Here is General Information about investment properties (foreclosures, REO, bank-owned, HUD, etc) and what is usually involved (but not always the case) in making an offer on these type of investment properties.
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Looking For Vinyl Records and Other Rare Music? Our music site has moved to raremusic.us. Please update your links. * In most cases, the utilities are not on and if a buyer wants an inspection, sellers require inspections to be done within 10 days after offer is accepted. * Usually the sellers listing agent has to be contacted to arrange utilities to be turned on, at buyers expense. * When given timeframes for utilities to be on, it is recommended that buyer agent confirms that utilities are working before inspection is made, as some inspectors will refuse to turn on breakers, etc. * In order for utilities to be activated in a timely manner, it is the buyer’s responsibility prior to requesting utilities to confirm all breakers at panel are off to allow activation of electric and all water spigots, etc. are turned off to allow activation of water services. * Water service will be established, but left off to house to prevent any water damage as property is vacant. Buyer will be responsible for turning on water to house for inspections only and MUST turn off water immediately following inspections. * Electric service will likewise often be on but turned off at breaker panel or meter. * If gas service is established, buyer will be responsible for lighting pilot lights, etc as required for inspections. * Any damages or liability resulting from inspections or improperly attempting to activate an utility will be the buyer and buyer’s representatives. * Water is turned off, plumbing lines drained, and antifreeze is put in all drains. This also includes draining of hot water heater and breakers to heater being turned off/taped over. * It will be buyer’s responsibility at their expense and liability to have the property de-winterized by a qualified plumber for the purpose of any inspections. Any property de-winterized in any other person than a qualified plumber will result in a buyers liability should any damage occur. * After the home is purchased, it will be buyer’s responsibility to de-winterize home again if it was re-winterized after inspections. * A pre-approval letter is required (NOT pre-qualified) from a lender if financing, or a proof of funds letter if a CASH offer and the letter must accompany all offers. Note: Credit Lines, IRA’s, Stocks are NOT CASH. * Pre-approval letter must clearly state that a credit report has been reviewed as part of the pre-approval. The pre-approval letter must be signed by the loan officer: (If mobile/manufactured home, the pre-approval must also state that lender is aware the property is manufactured housing. If listing says “Rehab loan only” the letter must state “rehab loan”.
Article Source: http://EzineArticles.com/1721868 Nestled in the heart of the majestic Blue Ridge Mountains is the quaint, friendly town of Asheville, North Carolina. To get there from the West, it’s a scenic drive through the plateaus and mountains on Interstate 40. Or you could go the really long, windy route of a two-lane road through the mountains and pass by Cherokee, where the Eastern Band of the Cherokee Indians run their sovereign nation of more than 13,000 members on 100 square miles of land. North Carolina is rich with history and culture and Asheville is the gateway to where the old world and new world meet. The Native American culture pervades, the traditions of mountain people live, and the new money of early America is proudly on display at the chateau built by George Vanderbilt. – The Biltmore. The family-owned Biltmore estate sits on 8,000 acres and has 34 bedrooms, 43 bathrooms, a swimming pool, gymnasium, bowling alley, and beautiful gardens. More traditional homes in the Asheville area have three bedrooms, two baths, and are lucky to have a half acre of land. Today, the average cost of a home in this beautiful town is about $175,000. The prices have dropped since the 2007 heyday by a little more than 15 percent, however this shortfall is a wash for home owners selling existing homes and purchasing new ones because the loss is made up in their savings for a newer, nicer home. In Asheville, the average commute time to work is less than 20 minutes. However, the focus in Asheville is not just work, but neighborhoods. The city has appointed community liaisons for residents to ask questions about upcoming developments and land use – an easy way for the community to stay informed and active in the city’s planning. With well over 30 parks scattered throughout the city, residents can enjoy baseball, basketball, picnicking, tennis, playgrounds, and many other activities in the safety and convenience of their own neighborhood. During the summer months, a lavish Fourth of July celebration is held, followed by a four-stage music and street festival. The street festival attracts about 300,000 people each year. Because safety in this beautiful city is also a priority, the local government actively keeps residents informed about potential scams and investigations. The eyes of the community are always open to protect and preserve the easy-going lifestyles that so many residents enjoy. If you spend your real estate dollars in Asheville, North Carolina, you may choose to not just invest there, but also to live in this beautiful mountain city.
