Home Mortgage and Refinancing

What Are the Important Terms in a Lease Purchase Contract

Mortgage Maven — Wed, 18 Apr 2012 12:37:05 +0000

There are a number of potential home buyers who are very interested in a lease purchase home credit. Since it is much harder to qualify for a mortgage loan due to the tough loan requirements set by the banks and mortgage companies, it is only natural for potential home buyers to look for other methods of home financing and lease purchase home credit is one of the best options. Today, there are even realty companies, OwnerWiz included, which provide huge listings of rent-to-own homes for potential buyers. This type of home financing is a lease agreement where the buyer and the seller agree to an option that provides the buyer the right to purchase the property during a specified period of time.

However, before entering into an agreement, the potential buyer must first understand what the lease purchase contract is all about and the important features and terms that they need to look out for. Among the many key features that the potential home buyer must take a good look at is the lease option fee. The option fee is the cost of the option to purchase the property. This fee is usually between 1% and 5% of the agreed purchase price. Another key factor to consider is the rental period in which the contract is valid. Lease purchase home credit usually lasts for 12 months to 36 months. During this period, the buyer can lease the property and purchase it at the end of the period. Another feature that buyers must take into account is the monthly rental premium. This is the credit that will go toward the purchase price of the property if they buy the house. The rental premium is usually 10% to 15% of the monthly rent. Real estate companies like OwnerWiz can help buyers understand this option better.

It is vital for potential buyers to look for rent-to-own properties from reliable realty companies such as OwnerWiz. This will help them find lease purchase homes and contracts that are according to their needs and preferences.

Rent-to-Own Home Option: Alternative Solution to Buying a Property

Mortgage Maven — Tue, 17 Apr 2012 08:24:06 +0000

It is undeniable that real estate properties are becoming more and more expensive. Despite the economic instability, these properties are still increasing in value. For these reasons, a lot of potential home buyers are finding it difficult to find the finances to purchase the property they are interested in. A lot of home buyers are experiencing difficulties in acquiring mortgage loans and bank financing because banks and companies are making it difficult for them. For instance, there are lenders who are asking buyers to put up around 30% of the purchase price to acquire a mortgage aside from the traditional 20%. For these reasons, a lot of sellers and buyers are looking into alternative solutions to selling and buying a property. It is fortunate that there are realities like OwnerWiz who are offering rent-to-own home options for both sellers and buyers.

A rent-to-own house purchase is a lease agreement that gives the renter the option to purchase the property within a specific period. The set period can be within 3 years or less. If the lease option agreement is properly drafted, it can be a very effective method of enabling the renter to buy the property. This option is also a great alternative for those who are having a hard time looking for financing or coming up with down payments. This option allows the buyer to build their income and have sufficient credit score as they rent the house. Home buyers can look for rent-to-own homes from realties like OwnerWiz.

This option works similarly like a car lease where the renter pays for a certain amount of rent and rental premium each month and at the end of the set period, they have the option to buy the house. Renters have to pay for an option fee and a rent premium which are credited to the purchase price of the property.

Rent-to-own home option is an excellent alternative solution for those home buyers who are unable to get bank financing and mortgage loans. There are realties like OwnerWiz that have huge inventories of rent-to-own homes.

Rent-to-Own Home Credit: Solution to a Denied Mortgage Application

Mortgage Maven — Tue, 17 Apr 2012 04:07:06 +0000

Today, real estate industries across the country are suffering. This is due to the current economic conditions. A lot of home buyers do not have a huge cash down payment thus they are looking for home financing options that can help them get a property without the immediate need for cash payments. One of the most popular home financing option is getting a mortgage loan or home loan. However, banks and mortgage companies have raised their standards and loan qualifications thus making it harder for potential buyers to get the mortgage loan and home loan they need. A lot of potential buyers also get a denied mortgage application due to different reasons. For this reason, it is only natural to seek alternative solutions. The rent-to-own home credit is one of the options that are now gaining popularity in the real estate market. Due to its rising popularity, there are more and more rent-to-own homes in real estate companies including OwnerWiz.

A rent-to-own home credit option is now more preferable than to apply for a mortgage loan outright. Since a lot of potential buyers lack the near perfect credit that most banks and mortgage companies require, they can make use of this alternative in order to immediately get into a property and build their credit and improve their credit score while they lease the property. It is also much easier to qualify for a rent-to-own home credit. All the potential buyer has to do is look for a rent-to-own property in real estate companies like OwnerWiz. The qualifications usually include the ability to pay for the option fee, monthly rental premium, and a good rental history. The potential buyer can also save their down payment while leasing the property through their monthly rental credit.

