CREATIVE FINANCING JOURNAL

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "CREATIVE FINANCING JOURNAL"

Transcription

1 HIGHLIGHTS CREATIVE FINANCING JOURNAL * How to turn seller-financed notes into cash the holder wants * Exploding the myths surrounding seller-financing * An easy overview of the pricing factors in the note buyer's market * Create cash flows that will sell by understanding the note buyers' parameters Smart Seller Financing Strategies: Make The Sale, Keep The Money When sellers offer financing,it doesn't mean they will be stuck carrying payments for years to come. In fact, a professional Note Finder can show them how to increase the value of a note before it's created, by offering guidelines an attorney can use to create a note with qualities Note Buyers look for. This results in a note that can be liquidated for cash, quickly and safely. The sellers' misconception Many property sellers avoid seller financing because they believe it's not a viable solution for selling a home. After all, if they can't walk away with enough cash to provide the down payment on another property, they'll be powerless to replace the property they selling. But in actually, many notes created through seller financing are quickly sold for cash. Even better, if the note is created with the buyers' purchasing criteria in mind, the seller could walk away from the closing table with cash in hand! This means that the net result is almost exactly the same as with a conventional real estate sale. In the cases where Note Holders do encounter difficulty in selling their monthly payments, it's typically because the note was note created with the Note Buyer in mind. This is why it's a good idea to involve a professional Note Finder even before the note is created. Planning ahead to make a note a good deal : Creating notes with the Note Buyer's needs in mind If the seller of a private note needs a large amount of cash immediately, she will want to sell the note as soon as it has been created. And to quickly find a buyer, the note must meet the general buying parameters: * A substantial down payment * An excellence credit score (to minimize risk of default)

2 * An interest rate of 8 % or more * A term that comes due in ten to fifteen years If there is no down payment collected and the interest rate is low, the note would be great for the new property owner, but not to a potential Note Buyer. A down payment of at least 10% is a good minimum figure when creating a note. In a no money down real estate sale, lenders worry that the buyer could walk away and lose almost nothing financially. So to offset this risk, lenders generally set higher interest rates so they get more money per payment. Unfortunately, Note Buyers do not have the ability to change the terms on the note. So when there is little or no equity in the property, all offers to purchase the secured note must be discounted substantially in order to compensate for the buyer's chances of default. The downside is that a heavily discounted buyout offer often means the seller can't get the money she needs from her note. Creating notes that can be sold Every Note Buyer's criteria vary, but in the current market, the home buyer's down payment immediately creates equity in the property to serve as the buyer's safety net in the event of a foreclosure. A competitive interest rate is important because it will make it easy for the buyer to purchase the note and yield the desired profit without much of a discount to the Note Holder. Finally, keep in mind that people typically prefer notes that follow a traditional term (amortized over 120 months, 180 months, etc). A two-year, interest-only balloon term is a perfect example of a note that many buyers would avoid. But remember, all notes are good notes at the right price. Of course, there are no absolute guarantees of a quick sale. But it is always easier to obtain an attractive offer for the Note Holder when the note is written with the buyers' needs in mind. The points described here are only a rudimentary starting point for note creation; buyers often examine many other factors. Please contact me directly with specific note information so that I may suggest a private finance solution that will be optimal for your needs. Notable Four most important factors of note value When liquidating a note, it's important to get the biggest lump sum of cash possible. To do that you must understand the four most important factors in determining the value. The four criteria are equity, the Payor's credit score, the number of payments made, and the note payment history.

3 Equity is created in three ways: 1. When a down payment is made 2. As monthly payments are made 3. As the property appreciates Generally speaking, Note Buyers look for at least 20- percent equity in the property. This minimum level of equity serves to help protect their investment. Many Note Buyers will consider the Payor's credit score closely because it can help predict the note's potential for foreclosure. Credit scores are indicative of performance with past and current debts, so it make sense to assume that a Payor who has been responsible in consistently paying back other debts will be a good note Payor as well. With seller-financed debts most Payors will not have stellar credit, but most buyers still prefer Payor credit score above 575. A note's seasoning describes the number of payments that have been made overall. The more payments that have been made, the more money the Payor has invested in the property; therefore, default is less likely. Most Note Buyers look for 12 or more completed payments, but exceptions are made for notes with a large amount of equity or a Payor with a high credit score. The note payment history takes any late payment into consideration. Understandably, most buyers prefer a consistent on-time payment history. Perfection isn't required or expected-one isolated occurrence of a missed payments a few years ago won't necessarily dissuade a potential Note Buyer. Sufficient equity also serves to counterbalance a history of occasional slow payment. Market Pricing For Real Estate Notes How risk determines the discount Financial institutions and banks purchase prime, secured mortgages on a regular basis. Theses payment streams are often purchased at a price on par with or slightly less than the note's current balance. The transfer of ownership of these cash flows is usually completely to the Payor or new home owner. When banks sell and buy cash flows they're typically working with institutions with similar lending parameters. This means that the buyers are familiar and comfortable with the credit rating and demographic of the Payor, as well as the structure and critical metrics of the mortgages. That's why when a bank sells a note it doesn't require deep discounting. But consider that most note deals involve limited equity or a Payor with a low credit score. As a result, banks and lending institutions aren't comfortable with purchasing private notes because they consider these cash flows to be loans with a greater potential for default. The Note Buyer market The good news is that there are plenty of other buyers looking to purchase private note payment. They

