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Wednesday, March 25, 2009
Grants to Make House Payments + Bonus Report!
Wednesday, February 11, 2009
A Guide To House Repossession & Mortgage Arrears
People in today’s society will have differing attitudes to debt and debt repayment. There will always be those individual’s who take a very ‘relaxed’ attitude to debt and debt repayment, however the vast majority will take the matter very seriously and in the case of property ownership, they will take any realistic action to make their mortgage repayments on time. Unfortunately there will always be situations out of the control of even the most conscientious borrower.
Individuals fall into arrears on their mortgage for many different reasons; accident or sickness, redundancy or unemployment, death of a spouse, insolvency or hikes in mortgage interest rates to name just a few. The most common reason for property repossession in current times can be attributed to general high levels of consumer debt. This comes in two forms, secured and unsecured debt. Whether this is due to the borrower making payments on their unsecured debts in priority over their mortgage or a level of mortgage borrowing taken out which their income cannot afford.
But how can a few missed payments on the mortgage lead to property repossession?
Very rarely will a property be repossessed over an isolated incident of a couple of missed payments. The advice given to borrowers who fall behind on their mortgage repayments is to contact their lender at the earliest possible opportunity. Speedy action on the part of the borrower can often reduce the potential arrears and put them on the road to recovery. Delaying action is likely to result in increased mortgage arrears and ultimately could lead to property repossession.
Borrowers have a number of options available to them in the early stages of mortgage arrears. These will include:
* Capitalising the arrears;
* Coming to an agreement with the lender to make good the missed payments over an agreed period of time. This is usually only a viable solution if the borrower can afford to increase the monthly mortgage payments;
* Paying the mortgage on an interest only basis for an agreed period. Of course this will only be an option open to those paying the mortgage on a repayment basis. This method is viewed as an immediate short term solution to relieve the immediate pressure as the arrears will still be outstanding;
* Increasing the term of the mortgage. This will take the effect of reducing the monthly payments, thus making them more affordable;
* Downsizing to a cheaper property. This could allow the borrower to use the cash raised to settle the arrears. This of course is not always a viable option as it is dependant on the seller finding a buyer for the property and so on;
* Surrendering an investment policy – such as an endowment or an ISA attached to the mortgage. Surrendering such policies will usually result in a significant loss to the investor as very rarely will he or she receive the full value of the policy. Consideration must then be given as to how the mortgage will be repaid at the end of the term with no repayment vehicle;
But what happens if an agreement with a lender cannot be made, or a solution found to clearing the arrears?
Handing back the keys to the lender is rarely a good idea. The borrower will still be responsible for paying the mortgage until the lender has sold the property. This will lead to more arrears and arrears charges being made. It must also be understood that prices obtained for repossessed properties will usually less than the market value – The lenders primary aim in this case is to sell the property as quickly as possible in order to recoup their funds.
If an arrangement is not made and the arrears situation escalates then it is highly likely that the lender will seek a legal remedy through the County Courts. The borrower will first be notified of this through a letter from the lender’s solicitor.
In order for the lender to take possession of a property, it is first necessary to petition the County Court for a possession order. The borrower will usually receive a court date for the hearing. Before the County Court will even consider granting a possession order it first has to be satisfied that every avenue has been explored by the lender and borrower. The County Court will take the view that possession should be the very last resort.
The County Court may take one of three course of action:
* It can grant an outright possession order. This will enable the lender to take possession of the property which will usually happen within 28 days;
* It can grant a suspended possession order. This will place an obligation on the borrower to make payments in accordance with the court’s decision, with the suspended possession order enforceable if the borrower fails to keep up the repayments.
* It can adjourn the case until a later time.
Once a possession order has been granted the court will also decide a date on which this order is enforceable. The lender can then take steps to take possession of the property.
Once the lender has obtained vacant possession of the property, they will then follow there possession procedures which will include; changing the locks, disconnecting utility services, taking gas and electric meters and informing the local police of the possession.
Even after the property repossession, the borrower can still redeem the mortgage up until the point of sale. This can sometimes happen if the borrower has been organising a remortgage during this process.
In the event of the lender losing money on the proceeds of the sale, it may take further action if it believes the borrower has the financial means to make good the loss.
