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In order to ensure a smooth note transaction, it would be wise, as a well informed note seller, to have the following documents available before submitting you note to a Note Investor for purchase. These are documents that you, your attorney, or your real estate agent should have on file from the sale of the subject property.

The documents are as follows:

Copy of Note

Copy of Trust Deed, Mortgage or Land Contract

Escrow instructions from real estate sale in which the “Contract” was created

Escrow closing statement from real estate sale in which the “Contract” was created

Title insurance policy which insures the “Contract”

Fire insurance information on the property which secures the “Contract” (Insurance Company, Policy Number, Agent’s Name and Address)

Loan Payment Record (if possible)

Appraisal from the time of sale or thereafter (if possible)

Please provide two (2) pictures of subject property (if possible)

Copy of street or city map showing property location (maps.google.com)

Plans, surveys or other documents in your possession (if possible)

Tenant Rental Agreement (if applicabale – rental property note)

Once these documents are in order go forward with submitting your mortgage note for purchase to a note buyer. Usually with the more experienced note buyers you can fill a quick submission form online.

After submitting your note, it should take 48 business hours to receive a Soft Bid. The definition of a soft bid is; the preliminary pound amount a note investor is willing to purchase, prior to verification of information.

Once the soft bid is agreed upon, the note investor does some preliminary investigating into the note info submitted (i.e. credit score, property value, etc). This usually takes 72 business hours.

The soft bid is subject to change if the original note info submitted is inaccurate. That is why it is very important to be as accurate as possible when submitting your note submission form in the beginning. This way nothing will change over the course of the underwriting period and you will get the money you need. The more detailed and prepared you are, the less you have to worry about!

Once the preliminary verification takes place the note investor will confirm the Firm Bid to the note seller.

Once the firm bid has been confirmed and all the above documents are in the possession of the note buyer , the underwriting process will begin. This includes, ordering drive by appraisal, checking title for liens, verifying all note info.

Closing instruction and date will be set up and the transaction is closed.

From front to Back, assuming all of above documents are in your possession, it should take 2-3 weeks to receive your check.

Reverse Mortgages – Get The Money You Need – Part 1 Of 4

Reverse Mortgages are loans that allow you to borrow back the equity in your home. Just as you once paid the bank, the bank now pays you. Isn’t that a nice change?

If you are 62 years of age or older, they are a way to borrow against the equity in your home (the value of your home minus any mortgage debt you now have) to provide you with tax-free income. Seniors struggling because of falling retirement account balances and increases in the cost of medical care are looking for new sources of cash to maintain their standard of living.

The amount you can borrow depends on your age, the value of your home and interest rates.

Fortunately, you continue to own and live in the home for the life of the loan. There are no loan payments until you sell the house, die or move out for a period of a year or longer.

You can get the money as a line of credit, a monthly payment, a lump sum, or a combination of all of these. A monthly payment is a guaranteed of income for as long as you live in your residence, whereas; a lump sum could be used as you wish, such as to purchase an annuity that could provide you with a life long income. With a line of credit, you don’t have to pay interest on money you haven’t withdrawn and your money will earn interest while it’s waiting to be used by you.

A Reverse Mortgage might be worth considering if:

-You plan to stay in your home.
-You want to enhance your lifestyle and enjoy your golden years.
-You want funds for major expenses such as medical bills, or for major home repairs.
-You need additional income to live on and your only significant asset is your home.
-You want the peace-of-mind that comes from knowing your financial needs are taken care of.
-You own your home free and clear, or you have a small first mortgage.
-You don’t plan to leave your home to your heirs.

What are some of the potential advantages of Reverse Mortgages?

-It can help you maintain your financial independence or improve your quality of life.
-You can stay in your home and keep title to the property.
-The money you receive is tax-free and is not usually considered income.
-You make no payments until the loan ends or the house is sold.
-Your income is not a consideration in obtaining the loan since there are no payments until the loan ends.
-You cannot owe more than the value of the home at the end of the loan.

If you’re a senior, I hope you can see the benefits of taking advantage of this income source, if you need it.

