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Seller financing -Contract for deed Real Estate

April 05th 2014

Seller financing can be a useful tool in a selling a home with a quick closing. It allows sellers to move a home faster and get a sizable return on the investment. And buyers may benefit from less or no qualifying and a lower down payment requirements, more flexible rates, and better loan terms on a home that otherwise might be out of reach.

The seller extends enough credit to the buyer for the purchase price of the home, minus any down payment. The buyer and seller sign a purchase agreement and then a title company or law office drafts the actual contract for deed at closing for the buyer and seller to sign. The title Company or lawyer will record a contract for deed with the local public records authority. Then the buyer pays back the loan over time, with interest. The rate is usually around 6-7%.

These loans/Contract for deeds are often short term - for example, amortized over 30 years but with a balloon payment due in three to five years on average.

Sellers don't want to be exposed to the risks of extending credit longer than necessary that is the reason for the shorter term than the typical 30 Year mortgage from a bank.

Seller’s are in the best position to offer a seller financing deal when the home is free and clear of a mortgage but does not need to be.

mnhomescontractfordeed.com

Land contract. Land contracts don't pass title to the buyer, but give the buyer "equitable title," a temporarily shared ownership. The buyer makes payments to the seller and after the final payment, the buyer gets the deed.

If a buyer does not have a lot of money this may be another option.

lease option. The seller leases the property to the buyer for a contracted term, like an ordinary rental -- except that the seller also agrees, in return for an upfront fee, to sell the property to the buyer within some specified time in the future, at agreed-upon terms-including price. Some or all of the rental payments can be credited against the purchase price. Numerous variations exist on lease options.

mnownerfinancedhomes.com

 

Both the buyer and seller will need a real estate agent.

 Some one who is a qualified professional experienced in seller financing and home transactions to write up the contract for the sale of the property, the contract for deed, and any other necessary paperwork.

Tips to reduce the seller’s risk

Many sellers are reluctant to entertain the contract for deed option because they fear that the buyer will default (that is, not make the loan payments). But the seller can take steps to reduce the risk of default. Hire BoardWalk Premier Realty INC to be your Real Estate Broker.

Negotiating the contract

As with a conventional mortgage, seller financing is negotiable. To come up with an interest rate, compare current rates that are not specific to individual lenders. Be prepared to offer a competitive interest rate, low initial payments, and other concessions to lure buyers.

 

Related contract for deed Real Estate

mnlakeplace.com

BoardWalk Premier Realty INC

Broker/Realtor

 

Steve Vennemann

651-334-8312

 

mnlakehomescontractfordeed.com/hennepin-county

Minneapolis and surrounding cities for lake homes-cabins-Waterfront you name you can find it here.

minnesotahomescontractfordeed.com/ramsey-county/

Saint Paul and suburbs. Search town homes-single family real Estate-Condo-

 

 

 

 

MN lake home contract for deed bloomington, MN 55420

March 23rd 2014


     

  

 

 

 9306 Blaisdell Avenue S , Bloomington, MN 55420
      
          
Status:ActiveList Price:    $229,900 Original List Price:$249,900 
  

1 / 13
Beautiful Brick home. Move in ready. One level living in great Location overlooking a lake with a huge backyard!

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Total Bed/Bath:  42    Garage:  2    Year Built:  1952
 
 
Map
Map Page:  134      Map Coord:  C3
Directions:  
nicollet ace s to right on 93rd 1st left on Blaisdell
 (Click icon for Virtual Earth Map)
    
Style:  (SF) One Story
Const Status:  Previously Owned
Foundation Size:  1,056
AbvGrdFinSqFt:  1,056
BelGrdFinSqFt:  1,000
Total Fin SqFt:  2,056            
Acres:  0.43
Lot Size:  e90x255x122x165
Yearly/Seasonal:Yearly
  
TAX INFORMATION 
Property ID:1002724340016  Short Format
Tax Year:  2013
Tax Amt:  $3,080
Assess Bal:  $588
Tax w/assess:  $3,668
Assess Pend:  Unknown
Homestead:  Yes
List Date:12/24/2013
Received By MLS:12/24/2013
  
   y
  

General Property Information 
      
Legal Description:BLOCK 007 OXBORO HEATH LOT 2 AND THE S 10 FT OF LOT 1
County:Hennepin
Postal City:Bloomington
School  District: 271 - Bloomington952-681-6400
Manufactured Home?:No
Complex/Dev/Sub:                     Common Wall:  No
Lot Description:Tree Coverage - Light
Road Frontage:City
Zoning:Residential-SingleAccessibility: Other

Lake/Waterfront Information
Name:Oxboro LakeDNR Lake ID#:27001100WF Frontage Ft:
Type:Lake Front, PondLake Acres:17Lake Depth (ft):
DNR Lake Class:Recreational DevelopmentElev Highpt to WF Slope: Elev Highpt to WF Feet:
Road btwn WF & Home?:NoLake Bottom: 

 Remarks
Agent Remarks:Lake front rambler 3 bedrooms main floor-wood floors redone-2 new decks-windows-roof-carpet-painted inside-contract for deed financing.too much to list-heated garage-pole shed-PLEASE VERIFY MEASUREMENTS QUICK POSS 10% down 5 year 7% interest
  
