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Your Home Appraisal –what’s the Big Deal?

By admin on Sunday, July 25th, 2010 | Comments Off

Think about why this is true. A good appraisal is the best reassurance that the lender won’t lose its pants on the transaction. If the borrower defaults, the lender still has a marketable property that can be sold to recoup its losses. All of which makes it understandable why lenders are so picky about appraisals. And with recent changes in the industry, the focus by lenders to obtain good appraisals is at the forefront.

Appraisals typically cost anywhere from $350 to $400. However, if the house is gigantic, multi-unit or in the boondocks, it could run more. The cost varies on property type, location and square footage.

The most common type of appraisal is the Uniform Residential Appraisal Report (URAR). It consists of interior and exterior photos and sometimes (depending on the age of the home), a complete cost breakdown of the property and comps (comparison sales of homes nearby that meet the proper criteria). These comps help determine the “market” approach. Each comp sale is adjusted in value when stacked against the home being evaluated (the one you’re buying or refinancing). Usually you will see a comp below the value of your home, in line with the value of your home, and a third above the value of your home. Kind of like the three bears. But if the valuation gets tricky, you can see fourth, fifth and sixth comps. The net value of the comps is estimated based upon the approaches used to come up with the appraised value of your property (meaning the appraiser performs some type of calculation that’s kind of like an average, but not necessarily a true average. Confused yet?)

URARs also, typically but not always, reflect a cost approach, which determines what the value would be based upon what is estimated it would cost to rebuild the home, less depreciation. The final estimated value of the home is then determined by using a melding of the market approach described above and cost approach (if applicable).

Lori Babb, Staff Appraiser for Mortgage Investors Group of Knoxville, TN, further explains comparables. “The best comparables are those similar in size, style (ranch, basement rancher, 2 story, etc.), age, and are close in proximity to the dwelling being appraised,” she explains. “Unique properties will typically require more adjustments than the average properties.”

So, say you’re Bill Gates and want to secure a mortgage on a $200,000 home (I know, it’s ridiculous, but I’m trying to make a point). He’s got the best credit profile a lender could imagine, yet the house appraises for $175,000. Deal or no deal? You better believe it’s no deal. The sales price will have to be lowered, or Mr. Gates will just have to pay cash for his new home (you think he can afford it?). The point is, your average Joe won’t go ahead with the deal without a price adjustment, and he will be obligated to pay for the appraisal regardless of the outcome of value.

Dan Tyrell, principal of Knoxville area’s Tyrell Appraisal Service, Inc., has this comment about value, “When determining value of a single family house, beauty is more than ‘skin deep’. Fresh paint, new carpet, new appliances, and nice landscaping all enhance the marketability of a house. Not so obvious items also impact the appraised value of a house. For instance older houses that have replaced plumbing/electrical systems, updated HVAC systems, newer roofs, replacement windows, etc. lower the effective age of the property which in turn increases the appraised value.”

There are other types of appraisals that are not as common, like an Automated Valuation Model (or AVM). In this case, different factors combine to ensure the value of the home (it’s worth $200K, but your loan amount is only $100K) and your unbelievable credit worthiness (800 credit score!), allowing you to skip purchasing a typical appraisal. You may also only be required to get a “drive by” appraisal, where the appraiser just inspects the exterior of the subject for size, looks at the lot and makes you wonder who that person standing by your mailbox is.

Most lenders control what appraiser is used to determine the value of your home. After all, it’s their money on the line. The appraisal is such an important factor to the mortgage transaction – make sure you’re satisfied with the results. Your lender will make sure it is satisfied!



Repossession

Quick Sale of your Property Can Give you Quick Access to Cash

By admin on Sunday, July 25th, 2010 | Comments Off

There are times when in need of cash, you may have to go in for a quick sale of property. This may be prompted due to various reasons. Circumstances can range from financial problems, losses in business, inflation rate, divorce and costs of legal proceedings, to other emergency situations. It is then that your cash needs would require you to convert your immovables into liquid cash.

Liquidating your assets as in sale of your property is perhaps the best way to get hold of necessary cash, without having to pay high interest rates as in loans. The situation is critical when your bank balance does not have the required amount. And when the requirement for cash is not met even by reliable people around you such as family and friends, you may have to take recourse to other sources such as extracting monetary value of your property in the form of quick sale.

However, quick house sale can be a lengthy process because of the documentation required. What this means is, in short, a waste of a lot of time. It could take months to get hold of the amount when what you require is a few days. This problem can be sorted out by way of estate agents. They are the ones to look out for to get you that speedy service of a property sale. They have the experience and the expertise to help you out in any circumstance. Since they deal and negotiate on your behalf, you can save yourself a lot of hassles such as that of documentation.

