real estate infos

Archive for November, 2010

Who Really Funds Home Loan?

There are two major sources of mortgage financing.

1Primary Mortgage Markets where mortgage loans are originated. It is made up of

A Institutional lender which are Insurance companies Savings and Loans Savings bank and Commercial Banks. They receive most of their deposits from “Household Savings” Savings of individual depositors

i Insurance CompaniesThey prefer long terms loans on existing commercial property such as shopping center loans. Mortgage bankers Loan Correcpondents usallu negotiate and service their loans.

ii Savings and Loan AssociationSavings Banks Savings and Loanhave the greatest percentage of their asset in real estate loans. This is main source of 14 family unit home loans.

iii Commercial BankCommercial banks prefer short term loans and they are the primary source of construction financing.

B NonInstitutional lenders.Which basically represents Private lender and Mortgage Companies such as Mortgage Bankers and Mortgage Loan correspondents.

i Private LendersThis is major source of Junior loans. Junior loans are second third and fourth loans.

ii Mortgage Companies such as Mortgage Bankers and Mortgage Loan correspondentsThey are licensed by Department of Real Estate or by Departmentr of Corporations as Residential Mortgage lenders or California Finance Lenders. They originate conventional loans.

2Secondary Mortgage Market This is resale market place for loans where existing loans are bought and sold. The participant in the secondary mortgage market have increased the amount of housing credit available to the economy. The major participants in the secondary mortgage market are

AFederal National Mortgage Association Fannie Mae Originally a government agency it is now a corporation with shares traded on New York Stock Exchange. It was created for the purpose of increasing the amount of housing credit available to the economy. It is concerned primarily with the development of the secondary mortgage market for conventional FHA and VA loans originated in the primary mortgage market.

BGovernment National Mortgage Association Ginnie MaeA federal agency within the Deparment of Housing and Urban Development HUD

CFederal Home Loan Mortgage Corporation Freddie Mac Works with Fannie Mae and Ginnie Mae to Increase the availability of mortgage money and maintain the secondary market for residential mortgages.

About the writer:  John Weise represents RateTake Refinance Rate marketplace. RateTake matches consumers with multiple lenders offering low mortgage rate quotes. Get your free Mortgage Quote.

Where To Buy Overseas Property

Property in Bulgaria has been drawing some attention of late. People are tired of investing their money in the precarious UK property market and have been looking further afield than the little Britain of Spain to lesser known areas of Europe.

If you are considering buying a property in Bulgaria then you will need to narrow down the field a little. Many people immediately look to the Eastern side where you have the benefit of the Black Sea but Bulgaria is a big country and every corner of it has aspects that appeal to someone. For that reason this article looks at whether or not opting for Bansko in the South Western corner of Bulgaria is a good idea or not.

Relatively close to Sofia airport Bansko is easily accessible. It is an area that is steeped in the oldest history of Bulgaria after being founded in the late 15th Century and was at the time the central city. It is a place full of ancient sights with no less than 120 cultural monuments that stand testament to the skills of the local craftsmen that have lived here over the years.

When you buy a property in Bulgaria you could opt for one of the high tech modern apartments or if you love true culture go for one of the traditional houses in Bansko. Distinctive with their tall pinewood gates and carved ceilings they also show the dedication that the Bulgarian people commit to their homes. But why Bansko above all other areas of Bulgaria?

The people are one of the biggest attractions. They are a warm and welcoming people that still carry the ingrained entrepreneurship skills of their forefathers. These people strive to come up with innovative ways of applying their skills to everyday life and are doing a pretty good job!

After the people comes the views. With the Pirin mountains in the distance you could stand and look at this sight for the rest of your life and not get used to it. On top of that you are surrounded by pine forests that emit an olfactory paradise all year round. And it is these two aspects that should you decide to invest in a property in Bulgaria will give you year round entertainment.

Mesta Valley is the area that divides Bansko’s three biggest mountain ranges Pirin Rila and Rhodopi. The valley itself provides a plethora of mountain biking and hiking trails for those with surplus energy. These trails will take you through the sweet smelling pine forests uphill and down dale supplying more fresh mountainous air than you ever believed possible.

And those mountains provide stunning ski possibilities throughout the winter. In fact Bansko has a thriving skiing community that has had enormous amounts of money invested in it of late. Equipment and ski runs have been modernised with new runs added so if you were looking for an investment property in Bulgaria that you could rent out for part of the year then with this sort of holiday trade you could make a tidy income.