The availability of rent-to-own homes through OwnerWiz and other real estate companies have made it easier for potential buyers to consider this option. A denied mortgage application cannot stop potential buyers in seeking other home financing options.

Rent-to Own Properties: Creative Solutions to Purchasing a Home With Any Credit

Mortgage Maven — Fri, 13 Apr 2012 13:56:08 +0000

Millions of hardworking and honest potential home buyers lack the perfect credit that banks and mortgage companies require to buy a home. It has also become much more difficult for many home buyers to purchase the property they want due to the lack of financing options. Banks and mortgage companies make it hard for their clients to get the financing they need due to the inflexible mortgage lending guidelines and the tough loan qualification requirements. For these reasons, sellers and buyers are forced to look for alternative solutions that can eliminate the need for banks, lending institutions, and mortgage companies. There are now realties such as OwnerWiz that offer rent-to-own home programs that is very beneficial for potential home buyers.

Renting to own is an excellent alternative option that allows potential home buyers who can’t currently qualify for a mortgage loan to get the property they need right away. Rent-to-own or lease-purchase options are lease agreements with an option to buy. This is an excellent method of acquiring a property even without an immediate conventional mortgage. This option works when a buyer and a seller agree upon an option that gives the renter/buyer the right to purchase the property during a set period. During the option period, the tenants will pay for the monthly rent and an agreed-upon monthly rental premium which is credited to the purchase price of the property. By the end of the option period, the tenant can either purchase the home or forfeit the option deposit and other potential rent credits. The seller and the buyer must agree to the terms in order to come up with a fair agreement. Home buyers who are considering this option can look for rent-to-own home listings at realties like OwnerWiz.

Realties like OwnerWiz have huge inventories of rent-to-own homes that are available. The agents can also provide potential home buyers with the necessary services which will help them decide which property they want to consider.

How to Obtain a Lease-Purchase Credit

Mortgage Maven — Wed, 11 Apr 2012 07:54:07 +0000

If a potential home buyer is unable to afford the cost of the property, one of the best options that they have is to look for a mortgage loan or a home loan. These types of loans are offered by the banks, lending institutions, and mortgage companies. However, these past few years have been tough for many potential home buyers. They are having difficulty obtaining a mortgage or home loan due to the rigid mortgage lending guidelines and tough loan qualification requirements. For these reasons, they have to look for alternative solutions to get the property they want. One alternative solution is to look for a rent-to-own home which is also offered by realty companies like OwnerWiz.

A rent-to-own home or a lease-purchase credit is a lease agreement with an option to buy. The procedure involves entering into an agreement which is a combination of the rental and home purchase process. Among the things that a home buyer or tenant might need to obtain a lease-purchase mortgage are down payment, rent-to-own contract, attorney, and a mortgage lender. The first step is to find a seller who is offering a lease-purchase agreement. Home buyers can also find listings of rent-to-own homes at realties like OwnerWiz. The next thing that potential home buyers need is a lease contract. They have to properly evaluate the terms and agreements and make sure to negotiate the terms of the contract. Among the items that buyers can negotiate are the option fee, monthly rental premium, market rent, and option period. It is also advisable to contact an attorney to review the rent-to-own mortgage contract. It is vital that the tenant/buyer and the seller will have clear understanding of their obligations which are all outlined in the contract.

It is very fortunate that there are now rent-to-own companies like OwnerWiz who offers listings of lease-purchase homes. This makes it easier for home buyers who are considering this type of credit to find the property they are looking for.

Canadian Property Hotspots in 2012

admin — Thu, 29 Mar 2012 06:17:54 +0000

Do you know the value of your own property? With the global economic downturn, property has become a hot topic of conversation over the past few years, with prices in the USA and Europe dropping significantly, and the market stagnating. But one country that’s bucking that trend is Canada. With a period of continued economic growth that saw our economy rise by 2.5% last year, and figures suggesting a similar step forward in 2012, Canadians can rest a little easier than most, and this is reflected in a buoyant housing market.

2012 has seen house prices continue to rise across the country, fueled by the stable market, and it’s never been a better time to get in the property game. With mortgage rates at a record low in 2012 (Just search ‘mortgage rates Canada with Ratesupermarket‘), there’s never been a better time to buy or sell. We’ve put together this quick overview of the hotspots where property is booming the most, to help you make the most of what you’ve got.

Vancouver

With growth rates way ahead of the national average – the annual growth rate in Greater Vancouver from 2005-2010 was 10% compared to a national 6% – Vancouver is a hub of financial growth, and property prices match that, with the average price of single and multifamily homes set to hit $800,000 in 2012. However with over 50% of the population renting, this could be a great buy-to-let investment area.

