Real Estate - Mortgage & Finance pot

[...]... Prospective's Signature I I Home Buyers OfAmerica 18 Mortgage & Finance Foreclosure Analysis IV Purchase Cost Estimate Date of written offer: Contingency deadline: Asking price: Offer: S Comps: s 1 2 3 $ s s s Earnest Form: -ck Settlement -IOU Date: Financing Proposed Monthly Payment 1st Mortgage $ - -VA FHA 2ndMortgage $ Total Debt Tenns yrs -Yo int $ -Conv yrs % int - fmancing Seller Commercial Investor 3rdMTrtgage... mortgagees Home Buyers OfAmerica I3 Mortgage & Finance 2 Junior mortgage Any mortgage that is not a first mortgage is “junior” to the first mortgage This means that, in case of default, the claims of the holder of a note secured by a second mortgage or lower priority mortgage will not be satisfied until the first mortgage is satisfied Because of the subordinated nature of these mortgages, they cany a higher... exception to this involves real estate taxes All real estate tax liens must be paid from the foreclosure sale, or the property passes to the purchaser subject to all unpaid taxes The purchaser must then pay the remaining taxes due or lose the property- Home Buyers OfAmerica I5 Mortgage & Finance d Soldiers and Sailors Relief Act The Soldiers and Sailors Relief Act affects mortgages in several ways One... 22 Mortgage & Finance Purchase Offer Worksheet Mortgage Debt 1st 2nd 3rd s Unsecured Debt Subtotal C s RequirementEstimate ah s s s s (see separate analysis) T t l Estimated Costs oa $ ! 30-Day Quick Resale Value s Profit to Buyerhvestor Equity Payment to Seller NOTES: Home Buyers OfAmerica 23 Mortgage & Finance Property Information Form Address: Purchase Price: # Bedrooms: # Baths: Appliances: 1st Mortgage: ...M Due-on-sale clause Traditional common law permits a buyer to purchase mortgaged property and preserve the existing mortgage unless the mortgage contains a clause to accelerate the loan upon sale This dueon-sale clause is especially important to lenders in a world of volatile interest rates Without it, buyers tend to preserve low interest rate mortgages as long as possible by purchasing second mortgage. .. higher interest rate W Transferring Mortgaged Property In the transfer of mortgaged property, two situations typically arise: (1) the mortgagor sells the property, or (2) the mortgagee sells the mortgage When the mortgagor sells the property, the buyer may take the property “subject to” the mortgage, or the buyer may “assume” the mortgage When the mortgagee sells its mortgage interest, the sale must be... Home Buyers Of America 9 Mortgage & Finance C Mortgages by payment or yield variability (AMLs, GPMs and S A M s ) 1 Adjustable mortgage loan (AML) In 1981 the Federal Home Loan Bank Board issued regulations incorporating both variable and renegotiable rate mortgages into adjustable mortgage loan regulations “An permits adjustment of the interest rate, which may be adjustable mortgage loan (AML) implemented... could be a first mortgage loan However, typically the purchase money mortgage is a second mortgage given by the seller to the buyer to partially finance the purchase through installment payments Purchase money mortgages are common in all types of real estate purchases In the purchases of raw land in large quantities by a developer, the landowner may accept a partial cash payment q d take a mortgage for... (months) (months) (months) Resale Costs Realtor’s Commission Attorney Fees Transfer/Closing Estimated Cash Requirement Home Buyers OfAmerica Y O s 21 Mortgage & Finance FSBO Contact Questionnaire (When calling, say your name and “I’m a real estate investor.”) Address Telephone Seller’s Name [“Howf m i your price?’] s Price 1st Mortgage % Interest Rate YO Payment% IS mortgage assumable? Qualifying or nonqualifying?”]... against the mortgage usually are by check, though in some cases credit cards access the credit line E Mortgages by priority of lien 1 First mortgage A first mortgage is the mortgage instrument that creates the first lien on a property As explained in the purchase money mortgage example, the holder of the note secured by the first mortgage will have its claims satisfied before any subsequent mortgagees . most mortgages. Home Buyers OfAmerica 6 Mortgage & Finance M. Due-on-sale clause Traditional common law permits a buyer to purchase mortgaged property and preserve the exist- ing mortgage. Real Estate 93 Option Clauses 95 TrustAgreement 96 Home Buyers Of America ii Mortgage & Finance Financing Instruments I: Notes And Mortgages The purchase of real estate. Option to Purchase Real Estate 41 Assignment of Contract 42 AssignmentofMortgage 40 Mortgages Mortgages 43 Home Buyers OfAmerica i fitgage h Finance Wrap-Around Mortgage 48 Satisfaction