When the housing market crashed, Castle Law Group, Colorado’s largest foreclosure law firm, took advantage of the situation by “inflating costs of posting legal notices…conspiring with companies that did the… more
The post Judge Rules Colorado Firm Did Not Defraud During Housing Market Crisis appeared first on Think Realty | A Real Estate of Mind.
To stay up to date with the latest information in the real estate industry to can visit our property investing latest news. On the other hand in case you are beginning real estate investing and desire to start profitable property investing now get a copy of our profitable real estate investing ebook.
Are you thinking of investing in real estate? However you don’t have enough money to do so. In this article is a tip you can use as long as the person selling the property is willing to negotiate along.
To be fair, not every seller will be willing (or even understand) the concept outlined. Your best guess is to find a land that the owner has great interest in selling, whether because they are moving, divorce, or they are frustrated with the people renting the place.
Actually, if you are currently renting and considering using this technique perhaps your landlord would be happy to assist you! There are a few variations that may be used depending upon you and your seller. Do they want the market price or are they just eager to get out from the monthly payments – perhaps facing foreclosure?
The simplest way is to consider taking over their mortgage payments – called ‘assuming’ the mortgage. You will have to be approved by the initial lender to assume the mortgage. If you cannot get approved for an assumable mortgage you could as well try a ‘subject to’ assumption where you merely make obligations while the property remains in the seller’s name.
You take over the first mortgage and make a second mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short time period – two or three years. Rather than having the money stay in a bank they could be getting a high interest over two or three years with the rest due in full at the end of the term.
When the term draws to a close you need to be able to refinance the cost, or else you could sell. Unless you strike an actual bad market the value of the home should have risen by then.
Most mortgage lenders merely want to make a good investment. While your local bank may still shy away there are plenty of financial lenders that would like to make a deal. Financiers prefare property investing. The mortgage is mostly around 60-70% of the value of the property, so as long as they know they get their money back in the value of the land if you default, they don’t care what sort of revenue you make. Conclude the deal with a second mortgage created with the seller. If you default they could eventually foreclose on the property and sell it, settling the existing mortgage in the proceeds.
Now you can observe the complete picture. It is better that seller and buyer can work together. If they can’t wait for a sale, you could still give them their asking price with a little versatility on their part.