4 know that there is a high potential for default, and they are comfortable with the risk in exchange for a good rate of return. To offset some of this risk buyers look for high yields- 10%, 15%, 20% or sometimes greater-and then focus on what's securing the note. In order to achieve a yield comparable to the risk involved, Note Buyers will often offer less than the remaining balance on the note. The discount involved with private note purchasing counterbalances the risk to the buyer of possible foreclosure. If a Payor defaults on his payments, the Note Buyer typically has to foot the bill for legal actions and than resell the property at auction. Ideally, the buyer of a secured note should be able to foreclose on the property and re-sell the house to re-sell the house to recoup the entire note balance and then some. Although there are unpredictable expenses involved with foreclosure, the discount should make up for these extra costs. Most notes must be discounted due to factors like a no-credit buyer or a limited amount of money to put as the down payment amount. There are exceptions, though. For instance, in some cases, prime notes with equity and an interest rate higher than the market average will also bring high price. BRAINSTORM Understanding the logic of note discounting When the owners of real estate notes liquidate their investments the resulting sales will almost always require some kind of discount. Here's an easy explanation of the Investment to Value (ITV) method that many Note Buyers use to determine their pricing. Most experienced Note Buyers have predetermined guidelines in mind that serve to narrow their focus to the notes that are likely to fit their buying preferences. Still, many buyers will purchase almost any note if the price is right- in other words, if the financial rewards are in line with the associated risk. To compensate for added exposure buyers adjust their pricing guidelines downward, which results in a higher yield. Many buyers gauge their risk in a deal by considering their Investment to Values (ITV) percentage. ITV measures the amount of protective equity the Note Buyer has by comparing her purchase price to the property value. The amount of protective equity in the property is calculated by subtracting the ITV from 100. The lower the number or percentage the safer it is for the Note Holder. When a Note Buyer thinks that acquiring a note may be risky one potential solution is to make a lower offer that decreases the ITV. A lowered ITV result in more protective equity for the Note Buyer. An ITV- based buying example Consider a house valued at $100,000 that secures a $95,000 note. If the Payor in this situation had poor credit or a history of missing payments this would be considered a risky situation. Since there is only $5,000 in equity any Note Buyer would want a mitigating factor to offset the risk involved in this purchase. A logical way to improve this deal from the buyer's perspective is to make a discounted offer. If a buyer offer only $60,000, the ITV wold be 60 percent, giving him 40 percent of protective equity. The

5 $40,000 of protective equity could help her to make a profit, even in a foreclosure situation. If the buyer incurs extra costs when foreclosing and reselling the house, than $40,000 of protective equity should more than cover the extra expenses. Note Buyer always have to look after their own interests. Consequently, notes with little equity and a poor payment history are likely to see deeper discounts in order to create protective equity for the buyer. This protective equity will help ensure that Note Buyers can recoup their funds if Payor default leads to foreclosure. Market Pricing For Real Estate Notes Note Buyers' priorities Typically, buyers consider their risks in three general ways. #1. Equity. A small amount of equity creates an insignificant safety net for buyers should the note go to foreclosure. So, many will offer lower prices to create equity and a lower Investment to Value (ITV). Take a look at the Brainstorms article in this issue for an ITV- based pricing example. #2. Payor quality. Most buyers will look at the Payor and the potential for default objectively. Does the Payor shows a good recent history for steady payments and a consistent job history, despite a poor credit rating? If so, a Note Buyer might still make an attractive offer if there is plenty of equity to protect the Note Buyer capital. #3. Time- Value of Money. The Note Buyers' primary concern comes from the principle regarding the time- value of money- the factor that determines the amount of time it will take to get her investment back. Money is worth more today than in the future, so the longer the term or time frame, the less the note is worth. Providing solutions for Note Holders For Note Holders who are looking to sell their note payments, the details about the factors that control note discounting aren't important. Their objective is simply to sell quickly and get the cash they need now for the monthly payments they've agreed to receive of a long- term. As a Note Finder, I understand what Note Holders want. I specialize in helping them obtain the most cash possible for their secured payments. Also, property sellers who work with me when creating a note can optimize their situation and maximize the value of the note. In the next installment of the Creative Financing Journal, I'll discuss specific strategies that property sellers can use in order to create a note that will sell quickly and required minimal discounting.

6 Greeting, My name is Deterion Woods. As a professional note finder, I specialize in developing creative cash solutions; namely, I help note holders receive a lump sum of money in exchange for their secured real estate notes. I can also show home owners how to sell their property with seller finance. Once a real estate note is created, it can be sold for cash shortly after the close of escrow. Existing notes can also be sold to achieve each liquidity. Additionally, if you are looking to purchase a paper asset for your own portfolio, I have the resources to show you many viable opportunities. If you are an attorney, CPA, real estate agent, mortgage broker, title agent or escrow officer, I can assist you in helping your clients realize quick sales of hard-to-sell properties through the use of private financing. If you would like to learn more about the creation and/ or sale of secured private notes, please contact me directly. Join my mailing list or subscribe to this publication by leaving me your contact information. I can be reach at or via at Sincerely, Deterion Woods Next Issue * SELL QUICK... AND WALK AWAY WITH YOUR NEXT DOWN PAYMENT * SUMMARY OF SELLER FINANCING * NOTABLE * BRAINSTORM DETERION WOODS TIME-N-MONEY INVESTMENTS 1(305)

Rethinking Seller-Financing!

