2006-07-21T14:12:00.000-07:00

12 Great Things About Successful Real Estate Note Holders

Written by: Richard Wills

Information by: www.itsmortgagemagic.com

1. They make sure that the insurance policy on the property is issued for an amount that represents at least the full value of the note still owed to them. 2. They also make sure that the note is recorded and they are listed as mortgagee, trustee, or the first contract holder on the policy. This guarantees that they will be entitled to any proceeds from any claim ahead of the borrower. 3. They make sure that they get a notice of cancellation if the borrower fails to keep a current policy on the property. 4. They make sure that real estate taxes are paid on time by the borrower, and if necessary the note holder will pay the taxes themselves. 5. They make it a habit to drive by the property on a regular basis or have someone drive by to make sure that their investment is still intact. 6. They keep all pertinent information on the buyer in a safe place in case of fire, flood, earthquake, hurricane, tornado or any other type of catastrophe. 7. They make sure that they have received an amortization schedule from their attorney or title company so that they can keep up with all payments that are made to them. 8. They notify the borrower well in advance (at least 3-6 months) before a balloon payment is due. This gives the borrower more than enough time to find favorable financing; this reduces the threat of default. 9. They don't allow the borrower to get comfortable making late payments. They install a late payment clause in the contract and enforce it. 10. They are serious about their money and initiate foreclosure proceedings at the first sign of trouble. They are not childish in this area. They obtain the services of an experienced foreclosure attorney to handle the problem instead of trying to save a few bucks and "do it yourself". 11. They realize that a note is a depreciating asset. They understand that each month and each year the value of their note becomes less and less due to inflation.

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2006-07-21T10:30:00.000-07:00

Information by: www.itsmortgagemagic.com

11 Deadly Mistakes When Applying for a Mortgage

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"...avoid disappointment and SAVE thousands by taking a few minutes to acquaint yourself with these potential mistakes.."

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Not Knowing How Much Money You Can Put Down
It's important to know how much you can afford to pay in down payment and closing costs when you apply for your mortgage. The more you put down the better rates and terms you're likely to get. At the same time you also need to stay within your means and comfort level.

Working With A Mortgage Broker Who Has A Poor Performance Record
Industry insiders know that the most common reason that a sale fails to go through is that the mortgage fails to go through. Ask your mortgage broker about her/his performance guarantee.

Not Understanding The Process
Most of us don't shop for a mortgage very often. As a result it isn't something we become familiar with. Work with a mortgage broker who will take the time to answer your questions and uses terms you understand.

Working With A Lender Who has Only One Investor
Not all lenders have a range of options when it comes to investors. What if that investor doesn't offer the type of mortgage you need? Or worse yet, what if you need to change loan products after you've started the process? Working with a mortgage broker who has many investors enables you to address these issues without starting the process over again.

Making Large Purchases Prior to Your Mortgage Application
Many people think that it is in their best interest to get large purchases completed prior to applying for their mortgage. As total debt is a key component in determining the amount of home you qualify for it is best to wait until after your home purchase has closed to make such purchases.

Over Shopping Your Loan
Each time you call a lender seeking the best possible rate and terms you have your credit report pulled. Every time your credit report is pulled you risk decreasing your credit score and thus possibly decreasing the likelihood of getting the best rate and terms. Experts recommend that you select a mortgage broker with a number of investors and do your shopping with her/him.

Hiding Things From Your Mortgage Broker
Most of us have experienced times of financial difficulty at some point. While it can be embarrassing to discuss issues like this, your mortgage broker is there to help you get loan approved despite such issues. Your mortgage broker can only help you with those things with which s/he is aware.

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11 Dealy Mistakes When Applying