Public Remarks:Lake front rambler 3 bedrooms main floor-wood floors redone-2 new decks-windows-roof-carpet-painted inside-contract for deed financing.too much to list-heated garage-pole shed-bar-4bedrooms-2 bath-HUGE level lot QUICK POSS 5 year term-10% down 7%

Structure Information
RoomLevelDimen
Living RmMain
Dining RmMain
Family RmLower
KitchenMain
Bedroom 1Main
Bedroom 2Main
Bedroom 3Lower
Bedroom 4Main
Other RoomsLevelDimen

Bathrooms
Total:23/4:01/4:0
Full:21/2:0  
 
Heat:Forced Air
Fuel:Natural Gas
Air Cond:Central
Water:City Water/Connected
Sewer:City Sewer/Connected
Garage:2
Oth Prkg:
Pool:None
  
Bath Description:Main Floor Full Bath, Full Basement
Dining Room Desc:Informal Dining Room, Eat In Kitchen
Family Room Char:Lower Level
Fireplaces:  0
Fireplace Characteristics:
Appliances:Range, Refrigerator, Freezer, Washer
Basement:Full
Exterior:Brick/Stone
Fencing:None
Roof:Asphalt Shingles, Age 8 Years or Less
Amenities-Shared:None
Amenities-Unit:Deck, Natural Woodwork, Kitchen Window, Hardwood Floors, Tiled Floors, Washer/Dryer Hookup, Local Area Network
Parking Char:Attached Garage, Driveway - Asphalt
Special Search:

3 BR on One Level

 

FOR MORE INFORMATION ON CD FINANCING OR VIEW 100S OF CONTRACT FOR DEED HOMES YOU MAY CLICK ON ONE OF THE LINKS BELOW SEE I WIDE SELECTION OF PROPERTIES. 

 

BoardWalk Premier Realty INC

651-334-8312

STEVE VENNEMANN

 

http://www.mnhomescontractfordeed.com

 

IF YOU HAVE 10% OF THE SALE PRICE YOU ARE LOOKING TO BUY IN WE WILL FIND YOU A HOME.

 

 

http://www.minnesotahomescontractfordeed.com

 

 

http://www.mnownerfinancedhomes.com

 

http://www.760credit.com/mn-homes-for-sale-contract-for-deed-mnhomescontractfordeedcom/

 

 

http://www.mnlakeplace.com/contract-for-deed

 

http://www.mnlakehomescontractfordeed.com

 

Minnesota contract for deed homes-bennefits-info

October 25th 2013

http://www.mnownerfinancedhomes.com/contract-for-deed-listings/

MINNESOTA CONTRACT FOR DEED

Minnesota Contract for Deed is Also know as a land contract-contract for deed,” "agreement for deed," "land installment contract" or an “installment sale agreement”"seller financing"MN owner financing"

http://minnesotahomescontractfordeed.com

A Minnesota Contract for Deed is a method of financing the purchase and sale of real estate.

When Home buyers and sellers enter into a Minnesota contract for deed  

By cutting out the banks to purchase real estate there is a lot less paperwork and NO loan underwriting required by banks, and with fewer closing costs and financing charges. 

CONTRACT FOR DEEDS MN CLOSINGS CAN CLOSE WITH IN 7 DAYS IF THE HOME IS VACANT. Qualifying is a lot easier. 

When negotiating the terms of the Minnesota Contracts for Deed, purchasers and sellers are free to determine:

Minnesota Contract for Deed Financing

               The purchaser promises to pay to the seller the purchase price minus the down payment for the real estate over a specified number of years.

               At which time the seller will be obligated to convey/transfer a specified status of title to the purchaser pursuant to the delivery of a final deed.Usually a warranty deed that is the high deed a seller can give a buyer.

Minnesota Contract for Deed Terms

               The initial down payment to be required and earnest money required.

               The monthly contract for deed payment which will be required.

               The interest rate charged by the seller.

               The number of  years the Contract for Deed will run until the remainder of the purchase price minus down payment must be paid in full. Usually there is a balloon payment at the end of the contract for deed.

               Any stipulations of repair that can be made to the home. The amount of money the buyer can put into repairs with out consent of the seller.

Minnesota Contract for Deed Default Issues
Cancellation and Termination of Minnesota Contracts for Deed
Minnesota Contract for Deed Forms
Where do I find contract for deed homes in Minnesota?
Assignment of Minnesota Contracts for Deed

http://www.mnlakeplace.com/contract-for-deed

In the event that the purchaser identified in a Minnesota Contract for Deed defaults in any of the purchaser's obligations to the seller arising under the Contract for Deed, the seller generally will have the right to terminate the Contract for Deed pursuant to a statutory procedure, which, upon completion, will extinguish all of the rights the purchaser had previously acquired in the real estate. Mn law states the buyer has 60 days to cure default of the contract for deed MN.

Upon proper service of a Notice of Cancellation of a Minnesota Contract for Deed upon the purchaser in the event of the purchaser's default in the terms of the Contract for Deed, the purchaser of non-agricultural land will generally have only 60 days in which to correct all defaults, and reinstate the effectiveness of the Contract for Deed.

