Thursday, July 21, 2011

The Truth About Rent To Own

The majority of us are incredibly familiar using the term “rent to own”. Spots such as Prime Time and Rent A Center have constructed an empire with lease to own merchandise, even though the buyer typically ends up paying double what the merchandise is actually worth. Even though this might be wonderful for those who've poor credit rating, the majority of us choose to stay clear of going this route. Houses are no exception, particularly if you are buying a household on the lease to own schedule.

Even though lease to own may be excellent for any short period of time, it proves to be an expensive way for someone to buy something they intend to maintain. Lease to own merchandise for example, may well sound quite compelling at one or two dollars a week. The agreement is generally for around 15 - 20 months, that is wherever the firm makes their money. Even though you may well be paying just one or two bucks a week, the total quantity swiftly adds up to nearly twice the expense of the item.

Along with paying lease, you will also have to pay applicable sales tax as well. Like merchandise, lease to own actual estate has it’s disadvantages. Even although it can be good for individuals with not so great credit history, you will usually wind up paying back a whole lot more than you'll with a home loan. You will even now have to pay again your lender with a mortgage loan, despite the fact that that quantity won’t be nearly as high because it would should you made a decision to get a residence using a rent to own schedule.

In most situations, lease to own houses are put up on the marketplace by the owner. By doing this, you will package directly while using owner. It will begin out as a traditional rent, then proceed to a rent to own schedule in case you choose you need to keep the residence. You as well as the owner will then work out an arrangement, which will normally be quite a few years. Some owners are incredibly flexible and will work with you just to get the cost they want for their home, while others will cost you very a bit more, in order to make a hefty profit.

If you've bad credit history and can’t get approved to get a home loan, then rent to own could be your next very best option. While some do not like to do it due to the cost, for numerous it’s a far better option than an apartment. With lease to own houses you are paying money towards the house, rather than just paying lease. In some situations this really is fine, while you should make sure to double verify using the owner prior to you agree or commit to anything. In this way, you will know how a great deal you will be paying for the house - and for how lengthy.
If you just bought or are considering buying a residence, you will soon acquire quite a few offers in the mail for a variety of products and services for the new household. That is simply because marketing organizations collect your details and sell it to numerous companies as a new homeowner list. Simply because new homeowners require so a lot of different things for their new household, many firms produce and mail postcards or catalogs to such individuals. Exactly the same is true in case you recently started construction or even a remodel of the new house. That information is sold as a new building permit list. Similarly, new mothers and fathers can also find themselves swimming in a variety of offers on a new parent list. It is essential that you pay attention to these kind of offers, which can save you loads of time and money.
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Wednesday, July 20, 2011



MARLTON, N.J. – RE/MAX Connection Realtors today introduces a financial product to the South Jersey/Philadelphia market that allows home sellers and buyers – as well as current owners – to protect the value of their houses against the uncertainty of today’s housing market.

The product, called Home Price Protection and backed by EquityLock Solutions, can – depending on the circumstances – provide a payoff at the time of sale to make up for potential loses in the value of the home.

Christopher J. Brown, CEO of RE/MAX Connection, South Jersey’s leading real estate agency, says the product will have a significant impact on today’s marketplace.

“There are many qualified home buyers not purchasing homes today because they are afraid of losing the equity they put down to purchase the home,” Brown said, “Now, they have a product available to them that provides assurances against such drops in the market area.”

When a homeowner, buyer or seller purchases a Home Price Protection contract – currently available only through an agent at one of the RE/MAX Connection offices in Marlton, Mantua and Turnersville – the terms are based on two factors:
1.         How much of their home’s value they plan to protect
2.         The current value of the region’s House Price Index as set monthly by the Federal Housing Finance Agency (and available at

The national average cost of the contract is 1.7 percent of the value they plan to protect. Most customers use the home’s current market price at the time they purchase their EquityLock contract, but any value up to $2 million can be protected. At that point, the 15-year contract begins, and it cannot be cashed in for the first two years of the term.

If, in years three to 15 of the contract, the house is sold, the House Price Index at the time of the sale is compared to the Index level when the contract was originally purchased. If the index is the same or has risen, no payment is made; if the index has fallen, then the home seller or buyer will receive a check in the amount of the value of the contract multiplied by the percentage change in the House Price Index.

In addition to homebuyers, Brown said home sellers can take advantage of this product. When the contract is skillfully negotiated by an experienced real estate agent, sellers can offer Home Price Protection as an incentive to buyers to purchase the home.

“We are pleased to partner with RE/MAX Connection. Agents, homebuyers, sellers and owners have all responded to Home Price Protection with enthusiasm,” EquityLock Solutions Co-founder and CEO TJ Agresti said. “The peace of mind, knowing that a property is protected against local market fluctuations, is invaluable and is winning wide acceptance for Home Price Protection.”

