How To Use Seller Financing to Your Advantage

Seller financing is preferable to conventional financing because it allows you and the seller to negotiate the terms.
With this type of financing you don't have to be bound to strict underwriting guidelines and regulations as you commonly are with traditional loans originated through a bank or mortgage company.
You will generally still be required to give the seller a down payment, make monthly installments on the loan and have to pay interest; but it can be a good way to avoid conventional guidelines, especially if you have credit problems.
It can also save you a few bucks because you won't be required to pay a loan origination fee and you won't be subject to an appraisal and inspection as you would with conventional financing.
Seller financing can work a couple of different ways. With both strategies you're going to negotiate a final sales price with the homeowner and then agree upon a monthly payment for a specified time frame.
The difference is really in how the first mortgage is handled if there is one. If there isn't, you simply make the payments to the homeowner and if you default they take back the property.
When there is a first mortgage in existence, one option is to purchase the property through a second mortgage. In this situation you agree to pay a specified monthly amount to the homeowner in addition to making the payments on the first mortgage as well.
Should you default on either one of the payments, the home will be taken by the entity you failed to pay.
Another way to handle seller financing is with a wrap around or deed of trust. The only difference with this scenario is that instead of you making the payments on the first mortgage, the seller will continue to make the payments out of the funds you give him or her each month for your payment.
The problem that can occur with a wrap around mortgage, however; is it the homeowner fails to make the payments on the first mortgage. If that should happen the lender will take back the property and both you and the homeowner will be out of luck. It won't matter that you've made every one of your payments to the homeowner on time because the first mortgage took priority over the wraparound mortgage.
In order to avoid taking this risk, you can request a clause in the wraparound mortgage stating that should the homeowner default on the first mortgage; you reserve the right to make payments and thereby avoid foreclosure.
==================================Sal Vannutini is the author of Fixer-Upper Fortunes: How to make big profits from fixer upper properties. New real estate home study manual reveals how you can safely make a fortune fixing up old homes and quit your job forever.Click here now: http://www.fastfixerupperprofits.com
Sal is also the creator of "Foreclosure Wizard". He has created the ultimate foreclosure investment tool. It provides a unique step-by-step process that will help you quickly and easily determine which deals have profit potential and which ones are a waste of your time.Click here now: http://www.foreclosurewizard.com

Who Should We Believe?

It has been a frustrating week with all of the meddling going on with the financial markets. I keep hearing and reading that the "fix" is needed or we will be in even worse shape soon. I also keep hearing and reading that all of this could have been avoided - some claiming that the mistakes happened way back when our country was mending itself out of the "Great Depression". What I see is a lot of finger pointing and the stark reality that whatever gets done or doesn't get done to address whatever problem we are having or not having ... You, your neighbor and I will get stuck with the bill, one way or another. Not sure why I'm paying for a mess I didn't create?

On a positive note, there has been some positive activity in the local real estate market over the past couple of months. I have two listings pending and soon to close and lots of interest on the 6 family in Palmyra and the mixed-use building on Culver Road in the City. I think its going to be a very productive fourth quarter!

Green Homes Attractive to Buyers

(ARA) - Home buyers of all income levels are looking for environmentally friendly properties, according to a study taken by the U.S. Green Building Council and McGraw-Hill Construction. And in the difficult housing market of today, sellers are looking for new ways to attract buyers. Making a home greener with cleaner air quality may just be the answer to getting bids. Homeowners can use the following tips to make their house more environmentally friendly: * Buy appliances that use less water and electricity. Many companies sell appliances like washing machines and dishwashers which use 10 to 15 percent less energy and water than standard models. Not only are the appliances using less, but they save money when it comes to the electric and water bills. * Use environmentally friendly flooring. A wood floor produced without VOCs (volatile organic compounds) keeps the air clean in the house. Globus Cork offers cork flooring in 37 different colors which not only helps to maintain a constant air temperature in the room thanks to its natural thermal insulation properties, but also is a renewable resource. This is because only the cork bark is trimmed from the tree and the cork oak trees continue living. In addition, cork has a waxy substance called suberin, which repels bugs, mold, mites and even termites, keeping allergens at bay. Go to www.CorkFloor.com to learn more about the product. * Change heavily used lights with energy-efficient models. According to the U.S. Department of Energy ENERGY STAR program, if every American home replaced its five most frequently-used light fixtures – such as the kitchen ceiling lamps, outdoor post lamp or the living room table lamps – with fixtures that have earned the ENERGY STAR, almost $8 billion would be saved each year in energy costs and greenhouse gasses reduced at the rate of almost 10 million cars. * Keep inside air from escaping. Seals around windows and doors can break or be damaged over time and need to be replaced. Homebuyers shopping for a new property tend to check the house’s summer and winter energy bills, and a properly sealed home can change those bill amounts significantly to make a house more attractive. According to the Green Building Council study, 70 percent of home buyers are more inclined to purchase a green home than a conventional home during a down housing market, and half of the homes renovated between 2005 and 2007 used products chosen for their green qualities. With just a few changes or upgrades, a house that has been sitting on the market for some time can become a quick sell thanks to its environmentally friendly features. Courtesy of ARAcontent

Add A WOW Effect to Sell Your House!

(ARA) - Whether you're selling your home or planning to live there for years to come, you can add interest and value using architectural elements. Customizing your kitchen, bath or master bedroom using architectural elements is a simple way to set your home apart and increase the "wow factor" of those rooms that real estate agents say sell houses. Kitchens * Add decorative corbels (an architectural support bracket), panel and crown mouldings to stock cabinets to create a high-end, customized appearance. * Add a ceiling medallion above the breakfast bar or table to enhance a light fixture and create a focal point. Baths * Switch out the simple wood trim around doors for elegant casings and add a chair rail at mid-wall height. * Add a decorative shelf or mantel for display of art, plants or your favorite fragrance bottles. Master Bedrooms * Trimming the bedroom with crown moulding shows attention to detail and complements rooms of any style. * Add a niche to your wall for dramatic display space. Highlight special photos, keepsakes or a piece of art. Adding architectural elements to customize the spaces in your home doesn't have to be difficult or expensive. Companies such as Focal Point use a light-weight, closed-cell polyurethane that won't rot or mildew to create detailed mouldings and decorations. The pieces look like plaster and wood, but offer a cost-effective and time-saving alternative to traditional materials. For more information or design inspiration, visit www.FocalPointProducts.com or call (800) 662-5550 to find a dealer near you.

First Time Homebuyer Tax Credit

Congress and President Bush recently passed the Homebuyer Tax Credit which allows first time homebuyers a credit on their income tax return of up to $7500 towards the purchase of a home. This could be a significant benefit for first time buyers because it would reduce their tax liability this year by up to $7500 - if they owed tax on $10,000 the credit would reduce their tax liability to $2500. Hopefully we can help buyers take advantage of this new opportunity!