Liberty Hill, Texas Sees Realty Spike Hit An All Time High

Owner financed homes can be a great way to buy a new home if you are self employed or have credit issues.  If the transaction isn’t handled correctly the house could be in foreclosure in a couple months, be involved in an insurance fraud case or when it comes time to refinance what if there are loan balance discrepancies? (Did that last one make sense? If not, you need a Realtor who specializes in Owner Financed Mortgages to help you! Find Out More by Calling Sarah Williams and her Team of Liberty Hill Real Estate Agents.

Call Sarah Williams at her new office – We’ve Helped Hundreds of Families Keep it Safe

If you buy your home with true Owner Financing the seller is the party that needs to be the named insured. That is a very simple process. What if you purchase your new home with a WRAP mortgage, it is very important to get the hazard insurance with the correct parties covered.  The underlying mortgage needs to have the insurance applied to the account with the new buyers name and still have the sellers as named insured. We are real estate professionals, we know what needs to be done to keep you and the seller safe, but we always defer to the insurance pros.  If you are the seller, you want to make sure if there is claim the funds are used to repair the asset you are holding the mortgage on, right?  We know the folks who make sure it is all taken care of correctly.

Some agents who don’t have an insurance professional to handle this aspect of the process and their ignorance can get you in trouble.  They just have you buy another insurance policy and keep the other one in place. Having redundant coverage and making claims for the same incident on 2 different companies can be illegal!  Remember, you and the seller would have insurance on the same property. Unknowing to you, the seller could make a claim on their insurance too and KAPOW! You are in a lawsuit.  This is a commonality when it comes to Texas based Real Estate Agents.  A full list of the best real estate in and around Austin Texas can be found by clicking the link.

Imagine this scenario, you pay the seller directly for 3 months and they pocket the money. That’s right, pocket the money and not make the payments to the underlying mortgage. Typically most mortgage companies will start the foreclosure process after 3 months of missed payments.  So now you are out your down payment, all the mortgage payments and needing to find a new place to live. There a simple way to insure this doesn’t happen, it is called a third party loan servicing company.  The buyer pays the monthly admin fee for this service and it is the best money they will spend on this type of transaction.

Amortization schedule balances have to be close at time to refinancing. This has to be determined BEFORE closing!  If the buyers loan balance pays down faster than the sellers when it is time to refinance the seller will have to come to the closing table with money. YES! The seller thought they were unburdened with the financial responsibilities when they sold the house, now a couple years later when their buyer goes to refinance they could be on the hook to pay off their loan! Imagine, your credit is now great and you can get a mortgage with an interest rate a couple points lower than your Owner Financed loan.  You are going to be able to reduce your payment by a couple hundred dollars when you complete your refinance but the seller doesn’t have the funds to pay off their loan. A Realtor in Liberty Hill who specializes in Owner Financing will make sure this doesn’t happen to you and keep you safe.

Sarah Williams Team in the Liberty Hill, Texas area has years of experience and hundreds of transactions under our belt to help you through this complex but very legitimate way to buy a home.

Give us a call today 512-215-4987 and feel our energy, experience and enthusiasm for helping you sort through the many owner financed homes for sale in Austin today!  Click Here For Sarah Williams Realty Videos.

How to find the best deals in your area

real estate deal

Finding the best local real estate deals can be challenging. Every local market has its peculiarities that a realtor needs to understand before getting into the trade.

Since the art of real estate trading requires skills, knowledge, and know-how, competitive dealers and investors are always seeking the opportunities for finding better deals. In this article, we’re about to disclose some of the tactics professionals use when acquiring an agreement in a local market.

real estate tipsBe an early bird

In real estate, the old saying “It’s the early bird that gets a worm” unveils its full semantic potential. If you’re not the first one to look for a deal or to make an offer, you are likely to be beaten in the game of real estate.

When finding the best deal, you need to act fast: the probability that your competitors are looking at the same deal are higher than you expect.

To be able to make the quick decision that won’t hurt your portfolio, you have to do your homework first. Due diligence is a crucial element of the game if you’re in for the win.

Ask before they list

Experienced investors will tell you that they’ve acquired some of the best deals by talking to the owners before they even thought of selling their home. But how will you know which owner to approach?

The first ones you should target are absentees. Those are owners who are not living on the property, which is the reason why they’re more likely to sell it.real estate deal

Look for alternative lists

Sometimes the best deals can be found on foreclosures. Think of that the next time you’re exploring the market in search of a deal. Not only they’re more affordable, but they also come with less competition. Before you tap into a foreclosure deal, be sure you’re informed on the regulations about the trade.

Walk around the block

An essential tip for finding the best deals in your area is – walking. Take a walk around the desired neighborhood and search the deals you would like to own. There’s a chance that you’ll run into something worth investing, plus you’ll get to know the area a bit more. And that will give you a competitive advantage over the other players.…