Rethinking Seller-Financing! Jeff Bennett 201-580-4228 jeff@thenotecoach.com www.thenotecoach.com Rethinking Seller-Financing! How Real Estate Agents Can Close More Deals and Earn Higher Commissions By Jeff Bennett As a real estate

More information

How to Buy and Sell Property FAST in Today s Market!

How to Buy and Sell Property FAST in Today s Market! How to Buy and Sell Property FAST in Today s Market! A land contract is a written agreement between a person who has sold property ("the Seller or Vendor") and the person who bought that property ("the

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

Chapter 14: Selling a Business: Terms and Financing

Chapter 14: Selling a Business: Terms and Financing Chapter 14: Selling a Business: Terms and Financing Terms and financing can make or break a deal. If the business cannot be financed it probably will not sell. Since most small businesses sell with seller

More information

Definitions. In some cases a survey rather than an ILC is required.

Definitions. In some cases a survey rather than an ILC is required. Definitions 1. What is the closing? The closing is a formal meeting at which both the buyer and seller meet to sign all the final documentation required for the buyer's mortgage loan. Once the closing

More information

NATIONAL INTERACTIVE STUDY GROUP UNIT 8 QUESTIONS

NATIONAL INTERACTIVE STUDY GROUP UNIT 8 QUESTIONS NATIONAL INTERACTIVE STUDY GROUP UNIT 8 QUESTIONS National Interactive Study Group 2 SESSION 8 JOHN MATHIS Notes for Tonight 1. To MUTE your phone line use *6 2. To UNMUTE your phone line use #6 3. Chat

More information

HOME BUYING GUIDE Step 1. Pre-Approval/ Mortgage Options

HOME BUYING GUIDE Step 1. Pre-Approval/ Mortgage Options HOME BUYING GUIDE Buying a home will be one of the biggest decisions of your life. We believe that education and a general understanding of the process keeps our clients more informed and confident about

More information

When Even Wealthy Homeowners Are Using Reverse Mortgages, The Question Is: Why Aren't You?

When Even Wealthy Homeowners Are Using Reverse Mortgages, The Question Is: Why Aren't You? When Even Wealthy Homeowners Are Using Reverse Mortgages, The Question Is: Why Aren't You? Buck Wargo, Senior Editor, NiC Magazine NowItCounts.com 10/09/2014 When even the so called "mass affluents" and

More information

Fully Amortized Loan: Fixed Rate This loan is the easiest payment to calculate since the payment stays the same throughout the term of the loan.

Fully Amortized Loan: Fixed Rate This loan is the easiest payment to calculate since the payment stays the same throughout the term of the loan. SECTION THREE: TYPES AND EXAMPLES OF LOANS This Section on types of loans, provides the opportunity to begin calculating actual loan payments. A basic understanding of the use of a financial calculator

More information

HOME BUYING MADE EASY. Live the dream of owning your own home.

HOME BUYING MADE EASY. Live the dream of owning your own home. HOME BUYING MADE EASY Live the dream of owning your own home. sm Getting started For most of us, buying our first home is a dream come true. It s also a lengthy process where potential and sometimes very

More information

The. Path. Refinancing. www.totalmortgage.com October. totalmortgage.com 877-868-2503

The. Path. Refinancing. www.totalmortgage.com October. totalmortgage.com 877-868-2503 The Path Refinancing totalmortgage.com 877-868-2503 www.totalmortgage.com October 1 2012 The Path Refinancing Over time, many things change and need adjustment, and the reality is your home financing is

More information

FHA Home Loans 101 An Easy Reference Guide

FHA Home Loans 101 An Easy Reference Guide FHA Home Loans 101 An Easy Reference Guide Updated for loans on or after January 26, 2015 Congratulations on Starting Your Journey to Home Ownership This guide offers a quick look at vital information

More information

How to cash in on. It s no surprise that a lease-to-own

How to cash in on. It s no surprise that a lease-to-own How to cash in on Home ownership is not always easy to achieve for all Canadians and, for many, a lease-to-own strategy might be the answer. Suzanne Sharma digs deep to find how experienced investors can

More information

Settlement. Coming to Grips With. What to Know before Your Closing. The Event. What Is Closing?

Settlement. Coming to Grips With. What to Know before Your Closing. The Event. What Is Closing? Coming to Grips With Settlement What to Know before Your Closing The closing, or settlement, is the last step in getting your mortgage and actually becoming the owner of your new home. You ll probably

More information

HOME BUYING MADE EASY. Know what you need to get it right.

HOME BUYING MADE EASY. Know what you need to get it right. HOME BUYING MADE EASY Know what you need to get it right. HOME BUYING MADE EASY PNC, PNC AgentView and Home Insight are registered service marks of The PNC Financial Services Group, Inc. ( PNC ). PNC has

More information

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for. A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe

More information

SHOPPING FOR A MORTGAGE

SHOPPING FOR A MORTGAGE SHOPPING FOR A MORTGAGE The Traditional Fixed-Rate Mortgage Key characteristics: Level payments, fixed interest rate, fixed term. This mortgage is the one which most of us know, and it is still the loan

More information

How to Stop and Avoid Foreclosure in Today's Market

How to Stop and Avoid Foreclosure in Today's Market Solutions Home Buyers, Inc. 800-478-9213 ext. 700 SolutionsHomeBuyersFL.com How to Stop and Avoid Foreclosure in Today's Market This Guide Aims To Help You Navigate the foreclosure process [Type the company

More information

How should banks account for their investment in other real estate owned (OREO) property?

