Friday, October 27, 2006

Yesterday's Housing Data

Some more news about the current state of affaris for real estate in the USA. Median home prices dropped year over year by a whopping 9.7%. This is a drop in housing value from September 2005 to Septemeber 2006. Once again, we realize that it is a buyer's market for real estate in the real estate marketplace. The real question about real estate is what to do to attract buyers in a buyers market and what should sellers be doing in a real estate buyers market? The answer can be found in the sellers second mortgage.

A seller second mortgage is a solution for real estate in today's buyer's market as it helps the buyers by bringing more of theses buyers into the marketplace. This is certainly good for the sellers of real estate as the second mortgage (also called owner financing on a second mortgage) is of quite a benefit. Let's consider the interest rate earned on a CD as opposed to the interest that can be earned on owner fincned seconds and then compare that to the interest that can be earned on a seller financed second mortgage.

This is of some consideration in a buyer's market becuase many are quite concerned with the interest rate on a seller held financing type of transaction. This is not much different than owner financed or for any type of mortgage held by the seller. Some might say that owner will carry but this is a little different than a lease-purchase agreement. the down payment can be held by the seller in the form of a seller second mortgage.

Lease-purchase or lease-option is the mortgage that is held by the seller in an owner financed type of loan. the owner is the mortgagee and the buyer is the mortgagor. the buyer effectively has two mortgage payments. One mortgage payment to the lender and another to the seller in the form of a seller held second mortgage. These are just a few of the options that are available to a buyer and a seller in a buyers market.

Owner Will Carry


Blogger Money Pays The Rent said...

Let's get something straight right now. You can not write worth a darn and you don't even understand owner financing

8:42 PM  

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