The Least Worst Option For Distressed Homeowners

Upside-Down Mortgage (Image by Timothy Miller)

Upside-Down Mortgage (Image by Timothy Miller)

Many homeowners continue to suffer from mortgages that are under-water (or upside-down).  Their lenders are pressuring them for near-term resolution. But, their options have not been really that favorable – until now. Real estate investor Michael Baum from Pacific Property Investments (his Sell My House page) now offers the least-worst option.

Problem 1 – No Money

Many distressed homeowners want to sell their under-water homes, but they have little or no money to be able to close escrow. That’s a no-go situation – an not very favorable to begin with.

Problem 2 – Below Market Offer

Real estate investors will offer to buy the house from the distressed homeowner. But, the homeowner would usually have to accept a below-market-value offer so that the investor would make some money for his/her investment in the first place. THat works for some homeowners, but not others.

Problem 3 – Damaging Credit

Most of the typical options that distressed homeowners encounter end up being damaging to their credit.

A Short Sale (selling the house at market value, but below what is owed on the loan) can damage credit for 2+ years. And, it can trigger tax consequences (in other words, you could end up owing taxes on the difference between what the house sold for & what is owed).

A foreclosure (just turning the house over to the mortgage company & walking away) can be damaging to credit for 7+ years. More tax consequences.

A bankruptcy (walking away for all/most debt owed) can damage credit for 10+ years. But, there are two things to note regarding bankruptcies. First, With more recent government legislation, bankruptcies are harder to qualify for. Second, courts have ruled that you may end up being liable for the mortgage loan anyway.

Pacific Property Investments website

Pacific Property Investments website

The Least Worst Option

Baum’s Assignment of Mortgage Payments System (AMPS) features the following benefits:

  • No need to bring money to escrow closing
  • Get out from under the mortgage payment
  • Saves your credit

To find out more about Baum’s AMPS program, visit his Sell Your House website.

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How To Develop An Outstanding Property As An Investment

The start and finish of the property development process are each relatively complex but form a good starting point for describing the process of property development in Perth. The start of the Property Development Perth can be any idea by anybody of a valid or invalid, perceived need for building user space. This puts the beginning of a property development in Perth into the context of the creation of a new idea or thought or opportunity by one or more human beings. Alternatively, the start could be as nebulous as someone, e.g. a professional, considering that a commercial or industrial sub market, whether their own or not, may have a need for user space or even that someone else may have the inclination to finance a venture in real estate carried out by another. Put simply, the start of the property development process is the potential opportunity of profit for someone.
The finish of a property development process in Perth, with or without the original stimulator or executor, is when an end product building exists and provides a recognizable stream of benefits, usually rent, to the party owning it. It could be considered ideal that the developer moves the project through a set of phases/activities from whatever is its start (above) to the existence of the benefit producing asset which has a capital value (above or below the costs of its provision). For the developer the timing of this finish of property development in Perth could be the same point in calendar time of the duration expressed in the feasibility study and which matches the peak phase of demand for that type of user space in the current market place, the building is rented up to the void level expressed in the feasibility study and the whole property development in Perth is about to be bought by an investor and the price agreed approximately matches the sale appraisal in the feasibility study. The finish of the development process should not be confused with the most propitious point in time in the process for the developer to sell the development to another party. These are two different things.
When it comes to the process of making a Property Investment Perthand exiting from it, there are a few things that you must keep in mind. When you buy or sell property, there are many transaction costs associated with the property investment activities in Perth. You might have to pay a brokerage fee to the intermediary. If you have made a gain on the sale, there will also likely be a resulting capital gains tax liability. You will also face some expenses related to the stamp duty at the time of the transfer and registration costs of the property. All these costs can add a material amount to the purchase or sale price of your property investment in Perth. Unlike stocks that you can sell readily and convert into money in the hand within a couple of days, buying and selling property takes time. Your ability to convert your property investment in Perth into cash in hand is quite restricted. It is not uncommon for deals to take up to one year, and still fall through at the last minute. So if you feel that you can sell your property to pay for your child’s education abroad once he/she gets admission, you might be in for a shock. To have easy access to this money, you might be better off putting it into a financial asset that you can access at a short notice. Property investments in Perth are not always the cleanest when it comes to cash versus cheque component of paying for deals. Unlike mutual funds where KYC (know your client) norms require that the investment be made in cheque and the PAN card details be shared, real estate investments can have a huge cash component to them. This might not suit everyone.

