Get A Home Get A Special Deed
Sometimes, when you peruse property at an auction, you're issued a special deed or title which specifies that the property is redeemable. The title you hold is temporary; the title can, in a couple months, be bought back by the owner of the property. This type of title is defeasible, or temporary, because it can still be defeated. There are specific rules attached to this type of title.
Redemption Rights: If you buy the redemption rights from the owner at the time of the auction, you will own the title and the rights and therefore be able to get clear title. A redemption purchase should also be notarized. You should consult a local attorney, because each state differs in the way in which this should be handled.
When purchasing redemption rights, you may be dealing with an owner who is under a great deal of stress and may not be aware of the amount of equity they have in their property. Though they may be able to get more for their redemption rights, the rule of thumb is to offer the owner $1,500. They may ask for more, but you should weigh the amount of equity involved.
When purchasing real property:Purchasing real estate and property is a process. It usually starts with a loan, or for the purposes of real estate transactions, called a note.
Acquiring Property:A lot of hopeful homeowners, besides scouting out good property, usually start with getting a loan. A note is the borrowed money, say $200,000. When you use that note to purchase real estate, you are issued a mortgage or deed of trust -this is the security instrument. So when you're paying off your loan, it's called paying off your mortgage. If you, the owner and borrower can no longer pay for your mortgage, your property can be foreclosed -that is repossessed, confiscated, or taken as collateral. Or, depending on certain factors, the lender can see you in court.
Relationship of Notes to Mortgages and Deeds of Trust
In any foreclosure process, there are 3 key players:
Trustor: otherwise known as the Borrower
Beneficiary = Person lending the money (mortgagee)
Trustee = Party handling the transaction
These two are separate and different documents, yet serve a single purpose: ensuring that the loan is paid in full, and should the Trustor fail to do so, securing the perused property as collateral.
There are two major strategies in the foreclosure business:
Short Sale
Equity Split
Sometimes however, should the property and case require it, there is the "subject to" transaction which bases purchase on the existing financing of the real property. - 23162
Redemption Rights: If you buy the redemption rights from the owner at the time of the auction, you will own the title and the rights and therefore be able to get clear title. A redemption purchase should also be notarized. You should consult a local attorney, because each state differs in the way in which this should be handled.
When purchasing redemption rights, you may be dealing with an owner who is under a great deal of stress and may not be aware of the amount of equity they have in their property. Though they may be able to get more for their redemption rights, the rule of thumb is to offer the owner $1,500. They may ask for more, but you should weigh the amount of equity involved.
When purchasing real property:Purchasing real estate and property is a process. It usually starts with a loan, or for the purposes of real estate transactions, called a note.
Acquiring Property:A lot of hopeful homeowners, besides scouting out good property, usually start with getting a loan. A note is the borrowed money, say $200,000. When you use that note to purchase real estate, you are issued a mortgage or deed of trust -this is the security instrument. So when you're paying off your loan, it's called paying off your mortgage. If you, the owner and borrower can no longer pay for your mortgage, your property can be foreclosed -that is repossessed, confiscated, or taken as collateral. Or, depending on certain factors, the lender can see you in court.
Relationship of Notes to Mortgages and Deeds of Trust
In any foreclosure process, there are 3 key players:
Trustor: otherwise known as the Borrower
Beneficiary = Person lending the money (mortgagee)
Trustee = Party handling the transaction
These two are separate and different documents, yet serve a single purpose: ensuring that the loan is paid in full, and should the Trustor fail to do so, securing the perused property as collateral.
There are two major strategies in the foreclosure business:
Short Sale
Equity Split
Sometimes however, should the property and case require it, there is the "subject to" transaction which bases purchase on the existing financing of the real property. - 23162
About the Author:
Want to know more about real estate? Log on to Don Burnham's website http://www.weknowthewayback.com and know everything from redemptions and foreclosure all under one roof.
posted by X - Men @ 2:09 AM
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