Seller Financing Can Be Beneficial If You Avoid Making Mistakes
Owner financing is an alternative method of seller your home, where you the homeowner enters into a mortgage contract with a buyer who wants to purchase your home. Owner financing usually yields full market price for the home and a good rate of return. Here are 6 ways to insure that your risk is minimized.
1. Ask for a cash down payment of at least 10% on the purchase of the home.
2. Ask for other security. If you are comfortable with the buyer, but the buyer does not have the down payment requirement, ask for additional security like a car title that can be used for additional collateral.
3. Check their credit. There are many options for obtaining a credit report. Have the buyer obtain a credit report with a credit score and bring it with them when applying for the loan. Bed credit is okay, as long as the issues have been resolved and they have recovered financially.
4. Trust your instincts. It has been proven time and time again that your first impression is usually the correct one. If you have a funny feeling about the situation, it may be best to walk away and find another buyer.
5. Consider the whole picture. If the bank is willing to loan the buyer 90% of the homes value, and is okay with you holding a second mortgage on the house if the buyer puts 5% down in cash, it’s a win win for everyone. The whole picture is you’ll be getting 95% of the value up front, even if the buyer never pays a dime on the second mortgage. Worst case scenario is that you foreclose on the house that the buyer paid you 95% of the value for.
6. Talk to an attorney. Determine what the foreclosure period is in your state. Each state sets different periods for foreclosure through the courts. Knowing these things can help you sell in the safest way.
Providing seller financing allows you to get the most money possible for your home. Be smart about it and this can be a winning transaction for you and the buyer.
Hubert Miles is the founder of Waterfront Houses USA, an online real estate listing service that offers Waterfront Homes and Waterfront Homes For Sale in the US and Canada.
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Read More...The Reason You Have To Purchase A Home Insurance Plan
Your home is the biggest asset that you’ll ever own. You put all of your money into your mortgage & spend thousands on new furniture and items for your family. It only makes good sense to cash a good insurance plan.
Lots of people decide that they just can not afford the insurance plan and are devastated when they are robbed or experience water damage or perhaps a fire in their home. They’re left to deal by themselves or relocating with relatives as they are left homeless.
Having insurance plan will give you satisfaction understanding that your home and it is contents can be replaced if needed.
When looking for an insurance plan, you need to remember the place that you live. Are you in an earthquake, tornado, storm or flood zone? Will the company take care of you in case these situations happen or are these protected under extra conditions?
For your home content, it may be worth taking into consideration full alternative value. Furniture & stereo products increase in value everyday and there’s nothing worst than finding out that the money that the insurance coverage is prepared to pay won’t cover the price of you purchasing new furniture and appliance. Replacement value is commonly more expensive, but could show to be a very best decision.
Even though some small insurance policies will give you less expensive rates, the question to ask yourself is ‘can they actually pay me for full replacement expense if something ought to happen’ it might be wise to choose a more respected company right away.
Ask people around you who they’ve handled. Having your home damaged into or destroyed is emotional more than enough. You won’t want to have problems with a sluggish claim process & set backs from the insurance company. Knowing that you’ll have your claim handled quickly & professionally is worth the satisfaction in any difficult situation, should the need occur.
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Read More...Top 5 Home Insurance Myths Debunked
Myth #1: Standard home insurance covers flood damage.
Fact: Standard home insurance does NOT cover damage caused by a flood. If you feel that you need coverage for a flood you should purchase a separate flood insurance policy.
Myth #2: The Medical Payment portion of my homeowners insurance will cover injuries to me and my family.
Fact: MedPay, a common feature of standard home insurance policies, is there to protect you in the event that someone other than you or your family (a neighbor, friend, etc) gets hurt on your property and they do not want to sue you. MedPay will typically cover up to $1,000 for each covered claim to someone outside of your family. If you or your family, however, gets hurt on your property they are not covered by your home insurance policy.
Myth #3: If my home is ever lost, my insurance company will reimburse me for whatever I tell them I owned at the time of loss.
