Friday, 21 November 2014

How to Sell Your Real Estate Note

The question “how to sell a real estate note?” has been asked quite often in the past few years. The recent transformations on the real estate industry has lead many home owners to sell their houses. They had to sell their properties on land contracts or take a mortgage note form the banks as the financial institutions refused to give any more loans. A radical fall in the property values incurred loses for the owners as they sold their homes for lesser as the properties would not appraise. In such situations taking back the real estate note was deemed as a more favorable options.

Currently the banks taken a completely different route as they have revised their lending practices and have initiated stringent documentation requirements and had set larger requirements for down payments. Times have changed now, as you can no more buy a house without any down payments. Post the big recession; most people in the US are still working towards getting back on their feet, as many were jobless for a long time and ended up becoming defaulters. Even after gaining jobs and things getting back to normal, may people are still suffering from the aftermath and failing to qualify for availing mortgage. A large segment of the population has now become cash rich but credit poor. In such situations, getting bank loans or buying home on land contracts requires the individuals to pay higher interest rates for a while to re-establish the credit ratings to successfully meet the strict bank requirements.

Starting 1st January (2014), the balloon payment of money a few years into the contract is considered a taboo. Dodd Frank bill came into effect in the beginning of the year and laid down the mandatory requirement of the note to be amortized over a certain period minus any acceptable balloon payments. Numerous unethical practices by real estate investors who sold land contracts with an expectation that the buyer would fail to pay the credit and eventually have to opt for balloon payment. When such individuals would fail to get any financial assistance form banking institutions, the real estate holders would take back the property and resell the house. The previous owner very conveniently loses any possible equity in the property. Such immoral practices of selling same property over and over for personal gains have lead to such drastic alterations.

Remember that based on the state of residence, the terms used to refer to the real estate note may differ as it is also referred to as Title for deed, land contract or a mortgage note. They all mean the same and can be used interchangeably. The principal trade of the Real Estate note buyer is to purchase and to sell the real estate notes. For any such assistance make sure First Equity Note, LLC is on your speed dial contact for either buying or selling any mortgage note or Land Contract.

First Equity Note  or Dreamprotector is a Mortgage Note (Promissory Note) selling company. We are professional in this field. For more information about our business and our business updates follow us on facebook, twitter, pinterest

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