special-report

My Home Is Over-Leveraged! What Are My Options?

Sun, 16 Sep 2012 18:31:07 +0100

My Home Is Over-Leveraged!

What Are My Options?

Today over 25% of the homes in America have loan balances that exceed the home value. If you are one of them it’s not your fault and you do have choices which are laid out here.

You didn’t create the deepest recession in our lifetime and cause residential real estate values to drop 30%-60% across the country. You bought a home, the American dream. You worked hard to pay the mortgage and maintain the home and woke up one day underwater. And it all seemed to happen so fast.

Millions of good people are walking away from their mortgage and letting the bank foreclose which adds to the millions of bank owned houses and continues to lower values when they are sold off at distressed prices.

This is certainly one of your options but not the only one and may be your lease favorite choice. However, until all your choices are on the table it’s hard to decide which is the best one, so here they are.

Remain in the Home: Continue paying until the value increases and gives you enough equity to sell without being forced to write a big check to pay the difference.

Pros: Your credit will remain intact and as the years go by your debt is decreased.

Cons: Many people simply can’t remain in the home for various reasons and must have another solution. Most sources say it will be at least a decade before the values of 2005 return and maybe much longer.

Rent the Home: Some people are becoming forced landlords and this is an option if you’re prepared to deal with a tenant and your payments can be covered with rent.

Pros: Your credit will remain intact.

Cons: You must find and screen a tenant and then deal with tenant issues and repairs.

Deed in Lieu: You may ask the bank to take back the house to avoid foreclosure. If they do you cannot be pursued for a deficiency judgment. Make sure you get an attorney involved in this choice and let him/her approach the bank.

Pros: You are relieved of the home and the debt without foreclosure.

Cons: Your credit score will be reduced and many banks will not accept a deed in lieu of foreclosure.

4: Mortgage Modification: Millions of homeowners are approaching the lender and requesting the terms of the loan be altered. You can ask for principal reduction and rate and payment decrease. Get your attorney involved in this process and be sure to request a release of liability in your offer to the bank.

Pros: Your terms would be changed so you could more easily afford the payments and perhaps the lender would agree to a principal reduction so you could sell the home without covering a loss.

Cons: You may not be able to remain in the home after a modification, the bank may be totally uncooperative and refuse any modification, your credit score will be reduced.

Short Sale: If you or a Realtor can find a buyer for the home at a reduced price below your loan balance you may petition the bank for a short sale.

Pros: The loan is paid off and the house is sold.

Cons: The bank may or may not agree to the discount and it’s a time consuming process for both the agent and you. There must be a cash buyer under contract before most banks will even consider a short sale. If the house is not listed the bank will likely require you to do so before even considering your request. The bank has the option of pursing deficiency.

Let the Bank Foreclose: If all else fails this is an option and one many are taking.

Pros: The loan and the home will go away.

Cons: Your credit will be lost and the foreclosure will remain for 7 years, the bank may pursue a deficiency, you could suffer a tax burden if your debt is larger than your purchase price of the home.

Bankruptcy: This will stop the foreclosure but is not considered your best option if your real estate loan is the biggest reason for filing. One of the options above will relieve you of the home and the debt without the negative consequences of a bankruptcy. This choice should require a careful analysis with a bankruptcy attorney who has your best interest at heart, not his/her fees.

Pros: Your obligation to pay your debt is gone and you buy more time to stay in the home before the bank completes the foreclosure process.

Cons: Bankruptcy remains on your credit for 10 years and is an ugly, unpleasant process. Your credit will be lost.

It’s true all of these choices have consequences and only you and your personal needs can dictate which one is the best for you.

However…..

One of the above options will apply to your home whether you make a choice or not…if you don’t choose, the bank will choose for you!

Good News!

There is Another Option!!

A new program has been developed to give homeowners a new choice, one many are happily accepting. This program is called…

ACTS

Assigning Contracts and Terms System

Here are the most frequently asked questions:

Q: What is ACTS?

A: We will lease option your home for the loan balance at the time it is purchased and pay you rent equal to your payment and accept responsibility for all repairs after the first 30 days. We will then find and screen a tenant buyer who will make a financial commitment to lease the home with the option to buy and assign our agreement to them after you approve them.

Q: What does this cost me?

A: Nothing! You’ll have no expenses until the buyer is ready to get financing and then you may pay some reasonable closing costs. Sometimes the buyer pays all the costs.

Q: How long must I lease?

A: The minimum term if you’re over leveraged is 10 years to give the market time to increase the value and for the debt to decrease to the point the home is no longer over leveraged. This allows the buyer to get a loan to cover the debt without you contributing cash to pay it down. If you owe at or about today’s market value we may shorten the term.

Q: When do I start collecting rent?

A: One month after we find a tenant buyer you approve and they accept possession of the house. We expect it to take no longer than 30 days after you are ready for us to show the house but it may take longer or happen sooner depending on several circumstances that vary with each house.

Q: What if the tenant tears up my house?