Individuals fall into arrears on their mortgage for many different reasons; accident or sickness, redundancy or unemployment, death of a spouse, insolvency or hikes in mortgage interest rates to name just a few. The most common reason for property repossession in current times can be attributed to general high levels of consumer debt. This comes in two forms, secured and unsecured debt. Whether this is due to the borrower making payments on their unsecured debts in priority over their mortgage or a level of mortgage borrowing taken out which their income cannot afford.
But how can a few missed payments on the mortgage lead to property repossession?
Very rarely will a property be repossessed over an isolated incident of a couple of missed payments. The advice given to borrowers who fall behind on their mortgage repayments is to contact their lender at the earliest possible opportunity. Speedy action on the part of the borrower can often reduce the potential arrears and put them on the road to recovery. Delaying action is likely to result in increased mortgage arrears and ultimately could lead to property repossession.
Borrowers have a number of options available to them in the early stages of mortgage arrears. These will include:
* Capitalising the arrears;
* Coming to an agreement with the lender to make good the missed payments over an agreed period of time. This is usually only a viable solution if the borrower can afford to increase the monthly mortgage payments;
* Paying the mortgage on an interest only basis for an agreed period. Of course this will only be an option open to those paying the mortgage on a repayment basis. This method is viewed as an immediate short term solution to relieve the immediate pressure as the arrears will still be outstanding;
* Increasing the term of the mortgage. This will take the effect of reducing the monthly payments, thus making them more affordable;
* Downsizing to a cheaper property. This could allow the borrower to use the cash raised to settle the arrears. This of course is not always a viable option as it is dependant on the seller finding a buyer for the property and so on;
* Surrendering an investment policy – such as an endowment or an ISA attached to the mortgage. Surrendering such policies will usually result in a significant loss to the investor as very rarely will he or she receive the full value of the policy. Consideration must then be given as to how the mortgage will be repaid at the end of the term with no repayment vehicle;
But what happens if an agreement with a lender cannot be made, or a solution found to clearing the arrears?
Handing back the keys to the lender is rarely a good idea. The borrower will still be responsible for paying the mortgage until the lender has sold the property. This will lead to more arrears and arrears charges being made. It must also be understood that prices obtained for repossessed properties will usually less than the market value – The lenders primary aim in this case is to sell the property as quickly as possible in order to recoup their funds.
If an arrangement is not made and the arrears situation escalates then it is highly likely that the lender will seek a legal remedy through the County Courts. The borrower will first be notified of this through a letter from the lender’s solicitor.
In order for the lender to take possession of a property, it is first necessary to petition the County Court for a possession order. The borrower will usually receive a court date for the hearing. Before the County Court will even consider granting a possession order it first has to be satisfied that every avenue has been explored by the lender and borrower. The County Court will take the view that possession should be the very last resort.
The County Court may take one of three course of action:
* It can grant an outright possession order. This will enable the lender to take possession of the property which will usually happen within 28 days;
* It can grant a suspended possession order. This will place an obligation on the borrower to make payments in accordance with the court’s decision, with the suspended possession order enforceable if the borrower fails to keep up the repayments.
* It can adjourn the case until a later time.
Once a possession order has been granted the court will also decide a date on which this order is enforceable. The lender can then take steps to take possession of the property.
Once the lender has obtained vacant possession of the property, they will then follow there possession procedures which will include; changing the locks, disconnecting utility services, taking gas and electric meters and informing the local police of the possession.
Even after the property repossession, the borrower can still redeem the mortgage up until the point of sale. This can sometimes happen if the borrower has been organising a remortgage during this process.
In the event of the lender losing money on the proceeds of the sale, it may take further action if it believes the borrower has the financial means to make good the loss.
5 Things You May Be Surprised To Know That Help You Get Approved Or A Lower Rate For A Mortgage Loan
Buy Life Insurance - Although life insurance is not a requirement for most mortgage lenders, it is definitely something that many lenders will take into consideration when evaluating your mortgage application. By demonstrating that you have enough life insurance to cover the mortgage, there is a higher likelihood that they will approve your application, because they know there is less of a chance they’ll have to go through the difficult process of handling your mortgage if you were to suddenly pass away.
