Real Estate And Its Info
Nearly everywhere, you can buy real property at an auction. In some states, there is what's called Redemption Laws; the deed or title for this type of purchase is special and has specific rules attached to it. The title you hold is not clear yet, or in simpler terms: temporary. This means that in a matter of months, the former owner from which the property has been auctioned can reclaim the property -the title is defeasible or can be defeated.
Securing Redemption Rights
More or less, the owner you'll be buying the property from will be under a lot of stress -making them unaware of their own property's equity values. Equity factors in the price of redemption rights. Ethics dictate a minimum of $1500 for perusing redemption rights; should the owner demand more, again, consult your real estate attorney.
Purchasing Property
The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.
Notes, deeds of trust, mortgages, real estate -an overview
In a Deed of Trust state, there are three parties involved in the foreclosure process:
Trustor = Borrower
Beneficiary: Whoever lends the money (aka mortgagee)
Trustee = Party handling the transaction
So, in a Deed of Trust state, the Trustee would be the person to file the foreclosure on behalf of the Beneficiary. However, in a mortgage state, the mortgagee would hire a lawyer to start the foreclosure process. The Deed of Trust and a mortgage are two separate security instruments, but they perform the same function. They both secure the property as collateral.
There are two major strategies in the foreclosure business:
Short Sale
Equity Split
There may also be another option, a "subject to" transaction for more expensive properties. - 23167
Securing Redemption Rights
More or less, the owner you'll be buying the property from will be under a lot of stress -making them unaware of their own property's equity values. Equity factors in the price of redemption rights. Ethics dictate a minimum of $1500 for perusing redemption rights; should the owner demand more, again, consult your real estate attorney.
Purchasing Property
The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.
Notes, deeds of trust, mortgages, real estate -an overview
In a Deed of Trust state, there are three parties involved in the foreclosure process:
Trustor = Borrower
Beneficiary: Whoever lends the money (aka mortgagee)
Trustee = Party handling the transaction
So, in a Deed of Trust state, the Trustee would be the person to file the foreclosure on behalf of the Beneficiary. However, in a mortgage state, the mortgagee would hire a lawyer to start the foreclosure process. The Deed of Trust and a mortgage are two separate security instruments, but they perform the same function. They both secure the property as collateral.
There are two major strategies in the foreclosure business:
Short Sale
Equity Split
There may also be another option, a "subject to" transaction for more expensive properties. - 23167
About the Author:
Want to know more about real estate? Log on to Don Burnham's website http://www.weknowthewayback.com and know everything from redemptions and foreclosure all under one roof.
posted by X - Men @ 2:20 AM
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