Real Estate - Seller2BuyerDirect.NET

FOR IMMEDIATE RELEASE
Naperville, Illinois, United States of America (Free-Press-Release.com) December 6, 2011 -- Real Estate - Seller2BuyerDirect.NET
Sellers
Need to sell your home fast due to job change, job lost, or relocation,
but can't because of not enough equity, negative equity and can't afford
to pay real estate commissions, cover closing costs, & attorney fees?

Buyers
You have 5% - 10% down payment but can't qualify for a mortgage due to
the banks new strict rules?

We have the perfect solution: http://www.Seller2BuyerDirect.NET

O.C. Damocles

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Real Estate - Seller2BuyerDirect.NET

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Mortgage Payment Assignment Sale Advantages and Disadvantages

The advantage to selling a property through a mortgage payment assignment sale is that it will typically sell much FASTER and even at a premium sales price because it comes with financing, even if the property is worth less than the total amount owed.

The disadvantage to selling a property though a mortgage payment assignment sale is that the seller’s name remains on the loan. It is somewhat analogous to having a seller co-sign for a loan on behalf of a buyer. Obviously this is not as desirable as a not having to remain on the loan, however, it is usually a better alternative to a short sale, traditional listing (where the seller will have to bring money to the closing), foreclosure, etc. For many sellers, living in areas where hundreds or thousands of properties are available on the market, the most valuable thing they have to offer the market place, is their loan itself, and the mortgage payment assignment program allows these sellers to sell, and to sell FAST. Obviously, for most people they would prefer to sell FAST and at a PREMIUM PRICE and without leaving the loan in place. Unfortunately, no such options exist.

Common Questions about a Mortgage Payment Assignment Sale

Question: Can I stay in the property?

Answer: Yes, it’s your property until you sell it. You are expected to stay in the property until a buyer is found and the sale is completed, although you are not required to. When you complete the sale, you are expected to move out.

Question: Should I make the payments until the property is sold?

Answer: We would prefer to assign mortgage payments that are current. If you are behind, a mortgage payment assignment may still be possible, however, the more behind, the more a buyer would have to bring to closing to make the loan current – and the less likely it will be that a buyer can be found to buy the property.

Also, as the loan goes into default, a foreclosure becomes possible.

Generally if you are not able to keep a loan going, WE CAN HELP by doing a short sale on your property. Often we can start a short sale and mortgage payment assignment program together (a COMBO PLAN) and if a buyer can’t be found in time for the mortgage payment assignment program, we can fall back to the short sale to avoid a foreclosure. For more information.

Question: Are there other alternatives to doing a Mortgage Payment Assignment?

Answer: In general, if a property has little or no equity, the only way to sell the property is to do a short sale or mortgage payment assignment. Otherwise you would have to bring (potentially a lot of) money to the closing table in order to cover the closing costs, commissions, and payoff shortage.

If you don’t want to sell your property, you may consider negotiating a forbearance or loan modification agreement with your lender. These agreements generally allow a property owner to agree to a schedule to “make up” missed payments that resulted from a temporary interruption in income and/or reduce the payments going forward. If your situation is more permanent than temporary, you will likely not be approved for forbearance, in which case a short sale or mortgage payment assignment is probably a better option. Also, the majority of loan modifications are not approved by lenders and many property owners that pursue this option ultimately end up in foreclosure.

Question: How long does my name need to remain on the loan?

Answer: Until the buyer ultimately re-sells the home, refinances the loan or pays the loan off. If you want to place a time limit on the loan you are assigning, you CAN put a balloon term on the loan, making the loan expire after 3, 4, or 5 years (or any amount of time you desire) at which point the buyer will be required to refinance.

Question: How does this program affect my credit?

Answer: It depends. If you are behind in making your payments and/or have a spotty payment history, at the time that a buyer buys the property, through the mortgage payment assignment program, your payments will be brought current and this will generally improve your credit.

