Posts Tagged mortgage
Real Estate Tip – Read And Understand The Contract Before Signing
There has been a growing trend nowadays when it comes to home owners who buy houses and paying it on a monthly mortgage. They do not understand the contract quite fully. All they do is simply sign up the contract, give the money and viola! It’s all done.
The truth of the matter is there lays the difference. Yes, it is a fact that not all of us can afford to buy a house in cash. Most of us will be paying it through bank financing or other methods which is other than paying in cash. This is understandable. But there is a thin line of being out of debt (mortgage) and sinking in debt forever.
To give you a clear example, there are two kinds of interests on a house mortgage. The fix interest rate which is fix all through out the term and the floating interest rate that would change over a period of time. Say for instance, in a contract it will state that you will be paying the mortgage about $1,000 monthly, with a rate of 8% fixed. Or you will be paying $1,000 monthly on the first 2 years interest rate of 5% per annum, and $1,500 for the 3rd and 4th year at 7% per annum, etc.
As you can see with the floating interest, it would be best that you can pay the mortgage for the first 2 years in order not to pay much money in the long run. Since most of the cases, interest rates do increase as the years increase also. Another thing you must check also, the rate when you incur delay. Is it 4% or 8% for the defaulted monthly payment? So for $1,000, which you have defaulted, you have to add on $40 as part of the penalty. Therefore, you are paying a total of $1,040 which the $40 will be applied to the penalty not to the principal amount.
Tags: annum, bank financing, interest rate, interest rates, mortgage, much money, period of time, real estate, thin line, truth of the matter, two kinds, viola, witRelated posts
Why to Use Pre-Notice of Default Mortgage Leads
Pre-Notice of Default leads, also known as Pre-Foreclosure leads, are a very effective tool for finding motivated sellers for a few reasons. First let’s talk about the difference between a Pre-Notice of Default lead (Pre-NOD lead) and a Notice of Default (NOD) lead.
An NOD lead is someone who is being foreclosed upon. The specific foreclosure process varies from state to state, but the general process is that the bank will file papers with the county, and this information becomes public record. Since NOD’s are public record, there will be lots of investors contacting this homeowner to try to buy the house before it goes to auction.
Pre-NOD’s are people who are 30, 60 or 90 days late on a mortgage. These are people who may have recently had a life-changing event such as being laid off from a job or getting divorced. Others are people who simply over extended themselves when they purchased a residence. These are people who are late on their payments, but are not yet in foreclosure. This means the information is not yet public knowledge and investors using this list will have a lot less competition for the property than they would have with an NOD list.
People who are late on their mortgage and do not have the funds to bring it current typically have few options on what to do. They could declare bankruptcy or they could let their house be foreclosed upon. Another, and usually the most attractive option to the homeowner, is to sell the house before it gets into foreclosure and is auctioned off. Many people on a Pre-NOD lead list will understand their situation and that selling their house before it goes to foreclosure is the option that gives them the most control over how things are handled and limits the impact on their credit.
Tags: attractive option, bankruptcy, finding motivated sellers, foreclosure, investors, job, mortgage, nod, notice of default, public knowledge, public recordRelated posts