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What Is The Alienation Clause In A Mortgage Loan?

An alienation clause in a mortgage contract gives the lender certain stated rights when there is a transfer of ownership in the property. It may also be referred to as a due on sale clause. This is designed to limit the debtor’s right to transfer property without they creditor’s permission. Depending on the actual wording of the clause, alienation may be triggered by a transfer of title, by transfer of a significant interest in the property, or even by abandonment of the property. Transfer of a significant interest can be construed as an obvious long-term lease, but often is also interpreted to cover a lease with option to buy or a land contract.

On sale or transfer of a significant interest in the property, the lender will often have the right to accelerate the debt, change the interest rate, or charge a hefty assumption fee. Adjustable rate mortgage loans seldom have an alienation clause that calls for an interest rate change since the rate can already be adjusted under the original contract. An ARM loan may have other alienation provisions, however, such as an assumption fee. The lender may choose which, if any, options stated in the contract it chooses to enforce. This is true for most conventional loans. Although FHA and VA loans cannot, technically, have alienation clauses, they still attempt to restrict transfers in other ways, such as by reserving the right to approve a new debtor who will take over an FHA or VA loan.

For conventional loans, states tried to restrict enforcement of due on sale clauses. But in the 1982 landmark U.S. Supreme Court case of Fidelity Savings and Loan v. De La Cuesta, ET. Al., the Court ruled that federally chartered S & Ls could follow federal Office of Thrift Supervision rules allowing due on sale clauses, instead of following state laws that attempted to limit this right. Later that same year, the U.S. Congress passed the Deposit Insurance Flexibility Act extending this right of pre-emption of state laws limiting due on sale clauses so all lenders can now enforce due on sale clauses.

This law has led to a new problem that has yet to be addressed adequately. Lenders often have alienation clauses and prepayment clauses in contract. Essentially, the lender could collect additional fees or penalties twice, once under the provisions of each clause. Several rules or regulations have been proposed that would eliminate this problem by forcing lenders to choose to enforce one or the other of these clauses, but no new rules have yet been enacted. Of course, with increased competition in the home mortgage market, lenders do not have free reign to charge exorbitant fees. It is important, nevertheless, for buyers and sellers (and others) to be aware that this situation may exist.…

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Apartments in Cleveland Ohio That Can Consider a Broken Lease

The artistic Cleveland, Ohio downtown area is rich in history, adventure and culture. This picturesque city located in the proximity of the Cuyahoga River, continues to attract droves of people who either simply come to visit, work or settle. There are also plenty of attractive riverside apartments for rent around the riverside section and also within the Cleveland environs and neighborhoods. But these apartments do conduct background checks not to mention checks on rental history and credit. This spells automatic denial for any customer who has a previous broken lease with other apartments. So are there any apartments in the Cleveland area that will consider a broken lease?

Neighborhoods In Cleveland With Second-Chance Apartments

Apartment complexes in the Cleveland area do routine checks. Many use a service called SafeRent which is a national database that houses tenants’ rental history information and any derogatory information that has been reported by previous apartments. A previous broken agreement, meaning the tenant walked out of a lease, is deemed very serious and can warrant immediate approval. Here are some neighborhoods that have apartments which will be willing to consider a broken agreement.

  • Downtown Cleveland
  • Buckeye-Shaker-Square
  • Central Cleveland
  • Collinwood
  • Corlett
  • Forest Hills
  • Union-Miles Park area
  • Woodland Hills

With second chance apartments that are willing to rent to individuals with an impaired rental background, the challenge becomes finding the exact apartments that are willing to take the risk. When it comes to the list of items considered non-negotiable, bankruptcy is the most serious followed by a broken lease.

To find places in Cleveland that are willing to take a chance with a tarnished rental record, an applicant must first of all check the Internet. The Web offers excellent opportunities to look for such complexes without having to leave one’s house. The challenge off course becomes that most of these types of apartments do not readily advertise because they do not want to attract negative publicity and also they want their rates to remain high. Bad publicity can drive rental rates down.

