tag:www.simonvolkov.com,2012://2 2012-03-23T18:42:19Z Real Estate Note Investor | Note Promissory Movable Type Pro 4.37 tag:www.simonvolkov.com,2012://2.1989 2012-03-23T18:28:29Z 2012-03-23T18:42:19Z

Improving home value is a top priority for people that want to receive the best offer when selling their house. There are several ways to go about making a home more valuable to buyers. However, it's important to conduct research...

Simon Volkov http://www.simonvolkov.com/ Improving home value is a top priority for people that want to receive the best offer when selling their house. There are several ways to go about making a home more valuable to buyers. However, it's important to conduct research to determine what buyers are looking for before spending money on home renovations. It's important to note home value isn't the same as real estate appraisals. While a property might be appraised at $100,000, buyers might feel it is worth more or less depending on the types of amenities. ]]> sell a house in today's marketplace requires homeowners to fully understand buyers' needs and wants. It can be helpful to talk with your realtor to find out which features should be emphasized. Real estate agents are constantly talking with buyers and can help determine the best features of your property. They might recommend upgrading kitchen appliances or bathroom fixtures or suggest adding shrubs or flowers to spruce up the exterior of the home. It's normally not a good idea to spend thousands of dollars in home renovations because you probably won't recoup the full amount when the house is sold. Certainly, renovations are necessary if there is substantial damage, but renovating a kitchen just for the sake of putting a higher price tag on the property isn't a smart approach. There are many things that can be done to increase home value that don't cost much money. Giving the home a deep cleaning and clearing debris from the yard will go a long way in making the home more marketable. If necessary, rent a power washer and wash down the exterior of the home. Apply fresh paint to exterior and interior walls. Keep windows sparkling clean and keep blinds and curtains open during showings to bring sunlight into each room. Deep clean carpets; apply a coat of wax of linoleum flooring; or stain wooden floors if they are nicked and scratched. Clean ceiling fans or add new fans in living rooms and bedrooms. While keeping your house in impeccable condition for showing can be challenging, buyers appreciate a clean house. It shows them you care about the house and have taken good care of it. The same holds true for the exterior of the home. Spend time weeding flower beds or planting colorful flowers. Red and yellow flowers are most appealing to buyers, but be careful to purchase plants that don't attract bees or other pesky insects. If you have a fenced in backyard, make certain the fence is free of defects. Tack down loose boards and give the fence a fresh coat of stain or paint. Trim bushes and eliminate tree branches that are overgrown or full of dead leaves. Taking time to clear debris and trim the yard can go a long way toward increasing home values. Last, but not least, get rid of clutter in each room, along with organizing cabinets and closet spaces. If needed, store unnecessary furniture, clothing, and personal items in a storage unit. The less stuff that is kept in the home the better because removing clutter will make rooms appear larger. We offer additional suggestions for improving home value at our home buying and selling blog. Here you'll find resources for mortgage loan programs, first time home buyer programs, and tips for selling your house fast. ]]> tag:www.simonvolkov.com,2012://2.1979 2012-02-20T23:02:46Z 2012-02-20T23:19:16Z

Mergers and acquisitions are one of the biggest aspects of corporate finance. Mergers refer to companies that are purchased for the purpose of merging with other companies to create one large entity. Acquisitions refer to established companies that are taken...

Simon Volkov http://www.simonvolkov.com/ Mergers and acquisitions are one of the biggest aspects of corporate finance. Mergers refer to companies that are purchased for the purpose of merging with other companies to create one large entity. Acquisitions refer to established companies that are taken over by another company. Mergers and acquisitions are of particular interest to investors because they can cause stock values to rise or fall. They are also vital to business owners because they can result in positive or negative tax consequences when a company they own is merged or acquired. A lot of people are familiar with the term 'hostile takeover' which refers to a company being taken over against their will. This occurs when a company is being purchased by another company, but the owner doesn't want to sell or doesn't want to be part of the parent company. Hostile takeovers only occur with companies that offer public stock that is purchased and sold via stock markets. ]]> Horizontal mergers refer to companies that directly compete with one another. For example, if a large shoe manufacturer such as Nike or Reebok were to merge with an independently-owned shoe manufacturer, this would be a horizontal merger. Vertical mergers refer to companies that sell or manufacture items that compliment one another. For instance, a sewing machine manufacturer might merge with a fabric company or a soft drink manufacturer might merge with a company that manufactures snacks. Market-extension mergers refer to two companies that sell identical products in a different market. This could apply to companies that sell to different territories within the U.S. or abroad. Product-extension mergers occur when two companies sell related products within the same market. An example would be if a snack company sold potato chips and merged with a company that sells a line of potato chip dips. Conglomeration involves one company merging with another company that sells or manufactures unrelated products. This might be a camera manufacturer that buys out a boat building company. The primary difference between mergers and acquisitions is acquisitions require a company to purchase another company by means of cash, stock, or a combination of both. There are also acquisitions that take place when one company purchases another company's assets. The main purpose of entering into mergers and acquisitions is to create synergy between the two entities and increase the overall value. Historically, the intended synergy fails more often than it works due to devalued stock and differing management styles. However, when mergers are strong they can result in greater sales revenue and increased profits. For investors to profit with mergers and acquisitions they must consider all the complexities associated with these kinds of deals. We invite you to learn more about the process and how to make the most of these deals via our personal finance and investing blog. ]]> tag:www.simonvolkov.com,2012://2.1966 2012-02-03T11:04:34Z 2012-01-21T01:19:31Z

Owning property has been the foundation of America since proclaiming independence in 1776. Becoming a property owner has become considerably more difficult in the past four years as banks collapsed and mortgage providers repossessed homes in record number. The level...