Don't Close Any Accounts During the Mortgage Process - Since lenders are evaluating your present financial situation, the closing or canceling of any existing accounts, regardless of balance, may trigger a red flag with the lender. If you want to close any accounts or cancel any contracts, do this either before or after the mortgage application has been approved.
Request That Credit Bureaus DO NOT Accept Unauthorized Credit Checks - If you’re like many average Americans, you receive countless “pre-approved” credit card solicitations and loan ads in your mailbox every day. This is because these companies have software that scans consumer credit reports based on criteria that they feel will result in a list of good potential new customers. Although these inquiries may not directly lower your credit score, it does show up when a mortgage company pulls a copy of your report. Your best option is to prevent these companies from accessing your credit report altogether.
Don't Move Your Money From One Bank Account To Another - Any transfer of money from one account to another generates a paper trail that will require further explanation when the mortgage company receives copies of your account statements. Even if the transfers are within your own accounts, try to avoid moving the money if at all possible. This is especially true when moving money from a savings account to a checking account because it may appear to the lender that you’re preparing to use that money.
Avoid Using “Credit Repair” Services - Many people with credit that is less than perfect are attracted to organizations that offer to fix your credit in record time and improve your overall score. This is not always the case. When lenders see on your credit report that you are working with a consumer debt counseling company they actually look less favorably upon such notations. To the lender, the only way to interpret this information is to assume the borrower cannot pay the existing bills, therefore how could they possibly afford a mortgage payment? Your best bet is to work directly with the credit card or loan companies to arrange a repayment plan.
Don't Close Any Accounts During the Mortgage Process - Since lenders are evaluating your present financial situation, the closing or canceling of any existing accounts, regardless of balance, may trigger a red flag with the lender. If you want to close any accounts or cancel any contracts, do this either before or after the mortgage application has been approved.
Request That Credit Bureaus DO NOT Accept Unauthorized Credit Checks - If you’re like many average Americans, you receive countless “pre-approved” credit card solicitations and loan ads in your mailbox every day. This is because these companies have software that scans consumer credit reports based on criteria that they feel will result in a list of good potential new customers. Although these inquiries may not directly lower your credit score, it does show up when a mortgage company pulls a copy of your report. Your best option is to prevent these companies from accessing your credit report altogether.
Don't Move Your Money From One Bank Account To Another - Any transfer of money from one account to another generates a paper trail that will require further explanation when the mortgage company receives copies of your account statements. Even if the transfers are within your own accounts, try to avoid moving the money if at all possible. This is especially true when moving money from a savings account to a checking account because it may appear to the lender that you’re preparing to use that money.
Avoid Using “Credit Repair” Services - Many people with credit that is less than perfect are attracted to organizations that offer to fix your credit in record time and improve your overall score. This is not always the case. When lenders see on your credit report that you are working with a consumer debt counseling company they actually look less favorably upon such notations. To the lender, the only way to interpret this information is to assume the borrower cannot pay the existing bills, therefore how could they possibly afford a mortgage payment? Your best bet is to work directly with the credit card or loan companies to arrange a repayment plan.
Sunday, February 8, 2009
Understanding How a Buyer's Agent Can Help You
When purchasing a home, most people will have an opportunity to interact with one or more real estate sales people (often referred to as real estate agents or "realtors"). It is very important for a home buyer to understand the roles and responsibilities of a real estate sales person, especially who they represent in the real estate transaction. This article provides a brief overview of "typical" representation in a real estate transaction, and describes a buyer's agent and the valuable contributions that they can make helping a home buyer to purchase a home.
A real estate sales person acts as an "agent" for one or more of the parties (buyer and/or seller) in a real estate transaction. An agent is an individual who works on behalf of another individual. Under the law of agency, which governs client/agent relationships, an individual acting as an agent for another individual must work to protect the "best interests" of their client (the person for whom they are acting as an agent). They are said to have a "fiduciary" responsibility to their client.