Fact: In the event of a covered loss your home insurance company will ask you to make a list of everything you own and include specific details such as purchase price, date of purchase, serial numbers, etc. (Imagine trying to do this from memory!) The best way to avoid this situation is to have a home inventory already put together. Use a checklist like this one: http://homeinsurance.com home insurance home inventory checklist. Make sure to include photos, receipts, serial numbers and anything else that will help you prove ownership. Don’t risk not having everything replaced in the event of a disaster. Make sure to keep your inventory in a fire proof safe or at a friend’s house so it is still around when you need it!
Myth #4: If I file a home insurance claim, my home insurance premium will definitely go up.
Fact: While many home insurance companies do look at your claims history, there are many other factors that determine how much you will pay for home insurance. Filing one claim over a period of a few years might not increase your home insurance premium. To be on the safe side, always think twice before filing a claim for minor damages to your home. Consider your deductible. If the total cost of repair is not too much more than your deductible you might want to consider paying for the repairs yourself. While this might cost you more upfront, it might save you from an increased premium. If, because of a stroke of bad luck, you have to file multiple claims over a period of a few years and your premium is steadily increasing, rest assured there are other ways to save on your home insurance. Ask your agent about home insurance discounts. Sometimes simply installing a smoke alarm, burglar alarm system or by adding your auto policy to your home policy, you can save a great deal of cash.
Myth # 5 All of my valuables- like jewelry -will be covered in the event of a burglary.
Fact: There are limits on the amount of coverage you can receive for valuable such as jewelry, furs, etc. For example, most companies put a cap of $1500 on total jewelry lost during a burglary of your home. If you find that your jewelry values over $1500 you should talk to a home insurance agent and schedule an endorsement on your policy giving you additional coverage.
Learn more about cheapest home insurance. Stop by our site where you can find out all about buy home insurance and what it can do for you.
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Read More...The early Worm With Arranged Solid Financing Gets The Best Deal
Seriously in the market for a new home. In many real estate markets dwelling, land and property prices are in a slump. Its a good time for dealing on the real estate market . Its seriously a buyer’s market. But that is only if you prepare ahead of time – not only for the home you ultimately long for – but also that you have mortgage financing pre arranged ahead of final or even tentative negotiations and all the challenges involved.
It can be said that there a load of difference between potential home purchasers , out on the prowl , who think that they are all set to do to sign the final documents , yet in essence they are only part of the way through the process. If you have not finished the entire process of documentation with your banking institution you are only half way there , and in no way ready to sign that really great deal or the house / home that you “must have”. Half way is not there nor complete.
It is always nice to dream , and work toward your ultimate goals in life , yet “reality what a concept” will always work its way into the marketing mix , or at least come to the forefront either with a seller or their Realtor qualifying you in the sales and “offer to purchase” “dance” or at the very least from your own real-estate professional politely reminding you what your financial realities and ultimate purchase options are.
Being pre “approved in the real estate property buying and selling process is not only recommended ” it serves to reassure all ” seller , buyer and their professional agents that all is well , can be trusted and that the process of both sales , purchase and ultimately financing can go through in good merit and can be counted on. No one is wasting any elses process time or professional efforts.
An interesting viewpoint on the deals afforded by current real estate and home financial realities and the home selling and purchasing marketplace. The basic and simple reason that many of those homes shown to you by your realtor , and by the most avid property sellers are such exceptional bargains and even “once in a lifetime buys” are because they people and companies selling them have their backs up and against the wall. They cannot make sufficient payments to keep “the wolves at bay” and indeed the houses are either under pressure to be sold , are in early stages of foreclosure or may just be ready for the financial chopping block. Its no wonder that these home , land or property owners are so desperate to sell , and that you are in the driver’s seat when in comes time for final negotiations on price and terms. They have to sell because they bought what they now cannot afford. Do not make the same mistake yourself. Only finance and purchase the house or home that you can truly and easily afford.