Simon Volkov http://www.simonvolkov.com/ property has been the foundation of America since proclaiming independence in 1776. Becoming a property owner has become considerably more difficult in the past four years as banks collapsed and mortgage providers repossessed homes in record number. The level of foreclosure property is staggering, with estimates of over 6 million repossessed homes since 2007. While foreclosure rates dropped in 2011 they are expected to increase in 2012. ]]> strategic foreclosure. This strategy has gotten media attention because it's controversial. Strategic default has been primarily used by people with exemplary credit scores that can bounce back after a major event like foreclosure. These homeowners can afford loan installments, but owe more than their property is worth. Since banks typically don't reduce principal balances on mortgage notes unless borrowers are facing financial hardships, some homeowners elect to walk away. Obviously, this is a highly personal decision that needs to be discussed with a real estate lawyer and tax accountant. While there is undoubtedly plenty of gloom and doom about the real estate market, those with optimistic viewpoints are finding ways to capitalize on the situation. Recognizing there are millions of displaced homeowners, a lot of investors are buying houses to provide rental homes to those who lost their house to foreclosure. Some people would view this as risky behavior. After all, who in their right mind would rent to people who didn't pay their mortgage installments? Certainly, investors need to conduct due diligence to ensure tenants can afford rental rates, but previous homeowners often make the best tenants. Better yet, many foreclosed property owners would love to have another chance to buy a house, but won't qualify for bank financing for a few years. This forces them to become tenants until they improve FICO scores. One way that investors can improve cashflow is to offer properties for sale using creative financing options. These could include: seller carry back trust deeds, take over payments, subject to, or lease purchase option agreements. Each of these options requires setting up real estate contracts to record the transaction and terms. It is recommended to hire a lawyer to execute documents and file them with proper agencies. Seller carry back trust deeds are used when sellers provide partial or full financing for property they own. Owner will carry financing isn't much different than bank financing, but owners typically don't extend financing for more than a few years. Take over payments lets buyers assume the loan payments from the property owner using their good credit. Careful consideration needs to be given because most loan documents require the note to be paid in full if ownership is transferred. Subject to is used to assign ownership rights to buyers in exchange for pay loan installments. Mortgage notes remain in the property owner's name until buyers can qualify for a home loan. Lease purchase option agreements are used when buyers want to live in the home as a tenant while working toward buying the property. Buyers secure the property with a down payment and a portion of monthly rent payments are contributed toward the purchase. Whether you want to own property or use property to produce income it's important to learn about available financing strategies and types of properties for sale. We provide an extensive home buying article library that covers topics of foreclosure real estate, bank owned foreclosures, creative financing strategies, and ways to buy property at discounted rates. ]]> tag:www.simonvolkov.com,2012://2.1965 2012-01-27T11:36:06Z 2012-01-21T00:46:41Z

Determining home values is important for buyers and real estate investors. Although not the same as the asking price, the value of a home can increase or decrease depending on buyers' perceived 'value' of amenities. Another factor that affects home...

Simon Volkov http://www.simonvolkov.com/ home values is important for buyers and real estate investors. Although not the same as the asking price, the value of a home can increase or decrease depending on buyers' perceived 'value' of amenities. Another factor that affects home values is data collected through comparable sales reports. Comp reports provide information about recent home sales in the area. They are relatively easy to acquire in markets where there is considerable activity, but are harder to find in rural areas or communities where people stay put. ]]> buying a house with an in-ground pool, look for other homes with pools that recently sold. Location can impact the value of homes. When reviewing comp reports it's best to look for properties within a few blocks of the property you're interested in. This can be more difficult when buying houses in rural locations, but this factor usually isn't as important to buyers. People buying houses in densely-populated metropolitan cities value location more than buyers that want to live away from cities. One way to buy a house for less is to monitor real estate trends. Homes tend to be priced higher when market conditions are healthy. One of the peak times for selling houses is in the spring, which actually begins the second week in January and continues through June. Local, national, and international events can impact housing prices. Elections can create substantial fluctuation of prices. So can things like oil prices and the cost of petroleum by-products. The longer houses sit on the market the more their value declines. It doesn't matter if the house is in pristine condition in the perfect location with desirable amenities. If a house has been listed for sale for longer than 6 months the perceived value goes down. The truth of the matter is while comp reports, real estate appraisals, and monitoring trends can help buyers determine property values, only they can decide how valuable the property is to them. Buyers might be willing to pay extra for an in-ground pool or try to negotiate the price if it's an amenity they won't get much use out of. They might not be enthusiastic about a gourmet kitchen or it could be the amenity the seals the deal. It's all about the buyers needs and the sellers desire to sell. This doesn't mean that buyers shouldn't utilize every tool at their disposal. Even though the real estate market has undergone massive changes the real estate game is still the same. Sellers want to receive as much money as possible for their property and buyers want to get the lowest price. If they are lucky, they will reach middle ground and everyone walks away happy. Last, but not least, appraised property values are an important factor for buyers that require financing. Qualifying for home loans has become more difficult since the mortgage crisis nearly crippled the industry. Banks are considerably more selective in who they will lend to. Buyers that have never bought a house ought to look into first time home buyer programs that can offset closing costs or provide flexible mortgage terms. Another option is to look into Fannie Mae Homepath Properties. Fannie Mae offers an abundance of foreclosure homes at affordable prices. Buyers have the option to apply for Fannie Mae Mortgages through Home Path Mortgage. This program lets buyers avoid paying mortgage insurance and has a minimal down payment requirement of 3 percent. Buying houses can be an intimidating process; especially for first time buyers. We invite you to browse our extensive home buying article library to learn more about buying foreclosure homes, financing options, and resources for calculating home values. ]]> tag:www.simonvolkov.com,2012://2.1964 2012-01-20T22:51:55Z 2012-01-20T23:15:56Z

Positive cashflow is one of the most important aspects of real estate investing. Whether buying, selling, trading, or renting properties it is crucial to keep expenses to a minimum to produce profits. Otherwise, properties will become money pits and investors...

