Are you are a seller having trouble selling your property? I can guarantee you that a big part of the problem is that buyers in general are having a hard time getting financing. This is reducing your number of potential buyers. So why not eliminate the obstacle? Why not sell utilizing a lease-option or a wrap-around deed of trust or an assumption – with or without lender approval? Why make the buyer go get a new loan? Let the buyer use your loan.

In the old days almost all residential bank loans could be assumed or “wrapped around” or “taken subject to”.  Then in 1986 Congress passed the Garn St. Germain Act. The due-on-sale clause in paragraph 17 or 18 of your deed of trust became enforceable under federal law. Most real estate brokers are afraid to “go around” a due-on-sale clause. Most tell buyers they have to get financing so the seller can pay off his or her loan. However, seller financing can work, although it has to be done carefully and with full disclosure to all parties.

In a seller-financed deal the buyer makes monthly payments to a collection service. The collection service pays the lender in the seller’s name and keep a record of everything. The buyer will pay a reasonable down payment – sometimes even enough to pay for closing costs and commissions and maybe enough to cash out the seller’s equity in the property.

Bear in mind that VA and FHA loans are assumable, provided that the buyer proves credit worthiness by customary credit standards, which may be less strict than standards for new loans – because often the seller is not released from liability, which means the lender will have two parties liable to pay the mortgage.

If you are a broker working on a deal where the seller is willing to “carry a contract”, don’t be shy about calling.

Click here to sign up for my email list.

James Robert Deal, Broker and Attorney
Broker with Agency One Realty LLC
WSBA # 8103, DOL # 39666
425-774-6611, 888-999-2022
James at James Deal dot com

 

15605 Cascadian Way Bothell WA

Contents

15605 Cascadian Way Bothell WA

15605 Cascadian Way Bothell Washington. $502,500. Buy on FHA Rehab Loan. Zoned for 5-plex. Excellent long term investment. James Robert Deal, Attorney and Broker, 425-774-6611.

Brook

Brook

Build your own home, custom construction, on this $495,000 lot, 1.75 acres in size. The property at 13931 Cascadian Way is 152 feet wide and 499 feet deep. It is 75,840 square feet in size. The property features a private meadow, a private forest, and a private brook. You can hear the brook from your bedroom window.

The Foreclosure Train Rolls On

The Foreclosure Train Rolls On

Private corporations such as Loan Star and Caliber bought thousands of mortgages. The government pays them to modify mortgages, but they are quick to foreclose. They invest in high value instead of low value homes. They should be required to serve the interest of the local neighborhood as are banks. They should be regulated as banks.

Author

Author

What To Serve A Goddess When She Comes For Dinner Welcome To My Book I highly recommend it. I had a lot of fun writing it. My book has 464 page book. It is 8.5″ x 11″ in size. It weighs three pounds. It is a beautiful book. It comes autographed. I can autograph it...

Seeking Lease Option and Contract Sellers

Seeking Lease Option and Contract Sellers

Seeking Lease-Option and Seller Contract Sellers  Open Phone Line to Brokers, Buyers, Sellers 425-774-6611  -  888-999-2022 I am working with several buyers who have strong income and good down payments but who have bad credit and cannot get financing.  These buyers...

Blacks Against Mandatory Vaccination

Blacks Against Mandatory Vaccination

African-American community rages against manditory vaccination in California and the Tuskegee-like crimes of mandatory vaccines that destroy black babies' lives http://www.naturalnews.com/050038_SB277_vaccine_mandate_Tuskegee_medical_experiments_African-Americans.html...

Services We Offer

Services We Offer

We have an open telephone line to brokers, buyers, sellers, and clients in general who may need help with buying or selling real estate or who may need help with mortgage modification. Services we offer: Help to Brokers, Co-Brokering Escrow Setup Lease Option Deals...

