Sunwest Escrow of Albuquerque, New Mexico has been servicing real estate contracts and owner financing for over 30 years. In that time we have learned quite a bit about ‘For Sale by Owner’ home purchasing and FSBO contractual agreements. As industry experts, our extensive experience in ‘For Sale by Owner’ buying exchanges can save you time, money and the frustration of navigating this somewhat complex home-purchasing experience.
Here is some important information the team at Sunwest Escrow would like to share with you before you pursue a home that is ‘For Sale by Owner.’
Have you fallen in love with a home that is ‘For Sale by Owner’ and you’re not really sure what to do next? You might have a lot of unanswered questions about the difference between FSBOs and a home listed through a real estate brokerage firm, starting with, is this FSBO home something that I should follow up with or should I stay clear of the home all together? Buying a FSBO is just like buying any other property…somewhat. Someone will need to assume the responsibilities of the missing listing agent on the other side.
1. Is an agent necessary in a home buying situation that involves an FSBO?
The whole reason the seller has listed their home FSBO is most likely to avoid having their own agent mixed up in the home selling process. But, as a buyer, having your own agent can be extremely helpful throughout the FSOB process. If you have an agent already, they can contact the buyer on your behalf. If you currently are without an agent, consider finding one that is willing to work with FSBO contracts. Real Estate agents that represent the buyer aren’t always thrilled with the prospect of working on FSBO contracts because of the increased liability, increased work load and not necessarily increased earnings for the extra work. Finally, the seller typically pays the agent commission so why should you go at it alone?
2. What do I need to know about writing the purchase contract?
All home sales begin with a purchase contract. Writing one can be very difficult and often requires expert help. If you aren’t working with an agent and aren’t comfortable taking on the contract writing yourself, you can choose to bring in a real estate lawyer to handle that particular aspect of the transaction for you. In reality, you should go ahead and find a real estate attorney that you are willing to work with and have them assist you in making sure the entire transaction is accomplished legally and all of your rights are covered and protected. Many lawyers can draw up purchase offers and other documents for a reasonable fee, and it’s usually money well spent.
3. How do I handle FSBO home inspections?
FSBO home inspections should be handled in the same manner that any other home inspection prior to purchasing is handled. Always get a home inspection by a reputable home inspector. Deals can go bad very quickly when you are working with a bad home inspector. Make sure you ask for credentials, industry associations, and customer references. Then make sure you follow up on the information they provided you to confirm that what they are telling you is true. If a problem with the house is found during inspection you can request that the owner fix the problem, credit you the money, or reduce the sale price.
4. Should I get a ‘Title Policy’?
Some buyers think it’s not worth the extra money to buy title insurance but a smart buyer always does so. The cost to fix clouds on a title or to dispute easements can be enormous when compared to the amount it costs to buy insurance.
Things to consider when buying an FSBO Home:
Are you considering buying a ‘For Sale by Owner’ home in the Albuquerque Area? Let Sunwest Escrow of Albuquerque, New Mexico facilitate your ‘For Sale by Owner’ home purchase.
Call Today for a Consultation Appointment at (505) 237-2225
Original Source: https://sunwestescrow.blogspot.com/2019/10/things-to-consider-before-purchasing.html
Owner Financing is Often the Best Option When Buying a New Home, Land Plot or Business Property...But How Does that Affect Your Overall Credit and Credit Score?
Sunwest Escrow, LC of Albuquerque, New Mexico is an Expert Facilitator of Secure and Safe Seller Financed Agreements. Their service of negotiating contracts, managing critical documents, and recording historical payment transactions are imperative when securing an owner-financed loan. But this is only part of the overall story associated with owner financing. So how does ‘credit’ play a part in that story?
Let’s start with the basics – What is Owner Financing?
Buying a new home, land plot, or business property is a huge investment. Given the large cost associated with the purchase, this transaction is almost always financed in some way or another. Owner financing also referred to as ‘seller financing’, happens when a home buyer is financed directly through the seller instead of a conventional bank or mortgage lender. The seller extends a line of credit to the buyer which covers the purchase of the home or property, less any down payment made by the buyer. The buyer then makes regular payments to the seller until the amount is paid in full.
