With the Banks' tightening of the money, there has been a resurgence of Lease to Own Agreements lately. Although these deals are popular with both Buyers and Sellers, they are not to be taken lightly. Here's why these instruments are potentially dangerous:Danger for the Seller: If the Buyers stop making payments under a Lease to Own Agreement, the Seller can not evict them. Instead, the Seller has to institute foreclosure action, which can take many months. In essence, the Owner could potentially have tenants who don't pay rent for a very long time (foreclosure action may take over a year), without the recourse of evicting them.Danger for the Buyer: If the Seller is foreclosed on, the Tenant has very little recourse. Once the Foreclosure is implemented against the Seller, the Tenant is evicted by the Bank. The only recourse the Tenant has is to sue the Seller for the money in civil court. Good luck in recouping it! With Sellers getting 5%-10% of the sales price up front and better than market rent on these types of agreements, the amount lost by the Tenant Buyer is sizable.Land Sales Agreements (Contracts of Sale) present the same dangers. The SCAR (South Carolina Association of Realtors) does not endorse Lease To Own Agreements. What is your experience with Lease To Own Agreements? Please share!Mirela Monte, Your Myrtle Beach Real Estate Connection Proud Optimist
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Posted by MIRELA MONTE on February 4, 2009 at 2:15pm
Asking price: $167,432 on a Bank Owned property in an oceanfront building where similar listings are still priced at over $200K. My investor client asked me to put in a bid for $125,000. The bank approved it. SOLD!Asking price on a short sale: $190,000 in an Oceanfront building where similar condos are still listed for up to $300,000. My investor bid $154,000 for it. The bank finally accepted $168,000. We closed last week.I just received a request to bid on a short sale home currently priced at $549,900, the least expensive home ever sold in that neighborhood. The lead came from Active Rain. The investor wants to bid $260,000. Will I write it up? You bet! Why? Because the bank might actually take it!Here are some deals you could bid on: Luxury condo on Waterway. Asking price $299,900.Waterway community custom home, 4BR/3BA. Originally priced at $799K. The bank now owns it and listed it with me for $489K.Just check out our website for current REO deals at: http://www.myrtlebeachhomes.us/Homes or www.BankOwnedInMyrtleBeach.comGo ahead: insult the Seller! I will be glad to do it for you!Mirela Monte, Your Myrtle Beach REO Source
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Posted by MIRELA MONTE on February 4, 2009 at 2:07pm
Here are some current "Deals"... Oceanfront condos practically given away for a fraction of the price they used to sell for. All of these are "distressed property transactions", either Short Sales (Pre-Foreclosure), or Bank Owned (After Foreclosure).Ocean Villas: 2BR/1.5BA now priced at $139,900.2005 sold comp: $232,000!!!The Palace: 2BR/2BA now priced at $139,900.Same units sold in 2005 for $279,900!!!Beach Colony: 2BR/2BA now priced at $179,900.Same units sold in 2005 for $430,000!!!Prince Resort: 2BR/2BA now priced at $210,000.Same units sold in 2007 for $570,000!!!Paradise Resort: 2BR/2BA now priced at $210,029.Same units sold in 2006 for $379,900!!!Myrtle Beach Oceanfront Slaughter Fest. Get yours today! Are all these great deals? Some are, some are not! We'll uncover the mystery of the Myrtle Beach Oceanfront Deal later on this week. Stay tuned!Myrtle Beach Oceanfront by Mirela Monte Join Me on the Optimist Group!
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Posted by MIRELA MONTE on February 4, 2009 at 2:04pm
In 2005 I told all my Investors to stop buying Oceanfront. I've always been able to see patterns in numbers. I didn't like what I saw, so I blew the whistle. I moved my investors on to other products like single family homes in the path of growth. We did well. The Clients who listened and sold, fared quite nicely. The ones who didn't, now wish they had...I am now blowing another whistle: the BUY whistle. With prices at an all time low and inventory still ample, now is the time to start delving in. There are lots of things to consider and a careful analysis is mandatory. If you perform your due diligence and work with a top notch Oceanfront Buyer's Agent, you should do extremely well.God does not create any more Beach... Today we just had another 260 foreclosure properties being auctioned off at the Courthouse. Those properties will soon be available as Bank Owned super deals... The interest rates are still at an all time low... The gloom and doom is depressing most consumers and clipping the wings off the novice Investors... To make money you always move against the grain...I just pulled numbers on Oceanfront Condos in North Myrtle Beach. What I found made my hair stand up: 24% of the North Myrtle Beach Oceanfront condos are now "Pending Sale". 24%!!! Twenty-Four Percent!!! Compare that with the typical 2.5% activity per month and you start seeing what I'm seeing: 10 times the activity almost overnight! That's BIG! That's REALLY BIG!!!You heard it here first!(Why are you still here? Get on the phone with your Mortgage Broker!)Mirela Monte, Your Myrtle Beach Oceanfront Guru Proud Optimist!
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