Archive for April, 2011

Sell House Fast: Dont Be Entangled In A Long Sale Chain

Hard financial times can get to anyone in today’s dynamic world of constant transactions. The homeowners can look forward to their house to come to their rescue as to recover from such threatening situations. To avail to a large amount of cash in quick time it is one of the most preferable methods to sell house fast. This is much better than relying upon traditional house sale methodologies which waste much of your precious time. And to accomplish this you can avail to the help of the firms offering these special services.

The dawn of Internet in the marketing horizon has really brought cheers to the prospects of both the buyers and the sellers. Transactions are faster and much more convenient. It has become easy to contact these special agents who can get the job done for you. At a click of a mouse you can now determine the price your property is going to fetch. Also if you need any advice the same is available for free from these agents who are committed to help you in any way possible.

The quick sale agents also help you out with free property evaluation helping you to determine the correct worth of your property. They are the right people to do this because they have an idea of the property and price listings of properties comparable to yours. Proper pricing instantly increases your chances of being able to sell house fast. Also they take care of other lengthy formalities that ease out the entire affair with minimal paperwork.

Availing to the services of property agents saves you a lot of time and energy. You can make good use of their expertise and experience. When you need to sell house fast they buy your house themselves and hand over the cash to you as soon as possible.

About the writer:  The author is a real estate specialist and through his writing has given guidance to many people who are in search of buying or selling property. He is currently associated with VIP Services and writing on the topics like quick house sale and sell house fast.

Seller Financing Myth Buster: How To Sell A Property By Wrapping The Existing Mortgage

I have been spending a lot of time reading blogs about owner financing of real estate transactions and there seems to be myth out there that you can not do owner financing if the property is not free and clear. Im here to bust that myth.

One common way to sell a property with an existing mortgage is the process of wrapping the mortgage. That is the seller carries a note that is at least as large as the mortgage and then uses the proceeds of the incoming payments to make his mortgage payment.

For example lets suppose the price of the house is 100000 and the existing mortgage is 60000. The payments on this mortgage are 500 per month. Billy Buyer tells Sam Seller that he only has 20000 to put down. In addition Billy has some bruised credit and my have a hard time qualifying for a regular mortgage. Sam is retiring and moving to a smaller place. If he received 20000 from the transaction he would be OK.

Sam says to Billy Pay me the 20000 down payment and give me a note for 80000 payable at 700 per month. Sam will take the 700 payment use it to make his mortgage payment and pocket 200 per month. Billy does not have to qualify for a mortgage closing costs are lower and he can move in a couple of weeks instead of a couple of months.

The 80000 note wraps the 60000 mortgage. The proceeds of the bigger note are used to pay the smaller debt.

Thats the big simple concept. Of course there are a lot more details to it than that and that is a topic for another article. But there is one big thing to watch out for.

The mortgage company usually has the right to call the mortgage all due and payable on sale of the property.

This means that several months or years after the sale if the mortgage company finds out that Billy has moved into the property it will ask Sam to pony up the entire 60000 he owes. The mortgage company cant ask Billy to pay up since it lent the money to Sam. But if it forecloses on the house Billy is out of a home and out all money he paid Sam.

Sounds scary doesnt it? It can be but heres the truth: it rarely happens. In todays market the mortgage company would rather have a performing mortgage even if Sam is not living in the property than an empty foreclosed house. I worked for a company that services thousands of wrapped contracts and there was only one mortgage called due in the last fifteen years because of a wrap.

Now if interest rates go back up and the mortgage companies are in a stronger market this may change. If interest rates go to 8 9 10 or higher Sams mortgage company is going to become more active in finding wrapped mortgages. They will not want to hang onto Sams lower interest rate loan and will ask that it be refinanced.

So wrapping a mortgage is relatively safe for now but it may not always be so. The due on sale clause is the source of the myth that it is not possible to sell a property using seller financing with an existing mortgage. It is possible. It is not uncommon. It is not illegal. But there is some risk to it. You need to assess that risk.

As usual check with your attorney and real estate broker before making any commitments. I strongly recommend that you do not do any real estate transactions with the counsel of professionals. I am neither an attorney nor a broker so I cant advise you.

About the writer:nbsp;nbsp;I teach real estate brokers how to put together owner financed real estate transactions.

http://OwnerFinanceGuru.com
5055658526

Seller Disclosures When Selling A Home As Is

When you are all set to sell your home it is essential to keep in mind that it is one of your legal and moral obligations to disclose all the problems affecting the desirability or the value of the property. Concealing major defects or problems fraudulently is considered illegal. Many states even require a proactive role from the sellers to produce written disclosures about the condition of their houses. This rule is applied not just to the regular sellers selling new or repaired houses but also to all those who are selling a house asis’. Any seller who fails to do so can face a legal claim that might cost them dearly.

A seller disclosure usually includes all the material’ defects or problems existing in the property before presenting it to a potential buyer. Some of the primary items that must be added in a seller disclosure include the mention of electrical or plumbing defects and potential hazardous conditions hampering the safety concerns while staying in the house such as an asbestos insulation or an abandoned well. The sellers would also need to specifically mention about any encroachments or any alteration or addition done to the property without a building permit. If the house has fences that are placed beyond the property line those also need to be mentioned in the seller disclosure document. Additionally you may enquire about all legal aspects that need to be mentioned in the disclosure from your real estate agent and include them accordingly. Some states also require mentioning of any acts of violence or crime that have taken place in the property.

Damage caused by any natural calamities in the past or susceptibility to any damage in the future should be mentioned in the disclosure. The list of registered sex offenders in the area is also included among the mandatory disclosures.

Some state laws include the mention of deaths that have occurred within the last three years in the property leaky roofs and disturbing problems around the neighborhood such as dog barks during the night or blaring music from nearby houses. Environmental hazards can also be included to be on the safer side. While selling a house asis’ you need to mention all those items and fittings in the house that may need repairs or replacement.

It is usually not required to hire a home inspector to find out the problems; you can specify those that are within your personal knowledge. Nevertheless you may hire a general contractor to help you in determining the major defects which will help you in gaining the confidence of the buyers and assure them about the fairness of the deal.

It is important to note that some states perceive it as your responsibility to find out the defects and not turn a blind eye on the possibilities of a potential problem. Although you may initially get away with it once the buyer finds out and faces problems you may end up settling the matter in the court compensating the buyer for your lack of responsibility.

It is advisable to put all the disclosures in a written format even the smallest issue that you have discussed with the seller personally. In case of doubts and queries ask your agent to help you with all the relevant information you need to provide in the disclosure form. Your agent can also help by providing you with a disclosure form. Disclosing the problems does not mean that you have to repair or mend them. It is just an honest confession on your part that may help in negotiating the prices and avoid future complications.

About the writer:nbsp;nbsp;We will buy your house As Is Now in any condition including Ugly Homes. If you need to Sell Your Home Fast Orlando Jacksonville Atlanta Charlotte Cincinnati For Lauderdale Houston Tampa and Fort Myers. Call 1800ASISNOW 8002747669