Second Report on Seller Financing

The Seller's Strategy
Even when these benefits to "carryback" lending are made clear, many sellers are still hesitant to offer financing because they are entering unfamiliar territory. It's a natural, human response -- everyone is uncomfortable with new things.
For many property sellers, considering owner financing when they've only dealt with buyers via traditional funding is definitely "thinking outside the box". But once sellers understand the process, they are likely to choose seller financing instead of the unattractive option of cutting the listed price or waiting indefinitely for the "right buyer".
A seller-financed real estate sale is simply a real estate transaction where the seller acts as "the bank" or lending institution. The seller sets the sales price, determines and accepts a down payment, and then finances the remaining balance. The final step is the part that may scare some sellers, but in actuality, it can be very simple. Here is an example.
If the sales price is $100,000.00, and the buyer gives the seller $10,000.00 cash (the agent.s fee will be deducted from this down payment), the seller will finance the balance of $90,000.00. The buyer and seller would then agree to the terms, such as the interest rate and the total term, and use an attorney to create the mortgage document and close the deal. From that point on, the buyer sends the seller monthly payments for the house he/she has just purchased.
Special Circumstances (and a Solution)
The whole process can really be that simple. But, there are some substantial differences between a seller-financed deal and one that relies on traditional bank funding.
First of all, the seller in this example does not receive a large, one-time payment at the time of the sale. In fact, they will only receive the down payment, and in some situations, most of that will go towards paying the real estate agent's fee. On the other hand, the seller will be receiving monthly payments at a decent interest rate, but this income stream can't be used as a down payment for a new house.
Since many home sellers are also looking to buy another property, the seller will need to get enough at closing to pay their own down payment. Without this payment, the seller's hands will be tied when they look to purchase another house and need to have a substantial amount of funds available. There is a common solution to this issue, however.
The Solution
In order to get the money the seller needs from the loan they just created, the seller could sell the monthly note payments to a specialist buyer for a lump sum of cash. If the seller finds someone willing to buy the payments, now they can "have their cake and eat it too".
In summary.
Step one: Use the seller finance option to find unique customers willing to buy the house at a higher price than would have been possible otherwise and complete the real estate transaction quickly.
Step two: Decide on the terms of the deal and create the note.
Step three: If the property seller needs immediate cash to buy another house or for any other reason, their new incoming payment stream can be resold. The person who buys the future payments from the seller will provide the funding to act as a down payment on a new house, and every party involved in the deal comes out smiling.

Check out www.coffeynoteconsulting.com/ for more information on seller financing.

Could Seller Financing Help You?

One possible idea for selling your home could be seller financing. There are several advantages to using seller financing. The following entry gives you a few ideas. The next entry will give you the strategies and conclusion to the advantages of seller financing.

Seller financing can be a great way to get a house sold without slashing the price. By recognizing the millions of people who can't get traditional financing as potential buyers, resourceful property sellers (and their real estate agents) can minimize their time investment in getting a property sold. Even better, sellers who offer financing can usually get a higher asking price for their property, even in the slowest markets. Clearly this is a win-win situation.

Most home sellers never consider financing the buyer directly because they are not aware of the benefits or don't fully understand how creating a note works. Let's take a closer look at the advantages of owner finance.

Three Advantages

Seller financing is very powerful when the market is slow or when there are many similar houses on the market. Just listing the house as "OWC" - Owner Will Carry - will make the house stand out and attract more buyers. Because many individuals cannot get funding from a bank, offering financing will open the doors to these prospective customers as well, essentially significantly increasing the pool of potential buyers. So, advantage #1 is MORE BUYERS.

Seller financing also brings the property seller another critical advantage . the likelihood of selling for a higher price. Offering to carry back a note will not only greatly increase the number of potential buyers, but also bring a unique demographic of buyers who are willing to pay more for a given property than the general population. Advantage #2: MORE MONEY.

Additionally, when the property seller finances the buyer, they get to act as "the bank". That means they could structure the deal to collect interest. Over time, if the seller holds on to their note, this can add up to tens of thousands of dollars in additional income. Advantage #3: LONG TERM PROFIT.

Check out how seller financing can work for you at http://www.coffeynoteconsulting.com/ or ask me any questions you may have about it? My email is coffeyconslt@live.com.

Foreclosures have risen by 25% since October of 2007.

Are you behind on your house payments? Are you concerned that you could be next?