How should banks account for their investment in other real estate owned (OREO) property? TOPIC 5: OTHER ASSETS 5A. REAL ESTATE Question 1: (December 2008) How should banks account for their investment in other real estate owned (OREO) property? Detailed accounting guidance for OREO is provided

More information

TEN LOOPHOLES THAT CAN STOP FORCLOSURE FAST

TEN LOOPHOLES THAT CAN STOP FORCLOSURE FAST TEN LOOPHOLES THAT CAN STOP FORCLOSURE FAST Copyright Notice All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical. Any

More information

First Time Home Buyer Glossary

First Time Home Buyer Glossary First Time Home Buyer Glossary For first time home buyers, knowing and understanding the following terms are very important when purchasing your first home. By understanding these terms, you will make

More information

U.S. Treasury Securities

U.S. Treasury Securities U.S. Treasury Securities U.S. Treasury Securities 4.6 Nonmarketable To help finance its operations, the U.S. government from time to time borrows money by selling investors a variety of debt securities

More information

CREATIVE FINANCING. Why Creative Financing? Why Creative Financing? Why Creative Financing? 9/2/2011

CREATIVE FINANCING. Why Creative Financing? Why Creative Financing? Why Creative Financing? 9/2/2011 HOW TO USE CREATIVE FINANCING TECHNIQUES TO YOUR ADVANTAGE Why Creative Financing? Beginning & unsophisticated Real Estate Investors let the bank tell them what they can buy. This doesn t work anymore.

More information

Investing in Bonds - An Introduction

Investing in Bonds - An Introduction Investing in Bonds - An Introduction By: Scott A. Bishop, CPA, CFP, and Director of Financial Planning What are bonds? Bonds, sometimes called debt instruments or fixed-income securities, are essentially

More information

The Top Seven Financial Pitfalls Every Homeowner Facing Foreclosure Must Avoid

The Top Seven Financial Pitfalls Every Homeowner Facing Foreclosure Must Avoid The Top Seven Financial Pitfalls Every Homeowner Facing Foreclosure Must Avoid The foreclosure process is perplexing, even for those experienced in real estate. Real estate agents, attorneys, mortgage

More information

AUSTRALIA S TOP 30 HOME LOAN MYTHS BUSTED

AUSTRALIA S TOP 30 HOME LOAN MYTHS BUSTED AUSTRALIA S TOP 30 HOME LOAN MYTHS BUSTED Australia s Top 30 Home Loan Myths BUSTED! Fairer home loans for Australians Hi, I m Mark Bouris from Yellow Brick Road. Australia, it s time for a fairer deal

More information

HOME LOAN? YOU CAN. by John Adams, for Fox5 GOOD DAY ATLANTA

HOME LOAN? YOU CAN. by John Adams, for Fox5 GOOD DAY ATLANTA SPECIAL REPORT: TURNED DOWN FOR HOME LOAN? YOU CAN STILL BUY A HOUSE! by John Adams, for Fox5 GOOD DAY ATLANTA If you are renting and happy, then this column is not for you. But if you ve tried to buy

More information

Settlement. Coming to Grips With. Coming to Grips With Settlement. What to Know Before Your Closing. The Event. What Is Closing?

Settlement. Coming to Grips With. Coming to Grips With Settlement. What to Know Before Your Closing. The Event. What Is Closing? Coming to Grips With Settlement Coming to Grips With Settlement What to Know Before Your Closing The closing, also known as the settlement, is the last step in getting your mortgage and actually becoming

More information

SMALL BUSINESS DEVELOPMENT CENTER RM. 032

SMALL BUSINESS DEVELOPMENT CENTER RM. 032 SMALL BUSINESS DEVELOPMENT CENTER RM. 032 FINANCING THROUGH COMMERCIAL BANKS Revised January, 2013 Adapted from: National Federation of Independent Business report Steps to Small Business Financing Jeffrey

More information

Tips for First Time Home Buyers

Tips for First Time Home Buyers Tips for First Time Home Buyers Thinking about buying your first home? Andrew L. Jaloza & Associates will help you understand the process of home ownership so you can make informed decisions about your

More information

HOME BUYING MADE EASY. Live the dream of owning your own home.

HOME BUYING MADE EASY. Live the dream of owning your own home. HOME BUYING MADE EASY Live the dream of owning your own home. HOME buying Made Easy PNC, PNC AgentView and Home Insight are registered service marks of The PNC Financial Services Group, Inc. ( PNC ). PNC

More information

UNIT 7 1 Applying for a Home Mortgage

UNIT 7 1 Applying for a Home Mortgage UNIT 7 1 Applying for a Home Mortgage Regardless of where you get your mortgage, the issuer is not likely to keep the mortgage for the duration of the loan. So, if you get your mortgage at a local bank,

More information

Guide to Purchasing a Home

Guide to Purchasing a Home Your journey to homeownership starts at your credit union. Purchasing your first home is a big decision, and it may even seem overwhelming. Rest assured Beacon Credit Union is here to assist you in understanding

More information

H O W T O A V O I D F O R E C L O S U R E F O R E C L O S U R E

H O W T O A V O I D F O R E C L O S U R E F O R E C L O S U R E U.S. Department of Housing and Urban Development H O W T O A V O I D F O R E C L O S U R E F O R E C L O S U R E This booklet explains how property owners can avoid losing their homes because of delinquent

More information

c01_1 09/18/2008 1 CHAPTER 1 COPYRIGHTED MATERIAL Attitude Is Everything in a Down Market http://www.pbookshop.com

c01_1 09/18/2008 1 CHAPTER 1 COPYRIGHTED MATERIAL Attitude Is Everything in a Down Market http://www.pbookshop.com c01_1 09/18/2008 1 CHAPTER 1 Attitude Is Everything in a Down Market COPYRIGHTED MATERIAL c01_1 09/18/2008 2 c01_1 09/18/2008 3 Whether you think you can or you think you can t, you are right. Henry Ford

More information

Q: Will I have to pay federal taxes on the money my lender loses in the short sale?

