http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/finance/real-estate/rent-to-own-as-a-viable-option.html http://www.articletrader.com/finance/real-estate/rent-to-own-as-a-viable-option.html Mon, 31 Mar 2008 00:00:00 -0500
Additionally, as homes for sale by owner (FSBO) are everywhere you look, few sellers realize the benefits of rent to own or lease purchase (perfect for FSBO sellers with a home that needs repairs, a home with zero, little or negative equity, or a house in a buyer’s market). If your home is available as a rent to own home, it will increase the demand, as there is no database that has all the rent to own homes listed. Nine times out of ten lease option homes will not be listed on the MLS.

Overall, the best thing to keep in mind is that the more options that you offer a prospective buyer, the better off you will be. If they begin as a tenant, and in 12-24 months, they become a buyer, all the while covering your mortgage and caring for your home, is that such a bad thing in today's market? These are questions that you need to ask yourself if you want to move your home.

If you are going to venture into this with a real estate agent, tell them exactly what you want, and have them work for you. Have them list your home as a Sale or Lease Option (same as rent to own), and let them show you the paperwork and go over it in more detail with you. If you decide to venture it alone, discuss it with your attorney so they provide you with the proper paperwork needed to do this in your state.

Please take a solid look at Rent to Own and begin breathing easier!

Regards,
Rob

--
Name: Rob
Company: HomeRun Homes
The Premier Website for Rent to Own Homes
Website: www.Lease2Buy.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/foreclosure-and-some-basic-options.html http://www.articletrader.com/finance/mortgage/foreclosure-and-some-basic-options.html Mon, 31 Mar 2008 00:00:00 -0500
What is Loan to Value and What Does it Mean to You?

Calculation:
Loan to Value (or LTV) is simply a mathematical calculation. Value is defined as the market value of the collateral used to secure a loan. This is derived in several ways (from the price of similar homes in your area or via hiring an appraiser). The “loan” part is referred to as the amount owed on the property. For example, let’s say you owe $100,000 on your home.

Let’s say your home is worth $150,000. You would divide your loan due of $100,000 by the value of the property, in this case, $150,000, and you would come up with 66.6%.

What does this percentage mean to you?
Now that you know your LTV, you can have an informed conversation with a lender with whom you will be working. REMEMBER: The lower the LTV, the better, thus the more attractive to a prospective lender with whom you are trying to work with to secure a loan. Lenders will lend from 100% and lower. The less debt you have, the lower your LTV, thus, the better chance you have of being funded (Lowering your debt is a great way to improve your LTV and make you more attractive to foreclosure lenders). CAUTION: Before you throw in the towel because your LTV is too high, read on…there are other criteria with which you will be evaluated.

There are three major credit bureaus in the country who monitor and report most consumers’ pay history using a scoring system. When a lender checks your credit score, they “merge” the scores from the three credit bureaus and come up with what is known as the “middle score”. This is the mean, or average of the three scores, and is utilized in conjunction with your LTV, employment history and monthly income. Also, very important in this calculation is your debt to income ratio. This is calculated by dividing the borrower’s monthly payment obligations on long term debts by his or her gross monthly income.

OK, now to the foreclosure issue: At the beginning, the lending institution will send the homeowner a nice letter saying something like “ perhaps you forgot”, or something of the like. As months go by, the letters become a bit stronger in language until virtual war is declared. The lender begins to threaten that your home will be taken from you, your credit score will suffer, etc. Sometimes the homeowner will make attempts to pay and the lender may or may not accept payment.

There are a few possibilities for you to look into and investigate:

A) Refinancing Your Home: You may be able to get a loan that would satisfy your current loan, and replace it with a new one.

B) Second Mortgage or Equity Loan: Lenders do not like to add to a borrower’s woes by adding a second loan to their finances, but it may be a viable option. This works well for those who can prove that they are once again back on their financial feet.

C) General Reinstatement: Reinstatement of a loan simply means that the late payments, along with any late fees and/or attorney’s fees have been satisfied. You may also want to look into selling personal big ticket items you don’t ABSOLUTELY NEED.

D) Forbearance: You can “slow” or “stall” the foreclosure process with your bank if you clearly detail the reasons you were late in the first place, and SHOW A PLAN to meet the monthly payments through new employment, cash, or other means, and your timetable for same. This is always something you can try.

E) Out and Out Sale of Your Home: You also have the option of selling your home, preferably to a cash buyer (these transactions close FAST), or an investor. Make sure you receive enough to cover your outstanding balances, along with all fees due.

F) Contract for Deed: This is a complicated process, but in a nutshell, you could contact a buyer and “sell” your deed to them, making them responsible for making payments along with satisfying back payments. Again, consult an attorney(getting the picture with attorneys?) who is thoroughly knowledgeable in this procedure.

Remember, you are not a bad person, just one in need of solutions and knowledge. We advise you to consult an attorney before utilizing any of the practices listed above, as laws change every day. These ideas are freely available on the web, but we have summarized them here for you.