Simon Volkov http://www.simonvolkov.com/ cashflow is one of the most important aspects of real estate investing. Whether buying, selling, trading, or renting properties it is crucial to keep expenses to a minimum to produce profits. Otherwise, properties will become money pits and investors will end up spending more than they earn. Finding properties that produce positive cashflow can be tricky, especially in today's real estate market. Although there are plenty of great deals, there's much more to investing than locating cheap homes for sale. ]]> bank owned homes because these properties are usually priced below market value. While this can be a good strategy, investors need to carefully weigh the pros and cons. The majority of bank foreclosures require repairs. When property owners are struggling to pay mortgage installments they don't have extra cash for basic repairs, let alone major renovations. Just because a house is listed below market value doesn't make it a smart investment. Investors must conduct due diligence and acquire repair estimates to determine the actual cost of the property. Another consideration is the length of time required to return the home to livable condition. If property repairs extend for several months investors will lose out on cashflow that could be generated from rental income or selling the home. Investors also need to determine how the property will be used to produce cashflow. Houses can be sold, rented, or traded using 1031 exchanges. Using 1031 exchanges is a good approach for reducing capital gains tax, but does require hiring a Qualified Intermediary to oversee the transaction. Although selling houses has become more challenging, there are still people interested in buying houses. Investors can offer homes for sale in traditional fashion or engage in creative financing options such as owner will carry and lease purchase options. Using creative financing can produce better cashflow than selling properties outright as long as the deal is constructed properly. People that buy houses using seller-financing and lease purchase option agreements oftentimes can't qualify for conventional bank loans. Entering into unconventional financing methods can help them restore FICO scores so they can qualify for a mortgage note within a few years. Buyers are usually more willing to pay the full asking price in exchange for having the seller carry all or part of the financing until they can obtain bank financing. Furthermore, buyers are more likely to take good care of homes when they are working toward purchasing it. This can improve cashflow for investors because tenants aren't going to move out in the middle of the night or fail to pay rental payments. Even in the worst case scenario, investors don't have as much financial risk if tenants do vacate the premises. When lease options are used, tenants provide a down payment to secure the home. If they unexpectedly move, investors can keep the down payment because tenants have defaulted on the contract. The majority of real estate investors that use seller carry back trust deeds don't offer full financing. Instead, they carry back a portion of the purchase price and require buyers to obtain bank financing for the balance. These are just a few ways for investors to produce positive cashflow in a volatile market. We invite you to learn more about creative financing options and additional methods for generating cashflow with real estate notes and land contracts in our real estate investing article library. ]]> tag:www.simonvolkov.com,2012://2.1958 2012-01-15T11:11:47Z 2012-01-15T06:26:48Z

When seeking out houses for sale it's a good idea to spend time learning about home buying programs, government grants, and financing options. Doing so can help buyers save thousands in interest rates and closing costs, as well as obtaining...

Simon Volkov http://www.simonvolkov.com/ houses for sale it's a good idea to spend time learning about home buying programs, government grants, and financing options. Doing so can help buyers save thousands in interest rates and closing costs, as well as obtaining properties for the best price. There are all kinds of houses for sale. From handyman specials to elegant mansions and everything in between, buyers can find nearly any type of property they desire. While the foreclosure crisis has left many homeowners without a home, it has also opened the door for buyers wanting to purchase affordable housing. ]]> buying bank owned real estate is many properties are eligible for HUD's Neighborhood Stabilization Program grants. Each year, the government provides grants to people that purchase homes in regions with excessive foreclosure rates. NSP grant funds can be used to buy and redevelop foreclosure homes that are intended for use as residential housing for low-income families. Both private buyers and real estate investors can apply for NSP funds through local HUD offices. Another program worth exploring is Fannie Mae Homepath. This government sponsored home buying program offers an abundance of cheap homes for sale that can be financed through Home Path Mortgage. Many people find Home Path Mortgage appealing because of the low down payment requirement of 3 percent. Furthermore, people that finance through Homepath can make use of down payment assistance which is prohibited with conventional home loans. This means that down payment funds can be acquired through outside sources such as personal loans and financial gifts. Homepath participates in public funds programs, so buyers that qualify for NSP grants can maximize their buying power. Individuals that use public funds to buy houses are only required to provide $500 earnest money when buying Fannie Mae Homepath properties. Most of the national banks have an abundance of bank owned homes for sale. Some of the more popular include: Bank of America, Wells Fargo, Citibank, Wachovia, Chase, and HSBC. Buying bank owned homes isn't much different than buying other properties, but the process can take longer and buyers should prepare to engage in several counter offers. The majority of real estate owned by banks is sold through local realtors. Beware of companies offering foreclosure lists for sale. There is no need to purchase foreclosure listings because banks provide lists at no charge on their real estate websites and via their assigned realtors. Short sale homes are another option for buyers seeking affordable housing. The process for buying short sale realty is a little more complex than buying houses from individual sellers. When lenders enter into short sale agreements they let homeowners list their property for less than the amount due on their home loan. Since banks are going to incur a financial loss on these properties there is rarely room for price negotiation. Buyers sometimes have to pay more than the asking price if multiple buyers submit offers on the same property. Acquiring short sale houses can take 3 to 4 months due to the extensive amount of paperwork that is involved. A lesser known way to buy homes for sale is to seek out real estate investors that participate in wholesaling. Some investors specialize in buying bank portfolios that consist of multiple properties. When wholesalers buy houses in bulk they get a better price and can pass savings along to buyers. Some investors and individual sellers engage in owner will carry financing. This strategy can be beneficial to people that don't qualify for conventional home loans. Essentially, sellers act as the mortgage financier and carry the loan for a set time period. This method gives buyers time to improve FICO scores so they can refinance the home when the contract expires. Our home buying article library offers additional details about Fannie Mae home loan programs and provides numerous tips for locating affordable homes for sale. You'll also find information about investing in bank owned homes, short sale properties, and buying directly from wholesale real estate investors. ]]> tag:www.simonvolkov.com,2012://2.1954 2012-01-06T11:13:14Z 2012-01-06T05:36:30Z

