|
|
|
|
|
Here is a list of frequently asked questions:
Q. What types of real property can I find on this site?
A. Almost anything you are looking for. Although we specialize in residential property we are growing and expanding every day. So if you can find it please contact us and we will help you.
Q. What types of alerts do you provide to your subscribers?
A. we email, text, live operator, voice broadcast and any other type of alert required to tell client about our listings.
Q. What are the major sources of traffic to listings on this site?
A. Today's internet is very competitive so we allow listings to be submitted to multiple engines via our site. We host 100% of the information within the site and allow traffic from the major search engines and other joint venture agreements.
Q. What makes your site different from other real estate sites?
A. Our content is strictly supervised and our engine is designed with state of the art technology so we can ensure maximum seamless traffic to the listings.
Q. How do you find your agents?
A. All of our agents subscribe to the site. They must be licensed and practicing to be listed on our agent network.
Q. What is a Short Sale?
A. A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.
Q. What is an REO (Real Estate Owned?
A. Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. This is usually the case as the amount owed on the home is probably higher than the value of this foreclosure property. As soon as the bank repossess the property, it is listed on their books as REO – Real Estate Owned – and is categorized as an asset (non-performing).
As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the bank will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a Broker Price Opinion (BPO) or order an appraisal. Based on the amount of equity that is determined from the BPO, the bank will decide to try for a short sale or to allow it to go through the foreclosure process. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the property will not become a REO property.
After a repossession and the property becomes classified as REO, the bank will go through the process of trying to sell the property on its own or obtain the service of an REO Asset Manger. The bank will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a real estate broker. Asset Manager will also try to contact REO realtors that specialize in certain zip code to help sell this bank owned properties. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.
Once a property is REO, the bank or lender will try to get rid of the property by either selling it directly themselves or through an established broker. Many larger banks such as Bank of America and Wells Fargo have REO/asset management departments that will field bids and offers, oversee upkeep and handle sales. The majority of REO properties that are on the open market should be listed in MLS by the broker who performed the BPO. A common problem in many areas involves the listing broker "pocket listing" the transaction and not putting it out on the open market. Those that do put the listing on the MLS will sometimes not field legitimate offers in the hopes of selling it themselves, quite often contrary to the banks' wishes. As a result a new industry have been create where REO exchange have been developed to overcome this issue.
Q. What is seller financing?
A. Seller financing is a loan provided by the seller of a property as no money is loaned to the buyer. Rather, seller financing is the sale of the property in installments covering part or all of the sale price. Thus, the seller receives payments for his/her equity in the property rather than a return of money loaned. This process, also known as owner carry back or owner financing, is used in a variety of situations as a creative financing option.
Q. What is a real estate tax lein?
A. Unlike personal debts, tax liens on real estate "run with the land", meaning a property owner becomes responsible for payment even if the tax obligation was incurred by a previous owner. Depending on the law of the state or jurisdiction, the owner of the property may also be personally liable for payment of the taxes.
Payment of a tax lien may occur through various methods:
* Payment may be made directly by the property owner or, in many cases, indirectly by the mortgage holder using an escrow account. Notice is given both to the property owner and mortgage holder when a property tax is delinquent. Hence the mortgage holder will receive notice of the delinquency even if the property owner does not have an escrow account on the mortgage, and most often will pay the tax and then demand repayment from the owner/borrower and/or create an escrow account to recoup the proceeds. Doing so is necessary, as a tax lien is superior to a mortgage and the mortgage holder's lien could lose value if the property were foreclosed by the taxing agency to satisfy unpaid taxes.
* If a property is sold by the owner prior to tax foreclosure by the government body, the tax lien (which is generally discovered as part of a title search) is usually paid as part of closing costs from the sale proceeds.
* Procedures vary from state to state. Generally, in the event a tax lien on personal property is not paid within a specified time (and after several notices are generally given), the property may be seized and sold. On real property, one of two methods may be used: either the property may be seized and sold (a tax deed sale), or in some states, the tax lien may be offered to investors (in the form of a tax lien certificate) with an accompanying right for the investor, after a specified period of time, to institute foreclosure proceedings (a tax lien sale).
Q. What is a (promissory)Note?
A. Written promise to pay, frequently used in installment loans and commercial loans. A promissory note is the legal evidence of a debt, a promissory note may be transferred to a third party as a Negotiable Instrument. The holder of a promissory note who wants payment before the maturity date can negotiate it by endorsing the note and presenting it to the payer for payment.
Q. What is a quit claim deed?
A. A quitclaim deed is a term used to describe a document by which a person (the "grantor") disclaims any interest the grantor may have in a piece of real property and passes that claim to another person (the grantee). By contrast, the deeds normally used for real estate sales (called grant deeds or warranty deeds, depending on the jurisdiction) contain guarantees from the grantor to the grantee that the title is clear. The exact nature of the warranties varies from jurisdiction to jurisdiction. Quitclaim deeds are sometimes used for transfers between family members, gifts, placing personal property into a business entity, to eliminate clouds on title, or in other special or unusual circumstances.
The most common use for a quitclaim deed is a divorce in which one party is granting the other full rights to, and eliminating any interest in, a property in which both parties held an interest. If a husband and wife own a home and divorce, and the wife acquires the home in the decree, the husband would enact a quitclaim deed to eliminate interest in the property.
Quitclaim deeds are also typically provided in cases of tax deed sales where property is auctioned off to pay outstanding tax debt. The auctioning body is usually a local government, which claims no interest in the property whatsoever, but is selling it only to recover the back taxes.