Typically in a real estate transaction, a real estate agent will obtain a listing from the seller of a home. The realtor and seller enter into a listing agreement whereby the realtor agrees to act as the agent for the home seller to help them to sell their home (listing their home in a listing service, marketing their home, holding open houses, showing their home etc.). This realtor is often referred to as the listing agent, listing realtor, or listing broker. In the listing agreement the home seller agrees to pay the listing agent for their services, typically a percentage of the selling price of the home. Since the listing agent often is not the individual to actually sell a home, the home seller also typically agrees to pay the agent who actually sells their home (the selling agent) for their services, also typically a percentage of the selling price of the home.
It is important for a home buyer to understand, that in the absence of any disclosure to the contrary, the listing agent acts as an agent of the home seller. The selling agent acts as a sub-agent to the listing agent. This means that both the listing and the selling agent are working for, and looking after the best interests of the home seller. Many buyers mistakenly assume they are being represented by the real estate agent who is showing them homes, when in fact that individual is usually working for the home seller. For this reason, many states require by law that real estate sales people disclose who they are working for to all parties to a real estate transaction at the beginning of any relationship. The National Association of Realtors (NAR) also requires in their "Code of Ethics" that realtors disclose who they are working for at the first meeting between a realtor and a seller or buyer.
Many home purchasers are not happy with the typical "arrangement" whereby real estate agents are representing the seller, and they are left to represent themselves. Many home buyers prefer to have a trained, experienced real estate professional representing them in their real estate transactions. It is for this reason that many home buyers choose to hire a buyer's agent (also referred to as a buyer's broker or buyer's representative). A buyer's agent is an individual who is hired by a home buyer to represent them in a real estate transaction. Similar to a home seller, a buyer typically enters into a contract with the buyer's agent. The contract should stipulate what services the buyers agent will provide, and what compensation the home buyer will give to the buyer's agent if they successfully help them to purchase a home. Buyer's agent compensation is typically a percentage of a home selling price. Buyer's agent contracts typically have a term and provisions for how either party (the buyer or the real estate agent) can sever the contract.
A buyer's agent acts as the agent for the buyer in a real estate transaction. Services that they provide include:
Understanding a buyer's home buying needs and desires.
Helping buyers to understand what they can comfortably afford.
Researching and helping to locate suitable homes in the appropriate communities that meet their buyer's needs.
Answering questions about homes, communities, the home buying process, and more.
Helping a buyer to understand if a prospective home is fairly priced and helping them to formulate an offer for a home.
Filling out all of the appropriate purchase offer documents and presenting them to the selling agent and home seller.
Helping the buyer with negotiations or negotiating on behalf of the buyer.
Providing lists of qualified individuals for other services needed such as attorneys, and home inspection services.
Facilitating the flow of contracts between seller and buyer attorneys.
Assisting the buyer in obtaining financing for their home purchase.
A buyer's agent should not, however, provide advice on matters for which they have no training or expertise. They should not, for example, be providing legal advice. Buyers should work with qualified attorneys for legal advice. Buyer's brokers can, however, assist a buyer in finding an appropriate attorney.
For their services, a buyer's agent is compensated by the buyer. What typically happens in practice, however, is that the buyer and buyer's agent will build into the offer a provision for the seller to provide the compensation to the buyer's agent. Remember that a typical seller has already agreed to pay a selling agent commission when they entered into a listing contract. That means that there is typically money available to compensate the buyer's agent for their efforts on behalf of the buyer. If the seller has made available less money than the buyer's agent is entitled to by contract with the buyer, then one of several things can happen:
The seller can agree as part of the negotiations to pay the discrepancy in order to sell their home.
The buyer pays the additional amount out of their own pocket.
The buyer's agent agrees to accept less compensation than was originally agreed to to allow the transaction to go through.
Dual Agency, A Special Condition
A special condition can sometimes arise where a real estate agent is contractually obligated to both parties in a real estate transaction, as would be the case of a buyer's agent showing one of their own listings. In this case "dual agency" is said to exist. The real estate agent is an agent to both parties. When this condition arises, a realtor should disclose the dual agency condition and obtain consent from both buyer and seller that they accept this condition. In many states, failure to disclose dual agency is a violation of the law for which a real estate agent can lose their license, be fined, and potentially receive a jail sentence. In a dual agency condition, the real estate agent acts as a neutral third party, not representing the interests of either party, but simply facilitating the transaction. Many consumer advocates are not happy with such arrangements because nobody is looking after the best interests of the consumers, in this case the buyer and the seller.