If I have an owner-financed mortgage or loan, how does it affect my credit?
If you have found a home that you love, owner financing might be the answer for you. Owner-financed mortgages, however, might not end up on your credit report. Why is this?
With few exceptions, banks and traditional mortgage lenders report home and property loans as a standard monthly practice. The credit bureaus require that lenders meet certain financial standards before they can report a loan. Reporting lenders generally have to be a business, meet certain compliance measures or provide proof of the mortgage. If your lender isn't a business, the mortgage might not be able to be reported.
That being said, if your ‘Owner-Financed Lender’ meets the credit bureaus' minimum standards for reporting, you could be able to have your mortgage reported. Ask your lender if they are willing to fill out the paperwork necessary to report the mortgage.
Defaulting on your owner-financed mortgage can affect your credit…
Although your owner-financed mortgage or loan might not be reported to the credit bureaus, if you default on your loan it can still have a negative impact on your overall credit. By not paying your mortgage, your lender has the right to pursue your debt through legal channels and can garner a judgement against you, which does end up on your credit report. They can also turn their claim over to a collection agency and these companies are notorious for reporting to the credit bureaus.
So as you can see, even if your mortgage is not registered with the credit bureaus, defaulting on your owner-financed loan can still have serious repercussions.
The team at Sunwest Escrow, LC are experts at facilitating and implementing all of the necessary legal safeguards and contractual arrangements associated with an owner-financed loan or mortgage. Whether you are the buyer or the seller, as a third-party escrow company we work to secure owner-financed mortgages that are in the best interest of both parties involved.
Contact Sunwest Escrow, LC Today at 505-237-2225 or Email Us.
Original content posted on https://www.sunwestescrow.com/news/owner-financing-affect-credit.html
"For Sale By Owner" — You’ve surely seen these signs throughout Albuquerque and surrounding communities. However, you may have only learned about this home-selling method from the perspective of the buyer or an escrow agent. At Sunwest Escrow, we believe that all homeowners should be informed of this option before they even think about selling their home. By examining the advantages of listing a home without the traditional help of a real estate company, you can discover the benefits of For Sale By Owner from a seller’s point of view.
Why Sellers Use "For Sale By Owner" Options?
There are many reasons why these individuals choose to forego help from a real estate company, including:
6 Steps Sellers Take in For Sale By Owner Preparations
For an owner to list their homes correctly, there are a few steps they’ll need to follow:
For Sale By Owner Escrow Services in Albuquerque
If you are interested in learning more about the For Sale By Owner benefits and process from the seller’s point of view, feel free to give Sunwest Escrow Inc. a call. We are here to answer all of your questions and make the home-selling process as smooth as possible.
Original Content posted on https://sunwestescrow.blogspot.com/2019/07/fsbo-from-sellers-point-of-view.html
As trends in the real estate market change, more and more buyers are choosing not to work with a real estate agent or traditional mortgage lender. Instead, many of these men and women decide to enlist the help of an escrow service and seek out properties that offer owner financing options. For Sale by Owner homes are quite common and offer a number of advantages to buyers in unique situations which would otherwise prevent them from securing a mortgage through a bank or loan agency.
When it comes to owner financing homes in Albuquerque, Sunwest Escrow knows that these properties will fly off of the market fast. If you are looking to purchase a new home, or if you are a seller hoping to finance your prospective buyer, we believe that all parties should know which types of buyers are typically involved in owner financed homes.
Types of Buyers Involved in Owner Financing Homes
Four of the most common buyers that choose owner financed homes include:
To learn more about owner financing homes in Albuquerque, contact Sunwest Escrow today.
Original Source - https://sunwestescrow.blogspot.com/2019/07/types-of-buyers-involved-in-owner.html
For Sale By Owner — you’ve seen the signs outside of dozens of New Mexico homes. These signs tell you that the home is for sale, however, what many homeowners and homebuyers don’t know is that FSBO homes are a little different than traditional home sales. One aspect of this transaction that is different is the concept of owner financing. At Sunwest Escrow, Albuquerque, we believe that both homebuyers and homeowners should be aware of all elements involved in a For Sale By Owner home. That’s why we’ve created this helpful explanation that covers an important topic — owner financing.