Recording of Minnesota Contracts for Deed

It is legally required in Minnesota that the purchaser record the Minnesota Contract for Deed after it has been duly executed by the purchaser and the seller within 4 months or they can fined up to 2% of the sale price of the contract.

I always recommend having the title company or law office who is doing the closing record the  Minnesota Contract for Deed. 

 

http://mnlakehomescontractfordeed.com/

Payment of the Minnesota Deed Tax

One of the advantages to the seller with the sale of real estate pursuant to a Minnesota Contract for Deed is that no Minnesota deed tax needs be paid with the transaction until the entire purchase price has been paid to the seller.

The initial down payment the seller collects from the purchaser need not be diluted by the immediate payment of Minnesota deed tax upon the recording of the MN Contract for Deed.

The payment of the deed tax will be deferred in a Minnesota Contract for Deed transaction until the deed conveying the "legal title" to the real estate has been delivered to the purchaser.

I always recommend using forms approved by the MN department of commerce. Always have a real estate broker who specializes in Minnesota Contract for Deed transactions draft the purchase agreement.  Real property transactions involve unique circumstances and require an experienced MN real Estate Broker to draft the Contract for Deed.

http://www.mnhomescontractfordeed.com

 

Home buyers and sellers can find the latest contract for deed information. Owner financed listings.

 

The types of properties the buyer can expect to find?

 

Condo-town homes-MN lake shore-cabins-waterfront properties-single family real estate-hobby farms-acreage-acre-farm-New construction-Bank owned. 

Once a Minnesota Contract for Deed has been duly executed by both the purchaser and the seller, either the purchaser or the seller's interest in the Contract for Deed can be subsequently assigned to other parties if it is stated in the MN contract for deed. The seller usually has to approve the buyers transfer of the MN contract for deed. "Seek legal advice" when letting someone assume your interest in the contract.

 

http://www.mnownerfinancedhomes.com/mn-owner-financed-homes/

 

Why do buyers want to buy a home on a contract for deed MN?

 

1. Simple less closing costs

2. NO mortgage insurance

3. Easy qualifying

4. NO long bank process-less paper work.

5 Quick closings.

6. cd terms are between the buyer and seller not a bank dictating the terms.

7. Home ownership

8. tax benefits

9. Pets-changing colors.not afraid to put money into a home that you own verses renting. 

 BOARD WALK PREMIER REALTY INC

STEVE VENNEMANN

651-334-8312 

Mortgage defintions below.

Amortization  is the process of decreasing, or accounting for, an amount over a period.

 Balloon Mortgage 

A mortgage that has level monthly payments that would fully amortize over a stated term, but which provides for a lump-sum payment to be due at the end of an earlier specified term.
Balloon Payment
A large lump-sum payment due at the end of some types of home equity lines of credit or home equity loans.
Borrower 
A person (also known as”the mortgagor”) who receives funds in the form of a loan with an obligation to repay principal balance with interest.
Borrower Paid Mortgage Insurance (BPMI) 
Insurance in which the cost of the mortgage insurance is added to the monthly mortgage payment. Borrowers have the right to request a cancellation of BPMI when the loan-to-value ratio reaches 80% of the original value. When the loan-to-value ratio reaches 78% of the original value, BPMI will be automatically terminated.
Abstract of Title 
A written history of ownership to a specific area of land. An abstract of title covers the period from the original source of title to the present time and summarizes all subsequent documents that have been recorded against that area.
 
Addendum 

An agreement or list that is added to a contract, agreement, or other document such as a letter of intent. FHA and VA require that an addendum be added to or incorporated in a sales contract, if it is written prior to the appraisal.

Additional Principal Payment 

A payment by a borrower of more than the scheduled payment due in order to reduce the remaining balance on the loan.

Appraisal 

A report made by a qualified person setting forth an opinion or estimate of property value. The term also refers to the process by which this estimate is obtained.

Assumable Mortgage 
A mortgage that can be taken over (assumed) by the buyer when a home is sold.
Cash-Out Refinancing 
When the principal amount of a new mortgage is greater than the outstanding balance of the existing mortgage being refinanced, and a portion of the equity is converted to loan proceeds for the borrower’s use.
Cash Reserve 

The portion of assets that a borrower will have after the loan closing. Cash reserves may be required as part of the loan process to ensure the borrower has financial flexibility after the transaction.

Closing 

The closing includes the delivery of a deed, the signing of loan documentation, and the disbursement of funds necessary to complete the sale and loan transaction. Also known as “settlement.”