It is good to note here that even if you manage to locate these types of apartments, there are a few qualifiers that will be required. For instance, these apartments will be stringent on employment and income. One has to have been employed for at lease six months and be making almost 4 times the amount of the rent not to mention that the apartments will also conduct a criminal check.…

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Montreal Property Tax Sale Procedure: Tax Sale Auctions

Once a year the city of Montreal along with the Comité de gestion de la taxe scolaire auction off all the properties that have not paid their tax bill in full. Montreal property tax sales is a great way to pick up properties for much less than they are worth. Before you think about how great it would be to get a great deal on real estate, you need to know how the procedures to follow to participate in the Montreal tax sale.

What is the Montreal Tax Sale Process?

The Montreal tax sale auctions occur once a year in late autumn. In order to participate, you must present yourself early to sign up. A revised list of properties will be produced and handed to everyone that is registered to bid. Once the tax sale begins, the properties will be auctioned off one by one in order that they appear on the list.

To make a bid, bidders must identify themselves, giving their name, address, occupation and mention if they are bidding for themselves or on behalf of someone else. Once the auction for a property is finalized, the buyer must pay the property in full along with any taxes. Payments are to be made in cash, certified check of bank draft.

What documents do you need to participate?

To participate, any person must produce a valid photo ID. Medicare card, driver’s license, passport or any other official photo document is acceptable.

What forms of payment are accepted?

The buyer must pay the full amount of the purchase immediately:

* In cash

* By certified cheque

* By bank draft

NOTE THAT CREDIT AND DEBIT CARDS ARE NOT ACCEPTED

What happens if the certified check is not the right amount?

If the buyer has a certified check of an amount greater than the bid, the difference will be returned to him by the city in a delay of 10 days. The surplus amount can also be applied towards another property if the buyer has made more than one bid. If the check is less than the amount required, the property will immediately be put back for sale and the buyer will be responsible for paying the difference his bid and the actual final sales price of the auction.

Are there conditions to the sales?

Yes. All properties are bought site unseen at the risk and perils of the buyers. This means that you cannot change your mind after the fact. Also, the previous owner may, within a period of one year, purchase the property back from the auction buyer for the amount he paid plus 10% yearly interest. This is known as the right of redemption and is an absolute right. The buyer cannot contest this right.

Will I really only pay the tax amount for the property?

It is possible but unlikely. You have to expect that many buyers will be interested in the Montreal Property Tax sale and since this is an auction, the price will surely be …

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What is a Short Sale and How Does it Connect to the Foreclosure Process?

The term short sale has been brought up more and more in the real estate world as the property market has corrected to a more sustainable growth level. Depreciation of home values over the last few years has led to homes that are worth less than the mortgages that were used to finance the purchase. This situation coupled with a nationwide recession that has created the need for people to sell their homes despite being “underwater” has led to the recent popularity of short sales.

What Is an Underwater Loan?

A home loan or mortgage that is higher than the actual value of the home is said to be underwater. Over the last few years this situation has become a common occurrence as homeowners who bought at the peak of housing prices with little or no money down have seen their property values decrease, sometimes dramatically. They began with a $300,000 loan on a home that appraised around that value, and now their mortgage amount is around the same, but that same house appraises for less than $250,000.

With the rise in unemployment, many homeowners who have found themselves in this difficult situation have been forced to sell their home because they can no longer afford the mortgage. The problem that occurs is that even if the homeowner sold their home for $250,000, they would still owe the bank the additional $50,000, which holds up the sales process. This hurts everyone involved because the original owners cannot pay the mortgage, so they default on the loan. The new buyers who are excited about the home are not allowed to buy it at the new market price. Finally, the bank that holds the mortgage will not let the original owner sell, does not receive a payment each month for the mortgage, and must now go through an expensive and time consuming foreclosure process to get possession of a home they will only be able to sell for less anyways.

Buying and Selling a Home with a Short Sale

This is where short sale comes into play. In a short sale the original homeowner who is underwater will get an agreement from the bank to complete a short sale and put their home on the market at the current local price. When a buyer decides to purchase the home, the bank agrees to let the sale take place and take a loss on the original mortgage. Ultimately, this type of legal settlement allows the homeowner and bank to avoid a costly and credit damaging foreclosure process. The owner will still take a hit on their credit score and the bank will lose some money on the transaction, but the overall solution is much better than foreclosing on the home.