A: Our tenants are of a buyer mindset and will have a financial stake in the agreement. Plus they will be responsible for repairs. In our experience it’s rare for them to tear up a house and lose their option and deposit but it could happen and that is a risk you must take if you elect this program. However if it were to happen you may call us and it’s likely we can lease it again in it’s as is condition.

Q: What paperwork is involved?

A: You will execute a lease purchase agreement when you’re ready and when we find and you approve a tenant buyer. Then an attorney will prepare an assignment and ask you to sign a few disclosure documents at that time.

Q: What if the tenant buyer never closes?

A: Actually that may be the best thing that could happen for you. Every month a tenant pays you rent to cover your payment, it reduces your debt and eventually pays it off. If they don’t buy you’re building equity.

Q: Do I get any money if they do buy?

A: No! Not if you’re over leveraged now. The only reason a buyer would agree to lease option an over leveraged house is because they get the benefit of the debt reduction and in time will build enough equity to get financing. If this opportunity is not available the home would be unmarketable. However, if you have equity now, it’s likely you will get cash at the time of sale.

Q: Will I be paying for repairs?

A: Only during the first 30 days and if you can’t fix anything that needs to be fixed before we offer the house we can disclose to the buyer and may get them to accept as is. Your lease will contain a provision for you to fix anything not disclosed but only for 30 days.

Q: So what’s my responsibility?

A: Get the house ready to show, approve our tenant buyer, collect rent and make the payment(we can have an escrow company do this), show the house by appointment if you reside in it while we market.

Q: What if you don’t find a buyer?

A: If we don’t find a buyer you approve within 90 days you may cancel our agreement or allow us to continue looking.

Q: What if my house isn’t overleveraged?

A: We can still lease option it from you at a fair price and will either assign our contract or may choose to remain in the middle until it’s cashed out. We may also buy the house now and take over the debt or simply pay cash. Once we know the facts we can instantly tell you what we can do and let you make your best choice.

OK, What Do I Do Next?

Step 1

Simply fill out and submit the Property Information Form that you will find at the bottom of this page.

Step 2

We’ll discuss the facts by phone and tell you what we can and can’t do and if we both agree to move forward we’ll visit the home, answer questions and leave you with the agreement.

Step 3

Once the agreement is executed and you tell us when you’re ready we’ll begin showing to our current buyers list or find new ones if necessary.

Step 4

Review our buyer and if you approve we’ll set up the closing for the tenant buyer to attend. You do not need to be present.

That’s it!! That Simple!

Remember

It Never Hurts To Explore The Possibilities!!

Lease Purchase Option

Sun, 16 Sep 2012 18:31:34 +0100

SPECIAL REPORT

How

GET Your Home

Under Contract

Within 5 Days !

Why

LEASE PURCHASE

IS FAST

BECOMING

THE SELLER'S

First Choice

as an alternative

to the traditional way

of Selling Your Home

Trying to sell your house in these current economic conditions can at the very least, be a hassle. Whether you list your home with a Realtor or try to sell it yourself today’s real estate market presents major problems.

In today’s real estate market there are several major problems that sellers must deal with whether they list their house with a Realtor or try to sell it themselves. Let’s take a quick look at what they are.

Buyers Market: In today’s market the buyers are in charge. The real estate market is flooded with homes. Buyers have the luxury of taking their time, looking at a ton of houses and making offers at bargain prices.
Qualifying for Loans: The banks have tightened up their qualifications for getting a loan to the point of near perfect credit scores and even proof of six months of payments in your bank account. You may get a buyer to sign on the dotted line but getting them approved for a loan is another matter.
Time: In the good old days of the nineties houses flew off the shelf and settled in a heart beat. Today the days on market time has doubled along with the time to process loans if you can get them.
Equity: Unfortunately many homeowners looking to sell their homes today find themselves in a situation where they have little, no or negative equity due to market conditions. The homes generally will go the short sale route which can take 6 months to a year to complete and may not result in a sale. In addition a short sale creates a negative on the seller's credit.
Become a Landlord: Many sellers finally resort to renting their home. Having been responsible for 2,500 rental units for 20 years I know all the pitfalls that are out there for homeowners that become landlords. The only advice I can give a homeowner is “It’s generally a real bad idea.”
Sell it Yourself: Homeowners that have not sold a home before really don’t understand all the hassles involved with selling your own home. The details, the time, the showings, the paper work, the no shows, the haggling and the expenses.

The purpose of this report is to provide you with a better and easier way, an alternative that eliminates the problems and frustration that is stemming from our current depressed real estate market.

Lease Purchase

Q: Why should I consider lease purchase?

A: There are several advantages for you to consider.

1. Fair price for your property (no haggling).

2. Stops the money hemorrhage of mortgage payments.

3. All maintenance is delegated to us the tenant/buyer. This eliminates 2:00 AM. phone calls. That means someone is living on‑site to watch your property (guard against vandalism fire danger, etc). That's like having a security guard living in your house who pays you rather than you having to pay him!

