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Takelist

Transferring ownership of a property requires the buyer to obtain a deed. A new deed will need to be executed and recorded. The seller and buyer can jointly change this at their county clerks office for a small fee. The document you want to use to change the deed is called a “Quit Claim Deed”.

Knowing how to protect yourself from a fraudulent mortgage assumption is important.
Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Make sure the person who assumes the loan “records” your name with the trust company that holds the mortgage. If the person you are assuming the loan from doesn’t want the lender to know about it, don’t assume the mortgage. Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information.

In March of 2013 Fannie Mae and Freddie Mac homeowners with hardships were offered an opportunity to turn over the house keys and erase their debt if they were not delinquent and only had 1  loan on the property. Loans with 2nd and 3rd mortgages could not qualify. Many may not have recognized what they were eating till tax time came around in 2014. While this was a preventative foreclosure method, it still reaped the same results as foreclosure. How so?  It could not avoid Taxable income laws for dept forgiveness, and does still harm your credit.  The deed-in-lieu transaction does erases the negative equity, but then hands you back the same results of a foreclosure and short sale, with a dent in your credit, a increase in your taxable income level, and some cash contributions to seal the deal.   This proves it’s still best to let someone assume your assumable mortgage.  Letting someone assume your mortgage has no negative impact on the home owner or buyer.  So the facts stand.  Short sales, foreclosures, and Deeds in Lieu transactions all have the same results.  They are different processes leading to the same end.

Home owners thought they were trading for something different. But in the end they were trading apples for apples.

 

Here are a few fundamental reasons.

Attractive Pricing Sells

The assumable price is more attractive to buyers.  1. Buyers do not need any out of pocket money to assume a loan. 2 Buyers with Lower credit Scores can afford a home. 3 Buyers Avoid PMI because many of these loans no longer have it, and the terms cannot change. 4. Most importantly” Buyers benefit from a shorter payment term. If a seller has been in their home 5 years they have paid 60 payments. That means on a 30yr mortgage there would only be 300 monthly payments left for the buyer.  Thats saves thousands of dollars.  Do the math.

Prevents Deficiency Judgements

A short sale does not cover the entire mortgage balance you owe on a property, so your lender could demand you pay the difference by filing for a deficiency judgment.  This cannot occur with a assumable loan because the entire loan is transferred to the buyer.

Saves Taxable Income

A short sale requires a seller to report forgiven debt.  The IRS views forgiven debt as taxable income. The larger the canceled debt, the larger the tax bill. While there are some situations were it is not taxable, assuming a loan carries a tax advantage because it does not expose the seller to any financial loss.

Preserves Credit Score

A short sale will lower your credit score significantly. Lenders will report a short sale as an account “not paid as agreed” to credit reporting agencies.  Assuming a loan is a much better recourse because the seller will be released of all liability associated with the loan and property.  This includes their credit liability. (The buyer relieves the seller of their debt obligation to the lender and takes over all remaining payments for the duration of the loan).

Faster Process

Short sales are painfully slow. Lenders have to approve a short sale before it is final. This means an offer from a buyer must first be approved by a lender’s loss mitigation department-This can take anything from a few days to two months, and by then your buyer might no longer be interested.  Assumptions can be completed in less than 30days, because there is minimal paperwork. Finding a buyer willing to take over their existing home loan is easier than you might think.

Short Sales hurt consumers and lenders.  Assumable sales protect them.   Learn more at Takelist.com

 

The seller and buyer can jointly change this at their county clerks office for a small fee.  The document you want to use to change the deed is called a “Quit Claim Deed”.  While its recommended to consult with a property attorney before filing a new deed, you can prepare the document yourself. Sometimes this can vary by state.  Its not hard to  prepare (make) the deed yourself.  This is what a quit claim deed looks like.  Free Legal Form. Copy it exactly.  Bringing a copy of the current property deed or requesting a title search when your get to the county clerks office will help.  They cannot help you prepare the document.
1. What is a deed? A deed is a document that transfers the ownership of real estate. Quit claim deeds are used when property is transferred without an exchange of money.
2. Can I make out my own deed? Yes
3. How can I be sure of this?  This is outlined in your lenders assumption process steps.  Call your lender and ask them to walk you through the assumption process steps.

Know your legal rights!