Maybe I can help! Check out my web site at www.coffeynoteconsulting.com/ Or leave a comment here. I will get back with you.

This blog has been created to help people save their credit and avoid bankruptcy.

Happy New Year!

Foreclosures are happening in the U. S. at an alarming rate. If you have been notified that your home is in danger of foreclosure, the time to get help is before your lending institution forecloses on your home.

Do you have questions about foreclosure?

Has the lending institution just notified you of default on your mortage?

Act now to find out exactaly what your options are!

Options…Your Home…Foreclosures…Bankruptcy

Do you have many options when foreclosures on your home has been declared? Is bankruptcy a possible option? These questions and many others could be playing through your mind at a time when your payments on your loan have become delinquent.

The law on foreclosures in your state can determine your options to keep your home.
Kentucky laws, on foreclosures and bankruptcy, may differ; however, there are a few similarities. Most states give a length of time for the borrower to make compliance with the lender. All depends on the clause(s) under which you borrowed the money.

During this period of time, you may have some options available to you.

1. You can attempt to renegotiate your loan
2. You could make another loan to cover your delinquent payments
3. You could try to find a buyer to work with your lending
institution for a short payoff (lending institutions sometimes
allow this in an effort to avoid expensive foreclosures
4. You could file bankruptcy
5. You could ask the lending institution to take your property in
lieu of foreclosure
6. You could let the lender foreclose on your property

Of the options listed above, numbers 1,2,3,5 appear to be your best ones. Foreclosure remains on your credit rating for 7 years and bankruptcy for 10 years. These time frames can be shortened, but by and large, either of these two options aren’t as good.

When you default on your loan beyond the number of days/months that the clause(s) of your mortgage allows, the lending institution files a notice of default (NOD) or Lis Pendens (Latin term). One or both of these terms may appear on your notice from either the lending institution or the Sheriff’s office or the County Commissioner.

Once the NOD is filed, you have a few options:
· A number of days to make good on the notes delinquency
· Try to find alternative financing
· If you get another source of financing, you may be good to go
· Then you are good as long as you meet the payments.

Where can I get money to pay the delinquency?
1. Another lending institution
2. Credit Cards
3. Family or friends
4. Some churches or non-profit groups (don’t rely too heavily on these)
5. Quick finance places, i.e. check cashing or quick loan businesses
6. You write grants to cover your debts (hard to get but not impossible)
If you can’t meet the requirements of the NOD, the next step for the lending institution would be to foreclose. Once the foreclosure procedure begins, any options you might have had to save your property may be over, at least for the moment.

In Kentucky, however, after the sale of your property at the courthouse and if the foreclosure sale price is less than two-thirds of the appraised value, the borrower has a period of one year (12 months) from the date of the sale to redeem the property by paying the amount for which the property sold for at auction, plus interest. Of course you would have to come up with the money.

You do have options on your home before foreclosures take place. Remember, bankruptcy is out of the question. Check out these options. They just might provide a way to keep your home or to keep foreclosure from happening to you.

To get some answers to your questions about your options and to find a possible buyer for your home, contact www.coffeynoteconsulting.com/

My Estate

Avoid Home Foreclosures. . .Bankruptcy. . . and Damage to Your Credit Score

Check out: www.coffeynoteconsulting.com/

The economic slowdown has caused foreclosures and bankruptcy for many. Both of these affect your credit score.

Do foreclosures and bankruptcy really damage my credit score that much? Is there any way I can avoid either of these two credit killers?

The answer to the your questions:
1. foreclosure stays on your credit record for 7 years.
2. bankruptcy does more damage and remains there for 10 years.

Your attorney may be able to fix the lengths (or at least say they can!), but in my experience the above answers are true.

Can I avoid either of these?

Maybe!

Two things that I have seen work:
1. ask the lending institution if they will take your home
for the equity you have in it without foreclosing
2. find a buyer for your home

Neither of these options seem like good options; however, your goal is to avoid foreclosure. Yes, you’ve worked hard to build up equity in the property and suddenly to throw it all away seems nonsensical. Remember your goal is to avoid foreclosure. If the bank forecloses on your property, you will lose it anyway.

How can I find a buyer for my property?

Obviously, a buyer will look for ways to get a bargain on property. In order for him/her to buy your property at a bargain, he will need to work with your loan officer, and you will have to give him permission to contact the officer.

To find possible buyers for your property, visit www.coffeynoteconsulting.com/. You may get an answer to your foreclosure problem in a day or two.