Toronto

As one of the country’s major metropolis, and with its status as Canada’s financial capital, Toronto has seen huge investment both at home and from foreign constructors in recent years. In terms of housing, Toronto’s house prices rose over 10% on average in 2011, and continue to grow this year – great news for property owners and sellers.

Montreal

According to a study conducted by the Altus group, Montreal remains one of Canada’s most predictable housing markets, and despite fears of a price drop off thanks to job cuts, a strong office building market (thanks to Montreal’s place as Canada’s second city) has meant the city hasn’t been affected too badly by the global economic climate.

Whistler

It might not be the biggest town in the country, but Whistler, with its title as the world’s number one skiing destination, remains a huge property hotspot. With a massive market of homes and holiday lets, the first quarter of 2012 has seen ski property sales increase over 25% in a matter of months. A great place to invest given Whistler’s economic stability based on long-term tourism.

Calgary

Despite a slightly slower year last year in terms of new building in the Calgary area, the recent period of strong growth nationally has started to reflect in a more buoyant market in 2012. This is especially true in the rental market, with new employment pulling first time renters to the city.

Real Estate: Best Roth Investment

Mortgage Maven — Fri, 09 Mar 2012 19:46:06 +0000

There is no doubt that when it comes to securing our funds for the future, most employed individuals would prefer to open an Individual Retirement Account, or IRA. The most beneficial type of IRA plan when it comes to paying the taxes is the Roth IRA. This is because the taxes are paid right at the time the contributions to a Roth IRA are made. Thus, there is a big chance for the investors to gain tax-free profits for their investments. A Roth IRA can also hold several types of investments; thus, the account holders find it easier to diversify their funds and create a better investment portfolio.

It is really best to make sure that we choose the kind of investments that are best for us, especially those that are withing our risk tolerance. Obviously, all kinds of investments are risky — thus, we have to be courageous enough to take certain risks, and we must also be prudent enough to know how to handle them when they arise. Most investors prefer to find the kind of investments that offer the highest Roth IRA rates, which are common with risky investments. Knowing the kind of investment that we are choosing is a wise thing to do — and it is also recommended for us to know and understand the risks involved. This way, we will know what to expect.

Most wiser investors who own a Roth IRA choose to invest in real estates, because they believe that this is the kind of investment which promise better returns. It is true that the Roth IRA interest rates in real estate are more than competitive — after all, we already know that real estate properties increase their market and appraised value over time. Therefore, this will make best long term investments, and this promise best returns possible. Investors just need to use their retirement funds to buy a property, develop it, and resell it at a much higher price. Instant money is really possible — but of course, we also need to have a big amount of money for capital. After all, most real estate properties these days are already expensive.

Business Loan with no Credit Check? It’s Definitely Possible!

Mortgage Maven — Wed, 07 Mar 2012 09:40:08 +0000

Nowadays it can seem impossible to take out a business loan with no credit check, especially when you consider the overall tough economic climate. However, it’s entirely possible to secure yourself financially in this manner, you just have to know where to look for the right deals! There are various credit providers on the market which work without requiring a perfect credit score, which tends to be really good for start-ups where it’s likely that the owners would not have much on their credit history (which is usually considered a “bad” credit history in the eyes of most creditors).

Of course, don’t just take out the first such loan you come across – make sure you actually investigate what you’re setting yourself up for, and ensure that it’s a loan which suits your personal needs and the requirements of your business. Sometimes it can be a smart idea to take out a loan which requires you to endure some stress for a few months, but when that loan ends up improving your business operations for the long term, then it’s definitely worth it!

Plus, most companies that can give you a business loan with no credit check can also provide you with various additional goodies when you’ve shown that you’re serious about repaying that loan, and your credit score starts going up. Before you know it, you’ll be eligible for the best loans on the market – but if you’re really good about running your business, you might not even need a loan anymore at that point, as you’ll already be stable enough to operate on your own money. All in due time though – so take your steps carefully and ensure you have a good long-term plan that you can follow diligently to improve your business’s financial flow and stabilize it on the market properly.

Can I Stop Foreclosure with Bankruptcy?

Mortgage Maven — Fri, 27 Jan 2012 21:25:08 +0000

When filing for bankruptcy, foreclosure proceedings that have just started can be stalled as payment plans are negotiated. Depending on the circumstances, filing for bankruptcy also halts existing foreclosure proceedings until the bankruptcy court hears the case and starts liquidating assets.

Chapter 7 Bankruptcy

In Chapter 7 bankruptcy, the borrower’s assets are liquidated to pay back the debts. Filing for Chapter 7 bankruptcy places a stay order on the home’s foreclosure. Depending on state law, the home may be saved and kept if it is mostly paid for, affordable based on the person’s current income and does not have a high value. However, this depends on the location of the person’s legal residence, the value of the property and the equity within it.