 

Its about time we correct the underwater mortgage misconception.   Yes, negative equity, or being upside down means  the market value of the home has fallen below the mortgage balance owed.   There is however one misconception to correct about this.  Most believe the person who is buying the home is underwater, but truly it’s the lender who is underwater. How so?   Well consider this. We all know the person who agreed to pay for the property does not truly “own it” till the balance is paid in full. The familiar phrase “The owner owes more than the home is worth” misleads many to be held hostage by the thought, they are in the hole.  But while the home buyer does have a payment term to keep the “owner” in the meantime is THE LENDER.  Facts: The Lender owns the property until the note is paid off.  Otherwise they would have no power over the property.  Buyers who have committed to paying the promissory purchase note should not feel trapped or held hostage by the notion commonly felt in the US.  Another fact is: If the tenant needs to sell the house, instead of taking a beating by the slumping market and short sale strategy,  they can simply have another buyer take over their legal obligation without defaulting on the loan. All FHA and VA mortgages are assumable.   There are many financial benefits to this as well.

There is only one solution thus far for underwater mortgages that, preserves the homeowners credit rating, prevents financial Loss &  gives full release of Liability. Take advantage of Takelist.com

+13 Million home owners are underwater and find it a challenge to get out of their home without either taking a financial loss or damaging their credit.  Instead of allowing foreclosure or short sales as a solution, help home owners take advantage of their existing mortgage terms. FHA, VA & ARM loans are transferable and assumable. Transferring their mortgage with no change in terms releases their liability, preserves their credit rating, and does not expose them to any financial loss.  With minimal time and paperwork Home owners, attorneys and realtors can post their property in our assumable mortgage directory.  Takelist.com is affordable and has hundreds of buyers who visit & shop for properties to take over fast.

Know your rights and get the best legal advice

Principal Balance reduced

July 3rd, 2012

Even if your loan is a Assumable Mortgage, the pricipal balance on your account can be reduced.  The US Treasury Department implemented a program called the “hardest hit fund” in 2010.   The Obama Administration recognized this economy had burried homes so far underwater there was no other way to restore the homeowner without simply writing off the debt.  Struggling with mortgage payments or facing foreclosure can be overwhelming and frightening for homeowners. Especially when you cant sell because the balance is underwater.  To get rid of the negative equity, this is how its being done.  You have to call your lender to start the process and you must live in one of the following states to be eligible:  Alabama, Arizona, California, District of Columbia,Florida, Georgia, Illinois, Kentucky, Michigan, Mississippi, North Carolina, New Jersey, Nevada, Ohio, Oregon, Rhode Island, South Carolina, Tennessee.

Take advantage of Obama’s “America Built To last” plan.  It calls to action any homeowner to simply refinance their home. Since all FHA & VA mortgages are protected by the government, the negative equity can be absorbed by the government. It is not a loan modification. This is only available through a new loan with a different lender. So you must refinance. How does it work? The new bank refinances at the current value amount. The old lender is bailed out of the remaining negative balance, by complying with Obama’s Broad Based Refinance Plan.  Read it directly from the White House press office.   You will be required to homestead the property for 24months.  But, if your heart is set on moving sooner, simply let someone else assume your financing.  The person who assumes the sellers financing therefore inherits all of your efforts. This can be done before you assume a mortgage or after you assume a mortgage. The program is focused on responsible homeowners trying to stay in their homes. Obama says that homeowners who do this will save $3000 a year.  But 70% of homeowners are not aware of it.  Below are the main requirements:

• Borrowers will need to have been current on their loan for the past 6 months and have missed no more than one payment in the 6 months prior.

• They meet a minimum credit score. Borrowers must have a current FICO score of 580 to be eligible. Approximately 9 in 10 borrowers have a credit score adequate to meet that requirement.

• They have a loan that is no larger than the current FHA conforming loan limits in their area: Currently, FHA limits vary geographically with the median area home price – set at $271,050 in lowest cost areas and as high as $729,750 in the highest cost areas

• The loan they are refinancing is for a single family, owner-occupied principal residence.  

It’s the new bail out plan. This time its initiated by the consumer.  Yeah!

Reach your target market

March 9th, 2012

Your assumable property will meet the needs of the average online house hunter.  Why? Assumable properties are typically valued between $100K-$500K. This price point appeals to the largest audience of on-line buyers and accounts for almost 90% of the market.  You can expect good results when you list the home yourself in this case.  If your home however is priced higher than $800K the reality is you may need to utilize a broker. Why? Less than 1% of the nation can afford a property valued above $1 million. In addition, buyers in that income bracket do not normally house hunt online. A real-estate broker would better serve larger efforts. Even the founder of For Sale By Owner could not sell his own $2.15 million apartment himself.  So the simple rule is: List it yourself if the price is less than $500K.  List with a Broker if your price is near or above $1MM.

Your targeted audience is controled by the Price –  Aim at the target !