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Selling As-Is Can Mean Many Different Things.... You hear it all the time from sellers, "I'm selling my house as-is". Well, Mr. Seller, what if the buyer accepts the as-is provision, but the appraiser says the front porch handrail needs to be replaced?...
Functional, Stylistic and Economic Obsolescence Functional Obsolescence, with regards to real estate, occurs when there is a loss of building utility. This can occur with a home that is too lavish or improved for a neighborhood, or on the other...
What does it mean to buy a property subject to? "Subject to" (as it relates to real estate) refers to a method of purchasing a property while leaving the seller's existing mortgage(s) in place.
The seller deeds the property to the buyer, who agrees...
A Second Home ... What Qualifies? As the economy has wreaked havoc on the second home market, some buyers are seeing an opportunity to own something they might not otherwise be able to afford. Others are finding themselves "stuck" with...
What is a Negative Amortization Mortgage? Negative amortization occurs when the payment made by the borrower does not cover the amount of the interest incurred. The difference is added to the loan amount.
Traditionally, negative amortization...
Selling “As-Is” Can Mean Many Different Things….
By The Realtor | Posted on 22-02-2010
You hear it all the time from sellers, “I’m selling my house as-is”. Well, Mr. Seller, what if the buyer accepts the as-is provision, but the appraiser says the front porch handrail needs to be replaced? What if the buyer’s mortgage company won’t lend on the property unless there is a clear termite and moisture inspection and your home needs a rotted board replaced in order to get a clearance? Do you REALLY want to kill an entire sale over a relatively inexpensive...
Functional, Stylistic and Economic Obsolescence
By The Realtor | Posted on 22-02-2010
Functional Obsolescence, with regards to real estate, occurs when there is a loss of building utility. This can occur with a home that is too lavish or improved for a neighborhood, or on the other end of the spectrum, a home that is much smaller or under-improved for an area. Functional obsolescence can also occur when a property no longer meets the basic needs and wants of a certain society; such as a 2 bedroom, 1 bathroom home or a home heated with coal. Functional obsolescence can be...
What does it mean to buy a property “subject to?”
By The Realtor | Posted on 22-02-2010
“Subject to” (as it relates to real estate) refers to a method of purchasing a property while leaving the seller’s existing mortgage(s) in place. The seller deeds the property to the buyer, who agrees to make the existing mortgage payments on the property. In most cases, the seller is not released from liability on the mortgage. In some cases, the agreement may also include the provision that the buyer either sell or refinance the property within a certain period of time. What...
A Second Home … What Qualifies?
By The Realtor | Posted on 22-02-2010
As the economy has wreaked havoc on the second home market, some buyers are seeing an opportunity to own something they might not otherwise be able to afford. Others are finding themselves “stuck” with 2 properties and not being able to sell one. The IRS allows for up to 2 residences for a taxpayer to deduct mortgage interest. Also of note is what qualifies as a second home: House Townhouse Condominium Boat RV Mobile home Trailer The requirement states that the second home must...
What is a Negative Amortization Mortgage?
By The Realtor | Posted on 22-02-2010
Negative amortization occurs when the payment made by the borrower does not cover the amount of the interest incurred. The difference is added to the loan amount. Traditionally, negative amortization loans have been used by lenders to allow for a lower monthly mortgage payment in the beginning of the loan period. So, why would someone want this type of loan? Well, it may be an option for a couple where one person is presently employed and the other is in school, graduating in a year or so...
The Due On Sale Clause
By The Realtor | Posted on 22-02-2010
The Due on Sale Clause, or Acceleration Clause, is a clause in a mortgage which states that if there is any transfer of ownership or interest in a property, the mortgage can be called and immediately due to the lender. With the exception of VA and FHA mortgages (which are generally assumable by a qualifying party), almost all mortgages have a due on sale clause. Keep in mind that generally, this clause is a contractual option by the lender. This means that the lender may or may not decide...
What is a Simultaneous Closing?
By The Realtor | Posted on 22-02-2010
With a simultaneous closing, 2 transactions take place on closing day with regard to the subject property. In the past, this transaction referred to a seller financing technique where the seller financing note is purchased at the closing table to allow the seller to obtain their proceeds quickly, rather than over a period of years. In recent years; however, a simultaneous closing can also occur when an investor wholesales a property. For example, buyer A enters into a sales agreement with...
What is a Construction to Perm Loan?
By The Realtor | Posted on 22-02-2010
There is not one specific definition for this type of mortgage as banks offer many different variations of this loan. Also, construction to perm loans can be done for new construction or remodeling. The basics are: A one step or two step loan process. With the one step process, the initial construction loan is then converted into the longer-term mortgage. With the two step process, one loan is provided for the construction and then another loan is provided upon the completion. Depending...
Wealthy Investors Are Eyeing Real Estate
By The Realtor | Posted on 17-01-2010
The wealthier the investor, the more money they plan to put in real estate compared to the amount they have earmarked for stocks and bonds, according to Barclays Plc global survey. Investors believe real estate will yield better returns. Twice as many people with more than $800,000 to invest plan to increase their investment in commercial and residential property compared to those who plan to reduce it, Barclay’s study reported. Overall, investment in real estate among wealthy individuals is set...
Foreclosures Decline for Fourth-Straight Month
By The Realtor | Posted on 17-01-2010
Foreclosures declined 8 percent in November compared with October, but were still up 18 percent from November 2008. This was the fourth-straight month that U.S. foreclosures have declined since hitting an all-time high in July, according to online foreclosure marketer RealtyTrac. Default notices, an indicator of coming foreclosures, also were down 8 percent from October, but up 22 percent from November 2008. Bank repossessions were flat from the previous month and down 2 percent from November 2008. “We...
