Sell Your Home and Invest at the Same Time
I continue to see the same For Sale signs in my neighborhood. The houses just aren't selling. If you are considering selling or have a home on the market that is not moving, it's time to think about financing the sale yourself. A good friend of mine bought a new home three months ago, and he has watched his old house sit unsold, while he's struggled paying two mortgages. I finally convinced him to get past his fears and finance the sale of his old home.
He's thrilled that he won't have to make two house payments any longer, and he doesn't have to worry about that empty house. Here are a few basic tips I gave him that helped make the transaction a whole lot smoother. Be sure you have a well-written land contract that spells out every detail of the transaction. This is, in essence, your purchase agreement.
Get yourself a title company and have your title agent file the land contract with the county. This makes it all legal. Be sure to get a good down payment. Five percent would be great, but if the buyer can't afford this, be sure to get a few thousand dollars. This will give the buyer a little equity and make the move to a conventional refinance loan much easier. Be sure the terms are very specific.
Just like any mortgage, there should be an interest rate on the loan, a 30-year term, with a balloon payment. This means the payment is spread over 30 years, which makes it easier for the buyer, but you will get all of your money in a specified time, say 2-7 years. It's always a good idea to talk to your buyer about credit worthiness. You are extending credit, with the understanding that the buyer will go to a bank for a conventional loan to pay you off. That bank will want a decent borrower.
So, it will help your buyer and you to educate him a bit on putting himself in better position to get the loan. Make sure he pays you with a check, so the bank can trace payments. Discuss credit cards and other monthly debt and be sure he knows to pay everything on time.
Finally, explain that a couple of months worth of payments in savings (cash reserves) will be required to secure his loan, so he should plan ahead and start putting away each month. Other assets are also acceptable, such as retirement benefits, stocks, and forms of money that are easily accessible. Finally, instruct your buyer to do everything possible to maintain the house and even to improve it, as this will help with increasing the home's value, which will be a vital part of refinancing into a conventional loan.
These are just a few of the important steps to seller financing.
Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about this suspense thriller at http://www.sportsnovels.com. Get his free mortgage finance course at http://www.winningthemortgagegame.com
Latest News
 CEP News | A Rush Into Refinancing as Mortgage Rates Fall New York Times, United States - Mortgage rates immediately dropped, and that led to a surge in mortgage refinancing activity for the week — even with the Thanksgiving holiday. ... Mortgage Refinance Applications Soar As Rates Fall Homeowners' Refinancing Jumps by Record Pace Treasury mulls plan to lower mortgage rates to 4.5% |
 Yahoo | US MBA’s Mortgage Applications More Than Doubled Last Week Bloomberg - The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan jumped 112 percent to 857.7, the highest level since March, ... FINANCIAL STOCKS Bulls outlast bears in Wednesday grudge match Falling rates spark rush to mortgage applications UPDATE 1-US mortgage applications post largest gain ever |
Lower mortgage rates help but jobs, prices key Reuters - Applications to buy and refinance homes hurtled higher last week as the lowest rates since the summer of 2005 unleashed pent-up demand. ... |
 Gothamist | Bally Total Fitness files for bankruptcy again San Francisco Chronicle, USA - Refinance volume more than tripled, while purchase volume increased 38 percent. Refinances accounted for 69.1 percent of applications, up from 49.3 percent. ... Thanksgiving week saw rise in mortgage activity |
 Boston Globe | Geithner May Seek to Push Bair Out After Clashes During Crisis Bloomberg - ... that contributed to the subprime mortgage mess. This year, Bair has proposed using taxpayer funds to help refinance loans for struggling homeowners. ... Mortgage proposal has faced conflict |
US Economy: Service Companies Shrink at Record Pace (Update1) Bloomberg - “Things overall still look bad, but this, together with last week’s doubling in MBA refinancing, provide glimmers of hope,” Ian Morris, chief US economist ... |
UPDATE: Builders Soar On Lower Rates, But Pain Persists CNNMoney.com - As consumers raced to lock in lower rates, applications to refinance existing loans jumped 203.3% last week from the week before, while mortgage ... "Good" news on housing |
Mortgage Brokers: Now Is Good Time To Refinance MyNC.com, NC - By Lauren Hills, NBC17, 14 hours, 38 minutes ago While most money matters aren't looking up right now, if you're looking to refinance your home, mortgage ... |
Fresh Data Is Sour Forbes, NY - 28, from the previous week's 404.4 reading, according to the Mortgage Bankers Association's survey. Refinance volume more than tripled, accounting for 69.1% ... |
Fed’s Kroszner Says Foreclosures Harming Middle-Income Areas Bloomberg - ... the highest on record as home prices dropped and stricter mortgage standards made it harder for homeowners to sell or refinance, RealtyTrac Inc. said. ... |
Resources
-
bad credit home loan, Refinance Mortgage loan, cash loan, cash advance loan, california home loan, p
Online bad credit home loan, Refinance Mortgage loan, cash loan, cash advance loan, personal loan, debt consolidation loan, payday loan, bad credit loan, home improvement loan, second Mortgage loan, online loan, unsecured personal loan Search.