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June 11, 2010
Loans
Loans allow people to buy things they need but don't have enough money saved away to purchase. Loans are often used when buying real estate and automobiles, as well as financing college education tuition or starting a business.
Unless loans are provided by family or friends, recipients of borrowed funds must apply for personal or business loans through banks or credit unions. Lending institutions require borrowers to provide evidence they are capable of repaying loans. If borrowers have poor credit their loan application might be denied or lenders may require a qualified co-signer.
Real Estate Investing article on "Loans"
May 27, 2010
Refinance Rates
Refinance rates can amount to several thousand dollars; especially if homeowners are consolidating two or more home loans. While mortgage refinance can ultimately save borrowers a considerable amount of money over the term of the note, it is imperative to compare lenders to obtain the lowest rate of interest and avoid unnecessary fees.
Numerous refinance rates can be assessed. These costs can range from less than $100 to more than $2500. Banks typically charge refinance fees for new loan applications, credit reports, preparation of loan documents, home appraisals and inspections, lawyer review, and closing costs.
Real Estate Investing article on "Refinance Rates"
March 19, 2010
Loan Modification Hardship Letter
A loan modification hardship letter is an integral part of working with mortgage lenders to permanently alter terms of a home mortgage loan. Borrowers struggling to make their monthly payment must work with their bank's loss mitigation department to determine if they qualify. Once application approval is obtained, borrowers are required to submit financial records along with a letter of hardship.
It is important to take time writing the loan modification hardship letter. Although lenders base their decision on borrowers' ability to pay future mortgage payments, a well-crafted hardship letter can go a long way in achieving a successful outcome.
Real Estate Investing article on "Loan Modification Hardship Letter"
March 08, 2010
Making Home Affordable
Last year, President Obama unveiled Making Home Affordable to help borrowers struggling to make their monthly mortgage payments and those facing foreclosure. The primary goal of this program is to offer loan modifications and mortgage refinance to borrowers whose mortgage notes are secured by Fannie Mae and Freddie Mac.
The Making Home Affordable refinancing plan expires on June 10, 2010, while the loan modification program expires December 31, 2012. Two additional programs are currently in the works. The 2nd lien modification program is scheduled to be implemented in the first quarter of 2010. The foreclosure alternatives program is expected to debut in April 2010.
Real Estate Investing article on "Making Home Affordable"
February 01, 2010
Hard Money Lender Real Estate
Hard money lender real estate refers to private lenders providing financing to home buyers and investors for the purchase of real property. Hard money loans are considerably more expensive than conventionally financed loans and are intended as short-term interim financing.
Hard money lender real estate funding is often the only source available to borrowers with bad credit. This type of home mortgage loan can be used to help borrowers establish or rebuild credit. Real estate investors sometimes obtain hard money loans to purchase commercial real estate or investment properties intended for house flipping.
Real Estate Investing article on "Hard Money Lender Real Estate"
December 26, 2009
Property Tax
Real estate property tax is assessed by local governments such as cities, townships, counties, parishes and boroughs and is the primary source of income for communities. The majority of state property tax is used for education, while remaining funds are used for county and municipality expenses such as paying government employee salaries, road repairs and improvements to infrastructure.
Mortgage lenders calculate property tax by multiplying the tax rate times the property value. When borrowers buy houses, a property appraiser assesses the value of the real estate based on several factors. The appraised value can be higher or lower than the purchase amount. When buying a house, the goal is to purchase the property for less than the appraised value.
Real Estate Investing article on "Property Tax"
November 23, 2009
Real Estate Forbearance
Real estate forbearance agreements are used when mortgage borrowers become delinquent with home loan payments. In order to qualify for loan forbearance, homeowners must possess the financial ability to make future payments and work with a bank loss mitigator to devise a repayment plan to cure mortgage arrearages.
When real estate forbearance agreements are issued the mortgage lender agrees not to initiate foreclosure proceedings as long as the borrower complies with payments terms. Mortgage forbearance repayment plans typically extend between three and twelve months.
Real Estate Investing article on "Real Estate Forbearance"
November 13, 2009
Deed in Lieu
Deed in lieu is an option presented to borrowers facing foreclosure. Deed in lieu agreements allow borrowers to return their house to the mortgage lender and walk away. Although homeowners' lose all vested monies and receive no sale proceeds they can avoid foreclosure and lessen credit damage.
Mortgage lenders are not required to offer deed in lieu agreements. However, banks benefit by this type of real estate transaction because it allows them to avoid the costly expense of foreclosure eviction.
Real Estate Investing article on "Deed in Lieu "
November 10, 2009
Mortgage Note
A mortgage note is used when individuals purchase real estate by obtaining a loan through a lender. Mortgage notes contain information regarding the real estate transaction such as principal sum, interest rate, length of the note, monthly payment amount, prepayment penalties and stipulations of how the property is to be used; e.g.; primary residence or rental property.
A mortgage note can be sold to mortgage buyers in exchange for a lump sum cash payment. Multiple reasons exist to sell mortgage notes. The most common is to obtain quick cash to get out of debt, college tuition, or use funds for real estate or financial investments.
Real Estate Investing article on "Mortgage Note"
October 21, 2009
Seller Carry Back Trust Deeds
Seller carry back trust deeds are used when property owners provide financing to sellers. Also known as seller carry back financing, trust deeds secure the property until private financing has been repaid. Sellers can elect to carry all or a portion of real estate financing. This technique is often used when buyers are unable to obtain financing through a traditional lending source.
Three parties are involved when seller carry back trust deeds are used. These include the Trustor, Beneficiary and Trustee. The property owner or seller is referred to as the Trustor. The individual or entity that receives income from the mortgage note is referred to as the Beneficiary. Beneficiaries can be a private party or a lending institution such as a bank or credit union. The person who holds legal title to the real estate is referred to as the Trustee. Depending on the circumstances, the Trustor can also be the Trustee and Beneficiary.
Real Estate Investing article on "Seller Carry Back Trust Deeds"