Closing Costs 
Money paid by the borrower in connection with the closing of a mortgage loan. This generally involves an origination charge, discount points, and fees for required third-party services, taxes, and government recording fees.
Collateral 
Property pledged as security for a debt, such as the real estate pledged as security for a mortgage or a MInnesota contract for deed.
Comparable Properties 
Properties used for comparative purposes in the appraisal process that have been recently sold and have characteristics similar to property being appraised, thereby indicating the approximate fair market value of the subject property.
Conforming Loan 
Conventional home mortgages eligible for sale and delivery to either the Federal National Mortgage Association (FNMA, also known as “Fannie Mae”) or the Federal Home Loan Mortgage Corporation (FHLMC, also known as “Freddie Mac”). These agencies generally purchase first mortgages up to loan amounts mandated by Congressional directive.
Contingency 
A condition that must be met before a contract is legally binding.
Conventional Mortgage 
A mortgage not obtained under a government program (such as FHA or VA).
Convertible ARM 
An adjustable-rate mortgage that can be converted to a fixed-rate mortgage under specified conditions.
Deed 
The legal document conveying title to a real property.
Deed of Trust 
An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary), and reconveyed upon payment in full.
Default 
The failure to satisfy the terms as agreed in a contract.
Delinquency 
A loan payment that is overdue, but within the period allowed before actual default is declared.
Earnest Money 
Funds delivered to the seller or an escrow agency by the purchaser with the purchase agreement as evidence of good faith.
Equity 
The ownership interest; the portion of a property's value over and above the liens against it. Equity is determined by subtracting the amount owed from the value of the home and would register as a percentage when the difference is divided by the value of the home.
Equity Loan 
A loan based on the borrower's equity in his or her home.
Escrow 
An item of value, money, or documents, deposited with a third party, to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate. In some parts of the country, escrows of taxes and insurance premiums are called impounds or reserves.
Escrow Account 
The segregated trust account in which escrow funds are held.
Escrow Agent 
The person or organization having a responsibility to both the buyer and seller (or lender and borrower) to see that the terms of the purchase/sale (or loan) are carried out. Also called escrow company or escrow depository.
Escrow Payment 
That portion of a mortgagor's monthly payments held by a lender or servicer to pay taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also called impounds or reserves in some states.
Fair Credit Reporting Act (FCRA) 
This law requires consumer reporting agencies to exercise fairness, confidentiality, and accuracy in preparing and disclosing credit information.
Federal Home Loan Mortgage Corporation – FHLMC (Freddie Mac) 
A stockholder-owned corporation created by Congress that purchases conventional mortgages in the secondary mortgage market from insured depository institutions and HUD-approved mortgage bankers. It sells participation sales certificates secured by pools of conventional mortgage loans, their principal, and interest guaranteed by the federal government through the FHLMC. It also sells Government National Mortgage Association (GNMA, or “Ginnie Mae”) bonds to raise funds to finance the purchase of mortgages. Popularly known as “Freddie Mac”.
Federal Housing Administration (FHA) 
The federal agency in the Department of Housing and Urban Development (HUD) that insures residential mortgages.
Federal National Mortgage Association – FNMA (Fannie Mae) 
A taxpaying corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA) as well as conventional home mortgages.
Fee Simple 
The greatest possible interest a person can have in real estate, including the right to dispose of the property or pass it on to one's heirs.
First Adjusted Payment 
The estimated monthly payment due when the interest rate on an adjustable-rate mortgage is reset. After the initial fixed-rate period, the interest rate can increase or decrease annually according to the market index. Any change may significantly impact the monthly payment.
First Mortgage 
A real estate loan that has priority over any subsequently recorded mortgages.
Fixed Interest Rate 
An interest rate that does not change during the loan term.
Fixed-rate Advance (FRA) 
A variable-rate home equity line of credit feature that allows the mortgagor to secure, or “fix”, the interest rate on all or a portion of their balance.
Fixed-rate Mortgage (FRM) 
A mortgage in which the interest rate and monthly payments remain the same for the life of the loan.
Foreclosure 
A legal procedure in which property mortgaged as security for a loan is sold to pay the defaulting borrower's debt.Good Faith Estimate (GFE) 
A document provided within three days of application that shows borrowers the approximate costs of the transaction, based on common practice in the locality. Under requirements of the Real Estate Settlement Procedures Act (RESPA), the loan originator must deliver or mail the GFE to the applicant.
Government National Mortgage Association (GNMA) 
See Ginnie Mae.
Gross Income 
Total income before any expenses are deducted.
Gross Monthly Income
Total monthly income earned before tax and other deductions. 

