Posted on 01-04-10, under Tips for investing. Comments (8)
Land contracts are most common either for buyers who would not qualify for a normal mortgage or for purchases made for investment purposes. In the United States, different states have different regulations and restrictions on land contracts. Land contracts can be used on everything from purchasing residential homes to commercial properties. A land contract may also be referred to as a contract for deed, deed of trust, privately held mortgage, or installment land contract
Terms can be very flexible, but they usually call for a down payment followed by regular monthly payments. The parties involved can also agree to a balloon payment to take care of the remainder at the end of the contract. Land contract buyers also need to be aware of pitfalls. If there’s a mortgage on the property, the buyer could lose the home and all the equity if the seller defaults on the mortgage. Land contract are also known as installment sale agreement, which the buyer pays “rent” (which is actually a mortgage, the “rent” acting as interest on the loan) to the seller each month, with a portion of that money going towards an interest in the property. When all payments are made then title or ownership is transferred to the buyer.
Land contracts are typically for a 3-5 year period and as stated above typically contain a balloon payment at the end of the contract term. The buyer then pays to the seller a predetermined monthly payment amount that is usually the equivalent of a principal and interest payment of a standard mortgage. Land Contracts with the Power of Sale clause can be foreclosed non-judicially by the Trustee of the Land Contract, just like the typical deed of trust. Without this important safeguard of having title insurance land contracts would have little practical value
Land contract got a little bit of a bad rap lately, with sellers selling houses on land contract that were already heavily mortgaged. Sellers then defaulted on their underlying mortgages while still collecting payments from their buyers. The opposite is sometimes true though, where the buyer stops making payments. In this case sellers want the buyer to move out of the property and also to forfeit all of the moneys paid to the date of the default. Buyers are prepared to move out, but do not want to forfeit any of their moneys, so again it is prudent to read the terms of the contract.
Land contract foreclosure is generally a more complicated and lengthy remedy to regain possession of the property than forfeiture. A significant difference; between forfeiture and foreclosure is that in a forfeiture a buyer may prevent the loss of the property by merely paying past due installments (back property taxes, liens, etc.), while in foreclose the buyer may be required to pay the entire balance due under the land contract.
Posted on 17-03-10, under Popular Atlanta Areas. Comments (12)
Atlanta is consistently ranked as one of the best places to do business in the U.S., and more than 750 of Fortune’s Top 1,000 businesses have offices there. The Atlanta airport (Hartsfield) is usually ranked as the world’s busiest, and its airport code, ATL, has become the city’s nickname among locals.
Downtown is also home to Atlanta’s professional sports, including Atlanta Hawks basketball and Thrashers hockey, which can both be experienced at the Philips Arena. The downtown skyline is dominated by major hotels and office buildings including the headquarters of The Coca-Cola Co. Downtown/Midtown and major shopping districts such as Buckhead can also get crowded on weekends. Most restaurants and shops in the area offer complimentary or low-cost valet services ($1-3 tip expected) and on the rare occasion where parking is scarce, public lots are usually found nearby for a fee.
Midtown is the heart of the arts with the High Museum, Alliance Theatre and Fox Theatre, plus dining and nightlife that’s all the rage. Midtown Atlanta has all these things–and much more. Midtown contains Piedmont Park which hosts many festivals and cultural events. Little Five Points is known for its eclectic shops and merchandise, and its range of cultural people who line the street. Midtown is known by many residents as the “Heart of the Arts”. The High is currently collaborating with the Louvre to house a temporary collection of masterpieces from the famous Paris museum.
Midtown is on the way to becoming a walking neighborhood but with the amount of newly constructed hi-rise buildings that are so similar to one another it is becoming more difficult to gain instant equity. It is suggested that if you buy in Midtown you better hold onto that property for at least 5 years until the building of new condo hi-rises slow down.
East Cobb is a vibrant residential and commercial community. The communities within East Cobb are affluent and the residents are well educated. East Atlanta is one of in-town’s hottest real estate markets and was called “the best kept secret in Atlanta.” Featuring Victorians, craftsman’s, post-war homes, and new construction, it is only about three miles from Downtown Atlanta (on 1-20).
Decatur was incorporated in 1822, making this the oldest city in DeKalb County. Older brick homes, smaller bungalows and cottage homes are abundant types of Real Estate available in the Decatur area. Decatur has been one of metro Atlanta’s most popular cities for years, appealing to both traditional families and bohemian singles, and it’s easy to see why. Downtown Decatur is surrounded by beautiful, historic neighborhoods reflecting a variety of architectural styles. The tree-lined streets, strong sense of community and nationally recognized public school system continue to draw young families to this part of the city.
On the downside, Atlanta and Georgia continue to rank amongst the worst cities and states with foreclosure problems. Decades of neighborhood revitalization has been washed away with the events of the past year. Atlanta is now experiencing exponential growth as new residents flock from sprawling suburbs to urban properties in midtown Atlanta which is a sign of hope, but recovery will take some time.
Posted on 09-01-10, under Tips for investing. Comments (1)
Real estate investing is ultimately the fastest and safest way to create lasting financial security. Buying foreclosure homes has always been a most profitable investment property strategy, when done correctly.
Auction properties can be quite profitable too, but the most lucrative thing here is the sale itself. Nowadays lots of people know that foreclosure auctions are a great way to make quick money for savvy investors. Foreclosures have become quite common in this current real estate market, when a lot of properties are moving past short sale. When you take part in an auction, be careful to have and stick to a budget and not to get into a bidding war that can make you pay far more than what is appropriate and hence make you lose money.
The key to making a killing in real estate is to be able to buy a property at a price that is much lower than what it is worth and then not only selling it higher, but also perhaps weighing the rental option too. Many people also get good deals through the bank foreclosure routes, where apartments, condos, houses and other real estate can be bought at a price that is well below the going market rate. In a property that is being auctioned, you do not have the option to inspect the property, and when you get what is a cheap price, you may have to factor in some higher costs in terms of repair and maintenance too.
Dealing with banks involves quite a bit of effort as banks can make life miserable by being sloppy, tardy, and unresponsive while also making one wait for a long time after the deal is accepted to close on it. This is also one of the reasons why bankers’ agents make less money as banks cut their commissions.
Sometimes the discount on foreclosures are relatively small, this is because the bank is trying to make most of its money back. Since neither the bank nor the government wants to play landlord, both need to get these properties off the books immediately. It is also possible that the REO department has a price set higher than what the house may be worth, when taking into account repairs and maintenance, so be aware.
When it comes to foreclosure listings, the dealing is between the individual and the bank or the mortgage lender. This means there is some scope of price banding and flexibility. The foreclosure sales take into account the loan balance, accrued interest and attorney fees, plus costs dealing with the foreclosure process admin. In order to buy here, you must have your check ready to pay the full amount on the spot.
There are a large number of websites which you can use to find foreclosure listings for every city and state. Some of these websites specifically and exclusively deal with foreclosure listings only.