Promissory notes are needed to document details about financial transactions. They are used to provide lenders with legal records that can be used as evidence in court if borrowers default on loan terms. Promissory notes are used with most kinds...

Simon Volkov http://www.simonvolkov.com/ Promissory notes are needed to document details about financial transactions. They are used to provide lenders with legal records that can be used as evidence in court if borrowers default on loan terms. Promissory notes are used with most kinds of loans, including personal, business, auto, and real estate. They can be used by family members, friends, business partners, mortgage lenders, auto financing companies, credit card companies, or any other person or entity that extends credit. ]]> note ought to take time to read every word before signing on the dotted line. Nearly everyone prefers to skip over the fine print, but it's important to know what you're signing. Otherwise, you could be blindsided and encounter serious legal and financial consequences. If you plan to write your own promissory note you'll need to learn the terminology. Five of the most important include: Promisor, Promisee, Obligor, Obiligee, and Mutual Consideration. The Promisor is the person taking out the loan and responsible for repayment, while the Promisee is the person or entity supplying the loan. Obligor is the individual legally responsible for payments; usually the Promisor. Obligee is the individual or entity that the Obligor is legally bound to; usually the Promisee. Mutual consideration refers to the value that the parties involved with the contract receive. For instance, when banks lend money for people to buy houses they receive interest for the duration of the mortgage note. Promisors' receive the money they need to buy a house. Therefore, the mutual consideration would be the real estate, as both parties receive value by participating in the transaction. It's always best to hire a real estate lawyer to draft real estate notes and land contracts. Realty notes are usually secured by negotiable promissory notes and must comply with covenants of the Uniform Commercial Code. Promissory notes can also be used to obtain startup funds or capital for business. Investment promissory notes are executed between investors and business owners to guarantee repayment of funds within a designated timeframe. In some instances, investors sell these notes to other investors to free-up cash flow so they can purchase other investment products. Perhaps one of the most frequently used notes is the Simple promissory note. This promise to pay is typically used when borrowed funds will be paid back in a short amount of time. Simple notes are usually sufficient when entering into small loans with family or friends. Essentially, simple promissory notes can be compared to an IOU note that provides additional details. The document should include the amount of borrowed funds; interest rates; installment amounts; payment due dates; maturation date; and an acceleration clause that details the consequences if loan default occurs. Acceleration clauses usually hold Promisor's financially responsible for any expenses related to attempting to collect against defaulted loans. Again, be certain to read the fine print and understand terms of service or hire a lawyer to review the contract for you. As a real estate investor and business owner, I've made use of promissory notes on many occasions. I've been the Promisor and the Promisee, as well as buying notes from other investors. As long as you take time to understand the basics and read the fine print there is no need for fear. I've put together a collection of articles on topics people find confusing. I'm not a lawyer and don't offer legal advice, but I think you'll find the information provided in our promissory notes article library a good place to get started. ]]> tag:www.simonvolkov.com,2011://2.1952 2011-12-28T11:46:11Z 2011-12-28T06:05:57Z

REO property refers to real estate owned by banks. It can consist of residential homes, commercial real estate, or undeveloped land. Buyers' present purchase offers through real estate agents just as with any other type of transaction. The only difference...

