Tag Archives: sell
Lending
The lending of assets such as money, property, or other valuable personal belongings is a time-honored tradition. In the old days of lending, when local banks ran out of money to lend for mortgages, community growth was halted and so was the opportunity for business expansion. The federal government recognized this problem and initiated a plan to restock bank capital by substituting as a mortgage broker.
They set up the department of Housing and Urban Development, or HUD, as it is commonly known. Many specialized agencies of HUD developed, and you can probably recognize them by their acronyms such as VA, FHA, Fannie Mae, etc.
The federal government ran detailed studies and statistical analyses to determine why loans succeeded or failed. Their studies resulted in a set of guidelines and conditions that loans would need to conform to in order for HUD to purchase them from the banks.
These specialized agencies of HUD then offered to buy loans from the banks, allowing the banks to make a profit. This process has opened doors for investors to pool their capital and form national lending institutions, selling their pools of loans to the federal government.
The government would in turn securitize large groups of these loans and sell them to Wall Street as mortgage-backed securities. Wall Street sells these loans to national and international investors, which helps explain the daily precariousness of interest rates.
Over the years, more Americans began falling out of perfect credit, which created the necessity for lenders who were not as strict as the federal governments agencies. These lenders had the financial strength to purchase large pools of loans, securitize them and sell them directly to Wall Street for even larger profits! They translated higher-risk loans into higher interest rates and therefore higher earnings. Thus began another cycle of lending and mortgaging.
Sell Your House Quickly Using Seller Financing
The sad fact of the matter today is that the vast majority of real estate listings expire, and many houses go unsold. One of the key reasons for this is that there are many great houses on the market, yet not so many good buyers for them. The market for house sellers is very competitive. And anything that you can you can do to make your house more unique than your competitors will help you.
One way to make your house more unique is to offer seller financing. When you offer your house using this kind of financing your house tends to stand out from the crowd, much more than if you dont. In addition, by offering seller financing the number of potential buyers for your house goes way up. Thus, allowing you to sell your property much faster.
Also, today many sellers, in an effort to sell their property, are forced to reduce their selling price substantially. However, by offering seller financing you can usually get your asking price or very close to it. Prospective buyers of your property will pay more for premium seller financing for a variety of reasons.
One reason is that they will have less closing costs. With a traditional lender they would have to pay all of the associated points, lenders fees, and a lot of other lenders nonsense fees. But with seller financing the closing on the loan can take place in matter of days, without all the lenders reviews, committees, red tape, hassles, and paperwork.
And since you are in actuality loaning the buyers the money to purchase your house, they will be making their payments directly to you on the private note you created by using seller financing. And, if you ever tire of collecting those payments or you ever need money for an emergency or other reason. Then you can always sell that note or part of that note for a lump sum cash payment.
Indeed, to sell your house quickly in todays competitive buyers market you must have a competitive edge. There are just far too many great houses out there, and not as many good prospective buyers. Yet by offering your house with seller financing this will give you just the competitive edge that you need to sell your house quickly.
Berwyn J. Kemp is a consultant, for more information on selling your house read his special report titled How To Sell Your House Fast at: www.bkemp100.tripod.com, NOW!