Mortgage Purgatory

All too often closings are delayed due to the failure of the mortgage company to process the loan documents in a timely fashion. Fortunately, most edlays are only one or two days and while a huge inconvenience to both the Seller and the Buyer they can be dealt with. In some situations the delays can drag out for extended periods of time causing major disruption to the lives of the Seller and the Buyer.

The first sign of a delay is usually not encountered until the last minute, meaning a day or two ahead of closing. The problem is that the Seller must make arrangements to vacate the property and that usually inivolves scheduling movers and arranging for a place to move to. The concern is that the Buyer will default and the Seller then has the cost of the move and two house payments to make.

Often, the Buyer's Agent will submit an Amendment requesting that the Seller extend the closing date. The Buyer's Agent will usually try to make this seem like it is no big deal and is a small technicality that the Seller must comply with. WRONG!

The Seller is under no obligation to extend the closing date for the convenience and protection of the Buyer. The issue is that the closing date is a critical, key, target date of the contract and if the Buyer fails to close the Earnest Money that the Buyer put up to guarantee their performance become subject to a claim of default by the Seller.

Since delays commonly occur it is not a statement of fact that missing the closing date will automatically entitle the Seller to claim and receive the Earnest Money from the Buyer. The courts have routinely rulled that the Seller must give the Buyer a little lattitude on the closing date. The length of time that the Seller must wait is a question of fact that a judge and a jury may have to decide, howver, reasonably short delays of a few days do not automatically cause the Buyer to be in default and lose their Earnest Money. If the delays continue a point in time is reached where the Seller is obviously entitled to claim the Earnest Money. That time is debatable and subject to litigation but is probably less than 2 weeks after the originally secheduled closing date.

The problem with signing an Amendment to extend the closing date for the Buyer is that the extension is one sided and benefits the Buyer at the expense of the Seller. By moving the closing date further out into the future a few days the Seller is moving the point when they can claim the Earnest Money forward by the exact same amount of time. Any time that a Buyer requests that the Closing Date be Amended and moved further out into the future the Buyer should give the Seller something of value to compensate for the accomodation. I generally suggest that the Buyer increase the Earnest Money and add a clause that if the new closing date is not met by the Buyer the entire Earnest Money (old plus new) will be immediately subject to forfeiture by the Buyer, otherwsie, the Buyer will have to operate with the clock ticking on their technical default on the contract to purchase the home.

I refer to the Buyer being in 'technical default' as the period of time between the original Closing Date and the time when the Mortgage Lender finishes getting the document prepared for the loan and getting them to the Title Company to complete the closing. If that period of time is only a day or two the Buyer has very little to worry about. As that period of time lengthens to become a week or longer the Buyer enters a period of time where they become very vulnerable to the Seller making a successful claim of default and obtaining the Earnest Money from the Escrow Account at the Title Company.

If you find yourself as the Seller of a home in the unfortunate positioin of having a delay in your originally planned Closing Date be careful about extending the Closing Date through Amendment without considering the possiblity that you are simply protecting the Buyer without any benefit. Make sure that you benefit from the extension.

Buyer's Agent Bonus vs Discount Price

I am often asked the question as to whether or not offering a bonus to a Buyer's Agent is a good idea. Along with that questions is the subordinate question of how much bonus to offer to get results.

Generally, this quesion is asked because the Seller wants to do something to help sell their home faster, or at a higher price, or both. Since Sellers save money by listing for a Flat Fee they often consider that some of that savings can be translated into quicker sale and higher price if they motivate the Buyer's Agents to show their home more frequently and to sell their home more agressively to earn the bonus.

I always recommend that instead of offering the bonus to the Buyer's Agent you reduce the price of your home to make it more attractive to more Buyers. By putting your home on a more affordable level you open it up to more prospective Buyers.

Agents have little actual control over a Buyer's response to a home. There is very little that an Agent can do to persuade a Buyer that any particular home is right for them. Most Agents will not attempt to do this since they are afraid that they will either be perceived as pushy, or they may be sued later for saying something that is positive about a home that comes back to haunt them when a problem arises.

Additionally, Buyer's Agents should, by virtue of their Code Of Ethics committment to keep the Seller informed, advise the Buyer that the Agent will earn a bonus or larger than normal commission on your home. Virtually any Buyer will, with that knowledge, try to negotiate with their Agent to have all or a portion of that Bonus rebated to the Buyer if they choose to purchase that home.

