Real Estate And Its Info
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.
Securing Redemption Rights
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.
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.
The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.
Relationship of Notes to Mortgages and Deeds of Trust
3 parties are always involved in a deed of trust sale:
Trustor: otherwise known as the Borrower
Beneficiary: Whoever lends the money (aka mortgagee)
Trustee = Party handling the transaction
In a deed of trust, the trustee handles the foreclosure for the beneficiary; in a mortgage, a lawyer handles the foreclosure for the beneficiary. A mortgage and deed of trust are two separate and different things, but perform the same function -acting as security instruments until the property and loan is completely paid off.
There are two major strategies in the foreclosure business:
Equity Split
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. - 23217
Securing Redemption Rights
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.
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.
The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.
Relationship of Notes to Mortgages and Deeds of Trust
3 parties are always involved in a deed of trust sale:
Trustor: otherwise known as the Borrower
Beneficiary: Whoever lends the money (aka mortgagee)
Trustee = Party handling the transaction
In a deed of trust, the trustee handles the foreclosure for the beneficiary; in a mortgage, a lawyer handles the foreclosure for the beneficiary. A mortgage and deed of trust are two separate and different things, but perform the same function -acting as security instruments until the property and loan is completely paid off.
There are two major strategies in the foreclosure business:
Equity Split
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. - 23217
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 @ 1:57 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home