By: Nicky Pilkington
We all buy homes on mortgage basis and this helps in saving a lot. We tend to pay a lot in the form of interest but what do we get in return? Here’s the answer, a mortgage tax deduction. A key benefit for the new home owner wherein we can save a lot if our primary and the secondary homes are less than $1.1 million in cost. This makes this deduction one of the best ways to trim taxes. An important date in the US home loan calendar is October 14, 1987. Any loan before this date is free from the new rules. Full deductibility is allowed on such loans. Similarly, any refinanced debt incurred before October 14, 1987, is rolled into the total acquisition indebtedness. The jargon is quitesimple, acquisition indebtedness is the money that you borrow to buy, build, or improve your home. The tax code is complex when it comes to this debt. Broadly, it lays down that that you can deduct mortgage interest up to an acquisition indebtedness of $1 million on all loans taken after October 14, 1987. The limit for equity indebtedness is $100,000. You can now borrow up to $100000 of equity on your home and use it for any purpose. This again is a huge improvement on the pre-1987 years where you could use this money only for home improvements, medical and education expenses. Refinancing mortgages was the best way to draw equity on your appreciating property. You could use the money for literally anything you wanted, but now the rules have changed. A second mortgage, or “junior lien”, allows the homeowner to make use of part of the equity that has built up in the home over time. It is similar to the first mortgage. The advantage is that you can use your home to draw equity on your home to a certain limit and then use it. You will be charged interest only on money that you have withdrawn and not the rest. Even the tax is on used capital only. Aren’t things becoming much simpler these days? Just know what you are doing and do it within the law. Author Resource:-> Find more about Tax Deductions Article From Article Directory Land Loans To Get That Land For Sale!I used land loans a while back and had a pretty good experience with them. Up until the time that I needed one, I had no idea that there was such a term as I found the perfect place, a place that was far enough out in the country to get away from the hustle and bustle of city life, but not far enough to make a long drive to the city. I was driving around on one of my relaxing country excursions, and I saw this piece of cheap land for sale that was just right for my house. All I would need is to find some good construction loans and I would be on my way! It was a few acres, so besides having a great spot to build a house on, there would be a heck of a lot of space for other things as well. I immediately stopped the car and got out to inspect the land. It only took me about an hour to decide that this was the land for me, and I called the number that was on the land for sale sign to speak with the owner. He gave me a quote, I told him what I was looking to pay, and we actually came up with a figure in which we were both happy with. I went to my bank the very next day so that I could apply for a loan and get the land before anyone else had decided what a steal it was. Land loans take just as long to get approved as construction loans or other regular loans, but I have been with my bank for well over forty years, so it was probably quicker than average. After getting the loan I started planning what I wanted to build. This would be my dream home, out in the country, and in my very own style. Thanks to land loans I have the land that I need to build on and the next step is building my house. I hope it will be as easy as it was to find the land.
Article Source: http://EzineArticles.com/5718059 Not so many decades ago, banks loaned money to people to buy a house and then kept the loan. Because the bank held on to the mortgage note, they made sure that the buyer put in a reasonably large down payment and had the ability and character to repay the loan. Of course, we all know how that has changed, especially over the last decade. It’s time to pick up the better habits of that era. The securitization of mortgage notes and loans, including the splitting up of loans into tranches, went way too far. Too many people along the chain had their hands in the money pie, with nobody taking responsibility for making a good loan. Incredibly, some of these bad business models still continue. The new era should be regulated along two segments. First, banks could give loans and then either keep each loan or sell the real estate note in nearly its entirety to a mortgage note buyer. If a bank does sell a note to another bank or mortgage buyer, the bank must keep some minimal amount of the mortgage note – say 10% — to ensure that they have followed proper underwriting guidelines and carry part of the risk. The second segment would be the private mortgage note arena. In this case, the selling party (usually a private individual) “carries” the mortgage note, and the buying party makes regular payments to the seller. The seller is more likely to make sure that he is protected in case of default than would a faceless securitization program. If the seller decides to sell the note, he could sell the real estate note to a particular mortgage note buyer or get offers from a multitude of mortgage buyers. In deciding to sell the note, or even part of it, the original seller has cash to use for other activities, and the mortgage note buyer gets a return on their investment. The mortgage buyer creates a direct relationship with the payer by means of the real estate note. Both of the above approaches would bring down the volume of real estate transactions to a more realistic level. Keeping the real estate note in one piece or, at worst, two to three pieces, helps ensure that both the party holding or selling the note and the mortgage note buyer have done their due diligence and created a bona find mortgage note. Alan Noblitt is the owner of Seascape Capital Inc., which buys real estate notes. He