Foreclosures and Short Sales

Short sales are becoming more common with our current correction in home prices and high unemployment, but many bands still make the process very difficult for the owners because they do not want to take a loss on the …

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Renting in Tucson With Bad Credit

Tucson, Arizona’s second largest city, the home to University of Arizona, has a diverse population and culture. You have Native Americans, Mexicans, Spanish, and of course your good old westerners among the 541,811 Tucson citizens. You have attractions such as Arizona-Sonora Desert Museum and the Fred Lawrence Whipple Observatory. You could enjoy a ballet at the Tucson Music Hall or if you are in the mood for music, head to Tucson Convention Center or the Rialto Theater for a concert. There is much to do in Tucson and you would have a great time living here if you rent a Tucson, Arizona apartment.

When you search for a Tucson, Arizona apartment for rent it is taken for granted that you need a good credit record. Landlords and companies usually do a credit check before they let their apartments out and you would be demurred, if you don’t pass. So what do you do if you have a few bad marks in your credit record? Will you not get a Tucson apartment for rent at all? That is not so. There are means by which you can rent an apartment in the city even if you have bad credit.

If you know a person in Tucson who has good credit, and would agree to act as your guarantor, then you will have no problem finding a Tucson apartment for rent. This is what students usually do. Most real estate companies who are in the business would pass your application on the guarantee of a trustworthy Tucson citizen.

If you do not know anybody in the city, then your next option is to share your Tucson apartment with someone who has good credit. Since rental companies would pass your application if even one of you has a good credit record, you have a very good chance of finding your apartment. You could find advertisements for roommates in local newspapers such as Tucson Citizen, Tucson Post, or Tucson Weekly. You may also find advertisements online.

If you cannot find anyone to share with or you do not want to share your apartment, then, your third option is to try to find those apartments in Tucson that require no credit check. You will find their listings in Tucson newspapers and online too. Mostly, apartments that are let by individuals do not require credit check. As long as you have a decent income, have proof of income, and a few good referrals, you will be all right. You might try for condos let out by individual owners as well.

You could also try asking the rental agents to not do a credit check. There are many agents who allow it. You will have to pay a higher deposit for your Tucson apartment in return for their skipping the credit check. The owners, after all, would want to be sure that they get their rent. However, as long as you have good references and a decent income, and are willing to pay extra deposit, you should …

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Agent Marketing Minute: Let a Brag Book Tell Your Story

In today’s competitive real estate marketplace, I still amazed at how few agents know how to communicate their real estate business story to a home buyer and seller. First impressions count, and you need to be prepared verbally and visually to tell your story and why the consumer should use you and not the competition. Soon after I started in the business I developed for lack of a better name, my brag book, that take on all listing appointments and first meetings with buyers.

My books’ contents are always evolving and are constantly updated with current information and examples. The first section has as many active, pending, and closed listings as I can fit in. I include property brochures, postcards and virtual tours on CD-ROMs. Include a variety of price points and locations.

The second section has examples of newspaper advertisements, magazine features, and screen prints from my and my brokers web site to illustrate what types of marketing I do for a specific property.

Third in my brag book are the actual cards, letters, and emails that have testimonials from clients, both buyers and sellers, about their satisfaction with my real estate business.

Lastly, any awards or non-profit work I do in the community, I like to point out that giving back to the community is an important part of my business. After a client goes through my book, they have an comprehensive idea of what benefits I bring to the table. Let your brag book help tell your story to prospective clients.…

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How to Write a Home Sale Ad

Many people are choosing to sell their homes without a Realtor these days, a plan that can save you some serious money. Of course, your house has to actually sell before you can consider that strategy effective. Below are some tips and tricks for writing an ad that generates interesting in your house and, hopefully, leads to a sale.