Simon Volkov http://www.simonvolkov.com/ REO property refers to real estate owned by banks. It can consist of residential homes, commercial real estate, or undeveloped land. Buyers' present purchase offers through real estate agents just as with any other type of transaction. The only difference is banks own the property instead of a private owner. REO property can be a good choice for everyone from first time home buyers to seasoned real estate investors. These properties are typically priced below market value and sold with a clear title. All are sold 'as is' and the majority is in need of some degree of repair. ]]> foreclosure crisis. However, banks tend to hold onto more expensive properties in hope of recouping their losses when the real estate market rebounds. There are a few ways to maximize savings on REO properties. The first is to look at houses offered through Fannie Mae loan mortgage programs. Another is to spend time learning about Neighborhood Stabilization Program grants offered through the Department of Housing and Urban Development (HUD). Fannie Mae Homepath properties include all types of residential homes including single- and multi-family residences, townhouses, condo units, and manufactured and mobile homes. Most of the properties are located in the suburbs or metropolitan cities, but there are also properties offered in rural areas. People that buy Fannie Mae homes can apply for financing through Home Path Mortgage. This program is ideal for first time home buyers and buyers with blemished credit. It can also be beneficial to real estate investors. Qualified applicants can benefit from lower down payment requirements, along with special incentives such as no mortgage insurance. Fannie Mae Homepath supports public financing assistance programs including HUD's NSP grants. Another advantage of financing Fannie Mae REO property through Homepath is this program offers additional funds when houses require a higher level of repair. Buyers can apply for Homepath Renovation Mortgage that provides funds for the purchase price and required renovation. Homepath offers up to 35 percent of the completed value, but no more than an additional $35,000. This financing option is available to both owner occupants and real estate investors. One consideration of presenting offers on real estate owned property is banks hardly ever consider offers for less than the asking price. In fact, it's not uncommon for buyers to pay more than the asking price. This is because multiple buyers often compete for the same property. It's important to determine the highest offer you're willing to make and prepare to walk away if that offer is not accepted. To maximize savings it is imperative to become educated about the process of buying REO property and available home buying programs. Our REO property article library offers detailed information and helpful resources about Fannie Mae loans and first time home buyer programs, as well as discussions about the advantages and disadvantages of buying foreclosed realty. ]]> tag:www.simonvolkov.com,2011://2.1949 2011-12-23T11:23:12Z 2011-12-23T06:46:40Z

Sellercarryback is a mortgage financing option that is offered by sellers to buyers and real estate investors. While this strategy has been used for years, it has become considerably more popular since the mortgage crisis began in 2008. Sellercarryback mortgages...

Simon Volkov http://www.simonvolkov.com/ Sellercarryback is a mortgage financing option that is offered by sellers to buyers and real estate investors. While this strategy has been used for years, it has become considerably more popular since the mortgage crisis began in 2008. Sellercarryback mortgages can be an ideal solution for buyers with less than perfect credit and those who can't afford a large down payment. It can also be beneficial to sellers. By carrying all or part of the mortgage note sellers can obtain a better price for the house. With that said, it is imperative for both parties to engage in due diligence. A purchase agreement needs to be executed and legally recorded. It is strongly recommended to hire a real estate attorney to ensure everyone is protected and the contract is legally binding. ]]> promissory note that includes pertinent information about the loan. It should include the purchase price, down payment amount, monthly installment amount, interest rate, and maturity date. The majority of sellers do not provide 100 percent financing. Instead, they carryback part of the purchase price and buyers obtain the remaining balance through other means. It's usually easier to qualify for real estate loans when applying for much less than the property value. For instance, if the owner carries 40 percent of financing against $100,000 property, the buyer would only require bank financing for $60,000 or less. The average down payment requirement by banks is 20 percent, so it is best if sellers agree to carry back at least 25 percent of the purchase amount. Sellers can determine how much of a down payment they desire. The average requirement using seller carry back trust deeds falls between 3 and 10 percent. Banks typically require a minimum of 20 percent. The only bank financing option that lets buyers with bad credit provide smaller down payments is Home Path Mortgage. Sellercarryback agreements usually last between 2 and 5 years, but can extend for any timeframe that is legal and both parties agree to. If the full balance of the carried back amount is not paid in full by the maturity date, buyers will need to refinance mortgages and payoff the seller. One consideration of refinancing mortgages when traditional and carryback mortgages are involved is bank mortgages might include a prepayment clause. This can be a costly mistake, so it's important to thoroughly read the Truth in Lending document and loan terms. Prepayment penalties are assessed when mortgagors pay off the mortgage note early. This includes refinancing the loan and taking out a new one. Mortgagors can be hit with a double-whammy if the refinanced mortgage also includes a prepayment penalty. Always read the fine print and consult with a lawyer if necessary. Property owners can sell their sellercarryback note at any time, as long as they disclose it to the buyer. This is no different than banks selling mortgage notes to another service provider. The contract remains in place, but monthly installments are sent to the note owner. It has become increasingly difficult for people to qualify for conventional bank loans. This has made it nearly impossible for people that have credit blemishes. Sellercarryback is an option that can help people buy a house as they work toward improving their credit scores. Sellercarryback is not for everyone and not all sellers engage in this kind of financing. It's best to research a variety of creative financing options to determine which offers the most benefits and least risk. Some of the more popular include: lease purchase options agreements, Subject 2, and take over payments. We discuss each of these topics in-depth in our home buying article library. ]]> tag:www.simonvolkov.com,2011://2.1944 2011-12-14T11:04:44Z 2011-12-13T00:25:28Z

The Nevada Foreclosure Mediation Program is worth investigating if you're a homeowner and resident of the state and in need of foreclosure prevention assistance. Thus far, this program has helped nearly 8,000 property owners avoid foreclosure through loan modification, mortgage...