Conclusion
Buyer's agents serve a very useful purpose helping to protect the interests of real estate buyers in real estate transactions. Individuals seeking to purchase a home who do not have a lot of experience with real estate should seriously consider hiring a buyer's agent to represent them, and help them through the process, negotiations, and real estate transaction.
REALTOR® is a trademark of the NATIONAL ASSOCIATION OF REALTORS®.
A real estate sales person acts as an "agent" for one or more of the parties (buyer and/or seller) in a real estate transaction. An agent is an individual who works on behalf of another individual. Under the law of agency, which governs client/agent relationships, an individual acting as an agent for another individual must work to protect the "best interests" of their client (the person for whom they are acting as an agent). They are said to have a "fiduciary" responsibility to their client.
Typically in a real estate transaction, a real estate agent will obtain a listing from the seller of a home. The realtor and seller enter into a listing agreement whereby the realtor agrees to act as the agent for the home seller to help them to sell their home (listing their home in a listing service, marketing their home, holding open houses, showing their home etc.). This realtor is often referred to as the listing agent, listing realtor, or listing broker. In the listing agreement the home seller agrees to pay the listing agent for their services, typically a percentage of the selling price of the home. Since the listing agent often is not the individual to actually sell a home, the home seller also typically agrees to pay the agent who actually sells their home (the selling agent) for their services, also typically a percentage of the selling price of the home.
It is important for a home buyer to understand, that in the absence of any disclosure to the contrary, the listing agent acts as an agent of the home seller. The selling agent acts as a sub-agent to the listing agent. This means that both the listing and the selling agent are working for, and looking after the best interests of the home seller. Many buyers mistakenly assume they are being represented by the real estate agent who is showing them homes, when in fact that individual is usually working for the home seller. For this reason, many states require by law that real estate sales people disclose who they are working for to all parties to a real estate transaction at the beginning of any relationship. The National Association of Realtors (NAR) also requires in their "Code of Ethics" that realtors disclose who they are working for at the first meeting between a realtor and a seller or buyer.
Many home purchasers are not happy with the typical "arrangement" whereby real estate agents are representing the seller, and they are left to represent themselves. Many home buyers prefer to have a trained, experienced real estate professional representing them in their real estate transactions. It is for this reason that many home buyers choose to hire a buyer's agent (also referred to as a buyer's broker or buyer's representative). A buyer's agent is an individual who is hired by a home buyer to represent them in a real estate transaction. Similar to a home seller, a buyer typically enters into a contract with the buyer's agent. The contract should stipulate what services the buyers agent will provide, and what compensation the home buyer will give to the buyer's agent if they successfully help them to purchase a home. Buyer's agent compensation is typically a percentage of a home selling price. Buyer's agent contracts typically have a term and provisions for how either party (the buyer or the real estate agent) can sever the contract.
A buyer's agent acts as the agent for the buyer in a real estate transaction. Services that they provide include:
Understanding a buyer's home buying needs and desires.
Helping buyers to understand what they can comfortably afford.
Researching and helping to locate suitable homes in the appropriate communities that meet their buyer's needs.
Answering questions about homes, communities, the home buying process, and more.
Helping a buyer to understand if a prospective home is fairly priced and helping them to formulate an offer for a home.
Filling out all of the appropriate purchase offer documents and presenting them to the selling agent and home seller.
Helping the buyer with negotiations or negotiating on behalf of the buyer.
Providing lists of qualified individuals for other services needed such as attorneys, and home inspection services.
Facilitating the flow of contracts between seller and buyer attorneys.
Assisting the buyer in obtaining financing for their home purchase.
A buyer's agent should not, however, provide advice on matters for which they have no training or expertise. They should not, for example, be providing legal advice. Buyers should work with qualified attorneys for legal advice. Buyer's brokers can, however, assist a buyer in finding an appropriate attorney.
For their services, a buyer's agent is compensated by the buyer. What typically happens in practice, however, is that the buyer and buyer's agent will build into the offer a provision for the seller to provide the compensation to the buyer's agent. Remember that a typical seller has already agreed to pay a selling agent commission when they entered into a listing contract. That means that there is typically money available to compensate the buyer's agent for their efforts on behalf of the buyer. If the seller has made available less money than the buyer's agent is entitled to by contract with the buyer, then one of several things can happen:
The seller can agree as part of the negotiations to pay the discrepancy in order to sell their home.