For many sellers, as payments continue to be made monthly, and in a timely fashion, their credit will continue to improve or remain unchanged. Obviously, if payments are late or missed, your credit will decline.

In most cases, although the loan(s) remains in your name these loans are treated by the credit bureaus as cash neutral accounts (a debt with an offsetting credit). However, each person is treated individually so check with someone you trust.

Question: How do I know the payments are being made?

Answer: The best way to monitor the payments is to have a loan servicing company collect the payment from the buyer and make the payment to the underlying lender(s) while sending the buyer as well as you, the seller, a statement each month. We can arrange this automatically as part of the closing for the mortgage payment assignment program. You can also usually check the status of the loan using your lender’s online system.

Question: Will I make any money?

Answer: In most cases, if the property has little, no, or negative equity, there is no money to be made by the property owner.

In cases where the property has a significant amount of equity, the property owner may receive money through an alternative strategy such as the wrap-around mortgage sale or owner financing sale.

Question: Will I have to pay anything?

Answer: Depending on the property, situation, and buyer’s resources, the property owner may or may not be asked to pay some closing costs. Typically, the owner will pay their portion of the closing costs only.

One of the great benefits of this program is that most of the closing costs, assignment fees, and commissions (if any) are paid by the buyer.

Also, the property is generally sold as-is and repairs are generally the responsibility of the buyer.

Question: How long does this process take?

Answer: FAST! There is no guarantee, but normally 2-10 weeks, but it could be less than a week! Most of this time is used showing the property to a list of buyers that have already been found that are looking for properties, like yours, offered for sale with financing.

As with any sale, you can negotiate the closing date with the buyer.

Question: What are the odds of success?

Good! Of course many factors affect the odds of success – most notably, would anyone want this property with this payment?

It has always been true that offering a property with financing, as is done with the Mortgage Payment Assignment Program, allows a property owner to sell a property FASTER and with a higher loan balance than any other method of selling a property.

Question: What if the buyer stops making the payments?

If payments are missed, you have the right to foreclose on the property and get it back. In most cases it would be preferable, however, to call the buyer (or let the loan serving company do this) and try to resolve the situation, by telling the buyer to deed the property back using a deed-in-lieu, so that a foreclosure on them (and the destruction of their credit) is not necessary.

In all cases if there is trouble with the buyer, visit Seller2BuyerDirect.NET and we will be happy to help resolve the problem and/or get the property back so that we can quickly sell it again.

Question: What if the buyer trashes the property?

Answer: The advantage of SELLING a property through the Mortgage Payment Assignment Program is that the buyers are actually buying the property and not renting. In most cases buyers have a pride in property ownership and care more for the property than renters.

Additionally, these buyers are bringing their hard earned money to closing when they buy. So unlike renters who are just putting down a small deposit, the buyers have much more skin in the game, in the form of their down payment. They may even make substantial improvements to the property after they buy it as is the case with many homeowners.

Finally, if you threaten to foreclose on a buyer, you can also often negotiate the terms under which the buyer will return the property to you, in exchange for you treating them more fairly in a foreclosure proceedings. For example, you can offer to allow them to stay in the property for an extra so many days in exchange for them cleaning and make-readying the property for a new buyer and deeding the property back to you so that you don’t have to foreclose.

Regardless of the condition of the property, it can always be offered to a new buyer as-is.

Question: What if I have multiple loans or liens against my property?

Answer: No problem. All loans/liens against a property can all be consolidated and assigned to the buyer going forward. If a loan servicing company is used (Seller2BuyerDirect.NET can arrange this), all of the underlying loans can be automatically combined into a single new loan and escrow account on behalf of the buyer.

Question: If I can’t afford this property, should I declare bankruptcy?

Answer: Some people facing payments on a mortgage they cannot afford consider bankruptcy as an alternative. The truth is that bankruptcy does not prevent a property from still being foreclosed on – it just delays the process briefly.

If selling the property through the Mortgage Payment Assignment Program (or a short sale) would leave you financially solvent, it is probably a far better alternative to bankruptcy.

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