Distressed Property Strategy
Education Is The Key To Planning For The Future
I would like to share some of the insights I learned at the coned class I attended recently with Greg McClelland legal counsel for MAR.
Investor Use Of Land Contracts
As of July 1st 2010 you will have to be licensed to sell property if you are an investor selling other than your own home. This applies to investors selling property using seller financing often referred to as Land Contracts. It appears the Fed is requiring the new license as a response to the mortgage problems of recent years.
Are You Getting Behind On Your Mortgage?
You may want to seek professional legal advice before you get to far behind on the house payment. There appears to be three ways that are currently being used when home owners fall short on the mortgage payments. Depending which one you use will have an effect on your ability to borrow money for years. Here are some tips to check out and then decide which way to proceed.
Lenders may participate in the following solutions when borrowers can’t make their mortgage payment: If you as the borrower use Foreclosure, Deed In Lieu Of Foreclosure, or Short Sale it may have differing results when you go to borrow money in the future. If you borrow and the lender sells the mortgage to Fannie or Freddie, here are some tips to consider.
Foreclosure: Will loan after 5 years with a FICO score of 680 and 10% down.
Deed In Lieu of Foreclosure: Will loan after 4 years with a FICO score of 680 and 10% down.
Short Sale: Will loan after 2 years with a FICO score of 680 and 10% down.
There are also other specific terms of the default process you need to know about that can have a real impact on your financial picture such as, will the bank go after you for a deficiency (federal law holds you harmless on your homestead?) When the foreclosure sale is held it is important to see if the lender buys the loan back for full price.
Disclaimer: The information contained herein is offered to help owners of real estate make informed decisions and should be verified to see how it effects their own financial business. The content is Ken Carlson’s opinion and may not apply to your business. The advice of your CPA and attorney that specialize in mortgage, financial, and real estate laws should be consulted.
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