Real Estate And Its Info
When you buy property at auction in a state that has redemption laws, you get a special deed or special title. Because the owner has a number of months in which they can repay the purchase price and redeem their property, it's called a defeasible title. That is, one that can be defeated, which means that you don't have clear title yet.
Redemption Rights: If you buy the redemption rights from the owner at the time of the auction, you will own the title and the rights and therefore be able to get clear title. A redemption purchase should also be notarized. You should consult a local attorney, because each state differs in the way in which this should be handled.
When purchasing redemption rights, you may be dealing with an owner who is under a great deal of stress and may not be aware of the amount of equity they have in their property. Though they may be able to get more for their redemption rights, the rule of thumb is to offer the owner $1,500. They may ask for more, but you should weigh the amount of equity involved.
Purchasing Property
The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.
Notes, deeds of trust, mortgages, real estate -an overview
3 parties are always involved in a deed of trust sale:
Trustor = Borrower
Beneficiary = Person lending the money (mortgagee)
Trustee = Party handling the transaction
These two are separate and different documents, yet serve a single purpose: ensuring that the loan is paid in full, and should the Trustor fail to do so, securing the perused property as collateral.
There are two major strategies in the foreclosure business:
Short Sale
Short Sale
Sometimes however, should the property and case require it, there is the "subject to" transaction which bases purchase on the existing financing of the real property. - 23218
Redemption Rights: If you buy the redemption rights from the owner at the time of the auction, you will own the title and the rights and therefore be able to get clear title. A redemption purchase should also be notarized. You should consult a local attorney, because each state differs in the way in which this should be handled.
When purchasing redemption rights, you may be dealing with an owner who is under a great deal of stress and may not be aware of the amount of equity they have in their property. Though they may be able to get more for their redemption rights, the rule of thumb is to offer the owner $1,500. They may ask for more, but you should weigh the amount of equity involved.
Purchasing Property
The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.
Notes, deeds of trust, mortgages, real estate -an overview
3 parties are always involved in a deed of trust sale:
Trustor = Borrower
Beneficiary = Person lending the money (mortgagee)
Trustee = Party handling the transaction
These two are separate and different documents, yet serve a single purpose: ensuring that the loan is paid in full, and should the Trustor fail to do so, securing the perused property as collateral.
There are two major strategies in the foreclosure business:
Short Sale
Short Sale
Sometimes however, should the property and case require it, there is the "subject to" transaction which bases purchase on the existing financing of the real property. - 23218
About the Author:
Want to know more about real estate? Log on to Don Burnham's website http://www.weknowthewayback.com and know everything from redemptions and foreclosure all under one roof.
posted by X - Men @ 2:01 AM
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