Furthermore, quick sale of your property through the agents is a smooth affair. They would be ready to purchase your property in any circumstance, even when you are heading towards property repossession due to defaults on your loan or mortage repayments. Quick house sale can thus help you to smoothly meet your financial requirements in an emergency situation.



Sell House Quick

Stopping Foreclosure Takes Commitment? And Fast Thinking

By admin on Saturday, July 24th, 2010 | Comments Off

There are currently thousands of homeowners across the country worried about stopping foreclosure on their properties. Foreclosure is simply a legal process through which lenders can repossess a real estate property on which the home loan has not been paid. After three months of non-payment by the homeowner, lenders can usually start proceedings to repossess the property and resell it. Losing a home through foreclosure causes immense stress, can ruin a credit rating, and, of course, leaves a homeowner without a place to stay.

Anyone who is facing the possibility of losing their home needs to take steps for stopping foreclosure immediately. In this process, time is of the essence and homeowners should be quick to seek help as soon as they realize that they are going to have financial problems that may make it hard for them to meet their mortgage responsibilities.

If you’re a homeowner who realizes that mortgage bills may have to go unpaid, you should contact your lender immediately. Even before you miss that first payment, call your lender and explain the situation. Most lenders, contrary to popular belief, do not want the foreclosure process to take place. Lenders are in the mortgage business, and do not really want to own real estate. Plus, many lenders face pressure from shareholders and bosses when a loan they have approved his defaulted on. It simply makes the lenders look as though they have poor decision-making capabilities when it comes to granting mortgages. For all these reasons, lenders are often willing to work out an alternate payment schedule or are willing to work out some other option with a homeowner who is genuinely in trouble.

The worst thing that homeowners can do is to ignore the problem. Stopping foreclosure depends on fast action, not on ignoring the problem. Financial problems rarely go away instantly, and homeowners need to be proactive when looking for foreclosure solutions. In many cases, when homeowners are in serious financial trouble, they can use the money they have already put into their home in order to get out of financial jeopardy. Homeowners who own their home free and clear can sell their home for cash. This instantly reduces the amount of money they have to pay for maintaining the property, and also gives them the money they need up front to start over financially and get back on track. Unfortunately, selling a home can take months through a real estate agent. In cases where a homeowner is facing foreclosure, there may simply not be that much time before legal action is taken. For this reason, many smart homeowners turn to www.WeBuyHousesForCash.com for help selling their home in just a few days for quick cash.



Real Estate Professionals

Avoid House Repossession UK Top Tips to Stop Eviction in Its Tracks

By admin on Thursday, July 22nd, 2010 | Comments Off

If your looking to avoid repossession there are a few solutions entering the market place in the UK that can prevent you from being evicted and allow you to stay in your own home, the most popular out of these solutions is called the “Sell & Rent Back Scheme” which is designed for an investor to buy your property from you at a percentage of the market value allowing to clear your outstanding balance with the lender clear any unsecured loans and any arrears that you may have and allow you to remain in the property as tenant.

As an alternative to being evicted and depending on the property auction which may still leave you with debts that will be chased this can be a life saver for many individuals and family’s that have been hit by the UK’s growing credit crunch

there are some variations on this model, some allow you to be able to buy the property back form the company that has purchased it at a later date if you financial situation has improved this can often be discussed with the company’s looking to buy the property and it is not unusual for them to make this agreement as it works out well for both party’s

you can take advantage of one of these deals even if a repossession order has been put though court as you will find that the lenders are very welcoming to this kind of transaction taking place as all they are interested in is getting back the money that they are owed, you have to remember that repossession is a very expensive process for them to undertake so you will not find to much difficulty in stopping the repossession should you choose to go ahead with one of these deals



Sell House Quick

Home Loans –possible Hurdles and Solutions

By admin on Wednesday, July 21st, 2010 | Comments Off

A Home Loan is a long-term legal contract between a customer (home loan seeker) and the bank. Hence it is very important for a home loan seeker to be fully aware of all the legal terms and conditions that involve in the processing of a home loan.

A home-loan seeker may face several difficulties including certain legal issues in the processing of a home loan. He/she has to be very careful and must have a good knowledge of all the legal aspects pertaining to home loan processing. The following tips will greatly help you to educate yourselves in this regard and obtain a hassle-free home loan.

