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 your 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!

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 !

If you have assumed a FHA mortgage and are current on payments, the FHA will refinance the assumed mortgage even if it is “underwater”. There are no appraisals necessary and congress has recently raised the maximum mortgage limit you could have.  Take a look at what the maximum loan amount for your area is @  FHA MAXIMUM LIMITS

Remember, the FHA does not make home loans. They insure them.

Showcase any real estate property that has assumable financing with takelist.com. All leads are free and automated so that Realtors can continue to facilitate the entire sale.

Whether you are the listing agent, or a realtor who would like to represent pre approved buyers, it is easy to upload property details and images.  You will earn full reciprocity of the sale as usual.

 (Step 1) Add the property to our directory. (Step 2) All buyers will be directed to you.

 When a buyer expresses interest

1. Inquire if they have a pre approval letter.

2. Complete a buyer representation agreement.

3. Contact the listing agent to confirm the property is still available.

Homeowners with little or no equity value can free themselves of their mortgage commitment and save their credit rating. How?  FHA and VA loans are assumable! While equity values are declining, the reality is the assumable price may be more attractive to buyers.  A mortgage assumption involves simply finding a willing and able buyer to take on the responsibilities of your current home loan. The buyer will relieve you of your debt obligation to the lender and take over all remaining payment for the duration of the loan. You will be released of all liability associated with the loan and property. This is an easy alternative selling strategy. 

Let someone else take over

Take advantage of your current mortgage terms.  FHA, VA, & ARM loans are assumable mortgages. This allows you to transfer your financing to a buyer with minimum expense and maximum benefits. This technique gives consumers another way out if they have not had success selling the traditional way. It drives down homeowner cost, releases all liability, and has proven to be the most efficient way to sell. 

Finding someone to assume your mortgage payment and property is easier than you might think. Takelist.com is a new online directory resource for assumable mortgages, dedicated to helping sellers and buyers connect directly.

Post your home in their directory so that buyers can find you!

There are several benefits to assuming a mortgage.  By avoiding all Realty, Down Payment, Closing, & Appraisal cost you are not exposed to anything that would normally mark up the price. In addition there are no bidding wars to contend with. You will own the property for the current loan amount, which could be much less than the actual market value. The remaining payments left on the loan will be shorter than the original purchase date. If that is not enough also consider that you will still be eligible for any current Government Tax Credits available.

It even gets better. Most of these loans do not require a down payment. Some lenders may request a small amount to secure the loan, but this cost normally does not exceed $500.00. All you have to do is contact the Seller or lender to see if you qualify for the assumable loan. A credit score of 600 or better increases your potential. Takelist.com shares the sellers information under each posting. Their lenders should be able to walk you through the process step-by-step.

Using the sellers financing has many advantages.

BUYERS

• No Closing Costs

• No Down Payment

• No Appraisal Cost

• Minimal Paperwork

SELLERS

• No Realty Contracts

• No Bidding Wars

• Convenient Signing

A inspection gives the buyer an unbiased review of the overall condition of the home.  While assumable properties do not require an inspection prior to purchase, doing this beforehand does provide protection. The primary objective is to take an in-depth visual examination of the physical condition, structure, equipment, finishes, and mechanical systems. Depending on your location as well as the size of the house a inspection cost on average $300-$400.  But if you really want to save, there are ways to do it yourself. Google “Free home inspection check list”.  You’ll find many forms and tools that will walk you through the process.

The buyer or the bank can transfer the title. Lenders normally complete this automatically at no cost. Otherwise recording it can be done at the county court house for less than $50 in most areas.  What is more important than the “Title” is the “Deed”. Title companies do not hold the Deed to any property, the bank that owns the mortgage does. The deed will not be placed in the owners name until the balance is paid in full and the bank has filed a “satisfaction of mortgage” on the home. 

All deeds are public records.

An important part of the assumption package is the release of liability document. This protects the seller and is available for “All” assumable mortgages.  The Federal Housing Commissioner approved this March 20, 1990. See for yourself here. Without a release of liability the bank might have the right to collect the balance due if the buyer defaults.  To release the seller of their mortgage obligation make sure it is included in the assumption package.