haunted-house-for-sale-mortgage-payments

Haunted Houses For Sale With Mortgage Payments

Everyone loves a good scare so why not buy your very own haunted house?  There seems to be a lot of homes for sale that could qualify as “haunted.”  They have great “value.”

Here are a few listed with the mortgage payments along with them because after this is a mortgage website.  It would be no fun if we didn’t know what the actual mortgage payments would be right?  Assumptions used are 4.5% 30yr fixed conventional mortgage with 20% down.

Haunted House #1: Mortgage Payment $1,517.16

206 N Broadway Street
Joliet, IL 60435
joliet-haunted-house-for-sale

This house sold July 2014 $175,000.  It’s a fairly large home and is almost 5,000 sq ft.  Built in the 1800’s I’m sure it is haunted and also needs a lot of repair work.

Haunted House #2:  Mortgage Payment $11,086.96

507 E Saint Julien Street
Savannah, GA 31404
haunted-house-for-sale-3

Very old home that was moved to it’s present location.  Rumors say that there were male voices being heard in the home at night.  This was listed on the market for over $2,000,000 but there were no buyers.  I wonder why?

Haunted House #3: Mortgage Payment $1,533.90

4308 Franklin Blvd
Cleveland, OH 44113

haunted-house-for-sale-4

This home recently sold for $260,000 and was built in the 1800’s.    It’s a haunted mansion that is surrounded by stone turrets, gargoyles and multiple towers.

Summary

If you are actually interested in taking on the challenge in buying a previously haunted home expect to do a lot of work to the property.  You will likely need to do a repair escrow at closing to bring the property up to par.  If it has any problems with the roof or structural integrity issues you may even need a construction loan to close on one of these.

You can probably expect to also get a great deal on the price since nobody wants to buy these homes!

If you do buy a haunted house let me know because I want to hear all about it.  We will have to schedule a Beetlejuice Dinner.

HAPPY HALLOWEEN!!!!!

creative-pumpkin-carvings

splitting-wood-dividing-assets-divorce

Important factors when dividing real estate in a divorce.

When getting divorced distributing the assets appropriately can be one of the most painful steps of the divorce.  Especially when it comes to real estate.

This is the perspective from a loan officer.  Make sure to seek the also seek the advice directly from your divorce attorney regarding these issues.

Important Issues And Factors To Talk About

  1. Separation Of Equity
  2. Existing Joint Mortgages
  3. Buying Another Home

Real Estate Isn’t Liquid

The biggest problem with dividing real estate assets when getting is that they aren’t liquid.  If you have a large amount of cash in the bank and you need to settle with your spouse you can just write them a check.  But with a house you have to sell it and don’t forget about paying off that mortgage.

Oh and what if the house is upside down?  Who is going to bring the cash to close and how are you going to get the mortgage out of your name so you can move on with your life?

#1 The Separation Of Equity

So let’s say you are getting divorced and you want to get half of the equity that is left in the house.  How do you get it and how much do you get?

Ways To Separate Equity

  • Sell Property
  • Cash Out Refinance
  • Home Equity Line Of Credit
  • Write A Check

The first thing you need to do is come to an agreement on how much equity is left in the house.  You determine that by taking the home value minus any outstanding mortgages on the house then you have your equity.

Sounds easy right?  Get ready because it’s not.

But there is always an argument over the home value because one person wants it higher and the other wants it lower.  So if you can’t come to a mutual agreement on the home value then you will need to order an appraisal from an uninterested third party.  That will run you $300-500 depending on type of property and location in the country.

Then you have to determine how you will pull the equity out.

Sell The Property

You could sell the property.  If you do this then you will pay real estate commissions out of your portion of equity so be sure to consider that.  If the house is upside down then when you sell you will likely “owe” money via cash to close and you will get “zero” equity.  This often a great option because now nobody owns the property and any mortgages on it that may have been held jointly will be paid off and closed.

Do A Cash Out Refinance

In this case whoever is going to keep the home will apply to refinance their first mortgage.  They will get a new loan for a larger amount and to get cash at the closing table that they can give to the spouse as their portion of equity.

This is an option if the mortgage is still in good standing, one person wants to remain in the home and there is real equity still left in the home.

Get A Home Equity Line Of Credit

A HELOC or home equity line of credit is a nice and easy option if it fits your needs.  If you have some equity in the home you can get a HELOC to access just the right amount in a bite sized amount to pay the other person their equity.

Also in this case the person remaining in the home would need to qualify for a HELOC and have equity in the home.

Just Write A Check

If the person keeping the house has enough liquid assets then they may just write a check to the spouse so they can keep the house.  They would make the check for half of the equity they agreed upon as part of the divorce settlement.

#2 Existing Joint Mortgages

If you own a house with your spouse odds are you have a mortgage in your name that will linger on your credit report after the divorce is done.  You will want to do your best to keep that loan on time.