1. Home loans process starts with documentation. Documents pertaining to a property are of great value and play a key role in completing the process. So, a home loan seeker must be very careful when submitting the documents to the bank. Never submit any fake or unclear documents that may create confusion or misguide the banks; banks have every right to take legal action against those who misguide them.

2. The details that you furnish in the application form should not include any discrepancy. Banks make a careful study into these details, and if they find discrepancy, your application is certain to be rejected without any prior notice.

3. Retain all your receipts of the amount paid towards the credit card bills as banks may ask for the receipts of the payments once the details are found in CIBIL.

4. A panel of advocates will scrutinise the documents submitted by the home loan seeker. They will obtain the search reports from the concerned sub-registrar office to find out the details of deeds and the vendors pertaining to that specific property. If they find any discrepancy in the documents, banks will ask the customer or vendor for clarification or for other supporting documents.

5. Property that the home loan seeker intends to acquire will be evaluated by technical valuers, and if any find any deviations in the property, customer has to submit additional documents to support the deviations.

6. Upon completion of the entire process, vendor has to verify all his original documents with the bank official before disbursement of the loan, and the customer has to submit latest Encumbrance Certificate (EC) recording all transactions of the property in original.

7. Customer (home loan seeker) has to sign all the legal documents and the Home Loan Agreements in regard to the disbursement of the loan, and the property will be hypothecated to the bank till he/she repays the entire loan amount subsequent to the registration of the property. Customers are advised to carefully read the agreement copy before signing it.

8. If the customer fails to repay the loan, banks may appoint agents to collect the easy monthly instalments (EMIs) from the customer, and he/she has to co-operate with them.

9. If the customer gets defaulted, bank can seize the property to recover the loan amount; and once this happens he/she will be added into the defaulters list of the CIBIL (Credit Information Bureau of India Ltd).

Finally, it is advisable to take as less loan amount as possible so as to save the interest paid on the loan. Also, be punctual in repaying the loans to maintain a good credit history.



Sell House Quick

The Pros and Cons of Rent-Back Home Sales

By admin on Monday, July 19th, 2010 | Comments Off

With a struggling economy comes a prevalence of advertising for rent-back services; indeed, many people have probably noticed an increase in advertisements along the lines of “We Buy Ugly Houses.” Homeowners may choose the rent-back option for a variety of reasons, but any person who explores this route should consider the pros and cons of rent-back sales, as well as the options inherent in doing so.

WHY RENT-BACK SALES ARE AN OPTION

There are numerous reasons for this uptick in rent-backs: foreclosure avoidance, loss of employment, divorce, and a desire to reduce expenditures all factor into higher rent-back behavior. Though rent-back behavior often means taking a loss on one’s home, some choose this option as a way to buy time in avoidance of a foreclosure.

Those who take the rent-back route are often able to stay in the home during the sale, but rent must be paid in these cases. Though rent will likely be comparable to area rates, short-term rent will likely cost extra. However, one must balance an increase in rent against the extra costs associated with finding other short-term living arrangements.

SELLER ADVANTAGES

Though rent-back sales are likely to net lower prices for the seller, there are benefits for those taking this route. The seller may wish to allow their children to complete a school year prior to moving, which obviously lessens the stress level of a move as compared to mid-year moves.

In addition, those constructing new homes may need extra flexibility in existing housing arrangements to account for any delays in construction. Sellers who are in the market for a new house may want the peace of mind that comes with selling the existing home prior to buying the second. Both of these instances demonstrate the flexibility inherent in rent-back options.

SELLER DISADVANTAGES

Selling a home to an investor also has the potential drawback of the house being sold before the seller is ready to move out. Lease periods can be difficult to extend for this reason, and can especially be an issue when the loan is dependent upon possession of the property being taken by the new owner. Any of these issues should be investigated prior to striking an agreement with a buyer.

When one sells their home “as is,” a potential trouble arises concerning when the “as is” period actually is. Also, the buyer and seller need to agree on who will make any necessary repairs to the home as the need arises. As aforementioned, exploring these potential issues prior to sale will make the buyer-seller transition much easier, and will help to avoid future legal problems.

In the end, there is no easy answer to the question of whether one should follow traditional methods of sale or go the quick sale, rent-back route. However, if one considers all options, explores potential pluses and minuses, and does their research, then a suitable method of selling a home can be found.

In the end, there is no easy answer to the question of whether one should follow traditional methods of sale or go the quick sale, rent-back route. However, if one considers all options, explores potential pluses and minuses, and does their research, then a suitable method of selling a home can be found.