Simon Volkov http://www.simonvolkov.com/ Nevada Foreclosure Mediation Program is worth investigating if you're a homeowner and resident of the state and in need of foreclosure prevention assistance. Thus far, this program has helped nearly 8,000 property owners avoid foreclosure through loan modification, mortgage refinance, and foreclosure alternatives. To take advantage of the Nevada Foreclosure Mediation Program requires homeowners to be proactive the moment they receive a Notice of Default from their bank. This program requires homeowners to remit an application within 30 days from the date they receive the notice. ]]> stop foreclosure knows how challenging it can be to talk to a helpful person. Using mediation services forces lenders to engage in conversation to resolve the issue. When homeowners apply for mediation services under this program their lender is required by Nevada state law to enter into negotiation within 135 days from the date they receive borrowers' requests. Lenders share in the cost of mediation and are also required to pay $200. Loan modification is a good option for people that have experienced financial problems, but are on the road to recovery. When a loan is modified the payments are reduced by lowering the interest rate or extending loan terms. Mortgage refinance is offered to homeowner's that have an adequate FICO score to qualify for a new loan. Homeowners will need to have sufficient funds to pay loan application fees, property appraisals, home inspections, and closing costs. If Nevada homeowners don't qualify for modification or refinance, their lender can offer foreclosure alternatives of real estate short sales or deed in lieu of foreclosure. When banks provide short sale approval, property owners list their home through a realtor for less than the amount due on the loan. The short sale process varies by lender, but most require homeowners to have a buyer in place and sell the property within a few months. Otherwise, the property could end up in foreclosure. Deed in lieu of foreclosure requires homeowners to give their house back to the bank. The only benefit of this option is that borrowers avoid having to endure the foreclosure process. Homeowners that enter into either of these options need to determine if their bank accepts the short sale or return of property as payment in full toward the loan balance. Most banks require property owners to pay deficiency amounts between the sale price and loan balance. If homeowners are incapable of paying deficiency amounts in full, lenders can obtain a deficiency judgment which is reflected on credit reports until it is paid in full. This can result in reduced FICO scores and prevent borrowers from qualifying for most types of credit. Working with mediators can help borrowers determine which options are best suited for their needs and minimize risks of acquiring deficiency judgments. Homeowners that apply for help through Nevada Foreclosure Mediation Program aren't guaranteed loan modification or mortgage refinance. However, their lender is required to work out a plan that can minimize the effect of foreclosure. While the Nevada Foreclosure Mediation Program is a good option, homeowners should investigate all available foreclosure prevention programs including Fannie Mae Loan Mortgage Programs and Making Home Affordable. Additional information about these options is provided in our foreclosure prevention article library. ]]> tag:www.simonvolkov.com,2011://2.1936 2011-12-07T11:28:02Z 2011-12-06T22:37:13Z

Winning the national lottery is a fantasy for most people. Americans spend billions of dollars in hopes of matching lucky numbers or revealing winnings on scratch off tickets. They dream of all the things they will buy and investments they...

Simon Volkov http://www.simonvolkov.com/ national lottery is a fantasy for most people. Americans spend billions of dollars in hopes of matching lucky numbers or revealing winnings on scratch off tickets. They dream of all the things they will buy and investments they will make. Americans often refer to the national lottery when speaking of games like Mega Millions and Powerball. Lottery winnings are amassed from people purchasing lottery tickets across the nation. Individual states also have their own lottery system with region-specific games. ]]> lottery winnings can amount to several hundred million. The highest lottery jackpot recorded occurred in January 2011 and amounted to a whopping $380 million paid out through Mega Millions. The highest Powerball winning to be recorded amounted to $340 million. It's no wonder people desire to win. That amount of money would forever change any person's life and could provide inherited wealth for generations to come. There's no doubt it would be intoxicating to win a lottery jackpot. However, once reality sets in lottery winners will face issues they never considered. The biggest hurdle of winning a lot of money is dealing with the notoriety. Countless stories circulate about how long-lost relatives show up at lottery winner's doorsteps. People that prefer to keep winnings private can have a representative, such as a lawyer or financial advisor claim the money on their behalf. While it's fun to fantasize about tossing wads of money into the air, the reality is it isn't cheap to win jackpots. The taxes alone can easily consume more than half of funds won. The first thing winners should do is find a good financial consultant. They can offer guidance about tax saving strategies and help maximize winnings. Taking lump sum cash may sound appealing, but is the costliest approach. When a person wins several million dollars their tax status changes and they pay a higher rate. Financial advisors can develop investing plans to offset taxes by putting funds into tax-sheltered retirement accounts, like a Roth IRA, or an irrevocable life insurance trust. While the national lottery supplies mega-million cash jackpots, other games offer valuable prizes as well. Scratch-off lottery tickets provide cash, prizes, and free tickets. These winnings are also subject to taxation at state and federal levels. Furthermore, winnings obtained through any type of gambling are subject to income tax. This can include prizes won through raffles, sweepstakes, contests, casinos, and dog or horse racing. The good news is gambling losses can be deducted from personal tax returns as long as adequate documentation is provided. Anyone that gambles on a regular basis ought to devise an accounting system to keep track of income and expenses. Lastly, jackpot lottery winners can engage in estate planning methods to pass along inheritance cash to loved ones. It's important to work with professionals to minimize inheritance taxes and expand portfolios with good investment products. Unfortunately, the desire to win the national lottery has caused more than one person to spend their life savings in hopes of the big win. Gambling can quickly turn into an addiction so it's vital to keep a tight rein and never spend more than one can afford to lose. While waiting for your national lottery windfall, we invite you to peruse our personal finance article library and learn ways to maximize the money you already have. Topics range from investment opportunities to overcoming debt problems. ]]> tag:www.simonvolkov.com,2011://2.1935 2011-11-29T11:15:18Z 2011-11-29T17:55:22Z

Lottery taxes are the downside of winning large sums of money or valuable prizes in state and national games. One thing is certain. If you don't pay the IRS the tax man will be knocking on your door. Just ask...