Home Price Protection is not an insurance or security product; it is a financial contract between the purchaser and EquityLock Solutions. Here are a few examples of how a contract purchased through EquityLock Solutions would work:

In July 2011, Mr. Jones purchases a home for $300,000 and a Home Price Protection contract to protect that same value. The local House Price Index at the time is 100. In July 2014, Mr. Jones sells the home under one of the following scenarios:

Scenario A
Mr. Jones sells the home for $325,000 and the local index in his area is 105. Since the index increased, there is no claim to file, and the Home Price Protection contract terminates.

Scenario B
Mr. Jones sells the home for $275,000 and the local index has fallen to 90. EquityLock pays Mr. Jones $30,000 at the time of sale. Why? The local index fell 10 percent; therefore, a payment of 10 percent of the contract price is paid ($300,000.00 X .10 = $30,000.00).

Scenario C
Mr. Jones sells the home for $325,000 and the local index has fallen to 90. Mr. Jones receives a payment of $30,000, even though he did not lose money on the home. The sale price of the home does not matter; it all depends on the current level of the federal Home Price Index.
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Steps To Take Before You Buy A Home

The prices of South Jersey Homes dropped and although this may look really enticing, it is not advisable to buy impulsively without thinking of the pros and cons of home buying. It is better to take small steps than jumping impulsively and regret later.

Step #1 Consult a broker

Look for a broker in your area that has spent good long years in the field. Although you can consult your real estate agent regarding possible homes that fit your requirements, a broker is more knowledgeable of houses for sale in your area.

Step #2 Get an appraisal

Getting an estimated value of the home you want to purchase will give you a better idea if the seller is asking for the right price or will give you a clue on how to negotiate and eventually get the best deal based on the appraised price. If the appraised price and the actual price of the home is similar then this is a good sign that the seller is honest enough in pricing his Baltimore MD property.

Step #3 Find out the tax assessment

Consider residential properties with low property taxes when you are looking for a home to buy. Be aware of the rise and fall of home values because if home values go up, property taxes also increase. And while price goes down, property taxes also go down. By knowing all these, you can take the chance and ask for lower appraisals which means lower property tax.

Step #4 Ask for utility bills

Home inspection is a must when you are trying to evaluate the physical condition of the home you are interested in buying. Also, ask about the utility bills of the home you are interested in buying. In this way, you will know of the home’s energy consumption and if there are any problems associated with it.

Year 2010 has been devastated with the consequences of homeowner's not being able to pay their mortgage on time which resulted in losing their homes in South Jersey which resulted to more than 100,000 homes. So before you actually get excited in buying your dream house, there are steps that you need to take in order to avoid the mistakes most home buyer’s made.

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Tuesday, July 19, 2011

Inventory for Investors in Pre Foreclosure Homes

The real estate investor who can purchase property at under fair market value is in good position to make increased profits from the deal . Where does an investor locate excellent properties at severely discounted prices ? One niche market is pre foreclosure homes. Pre foreclosure homes are homes that the bank or lender has filed a notice of default on, but the property has yet to be sold at a public auction or trustee sale. There is a period of time between the filing and the sale when the home owner still has control of the home . To stop the foreclosure, the homeowner must bring mortgage payments to current, or he has the option to sell the property . This period of time is the ideal chance for the real estate investor to make an offer on the home . As an investor, you can increase your profits through negotiating with the seller for a deep discount off of the current market value of the home . As the buyer, you will also be able to inspect the house and learn what repairs and renovations might be needed . This inspection will also help you decide the amount you will offer on the property . There are foreclosure subscription services that will provide listings of pre foreclosure homes. The fee for the service issmall , and worthwhile in time and effort saved. The old method of researching records at the county courthouse was difficult and tedious. While getting to go through the public records is free , your time should be worth more, and the little charge for the subscription service will pay you back with your first pre foreclosure homes purchase. The foreclosure market has been a favorite for the real estate investor because of the severely reduced prices. The same deep discounts can be found on these pre foreclosure homes, with the extra advantage of being able to deal and negotiate with a highly-motivated homeowner . It’s worth taking a look at the pre foreclosure homes market.
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Monday, July 18, 2011

Fannie Mae launches exclusive foreclosure deterrence plan

Fannie Mae declares unique foreclosure avoidance planfrom Government Refinancing Assistance In addition to the HAMP and HARP and HAFA foreclosure avoidance programs offered from the federal government, Fannie Mae released its own plan just lately for the numerous loans they back. We obtain this from a recent HousingWire article about the topic: Fannie Mae introduced its version of the Making Residence Affordable Foreclosure Alternatives (HAFA) program Tuesday, implementing the plan for all conventional home loans that are held in Fannie’s portfolio, which are part of an mortgage-backed security (MBS) pool with a distinctive servicing choice, or that are part of a shared-risk MBS pool for which Fannie Mae markets the acquired house.