I have sold over 1,000 homes in the last couple of years and out of that number only one or two homes have sold with a bonus where the Seller felt that the Bonus was instrumental in helping to sell their home. I have had 40-50 Sellers offer bonuses and not receive any noticeable benefit from those offers. No additional traffic. No discernably higher sales price.

Simply put, offering more than the norm for the Buyer's Agent has little impact on either your rate of showings or your sales price. It is a far more powerful tool to apply the bonus to a lowered price, or greater negotiation flexibility, rather than to offer it to a Buyer's Agent.

Exclusions: Listing Agreement vs Contract of Sale

When you list a property on the MLS there is a paragraph in the Listing Agreement where you can specify any items of personal property that you want to insure you are able to keep when you close on the Sale. When your home is listed on the MLS these items should be shown under the 'Exclusions' section of your listing, thereby notifying any prospective Buyer's Agents that you intend to keep the mentioned items.

It is very important to note that if you want to keep these items you MUST detail them in the Contract of Sale at the time you negotiate the contract. Simply listing them in the Listing Agreement and on the MLS does NOT insure that you will retain ownership of the items and be able to take them with you. The Listing Agreement does not control the Contract of Sale. The Listing Agreement provides instructions to the Listing Broker about how to display your property informaiton on the MLS system.

It is your responsiblity when you review an Offer to Purchase to make sure that any items that you have previously listed as Excluded in the Listing Agreement are also listed in the Exclusions paragraph on the Offer to Purchase (Contract of Sale) otherwise you will NOT have the right to retain those Items.

Steps from Contract to Closing

OK - now that you have a Contract on your home what next?

First, make sure that your Contract is completely signed and initialed. Check to make sure that all pages have both the Buyer(s) and Seller(s) initials at the bottom, that any changes to the printed terms are initialed by both Buyer(s) and Seller(s), and that the Signatures are in place, and that the Contract has an Effective Date inserted in the propery place. Unless all of the above is true you may not actually have a valid contract.

Also, be sure to make sure that the above applies to any Amendments that are attached to the Contract of Sale/Purchase.

Now that the Contract is completed lets look at the duties of the Buyer and the Seller separately.

* * * * * * * * * * * * * * * * * BUYER DUTIES * * * * * * * * * * * * * * * * * * *

1) BUYER DUTY (if Agent represented): It is normally the responsibility of the Buyer's Agent to take a copy of the contract and the Earnest Money check to the Title company to start the Title process and to open an Escrow account. If the Buyer is not working with a Broker/Agent then I highly recommend that the Seller take responsibility for taking the contract and the earnest money to the Title company, rather than depending on the Buyer to do this important task.

2) BUYER DUTY: The Buyer will be responsible for contacting a Home Inspector and having the home inspection performed. This will be during the Option Period which is typically between 7 and 10 days from the Effective Date. The home inspection will typically be performed within 1 - 3 days from the date ordered by the Buyer and the Home Inspector will usually provide a written report not later than 24 hours after the inspection is completed.

The Home Inspection Report is paid for by the Buyer and is the property of the Buyer and the Seller has no 'right' to see the report. In most cases the Buyer will provide a partial or complete copy to the Seller at the time that the Buyer requests the Seller to perform repairs per the Inspection Report. Regardless of how new the home is some minor, or major, items of repair will be found by the Inspector. Remember, it is the job of the Inspector to find problems with the home and even brand new homes (especially new homes?) have faults that need to be corrected. Do not be surprised when the Buyer submits a Repair Amendment requesting that some or all of the found faults be fixed.

Remember that as the Seller you are not under any obligation to repair items and the Buyer is in the Option period and can back out of the contract without penalty at any time. Therefore, you are still negotiating for the sale of the property with the focus of the negotiations now centered on the repair items requested. There is not specific guideline to provide for this process other than to use common sense and to visit with your Agent for guidance.

3) BUYER DUTY: The Buyer will contact the Lender and apply for a loan on the purchase of the property. Usually the Buyer has already started the process and has some level of pre-approval in place and is now simply completing the process. In any event, the Buyer must immediately contact the Lender to keep from delaying the closing due to loan problems. The Buyer will typically have between 14 and 21 days to obtain a loan committment from a lender. The Third Party Financing Condition Addendum has a provision that the Buyer may abort the purchase and receive a return of Earnest Money if the Buyer is unable to obtain financing under terms not less favorable than the terms indicated in the Amendment, however, the Buyer must exercise this right within the time period indicated in the Amendment.

