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
43