o    Consider your ad options. Not very long ago, a real estate ad had only one purpose: to appear in your local newspaper. And while newspapers are still a great option, modern technology calls for a more far-reaching marketing strategy. The best place to start is by asking yourself where you would look if you were in the market to buy a home. The answer, for most people, is the Internet. It’s ideal becase you don’t need to leave your house to browse the selection, and it’s ready whenever homebuyers are. These are the same reasons you want your ad to be online, and there are plenty of for sale by owner (FSBO) websites that will be happy to run your ad. Newspapers, of course, are a tried-and-true option that shouldn’t be discounted, even with the Internet’s prominence. If you’re outside a major metropolitan area, make sure that your ad appears in your local paper, as well as a large daily in nearby cities; you never know when someone will want to move out of the city and into a more rural location.

o    Set the scene. It only takes a few words for homebuyers to grab the nearest phone and beg to see your home-or for those same homebuyers to turn the page without giving your house a second thought. Include basics such as the style (ranch, two story, etc.) and the number of bedrooms and bathrooms, but you also want to include descriptive phrases that help people imagine themselves living there. Make it easy on readers by spoon-feeding them gems like, “Spacious kitchen that opens into a great room-perfect for entertaining” or “Remodeled master bathroom that recreates your favorite spa.”

o    Put a positive spin on things. It’s not okay to lie, but it is okay to make your house sound as charming as possible. If it’s not move-in ready, say something like, “Ready to be fixed up into the home of your dreams.” And if you live in a neighborhood that has a less-than-desirable reputation-maybe it’s known for older houses without much space-be sure to convey how your house is different. Describe how your house sits on a big lot or the fact that you have an oversized garage that can be used as a workshop. Give homebuyers a reason to change their minds about the neighborhood.  

o    Create a winning headline. It’s the first thing people will read, so it has to grab them. Pick out the absolute best feature or characteristic of your house and make that the headline: “Upscale family living at a great price” or “Sprawling country retreat with orchards,” for example.

o    Include

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What Do Brand Touchpoints Mean in Real Estate Agent Marketing?

Recently, after talking to a group of professionals in the construction business, the local distributor of Tyvek handed my colleague his card. Among its many purposes, Tyvek is used to wrap buildings at construction sites. The card was itself made from Tyvek, which makes for a fun, tactile, brand-reinforcing experience. I don’t doubt that many conversations have started with, “wow – what’s that card made of?”

A business card is a specific example of a brand touchpoint, a place where your brand as a real estate agent and your target home buyers meet.

Experienced marketers often say “Everything Communicates.” That’s a broad concept, but brand touchpoints bring it down to reality. Everything, from your business card to your actual product or service, says something about your brand as a real estate agent – and it’s your job to know what it’s saying.

Effective marketers know that they have to be intentional about everything that they do. In other words, you have to decide what you want to known for before you brand yourself. A message is crafted about why you are the best choice for the home buyers you want to work with. The voice, personality, and look-and-feel have to be right. After that, you can express that message using all of the channels of communication available.

Those channels are your brand touchpoints. They can include advertising, marketing collateral materials, web site and stationery. Those are the obvious ones. The touchpoints you don’t think of, though, are the ones that are likely cause you problems. These are things like voicemail messages, phone manner (of everyone who answers the phone on your behalf) and the appearance of coworkers, car, or office.

To expand on this, you want to ensure that each of these touchpoints is actually building up the “know, like, and trust” factor with your ideal clients. If you want to be known for being extremely businesslike, then your voicemail should be very to-the-point and your dress more sophisticated. If you wish your brand to be more folksy, then your voicemail can include a more friendly or inspirational message, and your dress may be more casual.

The most important thing is consistency. You want each brand touchpoint to be reinforcing the same message. Don’t let hidden brand touchpoints ruin your real estate agent marketing. Remember that everything communicates. That abrupt voicemail message or dirty car could undo a lot of hard work.…

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Mortgage: Rehabilitation Of Financial Helplessness

The term 'mortgage' is assumed really controversial by people when they are contemplating the idea of ​​taking a loan. It is absolutely a very simple procedure which is presumed complicated because your home is attached to the term mortgage. In the layman language it is the conditional conveyance of property as a security for the repayment of the loan.