 Hazard Insurance 

Contract with an insurance provider that specifically covers damage to a property due to certain hazards such as fire.
High-Ratio Loan
Mortgage loan with a loan- to-value higher than 80 percent. Calculated using the loan amount divided by the lower of the sales price or appraised value.
Home Equity Line of Credit 
A form of revolving credit secured by a borrower’s home. A borrower is approved for a specific credit limit and can draw on those funds up to the limit as needed during the draw period, making monthly payments as required according to the signed contract.
Home Equity Loan 
A form of closed-end credit secured by a borrower’s home. The borrower receives the full loan amount once, at the beginning of the loan term, and makes monthly payments as required according to the signed contract.
Home Mortgage Disclosure Act (HMDA )
Federal legislation that requires certain types of lenders to compile and disclose data on where and to whom their mortgage and home improvement loans are being made.
Home Valuation Code of Conduct (HVCC)
The Home Valuation Code of Conduct establishes standards for solicitation, selection, compensation, conflicts of interest, and appraiser independence. It became effective May 1, 2009, for any mortgage that will be sold to Fannie Mae or Freddie Mac; Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.
Homeowners' Association Dues 
The fees imposed by a condominium or homeowners' association for maintenance of common areas.
Homeowner's Insurance 
An insurance policy that combines liability coverage and hazard insurance.
Homeowner's Insurance Policy 
A multiple-peril insurance policy available to owners of private dwellings that covers the dwelling and its contents, as well as personal liability.
Housing and Economic Recovery Act (HERA) 
Federal legislation enacted in 2008 to address the subprime mortgage crisis . It was intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding.
Housing and Urban Development (HUD)
See Department of Housing and Urban Development.
Housing Expense Ratio
The relationship of a borrower's monthly housing payment (PITI and other housing expenses), divided by the borrower’s gross monthly income, expressed as a percentage. Also called the “top ratio.”
HUD 
See Department of Housing and Urban Development.
Joint Tenancy 
An undivided interest in property, taken by two or more joint tenants. Upon the death of a joint tenant, the interest passes to the surviving joint tenants, rather than to the heirs of the deceased.
Judgment 
Final determination by a court of the rights and claims of the parties to an action.
Land Acquisition Loan 
A loan made for the purpose of purchasing land only, not improvements on or to the land. Also called an “acquisition loan” or “lot loan.”
Late Charge 
The penalty a borrower must pay when a payment is made after its due date or courtesy period.
Lender Paid Mortgage Insurance (LPMI) 
Mortgage insurance with its cost included in the interest rate. Although the interest rate is slightly higher with LPMI, this option usually results in a lower monthly payment and a potential tax deduction. (Consult your tax advisor).
Liability Coverage
Insurance designed to protect against expenses incurred due to bodily injury or property damage resulting from acts of, or neglect by, the insured.
Lien 
A legal claim or attachment against property as security for payment of an obligation.
Lifetime Cap 
A provision of an ARM that limits the total increase in interest rates over the life of the loan.
Limited Partnership
A form of business ownership that consists of one or more general partners who are fully liable, and one or more limited partners who are liable only for the amount of their investment.
Line of Credit
An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain length of time, based upon the loan’s purpose, the borrower’s ability to repay, and the collateral for the line. (See also Home Equity Line of Credit.)
Liquidity 
The ability to readily convert assets or investments to cash.
Loan Product 
Describes the type of loan and includes fixed- or adjustable-rate (ARM) options; the loan term, which is the time you will spend repaying the loan; and whether the loan is insured by a government agency (such as the FHA or VA), or non-government loan .
Loan Purpose
Indicates whether the loan is intended for purchasing or refinancing real estate.
Loan- to-Value (LTV) 
The ratio of the amount of a potential mortgage to the value of the property it is intended to finance, expressed as a percentage.
Lock Expiration Date 
The interest rate range can only be locked for a set number of days. The rate lock option will expire after the lock expiration date.
Lock-in Period 
The number of days before a loan closing in which a customer’s loan is protected from financial market fluctuations in interest rates. Locking in an interest rate range doesn’t guarantee the specific rate that applies at closing. The final interest rate is determined by specific transaction characteristics and the borrower's credit profile up until loan closing.
London Interbank Offered Rate (LIBOR) 
The rate at which banks in the foreign market lend dollars to one another. LIBOR varies by deposit maturity. A common interest rate index; one of the most valid barometers of the international cost of money.
Loss Payable Clause
An insurance policy provision for payment of a claim to someone, other than the insured, who holds an insurable interest in the insured property.
Manufactured Home 
Factory-built or prefabricated housing, including mobile homes.
Margin 
The set percentage the lender adds to the index rate to determine the interest rate of an ARM.
Market Price 
The price people agree to pay for something at a given moment at a given place.
Market Rate 
Estimated average interest rate being charged by lenders for conventional loans.
Market Value 
The most probable price that a ready, willing, and able buyer would pay and a willing seller would accept, assuming each is fully informed and under no pressure to act. The market value may be different from the price for which a property can actually be sold at a given time (market price).
Maturity Date 
The termination or due date by which a loan’s final payment must be paid in full. For a balloon home equity line of credit, a fully amortized home equity loan (one that features full principal-and-interest payments to pay off the balance during the loan term), or a balloon home equity loan, the maturity date is the point at which outstanding balance becomes due in full.
Mobile Home 
A factory-assembled residence consisting of one or more modules and a chassis and wheels that are an integral part of the structure and need not be removed in order to make the module(s) occupiable.
Modular House 