Simon Volkov http://www.simonvolkov.com/ Lottery taxes are the downside of winning large sums of money or valuable prizes in state and national games. One thing is certain. If you don't pay the IRS the tax man will be knocking on your door. Just ask Richard Hatch, winner of the reality show Survivor. If you don't pay lottery taxes when they're due, you'll end up owing the IRS even more. They can assess late fees, penalties, and interest that continuously accrues until it reaches maximum level. The first thing jackpot lottery winners should do is talk to a financial planner or tax accountant. They could also arrange a meeting with the IRS. The point is to get professional help and eliminate the risk of making costly mistakes. ]]> lottery winnings worth millions are put into a higher tax bracket and subjected to higher tax rates. Furthermore, jackpot lottery winners usually have to send quarterly payments to the IRS throughout the year. If tax payments are owed and winners don't remit funds on time, they will incur late payment penalties and charged interest from the first date payments are late. These penalties can add up to nearly 30 percent of owed tax, so it is crucial to become educated about tax guidelines regarding gambling earnings. Winners have to pay federal and state lottery taxes, unless their state does not collect income taxes. On average, taxpayers should anticipate paying around 50 percent of the prize value. There are a few ways to lessen tax burdens when winning mega lottery jackpots. The most common is to setup annuity payments that supply fixed income over an extended period of time. While most of us dream about having millions of dollars in our hands, when winning millions through lotteries nearly half the amount won goes to paying taxes. With annuity payments, taxes are paid when income is distributed. In most cases, lottery winnings are paid over periods of 10 to 20 years. By breaking the jackpot into smaller annual amounts, taxpayers might be able to maintain their current tax bracket and pay fewer taxes. In turn, they accumulate more of their winnings and have guaranteed income for several years. Another benefit of setting up annuity payments is winners can designate beneficiaries to receive the money if they die before it's completely paid out. Funds can also be set aside in an irrevocable life insurance trust to lessen estate tax and inheritance tax burdens for beneficiaries. Lottery tax consequences can occur when winning tickets are purchased by a group of people. Financial experts recommend writing up a contract about how the winnings will be divided whenever they contribute to a group fund used to purchase lottery tickets. As you can see there are many things to think about when winning lottery jackpots or valuable prizes. The best place to obtain advice regarding lottery tickets is from the IRS or tax professionals. In the meantime, we invite you to learn ways to protect winnings and reduce tax obligations by perusing our personal finance article library. ]]> tag:www.simonvolkov.com,2011://2.1932 2011-11-22T11:49:02Z 2011-11-15T19:33:25Z

A power of attorney template is required whenever one person needs to assign rights to conduct transactions for another person. This could be to authorize someone to oversee personal finances, conduct business transactions, or act as an agent for nearly...

Simon Volkov http://www.simonvolkov.com/ power of attorney template is required whenever one person needs to assign rights to conduct transactions for another person. This could be to authorize someone to oversee personal finances, conduct business transactions, or act as an agent for nearly anything a person does in their daily life. The power of attorney template makes executing this legal document quite simple. The person writing the POA is referred to as the Principal and the person receiving authorization is referred to as the Attorney-in-Fact, or Agent. ]]> power of attorney forms. Some of the more common include: General, Durable, Limited, Special, and Medical. Each serves a different purpose, but all authorize the attorney-in-fact to execute transactions that are specified in the form. There are a lot of reasons why people need to execute a power of attorney document. Most people find it helpful to talk to a lawyer to make certain they fill out the right form to fit their needs. At the very least, it's important to spend time researching the different forms and their uses. Lawyers can execute power of attorney forms for a fee, but people can also create their own document. Nearly every type of POA template can be downloaded via the Internet. A good place to start is state government websites. Most states publish information about each kind of form and its uses, along with preformatted POA templates. Every power of attorney has to be witnessed by two individuals that are not directly related to the Principal. A notary public has to be present when the witnesses sign the POA and apply their notary stamp. Agents are only authorized to conduct transactions listed with the POA. General and durable power of attorney grant broad powers that can allow agents to conduct nearly any transaction the Principal would normally perform. Limited or special power of attorney is used to grant authority to conduct specific transactions. Once agents complete the task the powers are withdrawn and agents are no longer allowed to engage in any type of transaction for the Principal unless a new POA form is created. Agents are not bound to carry out duties outlined in the POA form, but once they commence with a transaction they are bound to act as in the best interest of the Principal. When finances are involved, agents are required to act as fiduciary and can face legal consequences if they engage in activities in unscrupulous fashion. With that being said, it's important to select an attorney-in-fact that can be trusted to handle transactions with the utmost integrity. This is especially true when setting up a medical power of attorney. Medical POA can be used to authorize agents to make healthcare decisions for the Principal, as well as providing caregivers of minor children authority to obtain medical care in the event of emergency. Most daycare facilities require medical authorization, but it's also important to set this up for home daycare providers and nannies. Since minor children are not old enough to make healthcare choices, caregivers need to have written parental consent. Physicians will always provide medical care in life threatening situations, but they cannot continue with treatments or medications until they have permission from a parent or authorized healthcare agent assigned through the medical power of attorney. These are just a few examples of why it's important to establish power of attorney rights for anything that requires legal permission. These include selling vehicles, real estate, business assets, managing financial accounts, and making healthcare decisions for a person who isn't able to do so for their self. We invite you to learn more about using a power of attorney template to authorize agents to conduct personal and business transactions on your behalf. While we don't offer legal advice, our personal finance library offers information to help our visitors find the appropriate resources so the can make informed choices. ]]> tag:www.simonvolkov.com,2011://2.1931 2011-11-15T11:28:09Z 2011-11-14T06:12:00Z

A limited power of attorney is a legal form utilized to appoint an attorney-in-fact to engage in a specific transaction for a specific period of time. The attorney-in-fact is not authorized to perform any acts other than what is stated...