4) BUYER / LENDER DUTY: The Buyer's Lender will order an Appraisal of the property since the Lender is the entity with the risk of loss in the event of foreclosure in the future. The Lender will typically order the appraisal about one week from the contract effective date, or about the time of the end of the Option period.

* * * * * * * * * * * * * * * * * SELLER DUTIES * * * * * * * * * * * * * * * * * * *

1) SELLER DUTY: Send a copy of the existing Survey to the Buyer, the Buyer's Agent and the Title Company. If a new Survey is needed it is normal for the Buyer to pay for the new Survey, however, the cost of any new Survey can be negotiated within the contract to be the responsibility of the Seller or the Buyer. If the old Survey is not acceptable to the Title Company or the Lender then a new Survey must be ordered. If the Seller is responsible for this cost then the Seller must make sure that the new Survey is provided in a timely fashion.

2) SELLER DUTY: The Seller must provide access to the property to the Home Inspector, the Appraiser, and any other parties that are appropriately in need of access to the property. Normaly, the other parties who may need access are specialists for engineering and systems that the Home Inspector found some fault or potential fault with during the Inspection process. A list of such parties could include Foundation Engineers/Inspectors, Roof Inspectors, Electrical Contractors, HVAC Contrctors, and others who may be called upon by the Buyer to repair items found in need of repair during the Inspection of the property.

3) SELLER DUTY: The Seller must provide the Title Company with contact information for the current lien holder so that the Title Company can determine an accurate payoff amount for the loan as of the date of closing. The Title Company may need a variety of specific information and the Seller must provide all required information in a timely fashion to prevent problems that could delay the closing date.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Unless unexpectedc problems arise the above list of duties for the Buyer and Seller will be all that is required up until closing. Then both parties will schedule appointments to close with the Title Company and show up with valid legal identification of identity and any funds required in the form of money orders or cashiers checks.

If you have any questions or comments please contact Lee Thurburn at 972-470-5888.

Appointment Service Options

NetOffer uses Central Showing Service ("CSS") in the DFW area to help Sellers and Agents schedule appointments for showings. CSS is an independent third party corporation who provides a service to the Realtor community in the DFW area and in other areas of the United States. The service that CSS provides is a centralized telephone call center that Realtors use to place appointment scheduling information about their listings so that other Realtors can call CSS to schedule appoitments to show properties.

CSS offers three choices for Appointment Type. Those choices are:
1) Go Show
2) Courtesy Call
3) Appointment Required

1) Go Show - this type of appointment is usually selected when the property is vacant and there will generally not be any issue with scheduling an appointment. Usually the property is either a rental property that is currently vacant or it is a property where the home owner has already vacated.

2) Courtesy Call - this type of appointment is the most common and requires that CSS contact the Seller to notify the Seller that an appointment is being scheduled for a date and time. If the Seller answers the phone and denies the appointment CSS will refuse to schedule the appointment per the Sellers request. If the Seller is not home and does not answer the phone CSS will leave a message, if there is a message option provided by the Seller, and will schedule the appointment for a specific date and time.

3) Appointment Required - this type of appointment is used by the Seller whenever there is a particular reason that the Seller requires positive confirmation of the appointment. Reasons for positive confirmation required can include pets that need to be contained, elderly or infant residents that need special care and notice, valuable art or other possessions that need protection, or other similar types of situations. CSS will not set an appointment until they have received positive verbal confirmation from the Seller that the date and time are allowed.

Access to the property can be either by lock box or by Seller provided access. The most convenient form of access is for there to be a lock box on the door with a key in it. This makes it convenient for the Buyer's Agent to gain access without having to wait for a Seller to open the property. Buyer's Agents often run late for various reasons, and frequently fail to show for the appointment. When this occurs it is not convenient for the Buyer's Agent to notify the Seller in some cases and while this seems rude it often happens. As the Seller, if you require that you be present for showings you will be inconvenienced at times by no-shows.

It is in the best interest of the Seller to make showing the home as easy and convenient for the Buyer's Agents as possible. I recommend that you have a lock box on your door and that you use the Courtesy Call type of appointment.