Regards,
Rob

--
Name: Rob
Company: Equifree
Bring Your Payments Current and Stop Foreclosure
Website: www.Equifree.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/debt/foreclosure-and-some-basic-options.html http://www.articletrader.com/finance/debt/foreclosure-and-some-basic-options.html Tue, 25 Mar 2008 00:00:00 -0500
What is Loan to Value and What Does it Mean to You?

Calculation:
Loan to Value (or LTV) is simply a mathematical calculation. Value is defined as the market value of the collateral used to secure a loan. This is derived in several ways (from the price of similar homes in your area or via hiring an appraiser). The “loan” part is referred to as the amount owed on the property. For example, let’s say you owe $100,000 on your home.

Let’s say your home is worth $150,000. You would divide your loan due of $100,000 by the value of the property, in this case, $150,000, and you would come up with 66.6%.

What does this percentage mean to you?
Now that you know your LTV, you can have an informed conversation with a lender with whom you will be working. REMEMBER: The lower the LTV, the better, thus the more attractive to a prospective lender with whom you are trying to work with to secure a loan. Lenders will lend from 100% and lower. The less debt you have, the lower your LTV, thus, the better chance you have of being funded (Lowering your debt is a great way to improve your LTV and make you more attractive to foreclosure lenders). CAUTION: Before you throw in the towel because your LTV is too high, read on…there are other criteria with which you will be evaluated.

There are three major credit bureaus in the country who monitor and report most consumers’ pay history using a scoring system. When a lender checks your credit score, they “merge” the scores from the three credit bureaus and come up with what is known as the “middle score”. This is the mean, or average of the three scores, and is utilized in conjunction with your LTV, employment history and monthly income. Also, very important in this calculation is your debt to income ratio. This is calculated by dividing the borrower’s monthly payment obligations on long term debts by his or her gross monthly income.

OK, now to the foreclosure issue: At the beginning, the lending institution will send the homeowner a nice letter saying something like “ perhaps you forgot”, or something of the like. As months go by, the letters become a bit stronger in language until virtual war is declared. The lender begins to threaten that your home will be taken from you, your credit score will suffer, etc. Sometimes the homeowner will make attempts to pay and the lender may or may not accept payment.

There are a few possibilities for you to look into and investigate:

A) Refinancing Your Home: You may be able to get a loan that would satisfy your current loan, and replace it with a new one.

B) Second Mortgage or Equity Loan: Lenders do not like to add to a borrower’s woes by adding a second loan to their finances, but it may be a viable option. This works well for those who can prove that they are once again back on their financial feet.

C) General Reinstatement: Reinstatement of a loan simply means that the late payments, along with any late fees and/or attorney’s fees have been satisfied. You may also want to look into selling personal big ticket items you don’t ABSOLUTELY NEED.

D) Forbearance: You can “slow” or “stall” the foreclosure process with your bank if you clearly detail the reasons you were late in the first place, and SHOW A PLAN to meet the monthly payments through new employment, cash, or other means, and your timetable for same. This is always something you can try.

E) Out and Out Sale of Your Home: You also have the option of selling your home, preferably to a cash buyer (these transactions close FAST), or an investor. Make sure you receive enough to cover your outstanding balances, along with all fees due.

F) Contract for Deed: This is a complicated process, but in a nutshell, you could contact a buyer and “sell” your deed to them, making them responsible for making payments along with satisfying back payments. Again, consult an attorney(getting the picture with attorneys?) who is thoroughly knowledgeable in this procedure.

Remember, you are not a bad person, just one in need of solutions and knowledge. We advise you to consult an attorney before utilizing any of the practices listed above, as laws change every day. These ideas are freely available on the web, but we have summarized them here for you.

Regards,
Rob

--
Name: Rob
Company: Equifree
Bring Your Payments Current and Stop Foreclosure
Website: www.Equifree.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/using-rent-to-own-as-an-option.html http://www.articletrader.com/finance/real-estate/using-rent-to-own-as-an-option.html Wed, 27 Feb 2008 00:00:00 -0600
Additionally, as homes for sale by owner (FSBO) are everywhere you look, few sellers realize the benefits of rent to own or lease purchase (perfect for FSBO sellers with a home that needs repairs, a home with zero, little or negative equity, or a house in a buyer’s market). If your home is available as a rent to own home, it will increase the demand, as there is no database that has all the rent to own homes listed. Nine times out of ten lease option homes will not be listed on the MLS.

Overall, the best thing to keep in mind is that the more options that you offer a prospective buyer, the better off you will be. If they begin as a tenant, and in 12-24 months, they become a buyer, all the while covering your mortgage and caring for your home, is that such a bad thing in today's market? These are questions that you need to ask yourself if you want to move your home.

If you are going to venture into this with a real estate agent, tell them exactly what you want, and have them work for you. Have them list your home as a Sale or Lease Option (same as rent to own), and let them show you the paperwork and go over it in more detail with you. If you decide to venture it alone, discuss it with your attorney so they provide you with the proper paperwork needed to do this in your state.

Please take a solid look at Rent to Own and begin breathing easier!

Regards,
Rob

--
Name: Rob
Company: HomeRun Homes
The Premier Website for Rent to Own Homes
Website: http://www.Lease2Buy.com

Source: http://www.articletrader.com ]]>