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Read More...Need to Learn The Easiest Way To Find The Lowest Cost Insurance?
Whether you’re shopping for Car, Home, Health, Life or any Insurance – learn the lingo or you will pay too much and get the wrong coverage. Here are the more common insurance terms to help you get the right insurance.
General Terms:
Deductible – Deductibles reduce the price of insurance because you pay a predetermined amount of the loss or expense BEFORE the insurer pays. You select the deductible and the higher you choose, the lower your premium.
Premium – the premium is the cost of the insurance. It is how much you or your company pays for the coverage.
Property and Casualty – Property and casualty is the term for that segment of the insurance industry that pays for damage to property or for personal injury. This includes auto, home-owners and business liability insurance among other things.
Life and Health – This is the other segment of the insurance industry that does not fit under the property and casualty label.
Umbrella Insurance – This is wider insurance coverage than the original fundamental policy. For instance, a householder’s insurance policy that also admits a universal liability provision of $1,000,000 for personal lawsuits may be considered an umbrella policy.
Auto Insurance:
Collision – Collision insurance covers the damages to your vehicle from a collision or accident.
Comprehensive – Comprehensive insurance covers the “non-collision” types of losses to your vehicle like fire, flood, vandalism or theft.
Liability Insurance – Liability insurance pays the losses of a third party such as personal injury, property or pain and suffering. Homeowner insurance also has liability provisions to protect you from personal injury lawsuits.
No-fault – Half of the states have no-fault insurance which pays for losses no matter who is at fault in the accident.
Medical Insurance:
Ancillary Care/Coverage – Ancillary is a term for “extra” or “additional” or “associated.” It is for insurance policies that not only cover common health benefits but also have additional (ancillary) insurance coverage for prescription medicine or eye care, etc.
Cobra – The “Consolidated Omnibus Budget Reconciliation Act” is a Federal law that requires companies to offer extended health care coverage to terminated employees for a period of time. This coverage is typically paid for by the ex-employee but at group rates.
Co-payment – This is a health insurance term for how much you are required to pay for a visit to the doctor’s office, or for some other type of medical care. After your co-payment and deductibles the insurance company typically pays for the remainder of the bill.
Fee for Service – This is the type of health Insurance that allows you to select any Doctor and pays for some agreed percentage of “reasonable and customary” fees. You then end up paying the difference.
H.M.O. – HMOs give comprehensive medical coverage for a set fee. But they require you to use their facilities and medical employees thus limiting your choice.
P.P.O. – “Preferred Provider Organizations” are networks of doctors who charge on a fee for service basis but typically at a discount pre-negotiated by the insurance company. Thus insurance companies will usually pay a larger share of your bill if you go to one of their “preferred providers.”
Life Insurance:
Annuity – Annuities are policies that pay while the insured is alive for a specified period of time. They are typically offered by Life insurance companies as a vehicle to supplement retirement or disability.
Term Life – Term life is a form of life insurance purchased for a specific period (term) of time. If the person dies during this period, the insurance is paid. If not, the coverage expires or must be renewed to maintain the benefit.
Universal Life – A Life policy accompanied by a savings plan tied to market rates of interest and the benefits are not fixed but can change within boundaries.
Whole Life – A standard life policy that accrues cash value over the life of the policy and with preset premiums. The insurance benefit is also a set at an assured amount.
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Read More...Bad Credit Mortgage Refinance Advice
So many people are trying to refinance their mortgages today. A lot of people are doing this because they have lost their jobs and are getting less income. The income from unemployment is only a certain amount of what your income is when you are at work. The only problems with trying to refinance mortgage with bad credit is that they are getting turned down either due to lower income or due to having bad credit. Unfortunately, a lot of people have bad credit and can’t get a loan.
So many credit companies are becoming stricter with their lending policies, and income and credit are the top two. They just will not give a person with lower income and bad credit a chance. They do not care if you have always been caught up on payments in the past or not. None of those things matter to them. They are mainly trying to avoid what may happen. You may need to use your credit cards to pay for everything if you lose your income and they are afraid that they would not get paid.