How Does Owner Financing Work?
Both the homebuyer and the homeowner have many options to consider when determining how the property will be financed. As one of the largest financial decisions that an individual makes throughout their life, it’s important that you consider all options thoroughly before making a final choice. Owner financing is an option that is appealing to both parties for a number of reasons.
The concept is also known or referred to by other names — seller financing, owner carried financing, owner carryback, and the owner will carry. Regardless of which term is used, they all represent the same concept. Unlike a traditional home sale in which the buyer borrows money from a financial institution like a bank or lender, owner financing provides an alternative option. Instead of obtaining a mortgage from the bank, the homebuyer goes directly to the owner and receives credit from them. The buyer then makes payments to the seller, in addition to the initial down payment to purchase the property.
This concept presents advantages for both parties. For buyers, it gives them the opportunity to close the home faster. With no bank affiliation, this close is often cheaper as well. It’s also a perfect opportunity for buyers who cannot secure a mortgage, or who require flexible payments, to purchase a home. For sellers, it enables them to retain the title of the home if the buyer defaults. It also allows the seller to sell the home as is which saves them time and money.
Scheduling an appointment with Sunwest Escrow today and learn more about the various advantages of owner financing in Albuquerque.
Original Source- https://sunwestescrow.blogspot.com/2019/05/how-does-owner-financing-work.html
While buying and selling real property is a major milestone for most individuals, many parties that engage in real estate transactions are not formally educated on real estate contracts. This comes as no surprise — a family may only purchase real estate two or three times over the course of their lives. Sunwest Escrow — your real estate contract specialists in Albuquerque — believes that all individuals purchasing or selling a piece of property should have a basic understanding of the aspects that make a real estate contract legally valid. We’ve identified the following elements which are necessary for legally valid real estate contracts.
The 3 Most Important Elements in a Legally Valid Real Estate Contract
At its core, a real estate contract must be a written document detailing the conditions of a sale of property that have been agreed upon by the buyer and seller. However, there are many other elements that also make these contracts legally binding, including:
Original Source: https://sunwestescrow.blogspot.com/2019/05/the-elements-of-legally-valid-real.html
As a buyer, there are plenty of options available when you plan to purchase a home. However, securing a mortgage from your bank can present you with high-interest rates. Renting to buy is not a preferable option either. In fact, the best way for buyers to purchase a real estate by owner financed homes.
Also known as seller financing, owner financing is a real estate technique that can be extremely beneficial for home buyers. Instead of acquiring a mortgage from a commercial lender like a bank or another financial institution, the prospective homebuyer has the option to finance the home with the help of the property owner themselves. The seller supplies all or a portion of the money needed for the homeowner to purchase the home. Essentially, the buyer is taking a loan from the seller.
Types of Owner Financing Albuquerque
Since the agreement is between the buyer and the seller only, the type of owner financing the parties agree to can take many forms. Three common versions include mortgages, land contracts and lease-purchase agreements.
A seller can decide to carry an all-inclusive mortgage, in which they carry the entire balance of the purchase price, or they can carry a junior mortgage, in which the buyer would give the seller a second mortgage in addition to the original mortgage while receiving the title.
Land contacts allow the seller to retain the title of the property while the buyer receives an equitable title until the total payment is complete. Lease-purchase agreements are similar to lease-purchase car agreements. The buyer commits to a set number of payments and receives the title after these payments are made.
Why Owner Financed homes is the Best Real Estate Technique for the Home Buyer
The benefits for buyers using the owner financing technique are advantageous compared to other forms of financing. Whereas financial institutions can deny funding if qualifications are not met, the seller can work with the buyer and come to a compromise. These parties can also define their own repayment options and terms that most financial institutions will not negotiate. Closing costs for owner financed homes are much lower without the fees associated with financial institutions. Closing on the property is often much faster as well because of the absence of a third-party lender.
Owner Financing Homes Albuquerque
For more information about owner financing homes in Albuquerque, call Sunwest Escrow today.