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Mortgage Refinance Can Save You Lots Of Money, If You Are Residing In Houston.

If you live in Houston, mortgage refinance may be in your future, and that is actually a good thing. It’s not any secret that the housing market nationwide has simply gone in the toilet, with price ranges normally falling across the region, ending decades of continuous development.

Especially recently, refinancing a home mortgage has been a very popular option for homeowners. It can be a easy method to obtain some money and at the same time get a lower monthly mortgage payment. So how does refinancing your home loan work? Here are 5 easy steps to start you in the proper direction:

1) Figure out if it is the right time to refinance your home mortgage. Typically, you should only refinance a home for the correct reasons and at the correct time. A good rule of thumb to follow is that when interest rates are lower than your rates by 2% or more. Other factors that need to be considered are the length of time remaining on your mortgage, the balance remaining, your monthly expenses, how long you plan on staying in your home, your credit score, and so on. If you just go blindly into a mortgage refinance and it is the wrong time, and with the wrong loan, it can cost you thousands in unnecessary fees and expenses. If it is done wrong it can end up costing you even more than your current home loan does. Say for example you were going to be moving in a year or two. In this case a refinance would be a waste of money, time, and resources.

2) There are plenty of free and easy to use mortgage calculator that are available online which can help you see the potential savings compared to your current mortgage terms. Compare the monthly costs with each loan type, and different amounts and lengths to determine the best choices for your personal financial situation. Do not forget to account for closing costs and fees and other charges.

3) If your calculations looked very appealing to you then consider looking over your options. Each mortgage lender and bank have different terms, rates, and conditions. Sometimes one will offer you a much better deal then another, so it pays to shop around. Also, think about if you would like to get a ARM loan (Adjustable Rate Mortgage) or a fixed rate loan. Your needs will determine which home loan is correct for you.

4) Be sure to carefully pay close attention to any fees or closing costs associated with refinancing a home mortgage. The fees can and do vary greatly from lender to lender so choosing accordingly and shopping around is a must. Sometimes a lender may offer lower interest rates, but add on more points, so make sure you take all of the factors of potential refinance options before deciding.

5) If possible it is generally recommended that you try to keep the length of the new refinanced mortgage the same as your old mortgage. You do not want to have to pay for another 30 years again if you have already paid on the home for 10 years. The payments may not be as low but the overall savings from the interest will be substantially more.

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Mortgage Tips and Advice From Top Ranked Houston Realtor For Investment

A mortgage is the largest expense that homeowners will have to pay in their lifetime. Homeowners, particularly first-time homeowners, can easily become confused with the terms and conditions of understanding a mortgage. But because this is a loan that will follow you for fifteen to thirty years, it is essential to fully understand the loan agreement and mortgage basics before signing your name to anything.

Investment properties in Australia are a hot commodity; not only can you increase your real estate investment portfolio, you can also use your investment property to garner additional income for your family. One of the ways to accumulate an investment property is to buy or build a duplex or other dual-occupancy property. A dual-occupancy residence can be detached or semi-attached, such as an apartment over the garage or a separate building on a piece of property. When building a duplex, tips and advice from those who have been in your situation prove an immense help to you before and after you begin the process of construction.

Know the law

Building a duplex, or granny flat, requires knowing a bit about real estate law. You cannot build any structure without the proper permits and you should never build any structure for investment purposes without first checking with an accountant regarding the tax you are required to pay upon sale of the duplex or on the money you earn as rent from the duplex.Home 3

Meet all council building requirements

In addition, your duplex must meet all structural, height, floor space and other relevant and required restrictions before it can be built. This requires making a blueprint of the structure and including all relevant details of the building. You can, however, add on to an existing structure to turn it into a duplex or build an entirely new structure on empty land.

What will you use the duplex for?

Before you begin construction on your duplex, there are a number of other factors you need to keep in mind. The first is what you plan on using the duplex for. Many people commonly take advantage of these granny flats as a way to care for elderly family members.

The addition of a granny flat, or duplex, gives you the space and privacy you desire as well as the proximity required to take care of your elderly parent or grandparent. Others use their granny flats as an apartment for recent graduates looking to move away from home for a little more privacy; since many graduates cannot afford a place of their own until school is over and jobs are secured, parents are letting their kids stay in their duplex while they go to school. The situation is a win-win for both parents and their adult children.

Your other option is to rent out the duplex to someone outside of your family. This method of investment generates income for you by renting the granny flat to someone with a contract requiring them to pay a set amount of rent each month.

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