Door-To-Door Transit

Door-To-Door Transit

Door-To-Door Transit: The Only Solution To Our Traffic Nightmare by James Robert Deal, Attorney Traffic is bad and getting worse, and there is no solution in sight, as one would conclude from reading Eli Sanders’  “Welcome to Town, Here’s Why You’re Stuck in Traffic”...

Seller Financing – The Original Financing

Seller Financing – The Original Financing

AN ABBREVIATED HISTORY OF CREATIVE FINANCING The first forms of financing was seller financing. The buyer would buy personal property or real property and pay the seller on an installment basis. Over time lending houses grew up, and purchase mortgages developed....

Lease-Option Deals Open Doors

Lease-Option Deals Open Doors

LEASE-OPTION AND LEASE PURCHASE DEALS A lease-option or lease-purchase deal is a form of seller financing.  With the lease-option deal, title stays in the seller until the buyer refinances or resells or otherwise pays off the seller. The wrap-around deed of trust deal...

Zombie Foreclosures

Zombie Foreclosures

CFPB: Zombie foreclosures hurt borrowers The Consumer Financial Protection Bureau is keeping an eye on “zombie” foreclosures, which it worries cause “direct borrower harm,” according to a CFPB executive. Zombie foreclosures occur when a bank starts the foreclosure...

New Federal Rules on Foreclosure

New Federal Rules on Foreclosure

New Federal Rules on Foreclosure —By Erika Eichelberger - Thanks to Mother Jones On Thursday, the Consumer Financial Protection Bureau, the federal consumer watchdog set up by the Dodd-Frank financial reform bill, announced a new set of foreclosure-prevention...

Washington MERS Suits Fail

Judges Dismiss MERS Suits By Evan Nemeroff Two borrower-initiated lawsuits alleging that the Mortgage Electronic Registration Systems role in the plaintiffs' deeds of trust caused them injury were both dismissed by federal judges in the Western District of Washington...

Modification on Rental

Modification on Rental

It is harder to get a mortgage modification on a rental property than it is on an owner occupied property. The rules are not as clear. You need a higher income to qualify for a rental modification because you have to be able to cover your home mortgage. Nevertheless,...

Making Home Affordable Continues

Making Home Affordable Continues

HAMP continues aiding borrowers Three firms still fall short in meeting servicing goals. Thanks to Housing Wire. Kerri Ann Panchuk December 9, 2013 4:48PM Bank of AmericaCitiTreasuryHome Affordable Modification ProgramHAMPhomeownersObama AdministrationHousing...

Rental Property Modification

Rental Property Modification

This is a rental property modification. Ocwen was the servicer, and the investor was Washington Mutual and now Chase. The owner quit paying for 20 months, and the balance rose to $254,000. The interest rate was already under 3.0%, because this was an adjustable rate...

Deceptive Practices in Foreclosures

Deceptive Practices in Foreclosures

Deceptive Practices in Foreclosures Thanks to the New York Times September 13, 2013  In early 2012 when five big banks settled with state and federal officials over widespread foreclosure abuses, flagrant violations — including the seizure of homes without due process...

Low Modification Approval Rate

Low Modification Approval Rate

This post comes from Martin Andelman. The low approval rate on modifications Martin discusses is the main reason why you should hire an attorney to do your modification. Our success rate on modifications is much higher, around 80%. Of course, part of the reason why...

Renters’ Rights in Foreclosure`

Renters’ Rights in Foreclosure`

Renters in Foreclosure: What Are Their Rights? Federal law gives important rights to tenants whose landlords have lost their properties through foreclosure. Renters and tenants are now being affected by foreclosures almost as often as homeowners. The financial...

Eminent Domain To Modify Loans

Eminent Domain To Modify Loans

A City Invokes Seizure Laws to Save Homes Peter DaSilva for The New York Times  Thanks to New York Times. Robert and Patricia Castillo paid $420,000 for a three-bedroom, one-bathroom home in Richmond, Calif., in 2005. It is now worth $125,000. By SHAILA DEWAN...

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