Some Sellers insist upon having Agents call them directly to schedule appointments. Since this requires that Buyer's Agents track down your phone # and call you as opposed to call the CSS phone # that they have committed to memory it inevitably occurs that some will call CSS even if the MLS instructions are to call the Seller. For this reason we recommend that all Sellers agree to using CSS.

Lock boxes come in two general types:
1) Electronic
2) Manual

1) Electronic Lock Boxes - only available through a Real Estate Agent and require that that Agent use a special electronic key to install and remove the lock box from the door. These are easy for Realtors to operate and are preferred. Electronic lock boxes have an added cost to cover the time required to come to the property for both the installation and removal.

2) Manual Lock Boxes - come in two general types:
a) Spin Dial
b) Punch Number
Either type is acceptable but the punch number is easier for most real estate agents to read and is therefore preferrable. Manual lock boxes are very secure and cost about $30 at Home Depot.

If you have any questions about this article please call Lee Thurburn at 972-470-5814.

When is a Contract of Sale enforceable?

I have had several situations where contracts were not fully executed or where some of the terms of the contract were not fully complied with by one or both parties and the question has come up as to exactly when a contract is truly enforceable. The ultimate answer to any specific situation is unique and can only be determined by a court of law, however, some general thoughts can help.

Technically, a contract is not valid until all of the changes (if any) have been initialed by all parties to the contract. This means that if the Buyer and the Seller are married couples then you will need four sets of initials on each and every change that is made to the contract. The problem can easily arise when a lot of changes have been made that one or more of the parties do not place their initials on every single change. Exactly when the failure to initial constitutes an invalid contract that is unenforceable is often asked.

Often, contracts that are missing a few such initials are presented to Title Companies and proceed through the entire closing process without issue. Occassionally, such contracts are disputed and the missing initials become points over which the parties contend as to whether or not the contract is enforceable. It is very important to carefully review the contract and make sure that all changes are initialed by all parites to prevent such disputes in the future and possibly derail the closing.

It is my understanding that some initials may not be required under certain circumstances. A good example would be if the Option Fee was changed from $50 to $100 and the change did not have initials for all parties but the Option Fee Check was made out for the right amount and then accepted by the Seller then the need to initial those changes would become a moot point and not a sufficient reason for invalidating the contract. The point of this example is to demonstrate that it is NOT an absolute truth that failure of all changes to be fully initialed will invalidate the contract.

If you are involved in a contract as either the Buyer of the Seller and you are caught in a dispute as to the enforceability of a contract that has been 'almost' completely executed the only person who can fully advise you as to the validity and enforceability of the document is an attorney. The Agent or Broker who you are working with is not qualified to render an opinion unless they are an attorney and you should not rely on their opinion even if they are foolish enough to provide one.

Agents and Brokers work with contracts on a regular basis. I have dealt with over 900 contracts of sale on the over 1200 properties that I have listed in the last 18 months and I still constantly see version of documents that have issues that I have no direct personal experience with. I routinely recommend, in such situations, that my clients seek the counsel of an attorney.

Be very careful when you sign a contract to make sure that all changes are initialed and that you understand the ramifications of all aspects of the contract.

Seller's Rights vs Buyer's Rights

I recently have had a couple of Sellers try to terminate a Contract of Sale against the Buyers wishes. This does not occur often but when it does it brings up an often overlooked aspect of the real estate contract and selling process. When a Seller sings a Contract of Sale they are giving up more rights than the Buyer is when you look at it logically.

If the Seller breaches a Contract of Sale the courts have proven, time and again, that they are willing to force the Seller to deliver the property to the Buyer according to the terms of the Contract of Sale, and to force the Seller to cover the Buyer's legal expenses incurred in enforcing the Contract through the courts.

Conversly, when the Buyer defaults the Seller is usually left with little or know option other than to claim the Earnest money that is in escrow. The primary reasons for the Buyer defaulting usually relate to a lack of creditworthiness and the problem with Buyer default is that even if the courts agree with the Seller the Buyer may be fiscally unable to comply with their contractual committment. The Seller, however, when in default, can be forced to deliver title to the Buyer.

Why would a Seller want to terminate? Most frequently it is because a better offer comes along after they have signed a Contract of Sale. Other reasons can include dramatically changed personal situations such as an employer who changes their mind about a transfer, etc. Regardless of the reason for the Seller wanting to default the Buyer is in the driver's seat and the Seller must realize that if the Buyer wants to force the issue the Seller will be at a legal disadvantage.

