Archive for Foreclosure
Sep
29
Sell Your Home in 2 Weeks for Top Dollar
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You don’t have to be a super investor or real estate guru to know that it’s difficult to find a buyer for your home these days. So many potential buyers have been shut out by lenders that they’ve actually shot themselves in the foot. The pool of buyers nation-wide has shrunk considerably. In your hometown for every qualified buyer there’s bound to be multiple homes available to them, that’s why they call it a “buyers market”. Savvy homeowners, Realtors, brokers and investors are now reverting to strategies from over a decade ago to sell their homes at top dollar within weeks rather than months.
The strategy is called “Owner Financing”. Traditionally to sell your home with Owner Financing you would need to have a mortgage paid in full and own the home outright. Then, you would carry a note on the terms you agreed upon with your new buyer. In short you become the bank. You carry a lien on the property and are paid according to the terms of the note until they refinance, pay you off or you foreclose when they can’t make the payments. There are great advantages to offering owner financing as you can decide the terms, the buyer and control the process. However there are some risks involved such as potential foreclosure and the liabilities that go along with lending.
Owner financing does not work for many because the majority of homeowners and home sellers have a mortgage. The only folks most of us know that own their homes outright are usually the rich, very fortunate and grandma/grandpa. For the rest of us we’re paying a lender to borrow the money in order to live in our home or paying rent to a landlord who’s paying a lender to live in our home.
Approximately 70% of America is “Credit Challenged” and have been locked out by traditional lenders from buying a home. That means the 30% who can get a loan, if they are looking to buy, are getting great deals and beating up the sellers out there. There’s typically one type of buyer called “A” credit. That’s where “Temporary Owner Financing” can be a very useful tool. IF YOU’RE SELLING A HOME FSBO, REALTOR, BUILDER OR INVESTOR, LISTEN UP…or read more intensely!!! The Credit Challenge buyer needs your help to qualify for the home. YOU CAN PROVIDE OWNER FINANCING even if you have a mortgage if you’re willing to give up a little equity on the front end. You simply sell your note at a discount to a note buyer for top dollar at closing. Most sellers are already giving up plenty of equity to even attract a living, breathing body that is interested in their home, so this shouldn’t be a shock to you. You can now offer financing to all types of buyers, not just one. B, C and D credit buyers will be flocking to your home wanting more information about your financing and what you can do for them. Not to mention all the attention will also attract “A” credit buyers as well.
Here’s how Temporary Owner Financing works:
1. Find a note buying service that will purchase your note at closing for top dollar. Like this one: sellmyhomesecret.com.
2. You advertise your home at top dollar offering owner financing.
3. You get the home under contract with an end buyer that qualifies with your note buyer.
4. At closing your note gets purchased at a small discount and your mortgage is paid in full.
5. The new buyer now has a mortgage with your note buyer and you smile and say, “Thank you very much”.
Using this method you’ll get more written offers, quicker and at full appraised price. You may not even need to use the note purchasing service if you attract a buyer that can qualify for a sub-prime loan. In that case, you can even reduce your home price if you wish for any pre-approved buyers. And your initial offer of Owner Financing will help increase your showings thus making this a good possibility.
So, if you want to sell quickly at top dollar, here’s a strategy of becoming a solution to the problem of today’s housing market.
Happy Selling!
Passive Income
Aug
28
Common Myths Of House Repossession Explained
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While speaking to people at various events or network opportunities, every so often some one mentions about the increasing number of repossession, thanks to interest rates that have been creeping up slowly in the past year or so.
Recently some one mentioned, “do not why people let themselves into trouble”, he said,”I would just hand over the keys to the bank manager and save my credit history rather than going through repossession hell.”
Nice idea, only that this does not work in UK.
Many people I have spoken to often speak about the foreclosures and ‘how to buy these properties and also help people in trouble.’Unfortunately these people have been regarding far too many property books published for American audience. Foreclosure is a term used in the US. Law works differently in UK, and it refers to repossessions.
Same thing? Hardly!
Lets us talk about foreclosures versus repossessions first.
Myth 1: Foreclosures versus Repossessions
US housing lenders are allowed to apply to the court (and granted permission) to seize the house back, sell it and keep the whole proceeds. Normally court allows repossession but increasingly they are allowing foreclosures. This means that investors can buy the house from the company cheap and make a profit on by reselling it at full market price.
However in UK, companies are not allowed to seize the house. Courts allow them only to repossess the house to be sold at the fair market value, pay the owed amount (and expenses) from the proceeds and send the balance to the borrower.
The Building Societies Act 1997 directs companies to “take reasonable precautions to obtain the true market value of the mortgaged property.”
The true value of any property is often subjective - and depends on the opinion of a purchaser. So how can a mortgage company determine its true market value?
Auction is a route that many companies take.
However the mortgage company does not has to sell the property via auction to obtain the true market value. Courts generally accept this method as a determinant of fair value, but as long as a company can demonstrate, if questioned, that other methods were used, it is allowed.
Some companies sell the property via local estate agents without disclosing that he property is repossessed. By the way of like for like comparison, they can demonstrate that fair value was achieved.
Myth 2: Hand Over The Keys Myth
Many people believe that if they are struggling to keep up with paying the mortgage then handing over the keys to their bank manager will clear them of any further obligations of making payments - because they do not own the house, right?
Sadly this is far from the truth.
Mortgage company lends you the money (cash) and requires you to pay back the whole amount and interest in cash. If the company has to sell the house on your behalf then you are still liable for any interests incurred till all the dues are cleared.
Myth 3: Property repossession allows you to make a fresh start.
Only as long as all debts are cleared from the proceeds of your property!
If the proceeds from your property only pay back a part of the loan to your mortgage company then you are still liable to pay back the outstanding amount. These situations can happen if the property prices have crashed below the borrowing levels.
So if you are facing repossession threat then it is best to speak to some one competent about your situation. One advice is: do not ignore correspondence from your mortgage company. Second, get neutral advice as soon as you can. You do not always have to pay for the advice. Many free advice resources are listed on this link.
Remember,if property is sold via your lender (after repossession) then you not only become liable for further charges (e.g. bailiff etc), this also gets recorded against your credit score for future reference.
Many people prefer to sell the property to an investor who can buy the property fast. These investors can be located via doing a search on Internet, searching your local papers or speaking to those in the know.
Real Estate Professionals
Jul
15
we are not behind and we have tried to get them to audit our file but they refuse and is proceeding with foreclosure. we cannot afford an attorney. what is our alternative recourse??
Passive Income
