Underwater Mortgage strategy


Improve your selling situation.  Transferring your assumable mortgage is a better solution for people with negative equity.  Here are 4 things you no longer have to do if you have an underwater mortgage. Wait it out –  For some properties it could take decades to recover the amount of negative equity the housing crisis caused.

Short Sale Disadvantages


Deficiency Judgements – A lender could file for a deficiency judgment to demand you pay the difference between the short sale amount and the entire mortgage balance you owe on the property. Taxable Income – You could be taxed on the amount forgiven. The IRS views forgiven debt as taxable income.  Only your primary residence

Release of Liability letter


An important part of the assumption package is the release of liability document. This protects the seller and is available for “All” assumable mortgages.  The Federal Housing Commissioner approved this March 20, 1990. See for yourself here. Without a release of liability the bank might have the right to collect the balance due if the

The Big Underwater Mortgage Misconception.


Its about time we correct the underwater mortgage misconception.   Yes, negative equity, or being upside down means  the market value of the home has fallen below the mortgage balance owed.   There is however one misconception to correct about this.  Most believe the person who is buying the home is underwater, but truly it’s

Pre approval loan letters


This is an essential first step to shopping for a home. Realtors will even ask for a pre approval letter to begin the process. It simply confirms that you are qualified to buy.  Although you will not be utilizing that particular lender services, a pre approval letter proves that you are credit worthy for a

How to transfer the title.


Transferring ownership of a property requires the buyer to obtain a deed. A new deed will need to be executed and recorded. The seller and buyer can jointly change this at their county clerks office for a small fee. The document you want to use to change the deed is called a “Quit Claim Deed”.

Mortgage assumption protection


Knowing how to protect yourself from a fraudulent mortgage assumption is important. Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Make sure the person who assumes the loan “records” your name with the trust company that holds the mortgage. If the person you are assuming the loan from doesn’t

A deed-in-lieu transaction. What do you get for it?


In March of 2013 Fannie Mae and Freddie Mac homeowners with hardships were offered an opportunity to turn over the house keys and erase their debt if they were not delinquent and only had 1  loan on the property. Loans with 2nd and 3rd mortgages could not qualify. Many may not have recognized what they

Assumable Mortgages – What is the sellers incentive?


Here are a few fundamental reasons. Attractive Pricing Sells The assumable price is more attractive to buyers.  1. Buyers do not need any out of pocket money to assume a loan. 2 Buyers with Lower credit Scores can afford a home. 3 Buyers Avoid PMI because many of these loans no longer have it, and

Reach your target market


Your assumable property will meet the needs of the average online house hunter.  Why? Assumable properties are typically valued between $100K-$500K. This price point appeals to the largest audience of on-line buyers and accounts for almost 90% of the market.  You can expect good results when you list the home yourself in this case.  If

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