Sticking with the active side of life Bansko is also perfect for challenging yourself to a vigorous bit of rafting horse riding or mountaineering. If you prefer to sit back and watch others do all the action then you will simply love to be in the country during August. A whole week is given over to the jazz festival where performers from 15 countries over 3 continents come together to put on a feast of entertainment in the way of jazz music. Colours sounds and smells all contribute to an atmosphere that will completely envelop you.

This is also the best time of year to explore the lakes waterfalls and caves that make up the natural landscape of Bansko and even sample some of its healing mineral spring water. So whether you’re a winter person or summer buying a property in Bulgaria is sure to satisfy you on some level if nothing more than to escape the rat race that has become Britain.

About the writer:  Property expert Catherine Harvey looks at why investing in property in Bulgaria is a wise move.

What Is A Real Estate Note?

What Is A Real Estate Note?

If you have owner financed the sale of your home you’ve created a contract which states the purchase price length of loan interest and other terms of the agreement. Also called a Deed Deed of Trust Mortgage Loan Mortgage Note Real Estate Note Paper Seller Carry Back Note Promissory Note or IOU. Often used interchangeable but not always the same.

Whenever any person partnership trust corporation or any other entity becomes a lender on a piece of real property a promissory note is created. You became a lender when you sold your real estate and carried back a note.

The Promissory Note

A promissory note is a written promise to pay a certain amount of money and its payment is secured by some type of security instrument that becomes a lien on the real property.

The note specifies: 1 the amount of the loan principal; 2 the interest rate interest; 3 the amount and frequency of payments debt service; 4 when the borrower must repay the principal due date; and 5 the penalties imposed if the borrower fails to timely pay or tender a payment late charge or decides to pay a portion or all of the principal prior to the due date prepayment penalty. The promissory note identifies the person who makes the payments to you the buyer of your propertythe borrower and the person who receives the payments you.

The Security Instrument

The security instrument is the document that provides for the alternate repayment of the debt to you in the case of default by the borrower. The security instrument is recorded in the county recorder’s office as a lien against the title of the property you sold.

There are three kinds of instruments used to make real estate security for a debt: 1 mortgage with or without the power of sale; 2 deed of trust; and 3 land contract. In many states deeds of trust are by far the most common. People often call them mortgages. They account for well over 99 of the security devices used for real estate. The land contractknown by many names such as installment contract contract for deed contract of sale conditional sales contract and the likeis used on occasion.

Mortgage

The mortgage gives the lender a lien on the real estate and hypothecates it as security for the note. The borrower who is the buyer of the property is called the mortgagor. The lender is called the mortgagee.

If the borrower does not pay the lender may go to court through a procedure called a judicial foreclosure that is foreclosure through the courts. In this procedure he has the court sell the property and out of the money obtained from the sale take enough to pay the expenses of the foreclosure and pay off the debt.

Deed of Trust

When a deed of trust is used an additional party called a trustee is brought into the transaction. The borrower called the trustor transfers “bare legal title” but nothing more to the trustee. The trustee holds this title for the benefit of the lender who is called the beneficiary.

If the borrower does not pay the lender directs the trustee to start a foreclosure. This nonjudicial foreclosure involves the process of selling the Property to a thirdparty bidder or in the absence of a sufficient thirdparty bid the beneficiary acquires title to the Property. The foreclosure sale in most cases satisfies the debt.

If you need to direct the trustee to start a nonjudicial foreclosure you may or may not be able to recover the entire loan balance. For example if a third party bids at a nonjudicial foreclosure sale an amount equal to or greater than the amount which you are owed including fees costs and expenses of the foreclosure you would be fully paid.

On the other hand if you bid the full amount that is owed to you including all foreclosure fees costs and expenses full credit bid and there are no thirdparty bids you will generally be limited to the Property and its value as the source of repayment of the outstanding balance of the note.

Land Contract

A land contract comes about in a situation similar to the purchase money deed of trust. Instead of giving a deed and taking back a promissory note secured by a deed of trust the seller enters into a land contract with the buyer in which the buyer promises to pay for the land. Ordinarily the buyer promises to pay in installments over a period of time. In the same contract the seller promises to deed the property to the buyer when the purchase price is fully paid.

About the writer:nbsp;nbsp;Craig Meriwether is owner of Kula Investments a company founded you help you get top dollar for you owner financed real estate loan. www.ioubuyer.com

For a more in depth discussion of owner financed loans please download my free ebook “How To Owner Finance Your Home”