibility of choosing to sell the home and rent it back.
There are many reasons why people may take this option. The reasons why a seller may choose to rent out the home they have already sold are to allow children to finish the school year, to avoid the search for suitable rental accommodation and tiresome business of moving itself.
There are many companies that can help you in ‘sell house and rent back’ option. These specialised companies own your home and rent it back to you, allowing you to stay back in your home as a tenant while paying suitable monthly rent. ‘Sell and rent back’ is a very good option for home owners during hardships. You can find an ethical company which will work with you every step of the way to reach an agreement for you to be able to remain in your home.
Quick Property Buy, one of the leading property buyers in UK offers fast property selling services for people who wish to sell a house quickly. Quick Property Buy understands that selling your home is not an easy decision for you to make, and that you might not want to leave your home and prefer a ‘sell house and rent back’ option, which allows you to stay in your own home.
If you also want to avail Sell House and Rent Back option, please visit the site http://quick-property-buy.co.uk
Sell and Rent Back
May
18
A Few Considerations to Note Before Choosing a Mortgage
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When assessing your borrowing ability, what I found is a mortgage lender will take five key factors into account - your income, existing debts such as credit cards or other loans, the amount of deposit you have available, your past credit record and your employment status.
1. Income
Most mortgage lenders use a method known as an income multiplier to calculate how much they are prepared to lend. A ‘three-plus-one’ multiplier basis allows a lender to advance an amount equivalent to three times the main salary plus one times the secondary income.
The income a lender is prepared to take into account varies. But as a general rule, income that is guaranteed or has been received regularly in the past will be considered. In contrast, income that is not guaranteed, such as occasional overtime, will probably be ignored. The lender will also need proof of your income and will probably ask for recent pay slips or previous P60s - forms from your employers detailing your pay in the past tax years.
2. Existing Financial Commitments
If you have outstanding loans or credit card bills, a lender will reduce the sum it is prepared to lend you based on your income. This is because there is already a financial strain on your household budget and the lender does not you to be overstretched.
How much it reduces the loan amount depends on the size of your existing debts. Mortgage lenders tend to adopt one of two approaches - they will either reduce the advance by the size of the outstanding debt or they will recalculate the permitted maximum loan taking into account the monthly cost of a borrower’s existing credit.
3. Size of deposit
Though some mortgage lenders will allow you to borrow a sum equivalent to 100% of the value of your dream home, deals such as these are the exception rather than the norm. Most lenders require a deposit of between 5% and 10% of the value of the home. The bigger the deposit, the more favourably a mortgage lender will look upon you and a wider range of mortgage deals will be made available to you.
4. Credit History
If you have a chequered personal finance history you find it obtain a loan from a mainstream lender. When considering your mortgage application a lender will check whether you have previous mortgage arrears, have had a county court judgement recorded against you or have a bad credit record.
Some mortgage lenders will tolerate past financial indiscretions provided that you declare to them openly in other words, they don’t find out first - and your explanations are satisfactory.
5. Employment status
Though lenders are more aware of the increasingly flexible jobs market, they prefer to lend to people who have displayed job stability in the past or who can show a defined career path. They are less partial to people who constantly change jobs or who have big gaps in their employment history.
On a final note choosing a mortgage is probably the most important personal finance decision you will take. It is imperative that you get it right by comparing the right type of loan option. Take your time, seek help and advice, and don’t be afraid to question anything you don’t understand.
Quick Property Sale
May
17
2 Situations When Sale and Rent Back Is the Wrong Choice
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This article assumes you understand the sale and rent back process and will discuss 2 scenarios where selling and renting back your property is most likely not the best solution. If you are in these situations it is advisable you look at the alternatives which are suggested.
If you can reduce your monthly outgoings
Some people may find that they can reduce their monthly outgoings by consolidating their debts to a rate that is more affordable. This does not mean taking out more debts to pay off existing ones but getting all existing debts onto the best interest rate possible. If financial difficulties are causing you to consider sale and rent back it is often worth while looking at loan consolidation as a possible alternative.
