AllInclusive Trust Deed or Mortgage
AllInclusive Trust Deed or Mortgage
The buyer made more money too. He avoided completely the $ 900 prepayment penalty and some $ 1,000 in loanorigination costs he would have incurred if he had taken out the new 10 percent $ 42,000 mortgage. Furthermore, he ended up paying 1 ½ percentage points($ 750) less annual interest than he would have paid on a new first and second totaling $ 50,00 fortunately, the option to use an allinclusive note is limited to cases where there is no acceleration or other alienation clause in any of the notes or mortgages against the property, or if there is such a clause, the lender agrees to waive it. He will seldom waive it unless he has little to lose by doing so. In that case, the borrower may also have little to gain from the lender’ s willingness to allow the loan to stand intact. When there is no clause in the existing loans that blocks them, allinclusive loans can be good to use when:
1. There is a lockedin loan that cannot be paid off – at least without severe penalties.
2. The buyer is a poor risk and is making a small down payment.
3. A property is overpriced and the seller sticks to the price but not to the terms of sale.
4. The existing loans are at lower interest rates than you could get on new financing.
5. There is little time to shop for new loans and little chance of the buyer’ s qualifying for them.
6. The down payment offered is so low that the only practical alternative would be for the seller to carry back a large purchase money mortgage.
There are so many ways to make money with real estate.
On Saturday, November 5th, I’ m flying in to teach many of the most creative strategies that successful investors use to get rich! These are strategies that are really easy to implement, and you could be using them to make money right away! This is one of the best times that I have seen to make money in a very long time, but it means nothing unless you make the effort to learn and implement.
Saturday, November 5th! See you in class!
Dr. Albert Lowry
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