Bankruptcy under Chapter 7 requires an income means test. If the borrower has a current monthly income greater than the state median, a means test is run. The means test determines whether the bankruptcy court thinks you have enough income after paying your necessities and outstanding obligations to pay the current debts.

Speak with a Minnesota bankruptcy lawyer to ensure that all debts, required expenses and income sources are properly accounted for in the means test. You do not want to file for Chapter 7 bankruptcy and then be rejected due to an incorrect formula on your ability to pay. If the court rejects the bankruptcy case due to the income test or means test, your creditors can resume foreclosure.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy involves setting up a debt repayment plan. As long as the bankruptcy includes all mortgages, liens and lines of credit against the house, the house is part of the debt repayment plan in Chapter 13. If the home owner forgets to include a lien holder against the home or a line of credit that they have used, that creditor can still foreclose on the property. And they can do so even when the remaining creditors are being paid. Minneapolis bankruptcy lawyers can assist you in setting up the repayment plan properly.

Speak with a Minnesota bankruptcy lawyer before you attempt a short sale of a home during bankruptcy. Done correctly, the short sale of a home can reduce the outstanding debt load while preventing a fire sale of the property. Done incorrectly, the short sale can result in additional debt or creditors not being properly paid and a bankruptcy case

Second Homes

Second homes are not protected under bankruptcy law like primary residences. If you own a vacation home, it will be sold to pay your debts. Time shares may generate legally required payments and even debts but rarely have market value. Time shares will likely require inclusion in your debt repayment plan while being sold at a loss.

Investment properties are also fair game for liquidation unless you can negotiate a payment plan or sell the property before the bankruptcy. You need to work with Minneapolis bankruptcy lawyers to arrange the sale of investment properties for as much money as possible. Minneapolis bankruptcy lawyers under Chapter 13 may be able to help you set up a rent to own arrangement with the current tenants to minimize your losses or maintain cash flow from existing rental properties to pay off your own debts. For those running multiple rental properties, Chapter 13 bankruptcy may be an option to save the homes and the cash flow from them.

Will my utility services be affected by bankruptcy?

Mortgage Maven — Fri, 27 Jan 2012 21:21:06 +0000

When going through a bankruptcy, the disruption to daily life ranges from liquidation of assets to dealing with court dates. However, another question can arise. Will my utility services be affected by bankruptcy? Can I keep the lights, water and phone on while going through bankruptcy?

•   If you owe money to your utility company and have not paid the bill in several months, most utility services can turn off the services for non-payment. There are a few exceptions. For example, electricity cannot be turned off to a home where someone is medically dependent on the power supply such as a ventilator. However, this exception can only be utilized when there is a medical certificate on file with the utility company.
•   Your utility services typically will not be shut off if you enter into a payment plan within the bankruptcy to pay back your current bill and accumulated debt.
•   Utility assistance programs exist for electricity, gas, heating oil and telephone customers. Utility services may be available at a discounted rate if the person going through bankruptcy is now considered to be at poverty level or living on a fixed income. These programs often allow those with limited incomes to pay a reduced rate for their utilities. Others, such as “lifeline” phone service, permit free access to basic utility services such a local phone line with 911 service or internet hook-up to those with a government provided computer. Someone going through bankruptcy due to income loss or medical hardship should contact the utility to negotiate a payment plan at a reduced rate. A Hawaii bankruptcy lawyer can provide guidance on local utility assistance programs in your area.
•   If your utilities were turned off and you enter a payment plan, your utilities will usually be restored.
•   Those who qualified for utility assistance programs often qualify for deferred payments for outstanding utility bills. This does not eliminate the utility service debt as would occur if it were discharged in bankruptcy. And seeking deferral of payments can be interpreted as reaffirmation of the debt and a promise to pay. Seek legal guidance from a Hawaii bankruptcy expert before asking for deferred payments of utility debts.
•   Those who are going through bankruptcy after job loss or a medical hardship can seek charitable assistance in paying their utility bills. If the charity pays the back utility bills, the individual no longer owes the debt. If the charity pays the current utility service bills and reconnection fees, this may get the lights and water back on. However, it is still the debtor’s responsibility to either include the utility debt in the bankruptcy or enter a payment plan with the utility company. If the utilities are turned back on due to charitable assistance, the individual must still come up with a way to pay for the next month’s utilities and enter a payment plan for the outstanding debt. Failure to do so creates the risk adding to their growing utility services debt and a second shut off of utility services.
•   What happens if a family member co-signs on the utilities to get them turned back on and you declare bankruptcy? The family member then becomes liable for the utilities. The utilities will typically stay on as long as the family member continues paying the bills.