July 17, 2008

Forbearance Agreement for your Mortgage Payment

A forbearance agreement is used when a Borrower falls behind on their mortgage payments. In essence, a forbearance agreement reduces or suspends mortgage note payments for a specified period of time. A repayment plan follows and includes the normal monthly mortgage payment, along with a payment to repay the delinquent amount.

Real estate forbearance agreements are generally reserved for Borrower's facing temporary financial setbacks. Borrowers must provide proof they can adhere to the repayment plan once the forbearance timeframe expires.

Real Estate Investing article on "Forbearance Agreement for your Mortgage Payment"

May 09, 2008

Seller Carry Back Mortgages

Seller carry back mortgages are an agreement where a property owner provides financing to a buyer. The owner may finance the entire amount or a percentage of the purchase price. If the seller finances a percentage, the balance is usually financed through an assumable mortgage.

Engaging in seller carry back strategy can be beneficial to both seller and buyer. The seller benefits by being able to sell his property quickly and the buyer benefits by being able to purchase property he might not otherwise have been able to finance.

Real Estate Investing article on "Seller Carry Back Mortgages"

March 21, 2008 | Comments: 1

"Promissory Note" How to use them in a realestate transaction.

A promissory note is a legally binding contract used to document details of a loan between two parties. Promissory notes can be used for many types of financial transactions including personal loans, business loans, and real estate transactions.

Before participating in a promissory note agreement it's important to understand the different types of notes, repayment schedules and legal terms. Let's begin with the different types of notes payable.

Real Estate Investing article on ""Promissory Note" How to use them in a realestate transaction."

October 03, 2007

Real Estate Notes

Real estate notes are legal documents used to assign buyer rights and record details of the transaction. Also known as "real estate receivables," these documents are created when a piece of real estate or land is sold. It could be a mortgage note, land contract, or contract sale where the buyer makes cash payments directly to the seller.

In essence, real estate notes are used as collateral and to document the promise to pay the note. They are frequently used along with mortgages and aide in the financing of real property. They are almost always used when the seller offers seller carry back financing. In this type of real estate transaction the seller carries a portion or the entire amount of the loan. The buyer pays the seller a down payment and the balance is paid in installments.

Real Estate Investing article on "Real Estate Notes"

September 07, 2007

Types of Promissary Notes

Promissary notes are legal contracts used in nearly every transaction where money is borrowed. It is a written promise by a borrower to pay a specific amount of money over a set period of time. Oftentimes an interest rate is charged on the borrowed funds, but this is not always the case.

A typical promissary note includes the terms and conditions of the loan. It documents the amount of the loan, what the loan is for, interest rate, late payment fees, frequency and amount of installments, and provisions if the borrower defaults on the loan.

Real Estate Investing article on "Types of Promissary Notes"

August 31, 2007

Cash flow notes can generate instant cash when you need it the most.

Cash flow notes are legally binding contracts between two or more parties which document a promise to pay. Although there are more than 60 types of cash flow notes, some of the more common types include mortgage, inheritance, structured settlements, business, and lottery winnings.

Real estate notes and land contracts are cash flow notes are secured by real property, such as a building or house. When real property is used for collateral, a mortgage or trust deed is added to the note which states the property will be used for payment if the borrower defaults on the loan. Various types of real property can be used to secure cash flow notes. In addition to buildings and homes, other types of property include mobile homes, automobiles, boats, and even airplanes.