4. You remain on the deed. It's still your property until the option is exercised.

5. You continue to enjoy all the tax advantages. (check with your advisor on this)

6. Puts a new occupant (tenant/buyer) into the property quickly, rather than having to wait many
months which is typical in today’s market.

7. Saves you a lot of money by not having to advertise the property if you are selling it

yourself.

8. No fees to pay (especially the 6%-7% Realtor commissions).

9. Helps you to qualify for new financing on your next home.

10. Doesn't matter what kind of mortgage you have. (assumable, non‑assumable, etc)

11. Larger market of available buyers at all times, (good times or bad)

12. No reductions in sale price in order to get the home sold.

13. Will work if you have little, no or negative equity in your property.

Q: What is lease purchase?

A: A lease purchase is essentially a rental agreement combined with a purchase contract with pre‑negotiated terms. The buyer leases the property for a specified period of time and then purchases the property before the end of the lease agreement. Sales price, length of rental, rent credits, escrow instructions, etc, are all contained in the agreement. Our objective is to find a buyer who will eventually qualify for a loan. We’re not looking for a tenant but a buyer.

Q: What if the tenant/buyer tears up my house?

A: There's no way we can guarantee you a tenant/buyer won't damage your house since you or

I won't be living with them. However, under the agreement we have with you, if that happened, we would repair it at our expense. When dealing with tenant/buyers damages are rarely a problem.

Q: When will you sell my house?

A: We can't give you an exact date. It will be up to the tenant/buyer to make the decision within the time frame they have. I can tell you we get paid when they buy, so obviously we’ll be pushing them to do so quickly! In the meantime, your payments will be made, which relieves you of the financial burden while we're selling.

Q: How do I know I can trust you?

A: I have been in the real estate business for over 35 years. The Bodek family has built and managed thousands of apartment units and homes over the past 40 years. We developed Lawrence Park (1,500 homes plus the shopping center) and Colonial Park (700 homes) just to name two of our developments. The Bodek name has been synonymous with quality and honesty in the Philadelphia metropolitan area for three generations. My resume is included in this report for your inspection.

Q: How do I know you'll make my mortgage payments?

A: We can pay you directly and let you forward it to the mortgage company yourself, or you can choose for us to pay your lender directly. If we don't pay the lender they would immediately notify you. You're always on top of the situation, either way.

Q: 'Why don’t I just list with a Realtor?

A: That's certainly an option, but obviously a Realtor won't make your house payments for you while they're attempting to sell your house in these troubled economic times. We’re willing to make your payments, install a tenant/buyer in the house and maintain the home, all the while. We'll give it our personal attention and you can literally forget about it until the closing agent gives you a check

Q: What's the difference between renting my house and renting to own my house?

A: There's a big difference! With a lease purchase we require the tenant/buyer to put up a

binder deposit that is to be applied towards the purchase of the property! If the tenant/buyer does

not buy the property that deposit is non‑refundable. This deposit also serves as an insurance

policy against non‑performance as well as damage to the property. This deposit pretty much

assures that they are serious buyers and not renters.

Q: How can you or your program help me?

A: As real estate investors we know what homeowners are going through in these hard times trying sell their homes. You may be in the thinking about it stage. Maybe you've already tried listing your home with an agent or maybe you haven't decided to go that route yet. Our job is to provide a workable solution and follow through until your house is sold and you are cashed out. This will happen either when we purchase or when one of our qualified tenant/buyers does.

Consider your alternative

Unless you’ve been living under a rock you have to be aware of the massive problems associated with selling a home in today’s depressed real estate market. Lease Purchase (rent to own) have been around for decades and they work in any market, good or bad.

By using a Lease Purchase we can solve your problem as well as the buyers. It’s the best way out there today to get the job done!

We specialize in buying homes using lease and purchase programs to provide win/win solutions for buyers and sellers. This is what we have been doing for years and it's what we do best. We obviously intend to make a profit. However, our profit comes from the buyer, not from you.

The Bottom Line

We take care of the monthly payments, take on all the responsibility for the maintenance and upkeep of your property, find a qualified buyer, get them to the closing table and liquidate your asset before it becomes a liability! And we never ask you for a dime. Now seriously, does it get any better than that?

We know this is a lot of information to digest at one time, but if you're still with us, chances are you're interested in doing what it takes to get your house sold quickly. We do not know of a better way to sell your house in these bad economic times.

If you're ready to act now or if you have some questions you can contact us at 856-383-4901 or by email NicoleRE1@hotmail.com.

Remember: It never hurts to explore the possibilities.

Please do not assume that we have to "steal" your house or that you need a lot of equity for us to be interested. We've worked with all kinds of circumstances and have created solutions after so called experts have given up and quit. We specialize in solutions! By calling, you give us a chance to be your solution. We hope you will call and give us a chance to prove it to you.

PS: We don't know how many months you've been trying to sell your home, but every month you wait is costing you money. Your home is an asset ... sell it as an asset. Don't let it become a liability. If you know of a seller that would be interested in one of our programs we would appreciate it if you would pass on this report.

Don’t procrastinate!