This may allow you to keep ownership of your house but it does not guarantee that your future outgoings would be less than if you sold and rented back. If you are not sure what to do, it may be worth getting a rental quote from a rent back specialist (the good ones will give this free) and compare it to your potential outgoings if you consolidate your loan. This way you will be able to make a more informed decision.
When you want to get full market value for your property
If you want to get the best possible price for your property then sale and rent back is most probably not for you. Sale and rent back companies are not able to offer you 100% of the market value of your property due to the costs they incur buying it and the profit margin they need. Those companies that say they will offer 100% of the market value and rent your property back to you are most likely not telling the truth. They are trying to get their foot in the door and then will offer less. If they did offer 100% of the market value they could not survive as a business as they would incur a loss for every property they bought. Reputable sale and rent back companies normally offer up to 80% of the properties value.
You need to make sure you sell to a company that (1) is honest and upfront with you and (2) has a sound business model because if they go out of business there are going to be complications with you staying in your house.
If you want the best price possible for your property and do not need to stay in it then selling via an estate agent is the best solution. If you want the best price for your property, do not want to rent back and need a quick sale then a cash buyer is often the best solution. Many rent back companies can offer this quick cash sale service.
The bottom line is: sale and rent back is not the solution for those wanting full market value for their property and beware of companies that say they can offer this.
Quick House Sale
May
17
How to Make Money Renting
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Although the residential real estate market has hit the skids, it is not as gloomy as it appears. The market may be down, but it is not out, and it never will be as long as people need a place to live. You just have to be prepared for a long term investment in real estate and not panic.
If you own property or want to make money in the market today, the way to go is to rent out property. We have always been a nation of renters. Over the past 50 years, however, we gradually moved towards home ownership. On the other hand there are still many people who rent and some people who prefer to rent. Home ownership is a responsibility that not everyone wants to take on.
You can make money in the real estate market today by renting out property to individuals. You can rent out your own home instead of selling it if you are planning on moving, or you may even want to purchasing property to rent to people. If you are looking for a rental investment to buy, there has never been a better time than now. Housing prices and mortgage rates are lower than ever. You can purchase a home or a condominium to rent to others. This purchase will also be a long term investment for you.
Be careful if you purchase a condominium unit with the intent of renting because there is nothing in the bylaws that prohibits renters. You should also make sure that you do your own market study of the area. How much are other homes or condominiums being rented for each month? You need to find out whether the rent will cover not only the mortgage payment, but also the taxes and insurance.
Do your homework carefully before purchasing property to rent to others. This can be an ideal way to make money in real estate today, but you have to make sure that you understand the market as well as the tenant laws. Tenant laws usually favor the tenant, so make sure that you screen any applicants carefully. You should also take a good security deposit, especially if you are renting a single family home out. The security deposit should be returned when the house is vacated and in the order as agreed to in the lease.
If you buy property now, you can take advantage of the low housing prices as well as low lending rates. You can then hold onto the property for several years while renting it to tenants who will, essentially, pay your mortgage. When the real estate market moves towards a sellers market, which it eventually will, you can have the property appraised. Chances are that it will be worth a lot more than for what you pay now and by selling, you will get a sizeable return.
Making money in the real estate market today is not difficult if you are patient and willing to look for the long term investment. Always look to the best locations in which to invest in property as they will tend to gain in value quicker than any other locations.
Sell House Quick
May
16
mortgage with kent reliance building society?
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does anyone know how flexible is kent reliance building society about your credit to get a mortgage? i was suggested to take one from them by a mortgage adviser, but my credit isn’t high (no missed payments or arrears, but no on-time payments either because i don’t have any). is it worth trying or should i look for something else? this society doesn’t do agreements in principle, you need to apply with all the documentation straight away.
Real Estate Professionals
May
16
Is Sale And Rent Back A Scam?
