Tuesday, January 21, 2014

Florida's Mortgage Components

The components that make up a Florida Mortgage

I was surprised to find out most people, who are home owners or my students, do not know what their mortgage consists of! Biggest financial transaction of your life and you can’t recall the interest rate that you are paying? As the sports analysts say – "C'Mon Man!"

One of the questions I ask my Real Estate Mentoring Students or Clients, what are the three parts of a Florida Mortgage? Most say the mortgage and stop with blank stare? So today I am going to discuss the three parts that make up your Mortgage in Florida. They Are:

  1. Note
  2. Mortgage
  3. Deed

That is why you have so many papers to sign at closing!

Note or Promissory Note

A note or Promissory Note can be drawn up using a template you bought in Office Depot! It is real simple! A note is contract or document signed by the people who agree to pay the debt. It doesn't have to be you! It is anyone willing to pay back, usually with interest and terms, a debt that has been incurred.

In real estate, it is typically a borrower or buyer agreeing to make monthly payments of principal and interest over 15 - 30 years to a lender, usually a bank but it could be an individual. (Good Cash Flow Strategy!) If the borrower doesn’t pay, the LENDER can sue "under the note" for breaking the contract. Usually in Real Estate, the property serves as collateral if there is a breach of contract.

Mortgage

A mortgage is document that transfers interest in property. While a mortgage is tied to the debt created by the note, it is not a promise to pay the debt. It contains language which gives the lender the right to take back the property if the borrower/buyer goes into default and doesn’t pay under the terms of the note signed. In other words, what will happen if you breech the Promissory Note.

Deed

A deed is the document that passes the TITLE from the grantor (Seller/Owner) to the grantee (Buyer/Future Owner). There are two basic types of deeds.

  • Quitclaim Deed - passes whatever title or rights the grantor (Seller/Owner) has in the property to the grantee (Buyer/Future Owner) without any warranty.
  • Warranty Deed - contains promises made by the grantor (Seller/Owner) about the title or rights conveyed. In other words, he is warranting a "Clear and Marketable Title."

A deed must contain legal description of the property and must be signed in front of a notary public in the State of Florida.

A title is the bundle of legal rights the owner has in real property or asset. In other words, the title is the ownership of the property.

P.S. Make sure you sign all documents in Blue Ink and the mortgage is recorded at the Clerk of Court office.

Written by +Bob Burns.
 

Related Links, Postings, Presentations or Articles:

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Bob Burns at MREIA meeting"The only thing more expensive than education is ignorance" - +Benjamin Franklin!
Bob Burns Print Signature Photo
+Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com

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Saturday, January 11, 2014

Florida Sun Shine Real Estate

Selling Sun Shine Real Estate

"Florida is where the Sun Shines" - you must have heard this many times. Moderate/warm climate (Yeah Baby!), famous beaches like: South Beach, Crandon Park-Key Biscayne, Coco Beach, Ft. Myers Beach and entertainment venues: Disney World, Epcot, Key West, Lighthouses, make Florida Real Estate very attractive. So that means Florida Real Estate or buying a house in Florida is really good for someone who wants to escape weather elsewhere in America and also add to his/her enjoyment through the Keys, Gulf Coast, Miami Beach and Orlando theme parks.

However, Florida Real Estate is also attractive for Real Estate Investors i.e. people who would like to treat Florida Real Estate as an investment avenue for making profits. Hello! With the property prices rising as much as 25%, Florida Real Estate makes investment sense too. That is one reason why Florida Real Estate is so sought after. If you wanted to look for a really good deal in Florida Real Estate, you should start with looking for places that are still in their development phase i.e. places where the real estate prices are not so high but are expected to go up in the years to come.

Florida has a ton of development going on in various phases! This is generally a good option for people who are looking to pick up Florida Real Estate as an investment option and/or want to live in the property later on. This is also good for people who are looking for Florida Real Estate or a house in Florida to live in by themselves but don’t mind a bit of inconvenience that is generally associated with a newly developed (rather developing) area. As far as looking for Florida Real Estate listings is concerned, you first need to decide on what location in Florida, Gulf Coast, East Coast, Pan Handle, Keys, is suitable for you. Again, this will depend on your reason behind going for Florida Real Estate. If you are going for Florida Real Estate purely for investment purposes (you don’t actually want to live in there for now), then you should really be looking for places where the prices are significantly low but are rising or expected to rise in near future. One indication for expected price rise is the influx of a lot of businesses (Home Depot, Walmart, McDonald's) in the area. Industry/business generally propels development in the area and hence causes the real estate prices to go up. Of course, distress sales, public auctions, bank foreclosures, tax deeds and certificates, buying paper are evergreen opportunities that are available in any place at any time and you should always explore them. If you are going for Florida Real Estate for personal use, then you would be looking at a number of different factors which would basically be related to your convenience and quality of life.

So Florida is where the sun shines and that is also making Florida Real Estate shine.

 

Written by +Bob Burns.
 

Related Links, Postings, Presentations or Articles:

####
 
Bob Burns at MREIA meeting"We must become the change we want to see." - Mahatma Gandhi
Bob Burns Print Signature Photo
+Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com

Follow US Baby!

Top Blogs