Q. What is a grant deed?
A. A grant deed is used in some states and jurisdictions for the sale or other transfer of real property from one person or entity to another person or entity. Each party transferring an interest in the property, or "grantor", is required to sign it. Then the document must be acknowledged before a notary public (notarized) or other official authorized by law to administer oaths. The notary public or other official then places a seal and marks the document accordingly to show that it was properly signed and acknowledged. The reason the document must be notarized is to provide evidence that the document is genuine as transaction documents are sometimes forged. Some jurisdictions use the warranty deed to transfer real property instead of the grant deed. The quitclaim deed is also sometimes used, although this document is most often used to disclaim any interest in a property rather than selling a property that one owns.
The types of deeds that are now used to transfer real property are a relatively modern invention. Previously, the grantor transferred the property to the buyer, called the "grantee", by performing some commonly recognized deed, such as picking up a handful of soil of the property to be transferred, handing it to the buyer, and reciting legally prescribed words that acknowledged the transfer. This was called livery of seisin. Over time, and particularly with the development of modern technology that permits government offices to keep accurate copies of documents, the physical deed that was formerly performed in order to transfer a property was replaced by the paper deed, also known as a deed poll, that is now commonly used.
Q. What is a warranty deed?
A. A general warranty deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer). The guarantee is not limited to the time the grantor owned the property—it extends back to the property's origins. A General Warranty Deed includes six traditional forms of Covenants for Title. Those six traditional forms of covenants can be broken down into two categories: present covenants and future covenants.
- Present Covenants
--- Covenant of Seisin & Covenant of Right to Convey - Covenants that represent the seller's promise that he has title and possession and can validly grant or convey both
--- Covenant Against Encumbrances - Seller promises that there are no encumbrances, other than those that have been previously disclosed
- Future Covenants
--- Covenant of Warranty and Covenant of Quiet Enjoyment - Covenants that represent seller's promise to protect the buyer against anyone who comes along later and claims paramount title to the property
--- Covenant of Further Assurances - If seller omitted something required to pass valid title, seller promises to do whatever is necessary to pass title to buyer
Note - Not all states recognizes the Covenant of Further Assurances (e.g. Ohio)
Most people hire someone to perform a title search to determine if there are defects that must be resolved before they purchase real property. They can also purchase title insurance, which covers many types of losses that occur if problems are discovered later, but title insurance raises a number of other legal issues.
Q. What is a Tax deed sale?
A. A tax deed sale is the forced sale, conducted by a governmental agency, of real estate for nonpayment of taxes. It is one of two methodologies used by governmental agencies to collect delinquent taxes owed on real estate, the other being the tax lien sale.
Tax Deed Sale Process
Real estate taxes are considered delinquent if not paid within a specified period of time. If the taxes are not paid, after legal requirements are met (such as giving proper notice to the property owner as well as others holding an interest in the property, or by filing required action in the courts), the property is offered for sale at a public auction.
A Tax Lien represents a lien of unpaid real estate taxes, assessments, including penalties, advertising costs and fees. If the property owner fails to pay the delinquent taxes during a specified period of time, the county government can sell what is called a Tax Lien Certificate on the property. The Tax Lien Certificate represents the outstanding taxes on the property. Many county governments sell the Tax Lien Certificates to investors so that the county may recoup the delinquent taxes. In exchange for the purchase, county governments offer the investors interest on those Tax Lien Certificates and the guarantee that those Tax Lien Certificates will be paid off within a predetermined period of time. Interest accrues on the Tax Lien Certificate over a specified course of time until the taxes are paid. A Tax Lien Certificate is a first position lien (Senior Lien) on the property. In most states, if the property owner does not redeem the Tax Lien Certificate within a specified time period the holder of the certificate can ask the county government to begin procedures to auction the property to the public. Proceeds from the auction will pay off the Tax Lien Certificate Holder(s).
Florida attorney and tax lien and deed investor Larry Loftis states that about one-half of the U.S. states are "lien" states and one-half are "deed" states, with a number of states as "hybrids." Unlike a tax lien, where only a lien on the property is being sold, a tax deed state is where the county is actually selling the property for failure to pay the property taxes. Some deed states, such as Texas and Georgia, are somewhat of a hybrid in that they sell the property at a tax deed sale, yet allow the owner a redemption period to pay off the lien and reclaim the property. A few states, such as Florida, New York, and Ohio, have both tax lien and tax deed sales.
At a tax deed sale, the minimum bid is generally the amount of back taxes owed plus interest, as well as costs associated with selling the property. Bidding is done in increments from $10–$100 in most states. In the event the property is not purchased, title may revert to the county government. In most jurisdictions, the county transfers title in a tax deed sale through either a Tax Deed or a Sheriff's Deed. The purchaser of a tax deed may transfer title through a quitclaim deed but would need a quiet title action to sell with a Warranty Deed (given that a Tax Deed, Sheriff's Deed, or quitclaim deed are insufficient to acquire title insurance).
The hybrid jurisdictions allow a "redemption period," whereby the former owner has a specified amount of time to reclaim the property by repaying the amount bid at auction plus a penalty. For example, Texas allows a 6-month (for non-homestead, non-agricultural properties) or two-year period (homestead or agricultural properties), with a flat 25% penalty to be added to the amount paid at the sale, while Tennessee allows a full year, with a 10% penalty. As such, purchasers of properties at tax deed sales are cautioned not to make major improvements on the property until after the redemption period has expired.
|
|