Q: Will I have to pay federal taxes on the money my lender loses in the short sale? Q: What is a Short Sale? Answer: In a short sale, the lender agrees to settle the debt owed on the property for less than the full amount. Settled means that the lender is writing off the debt (which is

More information

AVOIDING FORECLOSURE

AVOIDING FORECLOSURE AVOIDING FORECLOSURE Consolidated Credit 5701 West Sunrise Boulevard Fort Lauderdale, FL 33313 1-800-210-3481 www.consolidatedcredit.org Congratulations on taking this important step to a brighter financial

More information

How to Stop and Avoid Foreclosure in Today's Market

How to Stop and Avoid Foreclosure in Today's Market How to Stop and Avoid Foreclosure in Today's Market This Guide Aims To Help You Navigate the foreclosure process [Type the company name] Discover all of your options [Pick the date] Find the solution or

More information

5+ Key Components To Most Adjustable Rate Mortgages

5+ Key Components To Most Adjustable Rate Mortgages 5+ Key Components To Most Adjustable Rate Mortgages 1. Index rate The rate to which the interest rate on an adjustable rate loan is tied. One of the more popular indexes used is the 1-year U.S. Treasury

More information

A CONSUMER'S GUIDE TO. from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE

A CONSUMER'S GUIDE TO. from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE A CONSUMER'S GUIDE TO from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE A MESSAGE FROM YOUR INSURANCE COMMISSIONER Greetings, The North Carolina Department of Insurance recognizes that insurance

More information

A GUIDE TO HOME EQUITY LINES OF CREDIT. Call or visit one of our offices today to see what products in this guide we have to offer you!

A GUIDE TO HOME EQUITY LINES OF CREDIT. Call or visit one of our offices today to see what products in this guide we have to offer you! A GUIDE TO HOME EQUITY LINES OF CREDIT Call or visit one of our offices today to see what products in this guide we have to offer you! TABLE OF CONTENTS Introduction What is a home equity line of credit

More information

Home Buyers. from application to closing. Derek Haley, Senior Loan Officer SunTrust Mortgage, Inc. 919.426.5023 Derek.Haley@SunTrust.

Home Buyers. from application to closing. Derek Haley, Senior Loan Officer SunTrust Mortgage, Inc. 919.426.5023 Derek.Haley@SunTrust. Information for First-time Home Buyers An overview of the mortgage process, from application to closing. Derek Haley, Senior Loan Officer SunTrust Mortgage, Inc. 919.426.5023 Derek.Haley@SunTrust.com NMLSR#

More information

Foreclosure Rescue. You Have Options! Inside: Powerful Strategies to Avoid Foreclosure. Are You at Risk of Losing Your Home in Foreclosure?

Foreclosure Rescue. You Have Options! Inside: Powerful Strategies to Avoid Foreclosure. Are You at Risk of Losing Your Home in Foreclosure? inside >>> The Foreclosure Process Your Options: - Negotiate a Loan Modification - Work out a Forbearance Plan - Obtain A Deed in Lieu of Foreclosure - Refinance Your House - File for Bankruptcy - Sell

More information

Outstanding mortgage balance

Outstanding mortgage balance Using Home Equity There are numerous benefits to owning your own home. Not only does it provide a place to live, where you can decorate as you want, but it also provides a source of wealth. Over time,

More information

Appreciation is one way that the the difference between the market value of property and the amount owed on it increases.

Appreciation is one way that the the difference between the market value of property and the amount owed on it increases. Chapter 22 Buying a Home 22.1 Why Buy a Home? Vocab Market value appraised value assessed value Equity conventional loan FHA loan Trust deed escrow account discount points Loan origination fee closing

More information

Paragon 5. Financial Calculators User Guide

Paragon 5. Financial Calculators User Guide Paragon 5 Financial Calculators User Guide Table of Contents Financial Calculators... 3 Use of Calculators... 3 Mortgage Calculators... 4 15 Yr vs. 30 Year... 4 Adjustable Rate Amortizer... 4 Affordability...

More information

HOME EQUITY LOANS. How to put your home s equity to work for you Save money and negotiate better terms

HOME EQUITY LOANS. How to put your home s equity to work for you Save money and negotiate better terms guideto: How to put your home s equity to work for you Save money and negotiate better terms HOME EQUITY LOANS Copyright 2007 LendingTree All Rights Reserved The LendingTree Smart Borrower Center offers

More information

How to Avoid The Five Biggest First-time Homebuyer Mistakes. Mistake #1

How to Avoid The Five Biggest First-time Homebuyer Mistakes. Mistake #1 How to Avoid The Five Biggest First-time Homebuyer Mistakes Mistake #1 Failure To Examine And Repair Any Credit Problems Prior To Applying For Your Loan Many potential new home buyers have no idea what

More information

There are two types of returns that an investor can expect to earn from an investment.

There are two types of returns that an investor can expect to earn from an investment. Benefits of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money. We will discuss some

More information

Is Cancellation of Debt Income Taxable? One question that I am asked often these days is whether cancellation of debt (COD) income is taxable or not?

