Q.  Why are you selling your house so cheap?

 

A.  Many people confuse the down payment with the purchase price of the home.  You are only bidding on the down payment for this home.  We will finance the balance.  For example, if you put down $10,000 we will carry a note for the balance of the purchase price.

 

Q.  Will the deed be put in my name?

 

A.  Yes, the deed will be transferred into your name giving you full ownership of the property.  You will be able to deduct the applicable taxes and interest on your tax return.  You will have the ability to sell or refinance the property at any time you wish.  At present we do not have a balloon payment or pre-payment penalty attached to the note.

 

Q.  What kind of condition is this home in?  I mean, does it need any type of repairs?

 

A.  No, our specialty is buying pretty homes in pretty neighborhoods.  We buy homes in areas that we would live in ourselves.  Our homes are in move-in condition.  Don't take our word for it, drive to the home and do your own personal inspection.  In addition, we can provide you with a full 1 year Home Warranty on the property.   We encourage you to visit one of our lovely homes in person.

 

Q.  What is owner financing and how does it work?

 

A.   Owner financing is a simply financing strategy where the owner of the property will take back a mortgage for you after you put down a small investment.  You will make your mortgage payments to the property owner instead of the bank.  For Example, if you have a home priced at $200,000 and you put down $20,000 then the owner will carry back a mortgage note for $180,000 ($200,000 less $20,000). 

 

This is a quick and easy way to help you become a home owner knowing that you are APPROVED as long as you have the down payment required for the home.  You get all the benefits that you would get with a traditional bank without all the paperwork.  The good thing for you is that this can happen lightning fast.

 

  

Q.  You're interest rate seems high.

 

A.  If you know what your fico score is you can visit MyFico.com and see what the applicable interest rate is for your credit score.  We can guarantee that the interest rate we charge will always be lower.  Also, once you find the interest rate for your credit score, keep in mind this rate is for someone who can document their income and assets.  Now you have to add an extra percentage point or two to the rate for a "no doc" loan which is exactly what we provide--no documentation.

 

Call your local bank or mortgage broker and tell them what your fico score is and that you would like to buy a house with no credit check and report back to us your results.  We would be very interested to hear what they have to say.

 

Q.  How is my monthly payment calculated and will this be all inclusive (Principal, Interest, Real Estate Taxes and Hazard Insurance)?

 

A.  Take the purchase price of the house less the down payment and this equals the amount financed (Ex. $100,000 Purchase Price less $10,000 Down Payment equals $90,000 loan amount)

 

Next, you take the loan ($90,000) if the interest rate is (8.85%) and the term of the loan (30 years) to calculate your (P & I Payment) Principal and Interest Payment.  In this case the P & I payment would be $633.92. 

 

Last, you will need to add the monthly taxes and insurance to the P & I payment for your total monthly payment.  Ex. (taxes-$250/mo and insurance-$75/mo).  So the total payment in our example would be $958.92 ($633.92 P & I plus $250 taxes plus $75 insurance)

 

Q.  It says in your listing that you don't perform credit checks, that sounds too good to be true?

 

A.  Yes, that is true we don't perform credit checks and I agree it does sound too good to be true.  In fact, I doubt you will find any bank willing to finance a loan for you without doing a full blown credit check.

 

He who has the gold makes the rules.  In this case, the house is our gold and we get to make the rules.  We decided as long as you are able to meet our down payment requirements you are Approved.  Now this may change in the future if we decide to change our rules but for now this is our policy.  If you have the minimum down payment that we are requiring for the home then your credit is Approved and there is no fine writing to read about this....that's it.   We are hedging our risks by collecting a down payment from you.

 

Q.  I want to buy this house as an investment property.  I have 2 questions, do you owner finance to investors and what are the market rents?

 

A.  Our goal is to sell to individuals who plan to occupy the home as their personal residence.  However we will sell to an investor with a minimum of 20% down.  We do not provide information on market rents for our homes because we do not want to be held liable if your experience turns out to be different.  We encourage a potential investor to do their own research to see what comparable homes are renting for in the area.

 

Q.  Besides my winning down payment bid are there any other costs associated with the loan?

 

A.  One of the great things about owner financing is that we are able to keep your closing costs very low.  The only other fees associated with the loan other than your down payment will be a $675.00 processing fee and $525.00 for attorney and recording fees totaling $1,200 plus any prepaid interest.  Typically, the closing fees amount to less than 1% of the loan amount.

