Are You Interested in a Creative Way to Get Your Home Sold?

Are You Interested in a Creative Way to Get Your Home Sold?

This is a subject that was just brought to my attention a few days ago when I received a call from someone who was interested in a listing I have for sale. I am sure this is something that has been going on for years, but it is back in the spotlight because these companies are picking up several home sellers from this pitch.

It all started when I received an email from someone asking if my sellers would be interested in some creative financing for their home and if they would look at an offer. They asked if they could send me some additional information. I have to say I was a little leery at first. I went ahead and told them they could send over the information, just in case it was not a scam.

Basically, what they are doing is asking the seller to sign over the deed of the property to them, they will pay for Realtor fees, all closing cost and start making the loan payments through a third party. The seller's loan will still be in place and show up on their credit report. The Sellers would technically still be responsible for the loan until the loan is paid off through refinance or just paid off outright.

In theory this idea sounds like a great idea for sellers. They are able to get their homes paid off without paying another dime. However, when you go to try to purchase another property, a car, or get any type of financing, this will show up and you could possibly declined due to debt to income ratio.

Most lenders have a provision in the contract stating you are not able to transfer the deed of your property to someone else. In fact, the lender has a lien on the title so you would not be able to transfer the property to someone else unless the lender did not find out. If the lender finds out you transferred the deed, they can call the note immediately. If this happens, the entire note would have to be paid in full within a certain amount of time, or the lender would be able to foreclose.

There are lots of different things going on in today's real estate market. Make sure you are informed. If you are contacted by someone who wants to know if you are interested in a creative way of financing your home, it's okay to entertain the offer, but make sure you have an attorney or licensed Realtor look over the offer to see if this is what they are asking. Sometimes when something sounds too good to be true, it really is.

This information is coming from a Realtor who has been in the business for quite a few years. Just when you think you have seen it all, then something new comes up. It is a great opportunity for the buyers looking to purchase in this way - even though it is high risk for them as well. The buyer would most likely get a lower interest rate than what is currently being offered since they are assuming the seller's loan. Most loans are not assumable. If the seller has an assumable loan, they should use that as a marketing ploy to get buyers.

If you are looking to Buy or Sell Property in the Willis/Conroe/Huntsville/Montgomery/Livingston areas, please give me an opportunity to earn your business. I can be reached at 361-688-7064 Office/Cell or you can email me at brenda.andrew@ymail.com

www.lakeconroehomes-forsale.com

I also specialize in Homes/Condos/Townhomes/2nd Homes/Investment Properties in the Corpus Christi/N Padre Island/Port Aransas areas.

www.homes-corpuschristi.com

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