A factory-assembled residence built in units or sections, transported to a permanent site, and erected on a foundation. Excludes mobile homes.
Monthly Payment
Usually, the amount of PITI (principal, interest, taxes, and insurance) paid each month on a mortgage loan.
Mortgage 
The transfer of an interest in real property, given as security for the payment of a loan.
Mortgage Broker 
A company that matches borrowers with lenders for a fee.
Mortgage Commitment 
An agreement between lender and borrower detailing the terms of a mortgage loan such as interest rate, loan type, term, and amount.
Mortgage Insurance 
See Private Mortgage Insurance.
Mortgage Insurance Premium (MIP) 
The consideration a mortgagor (borrower) pays to either the FHA or a private insurer for mortgage insurance.
Mortgage Note 
A written agreement to pay a sum of money at a stated interest rate during a specified term. The note contains a complete description of the conditions under which the loan is to be repaid and when it is due.
Mortgagee 
The lender on a mortgage transaction.
Mortgagor 
The borrower in a mortgage transaction. The mortgagor pledges property as security for the debt.
Mortgage Loan Originator 
According to federal regulations, a Mortgage Loan Originator (MLO) is defined as anyone who takes a mortgage loan application and presents or negotiates the terms of a residential mortgage loan for compensation or gain.
Occupancy
The use of a property as a full-time residence, either by the titleholder (owner-occupied) or by another party through a formal agreement (rental).
Origination 
The act of securing a completed mortgage application from a commercial or residential borrower and seeing that loan through to loan closing.
Origination Charge 
One amount that includes all charges (other than discount points) that all loan originators (lenders and brokers) involved in the transaction will receive for originating the loan. This includes any application, processing, underwriting fees, and payments from the lender to the broker for origination.
Payoff Figures 
The unpaid principal balance and escrow amounts to be used in calculating full payment of the mortgage or for the closing sale of the property.
Payoff 
The amount that will pay off a loan in full. In general, a borrower can pay off a loan more quickly by making larger or more principal payments than required. Borrowers should check their contract terms to determine if there are any early payoff fees or penalties.
Percentage Point 
One percent of the loan or a measure of the interest rate.
Personal Property 
Usually considered to be property that is moveable, as opposed to real property such as vacant or improved land.
PITI (Principal, Interest, Taxes, and Insurance) 
Principal, interest, taxes and insurance are the most common components of a monthly mortgage payment.
Planned Unit Development (PUD) 
A comprehensive development plan for a large land area. A PUD usually includes residences, roads, schools, recreational facilities, and commercial, office and industrial areas. A PUD may also be a subdivision with lots of areas owned in common and reserved for the use of some or all of the owners of the separately owned lots. See also De minimis PUD.
Plans and Specifications
Architectural and engineering drawings and specifications for construction of a building or project. They include a description of materials to be used and the manner in which they are to be applied.
Power of Attorney 
A legal document authorizing one person to act on behalf of another.
Preapproval 
A preapproval letter indicates that you have been preapproved for a specified mortgage amount based on a preliminary review of your credit information.
Preliminary Title Report
The results of a title search by a title company prior to issuing a title binder or commitment to insure clear title.
Prepaids 
A portion of the total closing costs related to the mortgage loan that are collected at loan closing, including per diem pre-paid interest and initial deposits of monthly escrows for taxes and insurance.
Prepayment Fee or Penalty 
A provision in the lending contract that states the borrower will pay a fee in the event the borrower pays off the loan earlier than was originally agreed.
Prequalification 
The process of estimating how much money a prospective homebuyer may be eligible to borrow prior to applying for the loan. Prequalification does not include a credit check and should not be confused with Preapproval.
Primary Residence
The residence that the borrower intends to occupy as their principal residence.
Principal 
The amount borrowed or remaining unpaid; also, that part of the monthly payment that reduces the outstanding balance of a mortgage.
Principal Balance 
The remaining balance due on a debt, exclusive of accrued interest.
Principal Payment 
The portion of a monthly payment that goes toward reducing the principal balance. Borrowers should strive to make additional principal payments whenever possible to pay down a loan balance faster and possibly reduce the amount of interest paid over the term of the loan
Private Mortgage Insurance (PMI) 
Insurance written by a private company protecting the mortgage lender against loss resulting from a mortgage default.
Processing 
The preparation of a mortgage loan application and supporting documentation for consideration by a lender or insurer.
Property Usage 
Denotes whether a property is a first home, second home, vacation home or a rental property.
Purchase Contract (Agreement/Offer) 
An agreement between a buyer and seller of real property, setting forth the price and terms of the sale. Also known as a “sales contract.”
Quitclaim Deed 
A deed relinquishing all interest, title, or claim an owner has in a property. A quitclaim deed implies no warranty.Rate Lock Option 
Your interest rate range can either be locked or not locked. The interest rate range on the date and time you lock remains available to you for a set period of time and is unaffected by financial market fluctuations during this time. If your interest rate range is locked, the interest rate on your application will generally remain the same if there are no subsequent changes to the loan. If there are changes, your final interest rate at closing may be different, but will still fall within your interest rate range, as long as your rate lock period has not expired.
Real Assets 
Real estate or real property owned by an individual or business.
Real Estate 
See Real Property
Real Estate Owned (REO) 
A foreclosed property, also known as a Real Estate Owned (REO) property, is a home that was once customer owned but is now owned by a bank. A foreclosure can occur when mortgage payments are not made over a period of time and measures taken to help are not satisfied.
Real Estate Settlement Procedures Act (RESPA) 