Original Source: https://sunwestescrow.blogspot.com/2019/04/owner-financing-best-real-estate.html
Whether you are considering a real estate purchase agreement as an offer, or are drafting one to purchase property, there are several terms you should know. The real estate professionals at Sunwest Escrow are here to serve as a trusted resource for those who may be new to the process of buying or selling a home. We have developed a list of elements that will likely be included in a real estate purchase agreement. We believe that all parties should be familiar with these basic terms prior to engaging in negotiations.
Original Source: https://sunwestescrow.blogspot.com/2019/02/important-terms-relative-to-real-estate.html
If you have discovered that the home of your dreams is listed as a For Sale By Owner Albuquerque property, you will need to understand how this real estate transaction is different from a home sale aided by a real estate agent or brokerage firm. The team at Sunwest Escrow has been helping For Sale By Owner sellers and buyers navigate their way around this process for years. We have created a helpful set of guidelines that will aid you as you buy a home that is listed as For Sale By Owner.
Step #1: Decide if you need to hire a real estate agent.
Just as the owner can sell their house without a real estate agent or brokerage firm, the prospective buyer can also enter into this process without representation from a real estate firm.
Step #2: Determine if you need legal representation.
Depending on the state, laws may require the seller or buyer to have legal representation during a For Sale By Owner transaction.
Step #3: See if you can get pre-approval for your mortgage.
In many cases For Sale By Owner sellers need to make quick sales. Getting pre-approved for a mortgage from a financial institution can speed up this process.
Step #4: Hire an escrow service to manage the funds.
Always invite a third party into the real estate transaction that will be responsible for the funds. An escrow account protects both the seller and buyer from a financial standpoint.
Step #5: Consider requesting a C.L.U.E. report.
This Comprehensive Loss Underwriting Exchange report can be obtained by the seller. It details any insurance claims that were made on that property within the last five years.
Step #6: Get an appraisal and inspection completed.
To ensure that you are getting a fair value, as well as a home without significant problems, have a professional appraisal and inspection completed before moving forward with the sale. Ask the seller to repair any areas that you do not believe pass the inspection report.
Purchasing a For Sale By Owner Albuquerque home can be streamlined and safe if you follow the advice in the guidelines above. For more information concerning the For Sale By Owner process, contact Sunwest Escrow today.
Original source: https://sunwestescrow.blogspot.com/2019/02/guidelines-to-buy-house-through-sale-by.html
Sunwest Escrow, the real estate contract Albuquerque resource, has identified five facts that we believe all potential home buyers and home sellers should know before entering into a real estate transaction.
Fact #1: All contracts are negotiable by the buyer and seller.
Although a real estate contract is drawn up, that does not mean it cannot be modified. The buyer and the seller have the right to request changes to these documents as they move forward with the real estate transaction.
Fact #2: The buyer can ask for a home sale contingency to be added to the contract.
A home sale contingency clause is a modification to a contract that states that the finalization of the contract is contingent upon the sale of the buyer’s initial home. This protects buyers who were planning to use their home’s sale to finance their next home purchase.
Fact #3: The buyer can also ask for a right of first refusal clause to be added to the contract.
Drawn up before the house is put on the market, the right of first refusal allows the seller to market the house however they want but the original interested buyer gets the first option to purchase the property should other potential buyers want to make offers.
Fact #4: Inspection, appraised and financing contingencies can also be added.
An appraisal contingency ensures that the home is valued at a minimum amount, if it isn’t, the buyer can pull out. The inspection contingency allows the buyer to request repairs or pull out of the sale should an inspection report come back unfavorably. A financing contingency lets the buyer back out of the sale if they are unable to secure adequate financing.
Fact #5: Kick-out clauses can be added to protect sellers.
A kick-out clause protects sellers against home sale contingencies, allowing them to continue marketing the home to find other qualified buyers. If one is found, the seller can request that the original interested buyer remove the home sale contingency or forfeit the offer.
It’s important that buyers and sellers remember these five facts prior to entering into a real estate transaction. For more real estate contract Albuquerque information, call Sunwest Escrow today!
Original Source: https://sunwestescrow.blogspot.com/2019/02/5-facts-about-real-estate-contracts.html
Sunwest Escrow, Inc. is a customer-oriented servicer of private mortgages, real estate contracts, and other installment type notes. Sunwest Escrow, Inc. was formed by the owners of Sunwest Escrow, LC in order to provide a wider range of financial products.