Moral of the story? Be very certain that you want to sell before you sign a contract. As the Seller you are giving up your right to retain the property if the Buyer proceeds to closing, willing and able to purchase, and you default. Your consequences can be very severe if you default.

Your comments would be very welcome.

Earnest Money - How Much is Enough?

The sale of a property can be divided into the following phases:
- Contract Negotiation
- Option Period
- Post-Option / Pre-Finance Period
- Post-Finance Period
- Closing

Regardless of the state where you are located and the specific form of the contract the purpose of the Option Period is to allow the Buyer to inspect the property and determine if they want to proceed with the purchase. During this period the Buyer can terminate their offer to purchase if the Seller refuses to make the repairs that the Buyer deems necessary. If the Seller refuses to make the repairs that the Buyer requests, of if the repairs are more extensive than the Buyer is comfortable with, the Buyer can terminate the Contract and get their Earnest Money back.

Most Buyers will need financing and most Contracts to purchase a property include a 'Third Party Financing Addendum'. The Third Party Financing Addendum allows the Buyer time to apply for and obtain financing. If they are unable to obtain financing they can get their Earnest Money back. Typically, the Third Party Financing Addendum will allow the Buyer 14-21 days to obtain financing approval for the purchase of the property.

Once the Third Party Financing Addendum 'approval period' has expired the Buyer does not have any contractual right to receive a return of their Earnest Money and if they fail to close they will forfeit the Earnest Money to the Seller. The best insurance that the Seller has that the Buyer will perform on the Contract and complete the closing process is to require that the Buyer put a significant amount of Earnest Money into the purchase of the property.

What is a significant amount of Earnest Money? The answer to that question is based on pain. I suggest that the amount of the Earnest Money that is signficant is an amount that is based on the price of the property and the risk that the Seller is taking. Generally, the Earnest Money should be about 1% of the Sale Price, ranging from a low of about .5% and a high of about 1.5%. If the Sale Price is $100,000 the Earnest money should be no less than $500 and probably not any more than $1,500. If the Sale Price is $500,000 the Earnest Money should be no less than $3,000 and probably not any more than about $7,500.

Where on the range from .5% to 1.5% the Earnest Money amount falls is dependent upon the particulars of the contract and the probability of successful closing and the rist to the Seller. If the Buyer is very qualified and the closing will be quick the amount of the Earnest Money can be reduced to the lower end of the range. If the Buyer is asking the Seller to wait to close longer than about 30 days the Earnest Money should be increased. If the Buyer is wanting the Seller to reduce the price signficantly and wait a long time to close then the Earnest Money should be at the high end of the range, and possibly even a little above the range.

The Seller is taking a big risk by accepting a contract. The Seller is taking their home off of the market and during the Option Period or Finance Period their home will no longer be shown to prospective Buyers by other Agents. This removes the potential of back-up contracts and offers. If the Seller accepts a contract during April that does not close until June the Seller is losing a whole month of 'prime-time' for selling. That is a big risk that the Seller is taking and the Buyer should be making a signficant investment in the purchase to offset that risk.

Many variables should be considered and they must all be given the proper weight based on the particulars of the Seller and Buyer. Here is a quick list of the variables that must be considered by the Seller when determining how much Earnest Money is required:
- Sale Price
- Down Payment
- Creditworthiness and Loan Pre-approval
- Time to closing
- Time of year
- Days on market
- Alternative properties and relative price
- Cost of not selling
- Urgency to sell
- Risk threshold

Ultimately, you want to collect enough Earnest Money that the Buyer will not 'walk-away' from the deal without suffering signficant pain, or at least enough that you, the Seller, can receive some reasonable compensation for the fact that your home has been taken off of the market during the Contract period prior to the default of the Buyer. Keep in mind that the ability to recover the Earnest Money is not a foregone conclusion even if the Buyer defaults and that it may take many months to receive the Earnest Money and that to facilitate the receipt of the Earnest Money you may end up negotiating to accept only a portion and release the remainder to the Buyer.

If you have any questions about this article please call Lee Thurburn at 972-470-5888.