Ways To Take Name Off Mortgage

  • Refinance
  • Sell The House
  • Pay Off The Loan
  • Assumable Mortgage

We see mortgage delinquencies all the time when a divorce is happening just out of spite to the other person.  If that loan goes late the odds of refinancing that debt out of your name anytime soon are near impossible.  The bottom line is that if your name is still on that loan it’s ultimately your responsibility to make sure it gets paid on time.

#3 Buying Another Home Before Divorced

You may be ready to move on with your life before the divorce is technically over.  In some cases this is OK but be careful and seek the advice of your attorney.

If you buy another home while your divorce is pending it may be considered a “marital asset.”  If it is then that is one more asset that just came into play that is up for grabs and can become a pain point.

Some states allow specifically for this to occur and may penalize the spouse that purchased new real estate a small flat award to the other spouse that doesn’t own the house.  It may be worth it to do it this way depending on your living situation.

Seek Advice From Your Attorney

As always keep your attorney close when making these decisions.  I am not an attorney and don’t give legal advice.  I can work on the side with your attorney to help them guide you in the right direction and give you all your mortgage options along the way.

Good luck and reach out to me if you need any help with your personal situation!

 

Reverse Mortgage Non Borrowing Spouse Guidelines

Non-Borrowing Spouse Age Requirements on Reverse Mortgages

The age requirements have changed recently on reverse mortgage loans where the non-borrowing spouse is under 62 years old.  See the new changes here.

There are new changes to the rules for reverse mortgages that mean great news for many borrowers. Sean McGeehan has done so many reverse mortgages, he knows them inside and out. Here is what you need to know – A ‘non-borrowing spouse’ is the person you are married to, that is not on the mortgage. One reason this may happen is, if the spouse is not 62 years old.

The age requirement for a reverse mortgage is to be older than 62. So, the first person in the marriage to meet the age requirement would usually go on the reverse mortgage. Previously, the rules were such that if that person on the mortgage died, and there was a spouse under 62 not on the mortgage, they could have to payoff the mortgage entirely, or potentially sell their home. But, the rules changed, and that is no longer the case. The remaining spouse can stay in their home.

It can be a little complicated, but that is what we are here for. If you are over 62, or you are considering a reverse mortgage, let us help you. Please give us a call, and we are happy to answer any questions. You can talk with Sean directly at 847 613 7843, or check us out at www.seanmcgeehan.com

 

Asset Based Lending Mortgages

Asset Based Lending- How do asset based loans work?

When you have a big down payment or a lot of cash liquid in the bank you can qualify for an asset based loan.

If you want more info on how these work to purchase real estate or refinance your mortgage call me today.

Asset Based Lenders Look For:

  • Low LTV
  • Big Down Payment
  • Liquid Cash Reserves

Compensating Factors Count

Asset based loans are typically used in lieu of conventional financing because there is a piece missing to qualify for conventional loans.  For example if someone self employed and don’t show much income but they have a lot of assets they can usually get a loan.

The assets in these cases are the equity in the property and liquid reserves cash left over after the down payment.  A lender can determine if their ability to pay can solely rely on the amount of reserves in their accounts.

Types Of Properties:

  • Commercial Properties
  • Residential Properties
  • Single Family Homes
  • Condos
  • Apartment Buildings
  • Office Buildings
  • Strip Retail
  • Multi Family Housing

Missing Pieces, The 4 C’s

With conventional financing the lender’s usually look for what is called the 4 C’s.  The 4 C’s stand for Capacity, Capital, Collateral and Credit.  When one of these 4 items are missing then the lender can rely on the strength of an individual one to make up for the missing one.  In this case assets are the strongest one to cover up other weaknesses.

Do you have all 4?

  • Capacity
  • Capital
  • Collateral
  • Credit

Lenders like a lot of assets and equity in the property because they know they have a lot of ways out if things go bad.  If they need to foreclose then there is equity in the property to get their money back plus interest and attorney fees.  And if you have a lot of liquid assets then that shows financial responsibility and ability to pay the debt for a long time even if you don’t have the income to support the debt.

The Rates And Fees

The terms offered on asset based loans will weigh heavily on the compensating factors of the borrower.  Typically they will be slightly higher than conventional financing but they aren’t too out of line if you are a strong candidate.  They could range from a fee of 1%-3% of the loan amount and rates 5-8% depending on what type of term you choose.

These loans are hand made and lenders will take one at a time to grade them out and offer terms.  If your interested in what kind of rates and fees you will get specifically it’s recommended that you go ahead and apply.  Also these are comparable to hard money loans but usually they are on better terms.

If you want more info about getting an asset based loan then call me today and I will show you your options.

Residential and Commercial Mortgage Broker – Loan Officer