The buyer pays the additional amount out of their own pocket.
The buyer's agent agrees to accept less compensation than was originally agreed to to allow the transaction to go through.
Dual Agency, A Special Condition
A special condition can sometimes arise where a real estate agent is contractually obligated to both parties in a real estate transaction, as would be the case of a buyer's agent showing one of their own listings. In this case "dual agency" is said to exist. The real estate agent is an agent to both parties. When this condition arises, a realtor should disclose the dual agency condition and obtain consent from both buyer and seller that they accept this condition. In many states, failure to disclose dual agency is a violation of the law for which a real estate agent can lose their license, be fined, and potentially receive a jail sentence. In a dual agency condition, the real estate agent acts as a neutral third party, not representing the interests of either party, but simply facilitating the transaction. Many consumer advocates are not happy with such arrangements because nobody is looking after the best interests of the consumers, in this case the buyer and the seller.
Conclusion
Buyer's agents serve a very useful purpose helping to protect the interests of real estate buyers in real estate transactions. Individuals seeking to purchase a home who do not have a lot of experience with real estate should seriously consider hiring a buyer's agent to represent them, and help them through the process, negotiations, and real estate transaction.
REALTOR® is a trademark of the NATIONAL ASSOCIATION OF REALTORS®.
The Most Important Form in Real Estate
Those who are involved in real estate are aware that the process of transferring ownership of properties is a very sensitive matter. From the time the home owners decide to sell the house to the time you relinquish the keys to new owners, expect every step of the process to be recorded and formalized through the use of various real estate forms.
However, of all the forms home sellers will encounter, nothing will give them greater joy than the much anticipated “offer to purchase real estate form”. Once home sellers receive an “offer to purchase” form, it means that they one of the several buyers whom they have entertained through phone or met during one of the open house events, is seriously considering to buy the property.
The offer to purchase form is very important, not just because it could signify the start of a sale, but also because this piece of paper will have a marked effect on the lifestyle of the buyer and the seller. The offer to purchase will indicate the price which the buyer is willing to pay for the property, and will also outline how the money will be paid. The proposed down payment, deadline for payment of the balance, the method of payment (cash, bank cheque, bank transfer) and deadline of payment are but a few of the details that should be indicated in an offer to purchase form.
The details included in the offer to purchase form are not yet final. The seller, if he is not particularly pleased about the details indicated, can present their own counter offer, for the buyer’s approval. The process of sending counter offers will continue until both parties reach a compromise, or find a middle ground where both are happy and satisfied.
Though individual home buyers can opt to prepare their own offers to purchase documents, it is best that they consult with a real estate lawyer or real estate agent first, in order to verify if the format and contents conform to state or federal standards. Another option that can be taken is to use the ready-made offer to purchase forms which can be purchased or downloaded from the internet.
The ready to use offer to purchase forms are as good as those prepared by lawyers or agents. These contain all the information that are vital in the purchase transactions and follow the standard formats of traditional documents. If a particular state has a specific offer to purchase format, there are state-specific forms that can be obtained from the internet as well. Offer to purchase real estate forms can be purchased per piece or as part of a complete set. The choice on whether or not the full set or individual pieces are to be downloaded will depend on the user.
Incidentally, all counter proposals to the first offer to purchase should be recorded and attached to the first document presented to the home seller. These supplemental documents will serve as additional support and will form part of the final purchase contract.
However, of all the forms home sellers will encounter, nothing will give them greater joy than the much anticipated “offer to purchase real estate form”. Once home sellers receive an “offer to purchase” form, it means that they one of the several buyers whom they have entertained through phone or met during one of the open house events, is seriously considering to buy the property.
The offer to purchase form is very important, not just because it could signify the start of a sale, but also because this piece of paper will have a marked effect on the lifestyle of the buyer and the seller. The offer to purchase will indicate the price which the buyer is willing to pay for the property, and will also outline how the money will be paid. The proposed down payment, deadline for payment of the balance, the method of payment (cash, bank cheque, bank transfer) and deadline of payment are but a few of the details that should be indicated in an offer to purchase form.