Simon Volkov http://www.simonvolkov.com/ limited power of attorney is a legal form utilized to appoint an attorney-in-fact to engage in a specific transaction for a specific period of time. The attorney-in-fact is not authorized to perform any acts other than what is stated in the POA form. A common use of limited power of attorney is to allow another person to engage in financial transactions. Examples could be letting a person manage checking and savings accounts by making deposits, transferring funds, or paying bills. Another use would be to authorize your agent to sell a car or piece of real estate. ]]> Durable power of attorney allows agents to have substantial influence over nearly all aspects of a person's life. However, certain kinds of POA documents disallow agents from engaging in transactions until a physician has claimed the Principal to be incompetent and incapable of making decisions for their self. Limited POA can be utilized for any type of dealing that a person is unable to take care of for their self. For instance, if a person has relocated to another state and needs to sell their house they can assign POA rights to a realtor, lawyer, friend, relative, or business partner. Or, if a person is experiencing health problems and needs someone to pay their bills and make deposits into bank accounts they can appoint an agent to perform those tasks. With limited power of attorney, the attorney-in-fact does not have access to sensitive data, nor can they conduct other kinds of transactions. They are limited to the one specific dealing. Once the transaction is complete, privileges expire and the POA is no longer valid. Privileges given through limited POA can extend for as long as the Principal requires. The timeframe is provided in the power of attorney form and will declare if privileges extend indefinitely, until the transaction is complete, or on a certain date. Furthermore, Principal's can revoke POA rights at any time by executing a revocation form. The process for establishing power of attorney rights differs by state, but essentially involves filling out a form and having it witnessed by two individuals in front of a notary public. Selecting an attorney-in-fact requires careful thought. It's important to choose a trustworthy individual that can be counted on to carry out their duties and act in the best interest of the Principal. Limited power of attorney can be established for just about anything a person engages in with daily life. These can include, but aren't limited to: personal banking; business banking; real estate transactions and property management; business management; buying and selling automobiles, personal property, or business assets; debt collection; dealing with tax issues; custodial care of minor children; and child medical care. It's recommended to talk with a lawyer when in need of limited power of attorney or other POA forms. While it's not necessary to hire a lawyer, most attorneys only charge a small fee to execute documents. We invite you to learn about the different kinds of power of attorney forms and their uses, as well as find out additional uses for limited power of attorney in our personal finance and estate planning article library. ]]> tag:www.simonvolkov.com,2011://2.1928 2011-11-07T11:06:04Z 2011-11-07T16:35:10Z

General power of attorney references a legal document that allows one person to engage in a myriad of personal and business financial transactions. It provides broad sweeping powers that essentially allow the agent to conduct nearly any type of activity...

Simon Volkov http://www.simonvolkov.com/ General power of attorney references a legal document that allows one person to engage in a myriad of personal and business financial transactions. It provides broad sweeping powers that essentially allow the agent to conduct nearly any type of activity for an extended period of time. The person writing the general power of attorney is known as the Principal. They can only authorize their agent to engage in transactions related to property they personally own or to make decisions on their behalf. ]]> buy a house in the Principal's name. For obvious reasons, it's vital to take care when choosing the attorney-in-fact. This person needs to be someone that can be trusted and relied upon to engage in ethical behavior. While designated agents are not required to assume duties, once they do they are required by law to act as fiduciary over the Principal's personal finances. Agents can be spouses, relatives, lawyers, financial advisors, or friends. They must be of legal age and of sound mind. Assuming duties as attorney-in-fact can be an enormous responsibility, so take time to discuss the responsibilities with the chosen agent. Establishing general power of attorney is a good choice for nearly everyone. If something were to happen that prevents a person from being able to speak for their self, agents can step in and manage finances or take over business operations in the Principal's absence. Some of the transactions that agents can perform include: pay bills and loan payments; deposit, withdraw, or transfer funds in checking and savings accounts; access safety deposit box contents; buy, sell, or trade financial products, real estate investments, or business equipment and assets. When the attorney-in-fact is charged with caring for real estate investments they can engage in the same acts as the Principal. For example, if tenants have fallen behind with rent payments, agents can engage in necessary steps to collect the money. This could be as simple as accepting a payment arrangement to appearing in court to file eviction notice. A power of attorney form is necessary to grant agent privileges to manage the Principal's business. Agents might be completely responsible for all aspects of business operations including hiring or firing employees; paying vendors or extending credit terms to clients; buy, sell or trade business equipment; enter into contracts; or file business tax returns. In instances where a person doesn't want to grant broad POA rights, they can use other power of attorney forms instead. For example, if a person wanted an agent to sell their car because they are out of state, they could use a special power of attorney. This type of POA limits the duties to specific tasks. Once completed, POA privileges are revoked. Another example is to set up a medical power of attorney to assign an agent to make healthcare decisions on your behalf. Medical POA rights do not become effective until a declaration of incompetence has been filed by the Principal's physician. Medical power of attorney is an important document to execute because it lets you put into writing any type of life-saving treatment or procedure you do not want to have if your quality of life is severely affected. We invite you to learn more about the different types of power of attorney documents and their uses in our personal finance library. While we don't offer legal advice, we do provide information regarding general power of attorney, limited POA, medical POA, springing POA and durable power of attorney so that you can make educated decisions. ]]>