A federal law requiring lenders to provide home mortgage borrowers with information on known or estimated settlement costs. It also establishes guidelines for escrow account balances.
Real Property 
Property that includes land and anything affixed to the land, such as buildings and leasehold improvements. It may also include whatever is beneath the land (e.g., minerals, natural gas) and rights to the use of the property.
Refinancing 
The repayment of a debt from the proceeds of a new loan using the same property as security.
Reissue or Refinance Rate (for Title Insurance) 
A reissue or refinance rate is a reduced rate for title insurance that a homeowner may be eligible for on a refinance. The reduced rate may be applicable if the property was previously insured within a certain number of years.
Repayment Period 
For a standard home equity line of credit, the point at which a borrower must begin to make fully amortizing monthly payments, or principal-and-interest payments that will completely repay the outstanding balance during a certain period of time. If a borrower had been making interest-only payments, the monthly payments could increase substantially during the repayment period.
Rescission Period 
Under federal law, certain loan transactions secured by your home are subject to a rescission, or cancellation, period. Following receipt of all required disclosures and consummation of the contract, each owner of the property has up to three full business days to cancel the transaction. The right to cancel does not apply to loans made to purchase, construct, or acquire a primary residence, or to transactions secured by a secondary residence, vacation home, or rental property.Sales Contract 
See Purchase Contract.
Satisfaction of Mortgage 
The document issued by the lender verifying full payment of a mortgage debt.
Second Home (Vacation Home, Weekend Home)
A residence other than the borrower's primary residence which the borrower intends to occupy for a portion of each year. The residence must be occupiable year-round.
Second Mortgage 
A mortgage that has rights that are subordinate to the rights of the first mortgage holder. Home equity loans are often referred to as second mortgages because the borrower typically is still paying off their home mortgage; if the home mortgage is paid off, the home equity loan is then considered to be a first mortgage.
Secondary Mortgage Market 
A market where existing mortgages are bought and sold. It contrasts with the primary mortgage market, where mortgages are originated.
Section 203(k) Loan Program 
HUD's primary program for the rehabilitation and repair of single-family properties. A 203(k) loan is a first mortgage that covers the costs of rehabilitation and purchase or refinance of an eligible property. The goals of the Section 203(k) loan program are community and neighborhood revitalization and expanded opportunities for homeownership for low- and moderate-income families.
Security 
Collateral or property given, deposited, or pledged to secure the repayment of a loan.
Security Instrument 
Mortgage or Deed of Trust evidencing the pledge of real estate as collateral for the loan.
Security Interest 
The interest of a creditor in the security acting as collateral for an investment.
Seller Contributions 
Payment by the seller or any other interested party of some or all of the purchaser's usual closing costs. Investors and insurers sometimes limit the amount of seller contributions and require lenders to adjust the property's value if contributions exceed limitations. Undisclosed seller contributions (such as decorating allowances, appliances, or payment of moving expenses) are made to borrowers outside of closing and are also subject to investor and insurer restrictions.
Servicing Released 
A stipulation in the agreement for the sale of mortgages in which the seller is not responsible for loan administration.
Settlement 
See Closing.
Settlement Costs 
Money paid by borrowers and sellers to effect the closing of a mortgage loan, including payments for title insurance, survey, attorney fees, and such prepaid items as escrow for taxes and insurance.
Settlement Services 
Services provided by the lender at the closing of a loan.
Settlement Sheet 
The computation of costs payable at closing that determines the seller's net proceeds and the buyer's net payment.
Settlement Statement (HUD-1) 
A form used at closing that gives an account of the funds received and paid at the closing, including the escrow deposits for taxes, hazard insurance, and mortgage insurance.
Site Value 
The value of land without improvements, as if vacant.
Subdivision 
Improved or unimproved land divided into a number of parcels for sale, lease, financing, or development.
Subordinate 
To make subject or junior to. For example, a loan on vacant land is made subject to a subsequent construction loan. Also described as a Second Mortgage. See First Mortgage.
Survey 
The measurement and description of land by a registered surveyor.
Tax Lien 
A claim against property for unpaid taxes.
Tenancy 
The use of real estate under any kind of right of title.
Term 
The time limit within which a loan must be repaid.
Title 
The legal evidence of ownership rights to real property.
Title (Insurance) Company 
A company that confirms the legal owner of a property and insures a homeowner and lender against a loss that could result from a title dispute.
Title Insurance 
An insurance policy that protects a lender and/or homebuyer (only if homebuyer purchases a separate policy, called owner's coverage) against any loss resulting from a title error or dispute. On a refinance, if the property has had a recent title insurance policy, a homeowner may sometimes be eligible for a reduced rate on the title insurance (also known as the reissue or refinance rate).
Title Insurance Policy 
A contract in which an insurer, usually a title insurance company, agrees to pay the insured party a specific amount for any loss caused by defects of title on real estate in which the insured has an interest as purchaser, mortgagee, or otherwise.
Title Search 
An examination of public records to disclose the past and current facts regarding the ownership of a given piece of real estate.
Top Ratio 
See Housing Expense Ratio.
Torrens Certificate 
A certificate issued by a public authority called a registrar of titles, establishing title of an indicated owner. Used when title to property is registered under the Torrens system of land registration.
Transfer Tax
State or local tax payable when the title passes from one owner to another.
Trust Deed 
See Deed of Trust.
Truth-in-Lending Act 
A Federal law requiring full disclosure of credit terms using a standard format. This is intended to facilitate comparisons between lending terms and financial institutions.
 