In the real estate market you are sure to hear 'mortgage' more than often and yet not sure what it is. First understand the mortgage in real estate terms and then decide if you want to opt for this type of loan borrowing. Every loan lending company would be interested in giving you a loan if you can place some guarantee for their money. This is as justified for as the need to insure your property against some unharmed incident. Therefore, the disadvantage while opting for mortgage is that you may loose your property or home in case of your failure of repayment.

Now, do not give up yet the expansion of the loan market has included terms which ensure that your home will be as safe as ever. Mortgage in the real estate has furcated into various forms. You can choose a form that is ideal for your needs and demands. The more acknowledged variants of mortgage are – fixed rate mortgage, variable rate mortgage and balloon mortgage.

These various kinds of mortgages may again seem confusing, but the reality is that they are introduced to simply the process and make it more adjustable to our demands. A fixed rate mortgage is procured at a fixed rate throughout the length of the mortgage term which is determined either before taking the loan or at the time the loan is taken. There is further simplification under a fixed rate mortgage like the thirty year fixed rate mortgage or biweekly mortgage, convertible mortgage etc.

A variable rate mortgage has a fixed rate of interest for a fixed period of time and is liable to change later on. A variable rate mortgage is also called ARM or adjustable rate mortgage.

Balloon mortgage, as the term suggests, is a singular form of mortgage. In a balloon mortgage a fixed rate of interest and a fixed monthly payment is given for a predestined time period. At the exhaustion of the term the entire remaining amount has to be paid in summary.

It already feels so reassuring to know that so many forms are accessible for the people like us who have been browsing for a mortgage. Mortgage are backed by various lenders – banks, credit unions, mortgage bankers, mortgage brokers. Usually the lender gets an absorption fees and likewise the broker gets the broker fees. It is very legitimate and totally free of any hassles, if any.

The homeowners in UK can go for mortgage at any time. But what if you are not a homeown yet and thinking that mortgage holds no option for you. May I take the opportunity to tell you that …

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The VA Offers Loan Programs For Fixer Upper Homes

One of the many uniqueness of a VA guaranteed loan is the possibility of buying a house and using some of the proceeds of the loan(s) to fix it up before you move in. The only other type of loan similar to this might be construction permanent financing (also guaranteed by the VA). In other words, the VA will under certain circumstances guaranty loans so you can purchase and rehabilitate (rehab) a house that needs repair and that you and the lender knew required repair before closing. You won’t find that anywhere else.

Basically, you will have two loans, one for the initial purchase and a second or supplemental loan for the rehab work. That first loan will almost certainly require your house to appraise and pass inspection, even in its banged up state. In other words, the sink will need to have running water and the furnace will need to heat the house. You must coordinate the purchase and the rehab carefully with not only your lender but also with a licensed appraiser before you make any commitments. While this adds a level of complexity not normally found in residential mortgage lending, bear in mind that the United States Government is about to back the deal with a guaranty. Go for it!

Some Key Rules

It is important for you to know about some of the key rules established by the VA for this type of deal. The headings below have been changed to assist the reader and not all of the rules are restated here-just the ones that seem high profile.

A. VA may guarantee a loan for alteration and repair

o of a residence already owned by the veteran and occupied as a home, or

o made in conjunction with a purchase loan on the property.

B. The alterations and repairs must be those ordinarily found on similar property of comparable value in the community

C. The cost of alterations and repairs to structures may be included in a loan for the purchase of improved property to the extent that their value supports the loan amount.

D. A supplemental loan is a loan for the alteration, improvement, or repair of a residential property. The residential property must

o secure an existing VA-guaranteed loan, and

o be owned and occupied by the veteran, or the veteran will reoccupy upon completion of major alterations, repairs, or improvements.

E. The alterations, improvements, or repairs must

o be for the purpose of substantially protecting or improving the basic livability or utility of the property, and

o be restricted primarily to the maintenance, replacement, improvement or acquisition of real property, including fixtures.

F. Installation of features such as barbecue pits, swimming pools, etc., does not meet this requirement.

G. No more than 30 percent of the loan proceeds may be used for the maintenance, replacement, improvement, repair or acquisition of nonfixtures or quasi-fixtures such as refrigeration, cooking, washing, and heating equipment, and the equipment must be related to or supplement the principal …

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