may be reached at (858) 672-4678 or toll-free at 1-800-634-4697. If you would like to learn more about real estate notes and read informational articles, visit www.seascapecapital.com. Blog URL: http://seascapecapitalblog.blogspot.com/ For more information about Mortgage Note please visit http://www.seascapecapital.com/ Understanding Poor Credit – Poor credit isn’t necessarily the end. Here are some helpful hints on how to improve your credit score. When someone gets a second mortgage in North Carolina, it’s known as a second loan against a property that already has an existing loan against it. A property in North Carolina or any other state can have multiple mortgages (or liens) against it. There is no limit on the number of mortgages a person can take out on a property, but having more than two is uncommon because of the inherent risk associated with them. A second mortgage is usually called a subordinate loan to the first mortgage. This is because if the second loan were to go into default (i.e. not being paid) then the first mortgage will get paid first. This makes a second mortgage very risky for lending companies and thus these subsequent mortgages usually have high interest rates. Second mortgages are much more difficult for a homeowner to obtain. Lenders will look at many factors when you are applying for a second mortgage on a home. These factors include how much equity you have with the first mortgage, what your debt vs. income ratio is, your employment status and available income, and your credit score. To ensure that you qualify for a second mortgage you want to make sure your debts are not too high to begin with and that you are financially stable for the most part. A home equity loan is for the most part the same thing as a “second mortgage”. This is because you are taking a loan out against the equity that you have in your home against the first mortgage. So when you hear the term “home equity loan” or “second mortgage” consider them the same. Today I would like to talk a little bit about Greensboro, NC. I thought this might be helpful in case you are considering living here or if your job happens to move you to this area. Greensboro has a population just under 250,000 people (as of 2010) and has grown about 9.83% since 2000 (source: bestplaces.net). Housing here is quite affordable and you can find something in almost any price range. The cost of living here is reported to be around 13% lower than the national average. Jobs have been an issue in Greensboro over the last few years. Especially since the recession has hit, there have been several layoffs and jobs that were once promising have fallen by the wayside. In North Carolina as a whole, mainstay industries like textiles, tobacco, etc. have all but moved away to cheaper countries or been shut out. This area is in a big transition to other industry such as transportation, logistics, etc. Overall, Greensboro is an inexpensive place to start a family, but many report that it lacks in “city life” as some of the bigger cities might have. Greensboro does have an abundance of parks and several historical areas and the downtown area is attempting to revitalize, but it has a long ways to go to reach the level of Charlotte or Raleigh. I’ll try to review more North Carolina cities in the coming weeks. |
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Mortgage Notes For Wednesday
Wednesday’s bond market opened in negative territory following the release of stronger than expected housing news and a sizable rally in stocks. The stock markets are rallying after favorable earnings were posted from tech giant Intel. The Dow is currently up 180 points while the Nasdaq has gained 55 points. The bond market is currently down 6/32, which should push this morning’s mortgage rates higher by approximately .125 – .250 of a discount point.
The National Association of Realtors reported late this morning that home resales rose 3.7% nationally last month, exceeding analysts’ forecasts. This is negative news for the bond market and mortgage rates because it indicates housing sector strength. The housing sector is considered to be one of the hurdles that the economy needs to overcome to be able to recover from the recession. Therefore, today’s news points towards an expanding economy that makes long-term securities such as mortgage-related bonds less attractive to investors.
Tomorrow has two reports scheduled for release, but neither is of great importance to the markets. The Labor Department will post last week’s unemployment figures early tomorrow morning. They are expected to say that 390,000 new claims for benefits were filed last week. This would be a decline from the previous week. The higher the number of claims, the better the news for mortgage rates. However, since this data tracks only a single week’s worth of new claims, it usually takes a wide variance from forecasts for the data to heavily influence mortgage pricing.
The last report of the week will be posted late tomorrow morning when the Conference Board releases their Leading Economic Indicators (LEI) for March. This data attempts to measure economic activity over the next three to six months. This is considered to be a moderately important report, so we may see a slight movement in rates as a result of this report. It is expected to show an increase of 0.2%, meaning it is predicting slight growth in economic activity over the next several months. A smaller increase, or a decline would be considered good news for the bond market and could lead to slightly lower mortgage rates.
The bond market will close early tomorrow and will remain closed Friday in observance of the Good Friday holiday. The stock markets will be open Thursday for a full day of trading, but will also be closed Friday. The markets will reopen for regular hours Monday morning. The early close and Friday holiday may lead to some volatility in bonds tomorrow afternoon as investors protect themselves over the long weekend. I don’t believe that this volatility will necessarily impact mortgage rates, but the possibility does exist.