{"id":12916,"date":"2010-08-17T15:58:55","date_gmt":"2010-08-17T22:58:55","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=12916"},"modified":"2010-08-17T15:58:55","modified_gmt":"2010-08-17T22:58:55","slug":"master-seller-financing-to-beat-the-mortgage-market-freeze-of-2011","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12916\/master-seller-financing-to-beat-the-mortgage-market-freeze-of-2011\/","title":{"rendered":"Master Seller-Financing To Beat The Mortgage Market Freeze of 2011"},"content":{"rendered":"<p>I&#8217;m not so sure I want to play hockey against Bryant Tutas.\u00a0 <a title=\"wayne gretsky\" href=\"http:\/\/jeffreymonaghan.wordpress.com\/2007\/09\/25\/skate-to-where-the-puck-is-going-to-be\/\">He thinks like Wayne Gretsky<\/a>.<\/p>\n<p><a title=\"cautioned\" href=\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=12901#comments\">I cautioned about the coming mortgage freeze<\/a> and asked what agents might do to prepare for it.\u00a0 I&#8217;m a mortgage guy so I think in terms of institutional financing.\u00a0 I completely forgot about seller-financing.\u00a0 Bryant Tutas answered:<\/p>\n<blockquote><p>I\u2019m ready for it. I just listed my 3rd property this month where the  seller is offering financing. Seller financing is going to be very  popular over the next few years. I\u2019ve also been marketing to foreign  investors with cash to spend. Once they purchase a home we turn right  around and offer it for sale with financing. It\u2019s a win all the way  around.<\/p><\/blockquote>\n<p>Are you kidding me?\u00a0 It&#8217;s so time-tested but underutilized it&#8217;s brilliant.\u00a0 I forgot all about it!<\/p>\n<p><strong>What do you know about seller-financing?<\/strong><\/p>\n<p>First, you have to have a seller with some equity but&#8230;. <a title=\"homes underwater\" href=\"http:\/\/www.bloomberg.com\/news\/2010-08-16\/your-house-might-be-underwater-for-years-commentary-by-michael-carliner.html\">ain&#8217;t nobody got no equity no mo&#8217;<\/a>.\u00a0 What&#8217;s a hustler to do?<\/p>\n<p>Foreigners are looking to pay cash for U.S. homes and are finding great bargains at auction.\u00a0 In San Diego, we see investors buy properties at auction and sell them for 20-35% higher, 60-90 days later.\u00a0 The problem with some of those properties is that they aren&#8217;t appraising.\u00a0 Seller financing doesn&#8217;t require an appraisal nor does it have\u00a0 those pesky underwriting guidelines.\u00a0 Bryant Tutas mentioned that he is prospecting foreign investors, to buy properties and sell them with financing terms.<\/p>\n<p>This is the ultimate form of private financing.\u00a0 Before you embark on this strategy, you might advise your sellers to require the following when considering offers:<\/p>\n<ul>\n<li><strong>a tri-merged credit report<\/strong>&#8211; you definitely want to check for tax liens, judgments, and large charge-offs.\u00a0 All of those can become liens on title<\/li>\n<li>It&#8217;s a good idea to require <strong>some income documentation<\/strong>&#8211; if your buyer&#8217;s housing expense doesn&#8217;t exceed 50%, you&#8217;re kosher in California but it&#8217;s probably a good idea to make sure that all of his\/her debts don&#8217;t exceed 50% of gross monthly income<\/li>\n<li>A <strong>down payment<\/strong> is going to assure your buyer has something to lose if the deal goes sour.\u00a0 I might suggest <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12916\/master-seller-financing-to-beat-the-mortgage-market-freeze-of-2011\/#more-12916\" class=\"more-link\">Read more<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;m not so sure I want to play hockey against Bryant Tutas.\u00a0 He thinks like Wayne Gretsky. I cautioned about the coming mortgage freeze and asked what agents might do to prepare for it.\u00a0 I&#8217;m a mortgage guy so I think in terms of institutional financing.\u00a0 I completely forgot about seller-financing.\u00a0 Bryant Tutas answered: I\u2019m [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,26,6,5],"tags":[],"class_list":{"0":"post-12916","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":914,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/914\/interview-broker-bryant-of-poinciana-fl\/","url_meta":{"origin":12916,"position":0},"title":"INTERVIEW:  Broker Bryant of Poinciana, FL","author":"Brian Brady","date":"January 19, 2007","format":false,"excerpt":"Bryant Tutas, the most well-known author on the Active Rain Real Estate Network, was kind enough to grant me an interview. I have known Bryant since I signed up for Active Rain some six months ago. He is a serial contributor there, posting, commenting, and offering both insight and encouragement.