Luckily there are companies that specialize in Bad Credit Mortgage Loans. They understand what is going on and do not judge you. You can feel at ease talking to them about any missed payments you might have had. Remember they do not get paid unless they close a deal for you and they will work hard to make sure you are approved.
Sometimes the mortgage broker might refer your bad credit refinance to the FHA. FHA loans are much easier to qualify for. They are also good for those that do not have a lot of money to put down on a house. You can qualify for an FHA with just 3.5% down. It is easier to refinance your mortgage with bad credit with the FHA since they are more lenient and will even consider applications that have prior bankruptcies.
We don’t always pay our bills on time and there are companies out there that know and understand this. Bad credit mortgage brokers know that things happen in life where we can’t pay some bills when they are due, we may need extra time or help with paying them. We may need to refinance and start fresh. These brokers for people with bad credit will stick their necks out on a limb for you and get you a loan, even if it means talking to their underwriters on your behalf so that they can explain your situation better.
Before you start shopping around for a refinance loan you should have someone run your credit for you so you know what your credit scores are. Having bad credit these days is not a crime and sometimes you will notice things on your credit report that are not necessarily yours. The credit bureau allows you to dispute items in question and this can help raise your scores. Having a bad credit mortgage is not the end of the world. Credit monitoring companies can also give you tips for raising your credit score. They might advise you to try to pay more than the minimum each month. Even a dollar more would show that you paid more and would be a good reflection on your score.
Now, you are ready to look for a bad credit mortgage broker. You want to make sure to get a good faith estimate form the broker. Try to get a good faith estimate from at least three bad credit mortgage brokers. This way, you can compare the three and choose the one that will give you more and cost you less. When you are applying for a bad credit refinance, always ask for a good faith estimate.
Shop around for the right company if you are looking for a bad credit mortgage refinance. Take the time to ask for recommendations from friends and family. Word of mouth is sometimes the best way to find a good reliable, trustworthy company. Above all else educate your self with current rates and requirements before you speak to a mortgage broker.
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Read More...Buying A New Home Verses An Existing Home
Now that you have decided it’s time to buy a house, it’s time to examine your choices. When you are out looking for home you will likely look at both a new house and an existing home. Before you make your decision, you should consider the benefits and drawbacks of each type of property. These are some points that you should keep in mind before submitting an offer to buy.
New Homes
One of the most attractive features of Newly built houses is that they generally have much more stringent quality control standards, construction methods, and energy efficiency ratings than those found in many existing homes. Most builders and developers will provide a home warranty of at least one year and good financing rates and incentives to purchase. These homes are usually easy to purchase but may be hard to resell until the subdivision is established and no more new homes are being built by the builder.
There are many reasons why new homes traditionally carry a higher price tag than older homes. Home buyers can often purchase a new home with little money out of pocket. Builders and developers often package in thousands of dollars of upgrades and incentives to lure in buyers. New homes in new developments often have a bland feel and offer little in the way of shade trees like older neighborhoods would offer.
Existing Houses
Existing or often called older homes are generally purchased from other homeowners who are trying to sell. These houses have been lived in by either the homeowner or a renter. These homes may or may not have better construction methods which make having the home inspected very important. The homes utility bills can shed some light on how efficient the home is. You can obtain any renovation history from the current homeowners. Some people like the character that they say older homes have compared to older homes.
The homes usually are located in established neighborhoods with tall trees, long-term neighbors and established schools. They are generally much easier to sell soon after you buy one as the amount of homes for sale in the subdivision are less than the market demand. Some may have a 1-year warranty from an outside firm but will likely require a home inspection.
Depending on what your needs are will determine if a new home or an existing home is the better option for you. By evaluating your current needs and your future plans will go a long way towards making that buying decision.
Hubert Miles is a free lance writer and webmaster for several financial websites. For more information on Money Articles and Money Articles.
