Military Loan News

posted by Jerry on Feb 5

In just a few weeks I am releasing a program that teaches investors how I have created a hugely profitable mortgage assignment business and how they can do it too. I’m going to tell you all of the secrets to my success and give you all the tools, the scripts, the whole enchilada; this is by far the best mortgage assignment program out there, period.

Who am I? I’m not one to toot my own horn so here’s a professional bio that was written about me:

“Phill Grove has been called the most successful residential real estate investor in post-bubble America by dozens of today’s top guru’s. He has conducted approximately $200M in real estate transactions – using non-traditional investing methods such as mortgage assignment, short sales, equity partnering, auction-options, wraps, swaps, and other methods – many of which he invented and/or pioneered for the industry. Phill teaches how to zig when others zag, and believes the biggest opportunities for wealth exist for those that solve the biggest problems during the biggest times of need, and has never seen a bigger opportunity than now to grow rich while helping others.”

For a few years my main focus as a real estate investor was short sales. Over the past year or 2 the short sale business has increased but the amount of short sales that banks are approving has steadily declined. There were still a ton of homeowners facing foreclosure that required my help, but there were no assurances the bank would cooperate if we started a short sale. To facilitate these deals and to make the sort of cash I got used to making my focus transitioned to mortgage assignments. I had so much success with this new strategy that I decided to make a mortgage assignment program for other stockholders to share in the wealth ( I know this seems a little unusual, I should keep my killer strategies to myself, but actually there are way more mortgage assignment deals out there than me and one thousand clones of myself could handle ).

The Mortgage Assignment Program
So what is it? My mortgage assignment program will show investors how to do something that no one else is teaching. It’s a basic premise: I will show you how to sell ‘unsellable’ houses to ‘unloanable’ buyers.

The mortgage assignment program will offer you tons of content. I am going to go over the way to acquire the properties, how to market to both consumers and sellers, the tools I use in my business, how to process the leads, and the way to plan and structure your business. You’ll also get a lot of material to use like my contracts, disclosures, prospect questionnaires, and legal forms. In the following few weeks I’m going to be releasing a collection of videos that will teach you about the mortgage assignment program and all of it’s offerings.

posted by Jerry on Feb 4

Acquiring real estate ” Subject To ” is an investment strategy that allows investors to acquire a property with little or no money out of pocket by leaving the seller’s existing mortgage in place. More simply, the investor does not have to get a loan through a bank or hard money lender to buy the property because they have purchased the property “subject to” the existing loan or loans. Put another way, “subject to” is a way to control a property by having the seller of that property continue to hold their bank financing in their name, but give the interest, benefits, and responsibility of the property to the investor. Because the seller’s name remains on the loan they will still remain liable for the payments if they were not made by the buyer.

Subject To Investing | Common Questions

Could the lender call the loan due if the property is sold subject-to?
Technically yes, but virtually no. Everytime a home is sold, the fundamental lender technically has got the right to “call the loan due”. This is sometimes known as the “due on sale clause.” Almost all home loans that are less than 25 years old will have a “due on sale clause.” that being said, we have never seen a case in which a lender basically calls a loan in which the loan payments are being made in an efficient fashion. Banks are in the business of loaning money and collecting money, not in the business of handling property. Additionally, the lender would have to do their due diligence to even know that a sale happened, and why would they do that on a well performing loan? Ultimately, there are some techniques that backers use to further disguise a subject to sale nevertheless , it is debatable whether these systems are necessary.

Can a property be sold subject to when payments have been missed?

Yes, in a number of cases if there is a good amount of equity in the home, a stockholder or consumer may be prepared to make up the back payments and buy the property subject to.
How will selling subject to affect the seller’s credit?

Almost all of the time there will be no affect on the seller’s credit in a subject to deal. Nonetheless if the vendor has skipped payments during the past and then a backer or purchaser makes up those skipped payments and pays on time from that moment on, it can basically improve the seller’s credit history. On the flip side, if the vendor were to sell their home subject to the existing financing to a consumer that is not able to make the payments on time, the seller’s credit could then be damaged.

posted by Jerry on Feb 3

A Tracker remortgage is actually a mortgage in which the interest rate is variable, i.e. will change as time passes, yet is placed at a preset percentage above the Bank of England base rate. It was once the situation that you could obtain a mortgage which was below the base rate, while still tracking it, however the rate has been lowered to such an extent in recent times this no longer applies.