Is Cancellation of Debt Income Taxable? One question that I am asked often these days is whether cancellation of debt (COD) income is taxable or not? Is Cancellation of Debt Income Taxable? One question that I am asked often these days is whether cancellation of debt (COD) income is taxable or not? For tax purposes, the general rule is that all debt

More information

Understanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt

Understanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt Understanding a Firm s Different Financing Options A Closer Look at Equity vs. Debt Financing Options: A Closer Look at Equity vs. Debt Business owners who seek financing face a fundamental choice: should

More information

Advantages and disadvantages of investing in the Stock Market

Advantages and disadvantages of investing in the Stock Market Advantages and disadvantages of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money.

More information

Chapter. Owner- Financed Sales and Land Contracts

Chapter. Owner- Financed Sales and Land Contracts Chapter 3 Owner- Financed Sales and Land Contracts by Anthony Iarrapino, Esq., Staff Attorney, Conservation Law Foundation, and Elizabeth Spellman, Law Clerk, Conservation Law Foundation Top image used

More information

Common Mortgage and Foreclosure Terms

Common Mortgage and Foreclosure Terms H ELP FOR N EW Y ORK S TATE H OMEOWNERS C ONCERNED A BOUT F ORECLOSURE Common Mortgage and Foreclosure Terms Talking about mortgages can feel like speaking a foreign language and is even more confusing

More information

What You Need. You Borrow MONEY. To Know Before. The Five C s of Lending and Leasing:

What You Need. You Borrow MONEY. To Know Before. The Five C s of Lending and Leasing: What You Need To Know Before You Borrow MONEY 5 The Five C s of Lending and Leasing: WE ALL KNOW THAT money and our ability to manage it is what keeps our facilities running smoothly. Usually how we handle

More information

The 8 Fastest Ways to STOP FORECLOSURE in 48 Hours or Less

The 8 Fastest Ways to STOP FORECLOSURE in 48 Hours or Less The 8 Fastest Ways to STOP FORECLOSURE in 48 Hours or Less Copyright Notice All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical.

More information

How to STOP Foreclosure

How to STOP Foreclosure 1 How to STOP Foreclosure A Free Report from KentuckySolutions.com Kentucky s Real Estate Problem Solvers (Press Control-P to Print) 2 Introduction As Local Investors experienced in the Kentucky foreclosure

More information

Have Information to Make the Right Decisions!

Have Information to Make the Right Decisions! Here's Your Free Report... How To Stop Foreclosure! Dear Homeowner, My name is Michael Riley. I am a Real Estate Investor and I can share with you the secrets to saving your home from foreclosure. I have

More information

Cash Flow: Know Its Value Today When Buying, Selling, or Expanding

Cash Flow: Know Its Value Today When Buying, Selling, or Expanding The Business Library Resource Report #26 Cash Flow: Know Its Value Today When Buying, Selling, or Expanding! Rate of Return Components! Risk and Present Value Analysis! You as Seller, You as Buyer! Today

More information

Don t Borrow Trouble! Mortgages, Home Equity Loans and Refinancing

Don t Borrow Trouble! Mortgages, Home Equity Loans and Refinancing Don t Borrow Trouble! Mortgages, Home Equity Loans and Refinancing Find more easy-to-read legal information at www.ptla.org Five Basic Tips Are you looking for a home equity loan? Or are you trying to

More information

RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS

RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS Contents Explaining the world of bonds 3 So what are bonds? 3 Understanding the risks 4 Three words you need to know 4 Understanding

More information

Mortgage Myths. 77 Secrets That Will Save You Thousands on Home Financing

Mortgage Myths. 77 Secrets That Will Save You Thousands on Home Financing Brochure More information from http://www.researchandmarkets.com/reports/2242856/ Mortgage Myths. 77 Secrets That Will Save You Thousands on Home Financing Description: In Mortgage Myths, Realtor Ralph

More information

GLOSSARY COMMONLY USED REAL ESTATE TERMS

GLOSSARY COMMONLY USED REAL ESTATE TERMS GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These

More information

Land Acquisition and Development Finance Part IV

Land Acquisition and Development Finance Part IV Land Acquisition and Development Finance Part IV In last month s Learn article, we discussed tying up the land and a more in depth formal due diligence process. This article will discuss Development financing.

More information

800.550.9435 www.pwsb.com

800.550.9435 www.pwsb.com 800.550.9435 www.pwsb.com Thinking of buying your first home? Bet you re pretty nervous, huh? Maybe even cold sweats nervous. How in the world are you going to afford it? Where do you start? All these

More information

How to Sell Your House Fast

How to Sell Your House Fast How to Sell Your House Fast If you are reading this report then you are interested in selling your house as fast as you possibly can. Usually this is because you are in foreclosure, are behind on payments

More information

Buying a Home. Do you know of any serious physical defects in the property? If so, how can you protect yourself against such defects?

Buying a Home. Do you know of any serious physical defects in the property? If so, how can you protect yourself against such defects? Buying a Home What should I consider when buying a home? Document last updated 12/23/2014. For most people, a home purchase is the biggest single investment of their lives. It is, therefore, extremely

More information

8 Closing Costs to Be Aware of When Buying a Home

8 Closing Costs to Be Aware of When Buying a Home Financing Guide For Renters & First Time Home Buyers SPECIAL REPORT 8 Closing Costs to Be Aware of When Buying a Home By Tammy Poirier Special Report Exposes The Closing Costs To Be Aware Of When Buying

More information

I Want To Sell My Home! What Are My Options?