 

MINNESOTA CONTRACT FOR DEED TIPS I RECOMMEND.

 

1. MAKE SURE THE INTEREST RATE YOU ARE CHARING DOES NOT EXCEED THE MAXIMUM ALLOWED BY LAW.

2. CONSIDER HOW MUCH INSURANCE YOU WILL NEED TO INSURE THE PROPERTY.

3. CONSIDER ESCROWING TAXES

4. USE AN EXPERIENCED REAL ESTATE BROKER. NOT ALL REALTORS WORK WITH CONTRACT FOR DEEDS.

5. FIND OUT IF THERE IS A MORTGAGE ON THE PROPERTY.

6. USE A TITLE COMPANY OR LAW OFFICE TO DRAFT THE DEED AND DO TITLE WORK.

7. TITLE INSURANCE IS ALWAYS A GOOD OPTION.

 

 

Contract for deeds in Minnesota and Wisconsin

December 20th 2012

Are you discouraged from banks-lenders telling you that you cannot get a mortgage?

 

 There are a lot people right now who find themselves being turned down for mortgages. One of the most important items for banks right now is your credit score. If you have had issues in the past or going on right now they are likely to turn you down if your credit is less than 640. FHA mortgages require this credit score to get loan from a bank.

 

Contract for deeds in Minnesota are very popular. It is the alternative to get a mortgage with a lending institution.

 

Why would you want to buy a home on a contract for deed?

http://www.mnlakeplace.com/contract-for-deed

Simple if you have anything on your credit report like a foreclosure-short sale-late credit card payments-bankruptcy-tax liens- previous late mortgage payments, these items will make it really hard to get a loan. Banks-Credit Unions look at all three credit bureaus transunion-Experian-Equifax and if your scores don’t meet the mortgage guidelines you wont get a mortgage.

 

Another big issue is income. Self employed people have a hard time proving the amount of money they make with business write offs.

 

Employees who work seasonal may have issues also.

 

With a MN contract for deed financed homes you don’t have to do much. Sellers will typically want proof of your income or 1099-latest tax return. Possibly a credit report but that usually doesn’t effect you buying the home the seller just wants to get an idea of how long it will take the buyer to refinance the home.

 

What kind of cd terms can I expect to pay for the length of the contract for deed?

 

1.    Rates vary it can be 5% but more likely 6-7% amortized over 30 years.

2.   The length of the contract for deed will be around 2-5 years.

3.   Buyer is responsible for taxes and homeowners insurance.

4.     http://www.mnlakehomescontractfordeed.com

 

   Why would a seller want to sell me there home on a cd?

 

What are the sellers’ benefits?

 

There are many reasons sellers offer owner financing on their property.

1.    Cash flow.

2.   Quick sale

3.   Less closing costs

4.   Tax purposes

5.   Does not want to rent to home out

6.   Homes are treated better by someone who owns the house than a renter.

7.   No repairs the cd buyer takes on the repairs and maintenance.

 

http://www.mnownerfinancedhomes.com/contract-for-deed-listings/

 

It is difficult to qualify for a mortgage now days.

Remember we work with contract for deed homes daily.

We have access to 100s of different types of properties.

Be sure to visit our seller-financed sites. 100% of the homes are contract for deed homes in Minnesota and Western Wisconsin.

 

We have a lot more information on how contract for deeds work the latest cd listings-blogs-contract for deed calculators-

 

We are here to walk you thru the contract for deed process.

The best way to reach us threw email we can send you homes directly and answer any of your owner-financed questions.

http://www.mnhomescontractfordeed.com/contract-for-deed-homes-in-mn

 

Remember you are not the only one wanting to buy a home with contract for deed terms we help lots of clients make their dream come true with home ownership. Don’t rent you can own and call a place your house. Don’t payoff the landlord’s property you can start building equity today. Closings can happen as quickly as 10days if you choose. Most cd homes close just like a standard closing 30-60 days out. Remember you are buying the property so a home inspection is recommended. 

  

Contract for Deed Company located in Saint paul,MN

BoardWalk Premier Realty INC

 

Steve Vennemann

651-334-8312

 

http://www.mnhomescontractfordeed.com/ramsey-county

 

Make sure you use a knowledgeable contract for deed agent/broker.

 

They are basically drafting your mortgage for you for the next few years. It is important to have someone who knows how to draft the contract and protect you as much as possible with the deed.

 

What is a MN land contract?

A Minnesota land contract sometimes known as a “contract for deed,” "agreement for deed" "land installment contract" or an “installment sale agreement” “owner financing” seller financed” is a contract between a seller and buyer of real property in which the seller provides financing to buy the property for an agreed-upon purchase price and the buyer repays the loan installment. Under a land contract, the seller retains the legal title to the property, while permitting the buyer to take possession of it for most purposes other than legal ownership. The sale price is typically paid in periodic installments, often with a balloon payment at the end to make the time length of payments shorter than a corresponding fully amortized loan without a final balloon payment. When the full purchase price has been paid including any interest , the seller is obligated to convey legal title to the property to the buyer. An initial down payment from the buyer to the seller is usually also required by a land contract. The legal status of land contracts varies from region to region.

Since a land contract specifies the sale of a specific item of real estate between a seller and buyer, a land contract can be considered a special type of real estate contract In the usual, more conventional real estate contracts, a seller does not provide a loan to the buyer; the contract either does not specify a loan or includes provisions for a loan from a different "third party" lender, usually a financial institution in practice. When third party lenders are involved, typically a lien called a mortgage or trust is placed on the property so that the value of the property is used as collateral until the loan is paid in full.

 

WHERE DO I FIND HOMES CONTRACT FOR DEED? CLICK ON ANY LINK OR BROWSE THIS SITE BY COUNTIES.