Sell and Rent Back

100% Home Loan Financing – Flex your Muscle

By admin on Sunday, July 18th, 2010 | Comments Off

With the current “mortgage meltdown” we hear so much about these days, your average consumer thinks that the days of 100% financing have gone by the wayside. True, you are hard pressed these days to find a bank or lender that will want to carry a second mortgage that combined with a first mortgage adds up to 100% financing. That’s because if there is a default, sitting in second lien position is particularly dicey. Too much risk is involved. And since, in recent history, that scenario of the 80/20 combo was the most common 100% financing vehicle available to a certain group of consumers (non first time homebuyers), there’s a misconception out there that 100% options are all but dried up.

But, a-ha! There is hope for someone who has great credit but prefers to invest his/her assets elsewhere when rates are so low. It’s called the Flex 100. And it can apply to purchases and refinance transactions.

I heard an analyst mention on television the other day that mortgage money is so cheap right now it’s like a sale at Macy’s. That made me chuckle, but it’s true. In which case, why not invest your money elsewhere if you qualify for 100% financing. After all, the homes are still appreciating in most areas, but not at the stellar rate we saw in the past.

The Flex 100 requires you to invest $500 of your own cash towards the transaction, so I guess it’s technically not 100% financing, but it’s pretty darn close. And no, you don’t have to be buying your first home to get this deal. You can actually have owned a home in the past three years! However, it does apply to financing your primary residence only. You can’t get this deal for that nice cabin in Gatlinburg you want to use on the weekends or for that great rental down the street you think you can get a good deal on. You’ve got to live in the house to qualify for this financing.

But you can do a refinance, as long as it’s not a “cash-out,” meaning you’re not paying off debt or taking equity out of the property. It must be a rate term refinance only. However, you can pay off that second mortgage or home equity line of credit you hate, IF you obtained that 2nd lien mortgage when you got your first mortgage (a piggy back closing, we call it). Or to make it clearer, you originally had that 80/20 combo mentioned earlier. If you got that home equity mortgage a month or two after your initial closing to build a deck or payoff a credit card, than it that won’t work for a Flex 100 refinance.

What about your credit score? Well, it will affect the price you get, but there is no “minimum” credit score required for this program. You just have to get an approval through the automated underwriting system required. But be realistic – if you’ve got “iffy” credit, you probably won’t get an approval. A borrower with a credit score below a 620 would probably have to have a low loan to value or debt to income ratio for a chance of an approval.

A Flex 100 may or may not make sense for you. But hey, at least you know it’s an option. Your lender should be able to help you determine if this opportunity to flex your mortgage muscle makes sense for you.



Quick Property Sale

Get a Fast House Sale With Fast House Buyers

By admin on Saturday, July 17th, 2010 | Comments Off
Get in touch now if you are considering a fast house sale. What if you could sell your home in less than four weeks? There would be no need to speak to an estate agent, you wouldn’t have to worry about the sale falling through and you could avoid showing complete strangers around your home. With these advantages, it’s amazing that more people don’t opt to sell a house fast for cash in the UK.

At Fast House Buyers, we are getting more and more enquiries about our quick property sale service. There are many reasons why our clients want a fast house sale. Sometimes it’s the frustration of waiting for an offer after putting their home on the market. Others need cash loans fast.

What is a fast house sale?

A quick property sale lets you sell your home when it’s most convenient for you. You can take control of handling the problems you face, such as:

Relocation or emigration

Debt

Separation and divorce

Bereavement

Repossession

These are some of the excellent reasons why people ask about a fast house sale. With an open market sale, there are no guarantees. Even after you get an offer, you’re at the mercy of the timetable set by lenders and solicitors. You don’t know when the sale will complete and when you will get your cash.

Can a quick house sale help me with Repossession?

When Fast House Buyers handles a sale, the fast house sale process goes like clockwork. It’s very simple, with only a few steps. We want you to be happy with the quick sale process, so ask us for advice and let us answer your questions. When you get in touch, we will ask you for information which will help us to set an initial cash value of your property. After that, we usually arrange to see you at home. That means we can explain the process and you can meet us.

We are proud of our discretion and will even work long distance if you prefer to keep the details of the sale private. However, we work, the sale process if fast. The sale will usually complete within a month, though we can adjust the timetable to suit you.