Offer vs Sale Price - Negotiation Thoughts

Between October 2004 and May 2006 I have listed over 1,000 homes and been directly involved in the sale of over 600 homes. As a result of my experience I have developed a couple of 'rules-of-thumb' that can help you to know what to expect and how to negotiate the best deal.

For the sake of this article lets say that the following is true:
- Current List Price = $300,000
- Initial Offer Price = $270,000
- Mortgage Pay Off = $255,000
- Cash Needed by Seller at Closing = $10,000
- Buyer's Agent Commission = 3%
- Title Insurance Policy = 1%
- Other Closing Costs = $500

I find it useful to take the difference between the Current List Price and the Initial Offer Price and divide that amount into equal thirds. I have found that the probability that the Buyer will come up 1/3 of the difference is at least 80%. If have found that the probability that the Buyer will come up 2/3 of the difference is about 20%. I have found that the probability that the Buyer will come up 50% of the difference is less than 50%.

In the above example the Buyer will almost certainly (80% probability) be willling to come up by $10,000 to about $280,000. It will be progressively more difficult to get the Buyer to come up more than that amount.

Obviously, as the Seller you will want to maximize your price. It is important to know what your 'Minimum Sale Price' is before you enter into negotiations. There must be a point where you will walk away from the deal and you should know what that point is before you start to negotiate with the Buyer.

I have found that there is a tendency for the Seller to adjust their 'Minimum Sale Price' as they get involved in negotiations. As you invest the time and the emotional energy into the 'deal' you have a tendency to want to make sure that the deal gets done. There is also a growing sense of 'last-chance' that often developes. As the Seller you will often be ready, emotionally and financially, to move on and to leave the old home for the new life that is around the corner.

Finally, there is a phenomena that exists related to the 'Buyer Pool' and the level of 'maturity' of the Buyer Pool that impacts the sale process and the decision related to the sale. Lets discuss that in a later BLOG.

If you have a Minimum Sale Price based on your mortgage and a desired (required) minimum amount of additional cash that you need to come away from the sale with you take that number and 'gross-up' to the required Sale Price to achieve your Minimum Sale Price. Lets take the Mortgage Pay Off plus the Cash Needed by Seller at Closing which totals $265,000. Since the Other Closing Costs will increase the needed Cash by $500 the Cash Need by Seller at Closing becomes $265,500. The total Commission and Title Insurance cost is 4% of the sale price. To determine the Minimum Sale Price take the Cash Neede by Seller at Closing and divide by 96% to get the 100% number.

$265,500 / .96 = $276,563

In the situation defined by the above any Sale Price above the $276,563 will net the Seller the cash that they require out of closing.

You can adjust the above $ amounts and use your particular transaction details to come up with the same numbers for your deal.

Seller Financing Issues

It is very common for the Buyer to ask the Seller to finance a portion of the sale price of a home. With rising interest rates this will become even more common. I am not talking about the situation where the Seller provides down-payment assistance but rather where the Seller actually carries a note for a portion of the sale price.

I generally recommend that Sellers try to avoid providing financing assistance because of the simple fact that the primary mortgage lender will be the primary lien holder and if the Buyer defaults on the primary morgtage the primary lender will get their money first. They will generally have the legal right to sell the property to recover their loan without requiring that they attempt to get more than the amount to cover their loan. They can foreclose and sell at auction or under foreclosure and the amount that is recovered will usually be just enough to cover the primary lien.

As the Seller your secured position will be secondary to the primary lender and if a default occurs by the Buyer the value of your note could become $0 because the foreclosure price may not be sufficient to cover any of your lien in which case your note is worthless. Your only course of action would be to purchase the lien from the primary lender and then sell the property yourself. That would not normally be a very tenable situation and is not typically what happens.

If you are considering financing the full purchase price of the property that is a different issue since you become the primary lien holder and you have much greater control over the property. As a secondary lien holder you may find that the value of the property has been dramaticaly diminished due to the Buyer's lack of care of the property and the equity difference between the primary lien amount and the value is not sufficient to satisfy your lien. As a primary lien holder you have more control over the timing of events and can often structure your lien and mortgage to give you the right to act more quickly than most large mortgage companies can act thereby allowing you to initiate preventative action to protect your asset value before it is irreperably damaged by the Buyer.

If you are considering carrying a Seller Second be sure that you are able to suffer the loss of the entire finance balance since the concerns above are very real and the worst does often happen.