I Want To Sell My Home! What Are My Options? I Want To Sell My Home! What Are My Options? Today over 25% of the homes in America have loan balances that exceed the home value. If you re one of them it s not your fault and you do have choices which

More information

8 Ways to Avoid or Stop Foreclosure...

8 Ways to Avoid or Stop Foreclosure... Free Special Report 8 Ways to Avoid or Stop Foreclosure... Dear Homeowner, If you are headed toward foreclosure, or are already in foreclosure, you need to know the rights and options available to you

More information

What is a Short Sale?

What is a Short Sale? What is a Short Sale? A Short Sale is used to describe the sale of a home in which the homeowner owes the bank more than the home is worth. The bank agrees to allow the home to be sold for less than what

More information

Arizona Agency Foreclosure Training January 28, 2007

Arizona Agency Foreclosure Training January 28, 2007 Arizona Agency Foreclosure Training January 28, 2007 Presented by: Andrew J. Loubert Community Reinvestment Solutions, Inc. Arizona Foreclosure Process: Notice of Default Notice must specify: 1. The default

More information

Guide to Buying & Protecting Your Home Investment

Guide to Buying & Protecting Your Home Investment Guide to Buying & Protecting Your Home Investment Presented by: Guide to Buying & Protecting Your Home Investment 1 In the current market and economy, when it comes to your home and its value, it seems

More information

Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan.

Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan. MORTGAGE GLOSSARY Adjustable Rate Mortgage (ARM): A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that

More information

Sell Your House in DAYS Instead of Months

Sell Your House in DAYS Instead of Months Sell Your House in DAYS Instead of Months No Agents No Fees No Commissions No Hassle Learn the secret of selling your house in days instead of months If you re trying to sell your house, you may not have

More information

How You Can Stop Foreclosure! Rising above most real estate situations

How You Can Stop Foreclosure! Rising above most real estate situations How You Can Stop Foreclosure! Rising above most real estate situations Presented By: Phone: 404-436-0024 Having your house foreclose on is one of the most unsettling things you can go through. When threatened

More information

Licensed by the California Department of Corporations as an Investment Advisor

Licensed by the California Department of Corporations as an Investment Advisor Licensed by the California Department of Corporations as an Investment Advisor The Impact of the Alternative Minimum Tax (AMT) on Leverage Benefits My associate Matthias Schoener has pointed out to me

More information

# 1603 \March/April TO SELL OR NOT TO SELL?

# 1603 \March/April TO SELL OR NOT TO SELL? John Schaub s Strategies and Solutions Celebrating 39 years of providing quality information to investors in single family homes and notes Written for students of Building Wealth One House at a Time Go

More information

Buying a Home. 2012 Page 1 of 6, see disclaimer on final page

Buying a Home. 2012 Page 1 of 6, see disclaimer on final page Buying a Home Page 1 of 6, see disclaimer on final page Buying a Home What is it? Finding the right home to buy can be a challenging prospect, but knowing what to expect can make the process easier. You

More information

Table of Contents Reverse Mortgage O verview... Reverse Mortgage K ey Questions... 5 Reverse Mortgage Pros and Cons... 7 Reverse Mortgage Borr

Table of Contents Reverse Mortgage O verview... Reverse Mortgage K ey Questions... 5 Reverse Mortgage Pros and Cons... 7 Reverse Mortgage Borr 1 Table of Contents Reverse Mortgage Overview... Reverse Mortgage Key Questions... Reverse Mortgage Pros and Cons... Reverse Mortgage Borrower Qualification... Reverse Mortgage Key Items... Reverse Mortgage

More information

How to Stop and Avoid Foreclosure in Today's Market

How to Stop and Avoid Foreclosure in Today's Market How to Stop and Avoid Foreclosure in Today's Market This Guide Aims To Help You Navigate the foreclosure process [Type the company name] Discover all of your options [Pick the date] Find the solution or

More information

The Adjustable Rate Loan, the Graduated Payment Loan, and Other Loan Arrangements

The Adjustable Rate Loan, the Graduated Payment Loan, and Other Loan Arrangements Chapter 43 The Adjustable Rate Loan, the Graduated Payment Loan, and Other Loan Arrangements INTRODUCTION When interest rates are generally stable from year to year, the fixed-rate amortized loan works

More information

Bonds are IOUs. Just like shares you can buy bonds on the world s stock exchanges.

Bonds are IOUs. Just like shares you can buy bonds on the world s stock exchanges. Investing in bonds Despite their names, ShareScope and SharePad are not just all about shares. They can help you with other investments as well. In this article I m going to tell you how you can use the

More information

Standard 10: The student will explain and compare the responsibilities of renting versus buying a home.

Standard 10: The student will explain and compare the responsibilities of renting versus buying a home. TEACHER GUIDE 10.3 RENTING VERSUS BUYING PAGE 1 Standard 10: The student will explain and compare the responsibilities of renting versus buying a home. Buying a House Priority Academic Student Skills Personal

More information

The Knowledge Resource. First-Time Home Buyers FOR. Your Agent Is the Best Guide Save Time, Money, and Frustration

The Knowledge Resource. First-Time Home Buyers FOR. Your Agent Is the Best Guide Save Time, Money, and Frustration K N O W L E D G E I S P O W E R The Knowledge Resource FOR First-Time Home Buyers Your Agent Is the Best Guide Save Time, Money, and Frustration The Keys to Homeownership Unlock the American Dream Is Buying

More information

Will Lenders or Banks do short sales if the mortgage is current?