\u2026","rel":"","context":"In &quot;Interview&quot;","block_context":{"text":"Interview","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/interview\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1097,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1097\/five-mortgage-tips-that-can-save-you-thousands\/","url_meta":{"origin":12916,"position":1},"title":"Five Mortgage Tips that Can Save You Thousands","author":"Cooksquared","date":"March 1, 2007","format":false,"excerpt":"I thought I would take a brief moment to share a few interesting tips and tricks I recommend when considering real estate. I have compiled these in my limited years of investment and my brief time in school. Tip #1: Use your mortgage like a bank account. One interesting phenomena\u2026","rel":"","context":"In &quot;Blogging&quot;","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2618,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2618\/down-payment-assistance-is-another-creative-financing-option-you-can-deploy-to-make-sure-yours-is-the-home-that-sells\/","url_meta":{"origin":12916,"position":2},"title":"Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells","author":"Greg Swann","date":"February 19, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells It's a hard world for home sellers right now. It's possible that things are slowly getting better,\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1745,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1745\/can-i-still-get-a-mortgage-in-todays-lending-markets-with-cold-hard-cash-and-great-credit-certainly-otherwise\/","url_meta":{"origin":12916,"position":3},"title":"Can I Still Get a Mortgage in Today&#8217;s Lending Markets?  With Cold Hard Cash and Great Credit, Certainly; Otherwise&#8230;","author":"Cooksquared","date":"August 4, 2007","format":false,"excerpt":"On Friday, August 3rd American Home Mortgage officially closed its doors. That same week Standard & Poor's cut its outlook on Bear Stearns from stable to negative amid fears of firm wide exposure to subprime lending and the leverage finance market. If all that were not bad enough, the leveraged\u2026","rel":"","context":"In &quot;General&quot;","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":991,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/991\/super-bowl-dont-you-know-that-theres-a-carnival-of-real-estate-going-on\/","url_meta":{"origin":12916,"position":4},"title":"Super Bowl? But there&#8217;s a Carnival of Real Estate going on . . . !","author":"Greg Swann","date":"February 5, 2007","format":false,"excerpt":"On second thought, maybe we are the nerdliest joint on the RE.net. I actually watched much of the Super Bowl yesterday, but it was only because it was coming between me and the judging for the Carnival of Real Estate. BloodhoundBlog is host to the 28th edition of the Carnival,\u2026","rel":"","context":"In &quot;Blog Carnivals&quot;","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4310,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4310\/nehemiah-and-ameridream-may-be-restored-by-end-of-the-month\/","url_meta":{"origin":12916,"position":5},"title":"Nehemiah and AmeriDream May Be Restored By End of the Month","author":"Brian Brady","date":"September 9, 2008","format":false,"excerpt":"Tomorrow's Mortgage Industry March on Washington, to save the seller-contributed down payment assistance programs, may be for naught.\u00a0 It looks like the deal's been cut already. Last month, I explained that House Financial Services Commmitee Chair, Barney Frank, was maneuvering to save the seller-contributed down payment assistance program.\u00a0 Chairman Frank\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=12916"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12916\/revisions"}],"predecessor-version":[{"id":13023,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12916\/revisions\/13023"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=12916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=12916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=12916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}