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More and more people are selling and renting back their properties as the option becomes more widely understood and regulated. The 2 main reasons why people chose this option is because either :
(a) they can not afford their mortgage or debt payments so they want to pay off their debts by using the equity in their property without remotgaging or moving out.
(b) they have a lot of equity in their homes that they want to release (for their retirement, for comfortable living etc) without moving out or remortgaging.
So some people do it out of necessity and some people do it as a lifestyle choice; they are asset rich and cash poor and chose to access the cash in their property whilst continuing to live in it.
The people who sell and rent back out of necessity are normally in one of the following situations:
* Facing repossession
* Experiencing financial difficulties (due to a whole host of reasons)
* Ill health
* Separation or divorce
* Bereavement
Obviously this does not cover everyone but these are the main reasons behind the forced sale category.
What other options are there?
For those who are not in the forced sale category then a similar option could be a reversionary scheme whereby the owners sells their property to a reversionary scheme operator who then lets them live their rent free indefinitely. Sounds great except that the house is bought way below its market value depending on the age of the owner and the owner received little or none of the sale money (this is used to pay their rent). The scheme operator purchases the properties for a small percentage of its actual value because they take the risk that the previous owner will not live there for a very long time (i.e. they will die at around a certain age). Therefore, if the previous owner wants cash for themselves or to pass onto their family they may chose the sale and rent back option whereby they get more money back (although they have to pay a higher rent to stay in their property).
For the forced sale category other options include remortgaging but to pay off debt sand keep ownership of the property. However, many are in the situation because they have remortgaged so many times they can not afford the payments anymore and lenders will not allow then to remortgage. Others have the option to remortgage but see the danger of increasing debt to pay off other debt they are struggling with.
What price will sale and rent back companies pay?
It will vary between companies but you should be looking to get between 70-85% of the market value of your property if you went down this route. A reputable sale and rent back company will also pay the legal costs of the seller and all valuation fees. Note that the seller will not be liable for estate agent costs or HIP fees so there is extra savings for them here meaning that the discount is not harsh.
What rent will they charge?
The rent charged will depend on the sale price of the property. Some people want very cheap rent so they may negotiate to sell their property for at 70% of its value in exchange or cheap rent. However, even if people sell at the maximum price offered by the sale and rent back company then the rent charged is normally cheaper than previous monthly debt payments. If this was not the case the previous owner may not be able to pay the rent so there would be no point in doing the deal.
Beware
It is important to note that regulation is still in the pipeline for this industry and you should be aware that they are some unscrupulous operators in this field. If you go down this route make sure:
* You do not pay for any valuation fees ever. These should be paid by the sale and rent back company but some pass this on to the seller.
* You do not pay more than 500 GBP of legal costs for the sale (these should cover all your legal costs and the best companies pay this)
* Get the offer in writing including the future rent payments.
* Confirm how much rent will increase every year you live there.
* Ask for the contact details of previous customers to see if they are happy with the service
* Research the company to see if they have been many complaints about them
* Confirm the company is with one the sale and rent back associations such as the National Association of Sale and Rent Back (NASRB).
Rent Back
May
15
The Importance Of Knowing How To Stop Foreclosure
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The collapse of the real estate housing market in the US has extended even to homes purchased under the HUD program, and thousands of HUD homeowners are now facing foreclosure. But if you are among them, you should not give up just yet. If you know how to stop foreclosure on your HUD home, you will be able to hang onto your home and pay off the balance of your mortgage.
It’s a real tragedy that so many people don’t understand how to stop foreclosure. Not only do they have their homes taken, their credit is ruined and they will face real difficulty in finding lenders willing to help them finance their next homes. If they had only been shown how to stop foreclosure, they would have been able to take the necessary measures to protect both their homes and their credit.
