By Matthew Bartlett
I was having a conversation with a good friend of mine and fellow Realtor last evening. Now I know you might be saying so what, who cares! However this friend of mine taught me something that I was compelled to pass on to my Activerain friends. My friend for the purpose of this story I will call Mary, recently purchased a new home and decided to sell her existing home. There were TWO Trust Deeds on the home, the FIRST for $350K and for the SECOND $25k. But this is where it got good as Mary decided to contact the current holder of her second Trust Deed whom she knew was an investor and offerred her home up for this gentleman to purchase. Mary's terms were such that Mary would refinance the home and pull out an additional $25k. Mary would then remove various improvements she had put into the home in the last 2 years including, but not limited to various landscaping and take them with her. Mary's Lender would assume the current Trust Deed now holding at $400k. Mary's lender jumped at the opportunity without a second thought.
Mary's lender realized that even in this curent market the home would still have equity. Values had not dropped as much in the area, and the local schools were outstanding. Current rents for a comparable 3 bedroom, 2 bath, 1,200 plus sqft. home were $2000 a month. The current monthly payment for the financing was $1700 dollars a month. The numbers made since for the Lender so he jumped at the opportunity.
The moral of the story is always keep your mind open for new ideas. Do not be afraid to think outside the box. In a market like this with so many families facing challenges you could end up being a hero to one of your clients who might be in a similar situation.
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