Alternatives to Conventional Mortgages
October 19, 2008
Lenders have raised their standards. The qualifications which prospective home buyers must meet to secure a loan have seldom been higher.
But even as lender restrictions begin to ease slightly, many would-be purchasers are still restricted by marginal or insufficient credit. Alternatives common in the early ‘90’s have reappeared to pick up some of the slack, and to
increase options for buyers and sellers. Here are a couple of those options:
Short Sales: we discussed this option in our previous newsletter. The article on short sales can be found online at danawoods.info.
AITD, or “Subject To” Sales: another ghost from market cycles past. An AITD, or all-inclusive trust deed, in simple terms, is a contract that facilitates a sale from seller to buyer without the buyer obtaining a new loan. The seller sells a property “subject to” the extension of the current financing. This is tricky stuff, so don’t try this without professionals.
Renegotiating Your Current Loan
Some mortgage lenders are modifying the terms of existing loans to assist their borrowers. We can help!
Nothing would bring us more satisfaction than helping a neighbor keep their home. Let’s exhaust all options before choosing to sell under duress.
We’re happy to help your friends and family as well. Call us at (949) 240-5892 for a private consultation on this and other options.
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