I need a roof over my head

When you sell to us, you get a bonus. Unlike an open market sale, where you need to vacate the premises on completion day, with us, you can stay at home. Just ask about rent back and you can remain in your home, while paying a rental figure in line with the market. Your expenses will go down, too,

How To Protect Yourself From Repossession

By admin on Friday, July 16th, 2010 | Comments Off

When a person buys a vehicle they usually get a loan for the purchase. This loan is called a secure loan and the vehicle is used as collateral for the loan. What this means is that if the person fails to pay their loan the lender can reposes the vehicle and sell it to pay off the loan. Repossession is part of the law and can happen without any interference by the courts.

Repossession occurs when you are in default on your loan. You should read your contract very carefully to ensure you understand the terms and that you know exactly what default is defined as. This way should you ever be at risk at defaulting on your loan you can take action before repossession occurs.

One a repossession occurs it is very difficult to get the vehicle back. The best thing to do is avoid the repossession in the first place. If you are going to be late in making a payment or can not make a payment it is always best to contact the lender. They will usually be willing to work with you.

That is because even once they repossess the vehicle and resell it, they will not likely get all the money owed to them. Vehicles depreciate or go down in value once they drive off the dealers lot, so they will never be worth as much as the original loan amount.

Repossession can occur at any time once you have defaulted. Many repossessions take place at night or early in the morning when your vehicle is assured to be at home. They will simply tow away your vehicle and are not by law required to even contact you.

If you know repossession is imminent you can voluntarily return your vehicle. The only benefits of this option are that you will reduce the cost to you. During a repossession the lender will charge you the cost they incurred to actually repossess the vehicle. You will basically be saving yourself a little money by turning the vehicle in yourself.

Once the vehicle has been repossessed the lender will either resell it or keep it. They have to inform you of what is taking place. They also have to give you the option of getting your vehicle back. If the lender does sell the vehicle you are then responsible for any amount of your debt that was not paid through the sale of the vehicle.

Repossession is something you should avoid at all costs. It is not pleasant and leaves a terrible mark on your credit, making future vehicle purchases difficult, if not impossible. You should try everything possible to avoid repossession.

Most importantly, when you get the loan you should ensure you can afford it and if you ever experience problems keep communication open with your lender. You may be able to avoid repossession if you do this.



Sell and Rent Back

Why 30 Year Home Loans Are Being So Popular?

By admin on Thursday, July 15th, 2010 | Comments Off

When my dad bought his home, he went for a 30 year home loan. As a matter of fact, most of the homeowners I know have acquired their home via that home finance offering. But why it has being so popular over the years?

A 30 year home mortgage used to be the first choice of most borrowers, because since the total payments are spread over a longer period of time with the interest rate set for the entire time of the mortgage’s life. 30 year home loan rates are an industry standard but is it the right choice for you?

As we mentioned, the plus side for a 30 year home loan is lower monthly payments. This attraction is somewhat dimmed by the fact that you pay thousands of extra dollars in interest. But, on the other hand, your interest is 100% tax deductible which does lower your after tax cost at the end of the equation. It also offers you some flexibility so that if your financial situation changes and you have more money you can pay it off in less than 30 years, this while keeping the low monthly payments. The fact that your payments might be smaller gives you the option to purchase a larger roomier home.

To show an example of the interest difference between 30 year home loan rates and one of the other rates. On a 30 year, 100,000 dollar loan using 7% interest rate your monthly payment of interest and principle would be $665.30 dollars. Over the next 30 years you will have paid $139,511.04 in interest alone. Now with a 15 year home loan rate on the same amount you will pay $871.11 per month and over the next 15 years, you would pay $56,799 in interest. This would save you $82,712 dollars.

If you have the will power to invest the savings from the monthly payments, it still could be a good choice to go with the 30 year mortgage. Especially if you can find an investment that the long term payoff matches or exceeds what you would save in a 15 year mortgage. Another factor to consider is how fast you want to accrue equity in your home or to own it out right. 30 year home loan rates take much longer to build equity.

30 year home loan rates are certainly attractive and the vast majority of home buyers get 30-year loans because that is the longest home loan available today. Experts agree if they could get a 35- or 40-year loan, they probably would. There are many other options to consider. Probably the biggest question you have to ask yourself when considering a loan is what are your financial goals? What loan plan will help you the most to reach that goal? It is clearly to your advantage to look into other loan options for the best loan available for you and your financial goals. It may surprise you that because of your personal situation there may be other plans more suitable for you, such as a 15 year mortgage, for example.

Before committing to a long term loan, have a clear idea of your financial goals, chop around for alternatives from different lenders and if possible, seek professional financial advice on what best for you. It will be time and resources well spend.



Rent Back Fast
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