This is a four part series, one each week right here, same location. In Part 2 next week, we’ll explore much more, including the drawbacks of a reverse mortgage and what types are available.

A reverse mortgage is a special type of loan that home owners can sometimes get to convert the equity in their homes to cash. Simply, a reverse mortgage is a type of loan that provides you with a monthly income, a lump sum of cash, or a line of credit. Or a combination of both

This was originally structured for retirees keen in keeping their homes but whose incomes aren’t sufficient to support them, reverse mortgages have typically been used to help people on low incomes to pay for daily expenses, huge medical bills or the odd house maintenance and repair costs. Reverse mortgage also pays off your existing loan, if you have any. So you have no ongoing house payment. The monthly income you receive from the reverse mortgage is guaranteed and you will receive it as long as you remain living in the home.

Many reverse mortgages offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits. Another advantage of reverse mortgages is the different withdrawal options that you are able to choose. These options include lump sum distributions, line of credit, monthly payments, or any combination of these three. So if you were eligible to borrow 200,000 on a reverse mortgage you could select to receive 60,000 up front to cover current expenses, and hold the rest as a line of credit that you can use whenever you need it. This flexibility of reverse mortgages can significantly improve you financial independence during retirement

The disadvantage is the relative cost of a reverse mortgage. Reverse mortgages tend to be very expensive when compared with a conventional mortgage. This is due to the rising-debt nature of reverse mortgages. Another disadvantage is the reverse mortgage payments can affect eligibility for old age pensions, or supplemental Social Security income. Senior citizens may not even appreciate this problem until after they already have their reverse mortgage, and only then do they discover that this can have the negative affect on their finances then what they were trying to accomplish in the first place by taking out the reverse mortgage.

With these facts in mind, reverse mortgage are definitely an option to consider if you are looking for ways to supplement your current income. As with any financial decision, you should consult the advice of a trained financial professional to analyze and determine if a reverse mortgage is right for in your unique circumstances. For calculation, please visit
mortgage-query.commortgage-calculatorscalculators.phpOnline Mortgage Calculators to help you decide better.

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Reverse Mortgage is something, which can enable an individual to withdraw the money from the bank in lump sum. There are several banks out there where one can apply for the same. But before jumping into any decision about the Mortgage one should make sure that the place is safe and reputed.

To apply for Reverse Mortgage one must fulfill certain conditions. One needs to fill in an application form with information like age of the borrower, interest rate, and loan fees etc. People can apply for the same not only by visiting the banks, one can also log on to online sites and apply for the same.

This type of Mortgage is lucrative and will not affect the borrowers ability to collect social security and pension benefits. People can take Reverse Mortgage loans to pay for home repairs, taxes, insurance payments, medical bills etc. this Mortgage is of different types.

Before applying one needs to do a lot of home work i.e. research work, that can include talking to a financial experts, going through bank literatures etc. One needs to be careful and clear about the terms and conditions involved in Reverse Mortgage as any kind of carelessness can lead to problem.

Reverse Mortgage loan enables the people to take loan from lenders in lump sum without much difficulty. The good thing about this mortgage is that the borrower still remains the owner of the house just like he was when he had a forward mortgage. Before making any decisions one should always do proper research work about the bank, the loan types, rate of Interest

Before making any decision about Reverse Mortgage it is very important on the part of the borrower to be well aware of his ability to pay back the amount he has borrowed. People can apply for the same for education, home, car and other purposes. Loan is something which people have to payback that too within fixed period of time.

People should always apply for the Reverse Mortgage loans from good and safe banks! Thus one should always browse around to find the best place. One can find out about such financial programs not only by visiting various banks, but also by taking the help of Internet. Apart from one can also take the help of Mortgage lenders or even the Brokers as they can provide details about such financial programs!

People with bad financial history may not be eligible for getting Reverse Mortgage loan however good places can be an exception. After choosing the right bank and the loan one needs fill in the registration form offered by the banks. People need to show documents and papers, and fulfill certain criteria to borrow the money. One could payback the amount either together or in installments. Good places do not want your home but need the repayment!