The details included in the offer to purchase form are not yet final. The seller, if he is not particularly pleased about the details indicated, can present their own counter offer, for the buyer’s approval. The process of sending counter offers will continue until both parties reach a compromise, or find a middle ground where both are happy and satisfied.
Though individual home buyers can opt to prepare their own offers to purchase documents, it is best that they consult with a real estate lawyer or real estate agent first, in order to verify if the format and contents conform to state or federal standards. Another option that can be taken is to use the ready-made offer to purchase forms which can be purchased or downloaded from the internet.
The ready to use offer to purchase forms are as good as those prepared by lawyers or agents. These contain all the information that are vital in the purchase transactions and follow the standard formats of traditional documents. If a particular state has a specific offer to purchase format, there are state-specific forms that can be obtained from the internet as well. Offer to purchase real estate forms can be purchased per piece or as part of a complete set. The choice on whether or not the full set or individual pieces are to be downloaded will depend on the user.
Incidentally, all counter proposals to the first offer to purchase should be recorded and attached to the first document presented to the home seller. These supplemental documents will serve as additional support and will form part of the final purchase contract.
State Real Estate Auctions - Tips for Buyers
State real estate auctions sell off real property that has been seized, abandoned, or forfeited. The Department of Treasury has been designated as the state department to handle such auctions. Typically, they conduct 100 auctions a year.
The funds obtained at state real estate auctions help support local and state police and other areas of the city. The placement of a successful bid at a Department of the Treasury auction establishes a legally binding contract between the successful bidder and the Government.
Here are some basic rules and policies:
To be eligible to bid you must be 18 years of age and not an employee of the state.
You cannot be the contractor, subcontractor or vendor or their agent who has access to information about the property.
A bidder registration form must be submitted for approval. If bidding for someone else, the form must be notarized.
Buyer is to inspect property prior to placing a bid.
Changes may be made on the day of the sale.
The Government reserves the right to withdraw from sale any of the property listed.
The buyer understands the property is sold on the “AS IS” basis.
A lot of rules and regulations govern state real estate auctions, and it is wise if you take the time to research them prior to attempting to attend. Each registered bidder will be issued a bidding number. This is your lifeline to what is important on that day. Don't lose it.
Most importantly enjoy yourself at a state auction. The properties auctioned off are very valuable and should bring you a good return.
The funds obtained at state real estate auctions help support local and state police and other areas of the city. The placement of a successful bid at a Department of the Treasury auction establishes a legally binding contract between the successful bidder and the Government.
Here are some basic rules and policies:
To be eligible to bid you must be 18 years of age and not an employee of the state.
You cannot be the contractor, subcontractor or vendor or their agent who has access to information about the property.
A bidder registration form must be submitted for approval. If bidding for someone else, the form must be notarized.
Buyer is to inspect property prior to placing a bid.
Changes may be made on the day of the sale.
The Government reserves the right to withdraw from sale any of the property listed.
The buyer understands the property is sold on the “AS IS” basis.
A lot of rules and regulations govern state real estate auctions, and it is wise if you take the time to research them prior to attempting to attend. Each registered bidder will be issued a bidding number. This is your lifeline to what is important on that day. Don't lose it.
Most importantly enjoy yourself at a state auction. The properties auctioned off are very valuable and should bring you a good return.
How Appraisals and Assessments Differ
Many people think appraisals and assessments are the same thing or at least that they should be for the same amount. The truth is they can vary greatly. Let’s look at each of them.
Appraisals
An appraisal is an estimate of market value. An appraiser can use many methods for coming up with this estimate. For income producing property, the appraiser may capitalize the value of the income stream. (It would take “x” dollars of capital invested at a “y” rate of return to produce an income equal to the rental income generated by this property.) For other properties, an appraiser may use “replacement value.” (It would cost “x” dollars to build this structure if it were being built today.)
Appraisers usually use “comparable sales” when evaluating the market value of a home. They look at nearby properties with similar characteristics, which have sold in the recent past to see at what price they sold. They typically give the most weight to the property they deem to be most like the property they are appraising.
