Capital One Lays Off More Lending & Mortgage Sector Employees

Source: https://thinkrealty.com/capital-one-lays-off-employees/

Capital One announced last week it will lay off nearly 300 employees from its Plano, Texas campus as part of its ongoing termination of the company’s mortgage lending and home equity operations. These employees are part of a larger population of 950 employees laid off last November, although a small percentage of the November layoffs reportedly moved to work at Flagstar Bank. Capital One notified the employees at the end of July that they would be laid off by October 1, 2018. A company spok…

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Are you contemplating investing in real estate? However, you do not have enough money to accomplish this. Here is a tip you are able to use as long as the property seller is willing to negotiate with you.

To be fair, not every seller will be willing (or even understand) the concept outlined. Your best gamble is to locate a land that the owner has great interest in offering it, whether because of moving, divorce, or frustration with the folks renting the property.

Actually, if you maybe currently renting and thinking about using this approach perhaps the owner would be happy to assist you! There are a few variations that could be used depending upon you and your owner. Do they desire the market price or are they just eager to get out of the monthly payments – perhaps facing foreclosure?

The simplest method is to consider taking over their mortgage repayments – called ‘assuming’ the mortgage. You will need to be approved by the first lender to presume the mortgage. If you cannot get approved for an assumable mortgage you may as well try a ‘subject to’ assumption where you merely make obligations while the property stays in the seller’s name.

You take over the first mortgage and create a 2nd mortgage on the remaining cost of the property with the seller. Offer a high, interest-only payment for a short time frame – 2 or 3 years. Instead of having the money sit down in a bank they can be collecting a high interest over two or three years with the remainder due in full at the end of the term.

When the term ends you should be able to refinance the cost, or you can sell. Unless you hit a genuine bad market the value of the home should have risen in that time.

Most mortgage lenders merely want to make a good investment. While your local bank could still be lacking confidence there are plenty of financial lenders that would wish to make a deal. Financiers prefare real estate. The mortgage is mostly based on 60-70% of the value of the property, so as long as they understand they get their money back in the value of the land if you default, they do not care what sort of income you make. Complete the deal with a second mortgage created with the seller. If you default they can eventually foreclose on the property and sell it, paying down the existing mortgage in the proceeds.

Now you can observe the whole picture. It is better that seller and buyer may work hand in hand. In the event that they can’t wait for a sale, you could still give them their initial price with a little versatility on their part.

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