Ways To Keep Your HUD Home Out Of Foreclosure
If you are wondering how to stop foreclosure on your HUD home and be surprised to learn that there are ways to do it. You can see what they are by paying a visit to http://HUD.com. You may be surprised to learn that foreclosure, from HUD’s standpoint, is a last resort, and they would much rather have your money than you house. Most HUD lenders, if homeowners are up front about their finances, will be eager to show them how to stop foreclosure.
One of the ways how to stop foreclosure is to request a special forbearance, which is a short-term reduction in your mortgage payments so that you can keep your home while you are sorting out your financial difficulties. A special forbearance can be a lifesaver if you have had an unexpected drop in your income or hike in your expenses, or both, but you will have to provide documentation of your changed circumstances.
Home Equity Loans To Stop Foreclosure
Another solution to how to stop foreclosure on your HUD home is to take a home equity loan, borrowing against the amount of cash value you have built up over your history of making mortgage payments. You can figure out how much equity you have by deducting the amount of money you still owe on your home from its appraised value. Your HUD lender will be happy to discuss a home equity loan with you, and you may even be able to use your equity to pay off your old mortgage in full, and get a lower interest rate on your equity loan, so your future monthly payments will be smaller. For more info see http://www.foreclosureshomeguide.com/Bank_Foreclosures on foreclosures fannie.
The best person to suggest how to stop foreclosure on your HUD home is, naturally, your HUD lender, who really does not want to repossess your home unless there is absolutely no alternative. But your lender is responsible to see that your loan is paid off, so finding a way to keep you in your home while allowing you to catch up on your mortgage is in everyone’s best interests!
Quick Property Sale
May
15
Anyone with any direct experience of companies like National Homebuyers (UK)?
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I would just like to hear from people who have had direct personal experience of these type of companies in the UK; who did you use and how did you find them?
I am not concerned with whether or not I can remain living in the property because I don’t want to anyway; re-financing is not an option and I don’t have mortgage arrears or any serious debts. I just need to sell quickly following a marital split.
Rent Back
May
14
The Process Of Sell And Rent Back House
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The whole process of selling your home with reason that you cannot manage to pay for it as agreed is very simple. It is the simplicity of the process that makes it a good decision to take. You need to learn the 5 phases that you would have to go through until eventually the process is complete.
The advantage that you would have when you have thought of selling your home is the fact that a consultant would pay you a home visit where you will understand the phases that you would pass through before you finally complete the sale.
Phase 1 of Sell and rent back house
This is the initial stage of the sale procedure. Here your needs would be evaluated. Mostly, the consultant would wish to know your expectations on the procedure. The value of the house would also be evaluated and the terms and conditions of the process would be defined.
Phase 2 of Sell and rent back house
At this stage, independent survey and valuation of the house would be done. This is done by the solicitor. The fees paid for the independent valuation and survey would be known at this phase.
Phase 3 of sell and rent back house
Then, documentation of the sale would be done. This happens at this phase. It is just about paperwork after which the solicitor would go ahead with the sale and purchase of the house. He would inform you about any documents that you would be required to supply.
Phase 4 of sell and rent back house
Then, the completion phase is reached. At this stage, you would now sign the sale documents which would only be after the documentation and paperwork procedures have been complete. It is more like the final stage.
Phase 5 of sell and rent back house
Finally, you will have the cash payment. Yes, this makes the final phase of the procedure. You will have the money less the outstanding charges that you owe the firm that offered you the mortgage.
Sell and rent back house is a simple process
Generally, the process of selling your home to a different owner is quite simple. But, you have to understand it so that you make use of it. All the 5 phases of the sale procedure have to be followed in the same sequence. It would be best that you understand all of them before you even start the procedures.
Convenient sell and rent back house procedure
You would find the procedure to be convenient when you are in consensus with what is happening. You have to understand how the operations are going and you will find the procedure to be very smooth.
With the right knowledge, you will be able to duly undertake and complete the sell and rent back house prospect and you will profit from all the advantages that come with the procedure.
Quick Property Sale
