Helpful Facts And Advice In Dealing In Real Estate: From Redemption To Foreclosure
Nearly everywhere, you can buy real property at an auction. In some states, there is what's called Redemption Laws; the deed or title for this type of purchase is special and has specific rules attached to it. The title you hold is not clear yet, or in simpler terms: temporary. This means that in a matter of months, the former owner from which the property has been auctioned can reclaim the property -the title is defeasible or can be defeated.
The legalities of Redemption Rights: Whenever you purchase real estate with a special defeasible title, you can also purchase along with it, the redemption rights. Doing so ensures that the title you hold is permanent and can't be bought back by the owner. Laws that handle this type of transaction differ with each state, and can be confusing. Consult your real estate attorney if you want a fair trade.
Whenever you make a purchase such as this, you can always buy the redemption rights from the owner -making the title you hold clear, or in simpler terms: permanent. It's always a good idea to consult your real estate lawyer with regards to handling this type of case as the laws differ from state to state. If you're not careful, you can and will get screwed over.
Furthermore, there's a good chance that the owner you're buying redemption rights from is currently handling a great deal of stress -their property is being auctioned off! It's likely that they're not aware of the equity. You however, as the buyer, should be aware of such. Tradition and, well, ethics pertain to the rule of thumb: $1500 for redemption rights. Should they ask for more, check the property's equity and again, consult your attorney.
This note is used to buy property, and comes with a security instrument -a binding legal contract that ensures you pay the note in full. This is called a deed of trust, or more popularly, a mortgage (though the two are different things). Should the borrower be unable to pay the note in full, the lender can take the borrower to court, or even put the property under foreclosure -the process of taking the property as collateral for the money borrowed.
The relationship between notes, deeds, mortgages, foreclosures, borrowers, etc:
In a Deed of Trust state, there are three parties involved in the foreclosure process:
Trustor = Borrower
Beneficiary = Person lending the money (mortgagee)
Trustee: Whoever is handling the transaction
So, in a Deed of Trust state, the Trustee would be the person to file the foreclosure on behalf of the Beneficiary. However, in a mortgage state, the mortgagee would hire a lawyer to start the foreclosure process. The Deed of Trust and a mortgage are two separate security instruments, but they perform the same function. They both secure the property as collateral.
The two major strategies in the event of a foreclosure are:
Equity Split
Short Sale
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. - 23212
The legalities of Redemption Rights: Whenever you purchase real estate with a special defeasible title, you can also purchase along with it, the redemption rights. Doing so ensures that the title you hold is permanent and can't be bought back by the owner. Laws that handle this type of transaction differ with each state, and can be confusing. Consult your real estate attorney if you want a fair trade.
Whenever you make a purchase such as this, you can always buy the redemption rights from the owner -making the title you hold clear, or in simpler terms: permanent. It's always a good idea to consult your real estate lawyer with regards to handling this type of case as the laws differ from state to state. If you're not careful, you can and will get screwed over.
Furthermore, there's a good chance that the owner you're buying redemption rights from is currently handling a great deal of stress -their property is being auctioned off! It's likely that they're not aware of the equity. You however, as the buyer, should be aware of such. Tradition and, well, ethics pertain to the rule of thumb: $1500 for redemption rights. Should they ask for more, check the property's equity and again, consult your attorney.
This note is used to buy property, and comes with a security instrument -a binding legal contract that ensures you pay the note in full. This is called a deed of trust, or more popularly, a mortgage (though the two are different things). Should the borrower be unable to pay the note in full, the lender can take the borrower to court, or even put the property under foreclosure -the process of taking the property as collateral for the money borrowed.
The relationship between notes, deeds, mortgages, foreclosures, borrowers, etc:
In a Deed of Trust state, there are three parties involved in the foreclosure process:
Trustor = Borrower
Beneficiary = Person lending the money (mortgagee)
Trustee: Whoever is handling the transaction
So, in a Deed of Trust state, the Trustee would be the person to file the foreclosure on behalf of the Beneficiary. However, in a mortgage state, the mortgagee would hire a lawyer to start the foreclosure process. The Deed of Trust and a mortgage are two separate security instruments, but they perform the same function. They both secure the property as collateral.
The two major strategies in the event of a foreclosure are:
Equity Split
Short Sale
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. - 23212
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 @ 2:14 AM
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