Buyers and sellers generally encounter appraisals when the buyer’s lender has an appraiser make an evaluation of the market value of the property being sold. The lender wants to be sure of the value of the collateral for the loan. An interesting feature that comes into play in this situation is that one indication of value is at what price two unrelated parties will agree to buy and sell the same property. In other words, what is the contract price the seller and buyer of this property agreed on (if they are not relatives).
Assessments
An assessment is the value your local government puts on your property for the purpose of taxing it. How this value is derived varies from jurisdiction to jurisdiction. Some communities say the value is the same as market value. Some say the value is a percentage of market value. Some appear to actually do what they say they do, and some do not.
I was once a partner in an investment property that we were offering for sale at the time the county re-assessed it. Imagine my annoyance when the assessment came in at one hundred and forty percent of the offer price. We weren’t dummies. The partners were real estate professionals. I appealed the re-assessment, but my appeal was turned down. I offered to sell the property at the assessed price to the appraiser the county had hired to handle the appeals when he was telling me why he could not reduce our assessment. He did not take me up on my offer. Our property sold at the listed price months later. We had paid six months’ taxes on the property at a higher than market value.
On another occasion I helped some elderly people sell a farm they’d lived in all their adult lives. The farm sold for a price a great deal higher than the value at which it had been assessed.
I believe the two examples are fairly typical. Many jurisdictions will “puff up” assessments for businesses and investors and “low ball” assessments for people who have lived in their homes for a long time. Sometimes there are formulas for doing this. “Land use” is one such concept, i.e., the property is taxed at its value as a farm and the fact that it is ripe for dense residential and commercial development is ignored or deferred. Sometimes there are no formulas. It is just done.
For these reasons, it is usually not a good idea to put too much credence in the assessed value of a property when you are trying to figure out market value. They may be the same. They may be vastly different.
Appraisals
An appraisal is an estimate of market value. An appraiser can use many methods for coming up with this estimate. For income producing property, the appraiser may capitalize the value of the income stream. (It would take “x” dollars of capital invested at a “y” rate of return to produce an income equal to the rental income generated by this property.) For other properties, an appraiser may use “replacement value.” (It would cost “x” dollars to build this structure if it were being built today.)
Appraisers usually use “comparable sales” when evaluating the market value of a home. They look at nearby properties with similar characteristics, which have sold in the recent past to see at what price they sold. They typically give the most weight to the property they deem to be most like the property they are appraising.
Buyers and sellers generally encounter appraisals when the buyer’s lender has an appraiser make an evaluation of the market value of the property being sold. The lender wants to be sure of the value of the collateral for the loan. An interesting feature that comes into play in this situation is that one indication of value is at what price two unrelated parties will agree to buy and sell the same property. In other words, what is the contract price the seller and buyer of this property agreed on (if they are not relatives).
Assessments
An assessment is the value your local government puts on your property for the purpose of taxing it. How this value is derived varies from jurisdiction to jurisdiction. Some communities say the value is the same as market value. Some say the value is a percentage of market value. Some appear to actually do what they say they do, and some do not.
I was once a partner in an investment property that we were offering for sale at the time the county re-assessed it. Imagine my annoyance when the assessment came in at one hundred and forty percent of the offer price. We weren’t dummies. The partners were real estate professionals. I appealed the re-assessment, but my appeal was turned down. I offered to sell the property at the assessed price to the appraiser the county had hired to handle the appeals when he was telling me why he could not reduce our assessment. He did not take me up on my offer. Our property sold at the listed price months later. We had paid six months’ taxes on the property at a higher than market value.
On another occasion I helped some elderly people sell a farm they’d lived in all their adult lives. The farm sold for a price a great deal higher than the value at which it had been assessed.
I believe the two examples are fairly typical. Many jurisdictions will “puff up” assessments for businesses and investors and “low ball” assessments for people who have lived in their homes for a long time. Sometimes there are formulas for doing this. “Land use” is one such concept, i.e., the property is taxed at its value as a farm and the fact that it is ripe for dense residential and commercial development is ignored or deferred. Sometimes there are no formulas. It is just done.
For these reasons, it is usually not a good idea to put too much credence in the assessed value of a property when you are trying to figure out market value. They may be the same. They may be vastly different.
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