 

Q.  When will my first payment be due?

 

A. 30 days after closing.

 

Q.  Once the auction ends how long does it take to close the loan?

 

A.  Our goal is to have the loan closed 7 -10 days after the auction ends.  This will depend largely upon how quickly we get the required documents back from you once our attorney has prepared and sent you the documents.

 

Q.  I live out of state do I have to fly or drive in for the closing?

 

A.  The choice is yours.  We have sold a ton of properties to families that were not local.  Some flew in for the closing and others had the documents sent to them overnight.

 

Q.  How much will my total payment be?

 

A.  That will depend on how much your total down payment is.  The larger the down payment the less the monthly payment will be.  We have given you a few projections for payments within the auction.  This should give you a pretty good idea of what your payment will be if you are the winning bidder.  If you are unsure about what your payment will be just email us with the amount you are prepared to put down and we will calculate your payment for you.

 

Q.  Are there any prepayment penalties on the loan should I decide to refinance or sell the property.

 

A.  Currently we do not charge a prepayment penalty but this may change in the future.

  

Q.  Are there any balloon payments on the loan?

 

A.  Currently there are no balloon payments on the loan but this may change in the future.

 

Q.  I live in the UK, will you owner finance a home for me?

 

A.  We do not offer owner financing to persons who are not living within the Continental United States.

 

Q.  My credit stinks and I've been turned down by several mortgage companies are you sure that I will be approved if I have the highest down payment bid?

 

A.  Absolutely, because we don't currently perform credit checks we won't even know what type of credit you have unless you tell us.

 

Q.  I can't document or prove my income will that prevent you for owner financing a home for me?

 

A.  No, as long as you have the required down payment, closing costs and can afford the monthly payment.

 

 Q.  This home seems awfully cheap compared to what it would cost for a similar house where I live is there a reason for that?

 

A.   Our homes are priced at market value.  As you know a 2,000 square foot home in New York is not going to be priced the same as a 2,000 square foot home in Texas.

 

Q.  Do you do this type of financing in other cities or states other than Dallas, Texas?

 

A.  No, currently we only offer this type of financing in Texas.  We have more than enough properties to keep us quite busy.  Eventually we may roll this out in other areas.

 

Q.  What if I don't like this home, do you or will you have other homes available?

 

A.  Yes, we will have other homes available offered in this same fashion. 

 

Q.  Are your interest rates fixed or adjustable?

 

A.  You have a choice of either.  We currently have a 30, 40 and 50 year fixed and a 30, 40, and 50 year adjustable rate.

 

Q.  Why are you willing to owner finance a home for me when my credit is crappy and the bank said "No."  I have to live with my in-laws because my credit is so bad that I can't even rent a place.

 

A.  We've been there before.  If the world gives your "salt" then make margaritas.  We know what it like to not know whether you are approved or being worried about being turned down for a loan or trying to rent a place to live.  We created this service of buying and selling pretty homes to give people a second chance to own a piece of the American Dream.

  

Q.  I don't have any money and my credit stinks can you still owner finance a home for me?

 

A.  Unfortunately, you either have to have money or credit.  We simply would not be able to survive if we did not collect a down payment.  In other words, you've got to have some skin in the game to play.

 

Q.  I don't have a feedback score, can I place a down payment bid?

 

A.  Yes you can.  Just be sure that you understand you are bidding on the down payment only and that you are prepared to honor your commitments.

 

Q.  Can I view the home prior to placing a down payment bid?

 

A.  Yes, we encourage you to do so.  Just contact us and one of our friendly representatives will schedule an in person showing for you at your convenience?

 

Q.  I love this home what's the next step?

 

A.  To get the process started and demonstrate your serious intent to purchase the listed home you will need to make a $1,000 earnest money deposit to secure the home until closing via Pay Pal.  Payments can also be received in the form of a wire transfer or cashier checks.

 

Your Earnest Money will be credited toward your winning down payment bid.

 

Closing will take place with 7-10 days after earnest money is received.

  

Q.  I am a note buyer would you be interested in selling your note after the closing?

 

A.  No, not at this time.  We already have a note buyer that we work with if we should decide to sell our note.