The Fannie Mae plan takes effect August 1, this year and is created to mitigate the impact of foreclosures on borrowers that are entitled for any mortgage modification below the Residence Affordable Modification Program (HAMP) but were unsuccessful in acquiring one, Fannie said. Like the Treasury Department’s HAFA program, servicers can't think about a borrower for HAFA before borrower is examined and eliminated from eligibility for any Making Home Affordable Modification Program (HAMP) workout strategy. Also like the Treasury plan, Fannie Mae may offer servicers cash incentives for completed HAFA transactions, $2,200 for short sales and $1,200 for deed-in-lieu of foreclosure agreements. Borrowers are also entitled for $3,000 in incentives. That’s much more than within the Treasury’s HAFA program, where servicers are entitled for $1,000 and the borrower gets $1,500. Within the Treasury HAFA, the investor is also entitled for any $1,000 incentive. …

After announcing the plan in October 2009, Treasury’s HAFA plan began in April. The Fannie Mae HAFA plan is the latest in a string of programs designed to help borrowers avoid foreclosure. In addition to HAFA and HAMP workouts, Fannie Mae is letting some distressed borrowers stay in their homes as renters, under the deed for lease (D4L) plan. Below D4L, the homeowner-turned-renter is required to pay fair market rent to stay in their home for up to twelve months. The renter must have enough income to sustain a 31% income-to-rent ratio and rental payments are not subsidized by Fannie Mae, but could possibly consist of renters suitable for Section eight payments. Also, in 03 this year, Fannie Mae instructed its servicers to think about an “alternative modifications” for all mortgages that did not qualify for any permanent conversion below HAMP. That “Alt Mod” plan, which sunsets on August 31, this year, is comparable to HAFA.
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Sunday, July 17, 2011

Sell Your House - Advice On Getting A Quick Sale

At this moment in time the housing market is certainly favoring buyers instead of sellers. Reduced demand in the market has meant a reduction in the number of house sales and, although there has not been an increase in the number of property price reductions, there has been a decrease in the number of house price increases. As it is currently a buyers market, that means that sellers have to put a lot more effort in to sell their property; though this doesn’t mean just reducing the asking price. Although you may think that reducing the asking price of your property will help entice buyers, it is not the be-all and end-all of marketing property. There are always other options available to you that you should take advantage of if you are having trouble selling your property; some of those options are detailed below.

As with any product, you need to make your property attractive to potential buyers. What this means is that you have to make it look as much of a blank canvas to them as possible, so that the viewers can attempt to see themselves living in that space and adapting it to their own tastes, which might be far removed from yours. Any brightly painted walls should be painted over with more neutral colors and with regards to furniture, you must make the space as minimalist as possible. Also, it helps to make the outside as attractive as the inside, so make sure gardens and paths are not cluttered, and possibly plant a few flowers to help brighten the area. When choosing an estate agent to market your property you need to be quite selective. Make sure you find an agent that is not only knowledgeable, experienced and professional, but also friendly. Having an agent that you get along with will help you in the long run as you need to be in constant contact with them every step of the way. You must ensure that they are doing all that they can to market your property including making sure that all viewers of the property are mortgage pre-qualified.

The last thing you need to consider is not only competitive pricing, but also, proving your pricing judgment. Competitive pricing means researching property values in the local area; looking at recent sales of property similar to yours then asking for advice from a number of estate agents and other professionals in order to determine the market value of your property. Once you have your market value, you can then reduce that by 1% only, in order to gain increased interest in your property. Proving your market value assumptions means giving the estate agent access to receipts for building improvements and general maintenance on the property, providing information on the ratings of local public services and educational institutes and also making available data on local property prices and recent sales, all so that if the potential buyer questions your pricing ethics, your agent can then explain the details on which the market value has been established.
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Monday, July 4, 2011

I Hear America Singing; By alt Whitman

I hear America singing, the varied carols I hear,
Those of mechanics, each one singing his as it should be blithe and strong,
The carpenter singing his as he measures his plank or beam,
The mason singing his as he makes ready for work, or leaves off work,
The boatman singing what belongs to him in his boat, the deckhand singing on the steamboat deck,
The shoemaker singing as he sits on his bench, the hatter singing as he stands,
The wood-cutter’s song, the ploughboy’s on his way in the morning, or at noon intermission or at sundown,
The delicious singing of the mother, or of the young wife at work, or of the girl sewing or washing,
Each singing what belongs to him or her and to none else,
The day what belongs to the day—at night the party of young fellows, robust, friendly,
Singing with open mouths their strong melodious songs.