Real Estate And Its Info
When you buy property at auction in a state that has redemption laws, you get a special deed or special title. Because the owner has a number of months in which they can repay the purchase price and redeem their property, it's called a defeasible title. That is, one that can be defeated, which means that you don't have clear title yet.
Securing Redemption Rights
Whenever you make a purchase such as this, you can always buy the redemption rights from the owner -making the title you hold clear, or in simpler terms: permanent. It's always a good idea to consult your real estate lawyer with regards to handling this type of case as the laws differ from state to state. If you're not careful, you can and will get screwed over.
When purchasing real property:Purchasing real estate and property is a process. It usually starts with a loan, or for the purposes of real estate transactions, called a note.
The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.
The relationship between notes, deeds, mortgages, foreclosures, borrowers, etc:
In a Deed of Trust state, there are three parties involved in the foreclosure process:
Trustor: otherwise known as the Borrower
Beneficiary: Whoever lends the money (aka mortgagee)
Trustee: Whoever is handling the transaction
In a deed of trust, the trustee handles the foreclosure for the beneficiary; in a mortgage, a lawyer handles the foreclosure for the beneficiary. A mortgage and deed of trust are two separate and different things, but perform the same function -acting as security instruments until the property and loan is completely paid off.
The two major strategies in the event of a foreclosure are:
Equity Split
Equity Split
There may also be another option, a "subject to" transaction for more expensive properties. - 23204
Securing Redemption Rights
Whenever you make a purchase such as this, you can always buy the redemption rights from the owner -making the title you hold clear, or in simpler terms: permanent. It's always a good idea to consult your real estate lawyer with regards to handling this type of case as the laws differ from state to state. If you're not careful, you can and will get screwed over.
When purchasing real property:Purchasing real estate and property is a process. It usually starts with a loan, or for the purposes of real estate transactions, called a note.
The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.
The relationship between notes, deeds, mortgages, foreclosures, borrowers, etc:
In a Deed of Trust state, there are three parties involved in the foreclosure process:
Trustor: otherwise known as the Borrower
Beneficiary: Whoever lends the money (aka mortgagee)
Trustee: Whoever is handling the transaction
In a deed of trust, the trustee handles the foreclosure for the beneficiary; in a mortgage, a lawyer handles the foreclosure for the beneficiary. A mortgage and deed of trust are two separate and different things, but perform the same function -acting as security instruments until the property and loan is completely paid off.
The two major strategies in the event of a foreclosure are:
Equity Split
Equity Split
There may also be another option, a "subject to" transaction for more expensive properties. - 23204
About the Author:
Want to know more about real estate? Log on to Don Burnham's website http://www.weknowthewayback.com and know everything from redemptions and foreclosure all under one roof.
posted by X - Men @ 2:14 AM
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