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
Acquiring Property:A lot of hopeful homeowners, besides scouting out good property, usually start with getting a loan. A note is the borrowed money, say $200,000. When you use that note to purchase real estate, you are issued a mortgage or deed of trust -this is the security instrument. So when you're paying off your loan, it's called paying off your mortgage. If you, the owner and borrower can no longer pay for your mortgage, your property can be foreclosed -that is repossessed, confiscated, or taken as collateral. Or, depending on certain factors, the lender can see you in court.
The relationship between notes, deeds, mortgages, foreclosures, borrowers, etc:
In a Deed of Trust state, there are three parties involved in the foreclosure process:
Trustor = Borrower
Beneficiary = Person lending the money (mortgagee)
Trustee = Party handling the transaction
In a deed of trust, the trustee handles the foreclosure for the beneficiary; in a mortgage, a lawyer handles the foreclosure for the beneficiary. A mortgage and deed of trust are two separate and different things, but perform the same function -acting as security instruments until the property and loan is completely paid off.
In the event of a foreclosure, there are usually 2 major ways to handle it:
Short Sale
Equity Split
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. - 23221
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
Acquiring Property:A lot of hopeful homeowners, besides scouting out good property, usually start with getting a loan. A note is the borrowed money, say $200,000. When you use that note to purchase real estate, you are issued a mortgage or deed of trust -this is the security instrument. So when you're paying off your loan, it's called paying off your mortgage. If you, the owner and borrower can no longer pay for your mortgage, your property can be foreclosed -that is repossessed, confiscated, or taken as collateral. Or, depending on certain factors, the lender can see you in court.
The relationship between notes, deeds, mortgages, foreclosures, borrowers, etc:
In a Deed of Trust state, there are three parties involved in the foreclosure process:
Trustor = Borrower
Beneficiary = Person lending the money (mortgagee)
Trustee = Party handling the transaction
In a deed of trust, the trustee handles the foreclosure for the beneficiary; in a mortgage, a lawyer handles the foreclosure for the beneficiary. A mortgage and deed of trust are two separate and different things, but perform the same function -acting as security instruments until the property and loan is completely paid off.
In the event of a foreclosure, there are usually 2 major ways to handle it:
Short Sale
Equity Split
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. - 23221
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 @ 1:59 AM
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