Will Lenders or Banks do short sales if the mortgage is current? Frequently Asked Questions FAQ What is a short sale? A short sale is when your Lien Holder(s) agree to accept less than you owe in order for you to sell your home. They agree to a discount of the mortgage

More information

Are you in debt? Do you need to sell your house fast? Then Read on to find out How To Get Out Of Debt Now!

Are you in debt? Do you need to sell your house fast? Then Read on to find out How To Get Out Of Debt Now! Are you in debt? Do you need to sell your house fast? Then Read on to find out How To Get Out Of Debt Now! When you miss mortgage payments you can find yourself in deep trouble. The mortgage lender could

More information

Reverse Mortgage Counseling Checklist

Reverse Mortgage Counseling Checklist Reverse Mortgage Counseling Checklist Have these items available for your counseling session... - Loan Comparison Page The calculator loan results is an estimate of available reverse mortgage programs

More information

Investing Basics and Your Retirement

Investing Basics and Your Retirement Christian Financial Credit Union Roberto Rizza, CRPC Financial Advisor CUSO Financial Services, LP 18441 Utica Road Roseville, MI 48066 586-445-3651 rrizza@cfcumail.org www.christianfinancialcu.org Investing

More information

Presented by: Randy Roach of North American Realty of Nevada. A Guide To Understanding The Process

Presented by: Randy Roach of North American Realty of Nevada. A Guide To Understanding The Process Presented by: Randy Roach of North American Realty of Nevada A Guide To Understanding The Process What Is A Short Sale? It s a Real Estate transaction where two unique events must occur together. (1) Net

More information

Guide for Homebuyers

Guide for Homebuyers Guide for Homebuyers Tips for Getting a Safe Mortgage You Can Afford Q u i c k S u m m a ry Figure out what you can afford. Contact at least 3 different lenders or brokers. When you call, say: I m buying

More information

Real Estate Principles Chapter 12 Quiz

Real Estate Principles Chapter 12 Quiz Real Estate Principles Chapter 12 Quiz 1. A prudent lender who is deciding whether or not to make a real estate loan to a prospective borrower will ensure that: A. the market value of the property is greater

More information

The Top 5 Reverse Mortgage Mistakes

The Top 5 Reverse Mortgage Mistakes The Top 5 Reverse Mortgage Mistakes 2N8020.jpf Thanks for taking the time to review this report. We know you will find this information helpful and informative. Our goal is to help you take this information

More information

1. What are convertible bonds?

1. What are convertible bonds? 1. What are convertible bonds? Convertible bonds, most importantly, are bonds. They carry all the same promise of repayment of principal and interest of all corporate bonds. Unlike other bonds, though,

More information

Introduction. In today s uncertain environment, what can. high yield, low risk alternative:

Introduction. In today s uncertain environment, what can. high yield, low risk alternative: Structured t Settlements t A Safe New Way to Double Your Return The Wealth Preservation Institute 3260 S. Lakeshore Dr. St. Joseph, MI 49085 269-216-9978 www.thewpi.org info@thewpi.org 2010 All Rights

More information

COMMON INVESTMENT TERMS EXPLAINED ALL ABOUT REAL ESTATE, MUTUAL FUNDS, RETIREMENT PLANNING, STOCKS, AND BONDS

COMMON INVESTMENT TERMS EXPLAINED ALL ABOUT REAL ESTATE, MUTUAL FUNDS, RETIREMENT PLANNING, STOCKS, AND BONDS COMMON INVESTMENT TERMS EXPLAINED ALL ABOUT REAL ESTATE, MUTUAL FUNDS, RETIREMENT PLANNING, STOCKS, AND BONDS 1 TABLE OF CONTENTS Mutual Fund Terms... 3 Retirement and Education Terms... 7 Stock Market

More information

We Buy Houses Quick With Cash [Lease option program] Here s how it works.

We Buy Houses Quick With Cash [Lease option program] Here s how it works. We Buy Houses Quick With Cash [Lease option program] Here s how it works. A lease-option basically means you are leasing or renting a property with an option to buy it at a future date. We have a great

More information

Margin Trading. A. How Margin Works? B. Why Trading on Margin Can Be Very Risky and Is Not Suitable for Everyone? C. Conclusion

Margin Trading. A. How Margin Works? B. Why Trading on Margin Can Be Very Risky and Is Not Suitable for Everyone? C. Conclusion A. How Margin Works? B. Why Trading on Margin Can Be Very Risky and Is Not Suitable for Everyone? C. Conclusion 2 An investor who purchases securities may pay for the securities in full, from his own resources,

More information

Money Math for Teens. Credit Score

Money Math for Teens. Credit Score Money Math for Teens This Money Math for Teens lesson is part of a series created by Generation Money, a multimedia financial literacy initiative of the FINRA Investor Education Foundation, Channel One

More information

State of New Jersey Department of Banking & Insurance. Annual Report Worksheet for Residential Mortgage Brokers. Year Ending December 31, 2013

State of New Jersey Department of Banking & Insurance. Annual Report Worksheet for Residential Mortgage Brokers. Year Ending December 31, 2013 State of New Jersey Department of Banking & Insurance for Residential Mortgage Brokers New Jersey Department of Banking & Insurance Division of Banking Attn: Kristen Graham -- 5 th floor 20 West State

More information