The Bank of England base rate is determined every month by the state, and whatever they fix it at will determine, in a roundabout way, your own rate for those who have a Tracker remortgage.

Typically, a Tracker is going to be a fixed percentage above the rate, e.g. assuming the base rate is 2% and also your tracker is set at the base rate plus 1%, chances are you’ll be charged interest for a price of 3%.

Some Remortgage loan packages can provide an interest rate that tracks the base rate, except only for a predetermined amount of time. This may be a time period of 24 months for example, and after that your mortgage will change to whatever the lender’s standard variable rate is at that time.

You should bear these points in mind when you compare remortgage deals, as the calculations should include what your monthly bills are likely to be once your starting rate has expired, which can be dramatically different.

The boost of having a Tracker rate at the moment is that you may find yourself paying back a lesser amount than the standard rate, at the least during the period of time where the Tracker rate applies.

However, since your rate depends upon the base rate, if this gets bigger, same goes with your mortgage interest rate. This makes the Tracker deals fundamentally unpredictable, therefore it may be hard to comprehend what the influence on your finances will as a consequence be in the long run.

Moreover, if you’re deliberating on a Tracker remortgage, watch out for plans that employ a minimum rate that is payable. In spite of everything, if you’re rate is connected to changes in the base rate, you should be sure you take the advantages of this rather than just the not so good.

posted by Jerry on Feb 3

What is a mortgage assumption?
A mortgage assumption is a transaction that takes place when a new home buyer formally takes over the loan obligation of a seller while that seller’s mortgage financing stays in place. Through mortgage assumption, another person “assumes” your loan at its current interest rate and takes over the payments. In some cases the seller will be released from the loan, though in most cases the lender will refuse to release the original borrower (the seller) from the original loan obligation even in cases where the buyer is well-qualified for the mortgage assumption.

Which loans are assumable?
Only a few loans are assumable nowadays, however it cannot hurt to check your mortgage to see if it is assumable. There are 2 base types of mortgage presumption transactions : an easy presumption and a novation agreement. In an easy presumption the loan corporation is not involved and the buyer and seller come to a personal agreement. In a novation agreement the vendor will alert the lender of their intention to allow a different consumer to think the mortgage. If the mortgage lender consents to the presumption, usually a purchaser must meet the lender’s credit and revenue requirements, the vendor will then be released from the culpability of the original loan.

Who can do a mortgage assumption?
As we mentioned above some mortgages are assumable and some are not. You can look through your original mortgage documents or ask your mortgage company to discover more about your loan. Mortgages that were originated before Dec. 1, 1986, use the simple presumption process. Most loans after that date include the “due-on-sale” clause which we’re going to talk about below.

Mortgage assumption and the “due-on-sale” clause
The most important factor limiting the use of mortgage beliefs is the “due-on-sale” clause that’s included in most conventional home loans since 1986. This clause demands that ‘the loan be paid back in full if a property is sold. ‘ Even with the “due-on-sale clause,” lenders may allow an assumption ( because foreclosure and non-performing assets are high-priced for banks ), but the interest rate will sometimes be raised to current market rates..

Where you are the purchaser or the seller doing the mortgage assignment, you’ll want to review the loan documents thoroughly. Consult a counsel before carrying on in any real-estate exchange so you fully understand the consequences of the deal and so you can avoid any problems.

posted by Jerry on Feb 3

What is Mortgage Novation?

Mortgage novation is a legal process by which an individual with a mortgage can transfer that loan to someone else which releases the first loan holder from the liability of making the payments on the loan. ‘Novation ‘ is basically a term used in contract and business law that describes the process of either replacing an obligation to perform with a new requirement, or replacing a party to a deal with a new party. So mortgage novation is the replacing of the requirement to perform on a mortgage with a new obliged party.

How does mortgage novation work?

For a mortgage novation to work all 3 parties in the transaction would need to come to an understanding. This does not occur frequently as banks barely approve of these substitutions, and instead prefer for the loan to be refinanced. Prior to getting to far into the process you will need to contact the bank at once and tell them that you would like to change the ownership of mortgage by utilizing mortgage novation. If the bank does accept the mortgage novation then a contract is made between the debtor and the 3rd party called a deed of novation, agreement to novate.