Rick Mullen

Financing a Mortgage by a Family Member Part 3 of 3

2009-02-03T17:18:00Z

If first mortgage financing by a family member makes sense in your particular case, a first mortgage may be drafted by either a title company experienced in drafting first mortgages or a Real Estate Attorney. It is important that both the Mortgagee ("the bank") and Mortgagor (the borrower) discuss issues of non-performance and remedies for non-performance in advance. The Mortgagee may wish to disallow the taking of a second mortgage on the property to further protect their first mortgage position as well as to require that the monthly payments include property tax payments into an escrow account. To protect the Mortgagee, most mortgages contain an acceleration clause that will require payment in full if the Mortgagor defaults. In most cases the Mortgagor may be foreclosed upon if they are unable to comply with the acceleration clause. The mortgage will outline this process in general terms and state stautes will determine the specific details related to foreclosing on a property. If the Mortgagee has flexibility related to non-performance issues, then the general provisions that govern non-performance issues should be detailed in the mortgage. Family members may avoid a conflict by allowing a third party to administer the mortgage and collect payments. This will require the Mortgagee to sign an agency agreement with a third party mortgage Administrator - usually for a fee. While conflict between the Mortgagee and the Mortgagor may be minimized by utilizing a third party to administer the mortgage, it is still likely that the emotions of the Mortgagee and Mortgagor will create family turmoil in the event of non-performance. Because of this, it is important to have a written back up plan, such as putting the home up for sale in the event of non-performance. It is also critical that the Mortgagee is in a position to remain financially sound in the event that the Mortgagor defaults on the loan. In some cases a family member may wish to consider the mortgage "paid in full" upon their death. If this is the case, a mortgage satisfaction may be prepared at the time the mortgage is drafted. This document should be filed with an estate Attorney and may be recorded at the time of Death of the Mortgagee. While family finanacing has many pitfalls, it may be the right option in situations where it is mutually beneficial to the Mortgagee and Mortgagor.

Financing a Mortgage by a Family Member Part 2

2009-02-03T17:15:00Z

Financing a home through a family member may have pitfalls. To simply and securely make arrangements for a family member to finance a new home purchase or refinance an existing home, it is critical that you utilize a professional Real Estate Agent and/or an Attorney and a title company that offers expertise in family member financing. If you consider the family member as "the bank/Mortgagee" it will be easier to determine which factors are important in your transaction. Family members should be careful not to take shortcuts and to treat their transaction just as they would if the transaction was taking place with a non-family member. Just like in a regular transaction, the Mortgagee/family member should require a down payment and proof of homeowners insurance. A title company will be able to provide title insurance just like they would in any other transaction. Title insurance will protect the Mortgagee from title defects (liens and encumbrances) not discovered during the title search. The title search will determine the actions which must be taken by the Seller/Owner to provide clear title to the property. Stay tuned for the final details and please remember to consult with professionals prior to undertaking family financing.

Financing a Mortgage by a Family Member

2009-01-15T18:33:00Z

Clients of mine were contacted by their parents to determine if they would be interested in working out an arrangement for their parents to carry the first mortgage on their home. The parents are retirement age and felt that they would like to minimize their risk in the stock market by investing in more secure products. They found that bonds and certificates of deposit failed to pay a return that would work for them. My Clients agreed to allow their parents to hold the mortgage. The parents became the Mortgagee and their Children became the Mortgagor. At an interest rate of 5% on a $120,000 mortgage, amortized over 30 years, the first payment to the parents would be allocated as $500.00 in interest and $144.19 in principal. A nice win-win arrangement as the parents received an acceptable rate of return and their Children were given a better interest rate than what they were offered on the open market. Please stay tuned for instructions on how to simply and securely make this arrangement.

Open House in Riverview on Saturday

2007-11-21T01:05:00Z

Riverview, Wausau - We invite everyone to visit our open house at 4119 Briarwood Avenue on December 1 from 12:00 PM to 1:30 PM.

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903 North 7th Street, Wausau East, $79,900

2007-11-20T16:36:00Z

Urban living at its finest, close to downtown Wausau and the East Hill Historic District! Beautiful second floor dwelling unit has been recently redecorated and includes fresh designer paint, wainscoting, and hardwood, tile and slate floors. Nice second floor patio would be great for a roof top garden. Beautiful Southeast sunroom is a great place to enjoy morning coffee. Lower level studio has recently been updated and features laminate and slate flooring. This one of a kind property would be absolutely perfect for a home office, EBAYER, Musician's studio or Art studio. This hip property has the look of a New York City or Chicago loft and features a newer furnace and newer membrane roof. Priced to allow for exterior completion!

Single Story For Sale in Merrill

2007-11-16T06:00:00Z

• 1,250 sq. ft., 1 bath, 3 bdrm single story "Nice Cape Cod style" - MLS® $145,900 - Many updates

Merrill, Lincoln County

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2 Story For Sale in Wausau East

2007-11-12T06:00:00Z

Upper living area/main level studio

• 2,249 sq. ft., 2 bath, 3 bdrm 2 story "Upper living area/main level studio" - MLS® $79,900 - Great Buy!

Wausau East, Wausau - Urban living at its finest, close to downtown Wausau and the East Hill Historic District! Beautiful second floor dwelling unit has been recently redecorated and includes fresh designer paint, wainscoting, and hardwood, tile and slate floors. Nice second floor patio would be great for a roof top garden. Beautiful Southeast sunroom is a great place to enjoy morning coffee. Lower level studio has recently been updated and features laminate and slate flooring. This one of a kind property would be absolutely perfect for a home office, EBAYER, Musician's studio or Art studio. This hip property has the look of a New York City or Chicago loft and features a newer furnace and newer membrane roof. Priced to allow for exterior completion!

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Bi-Level For Sale in Riverview

2007-11-04T06:00:00Z

Tasteful and fresh decor

• 2,080 sq. ft., 3 bath, 4 bdrm bi-level "Spacious raised ranch" - MLS® #708444 $175,900

Riverview, Wausau - Nice Riverview raised ranch features 4 bedrooms, 3 bathrooms, large eat in kitchen plus dining area, large living room and beautiful family room with wood burning fireplace. Multi-level deck overlooks large, private fenced in backyard with mature trees. Huge garage offers plenty of room for two automobiles with plenty of additional space for boat or ATV storage. Tasteful and fresh décor with new windows, new maintenance free siding and new furnace make this home a must see. Directions: North 6th Street, to Marquardt Road East, to Briarwood Avenue North, to home.

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Single Story For Sale in Weston

2007-11-03T06:00:00Z

Quality built Weston Ranch

• 2,712 sq. ft., 3 bath, 3 bdrm single story "Living room plus main level family room" - MLS® #708448 $209,900 - Exceptional value

Weston, Schofield - Beautiful one owner ranch home, on a nearly 1 acre lot, with 3 bedrooms plus lower level bonus room and 3 bathrooms with Kohler fixtures. This home features a fantastic kitchen, with snack bar and large dining area which adjoins a large family room with cathedral ceiling and masonry wood burning fireplace. Bright large main level laundry room with tile flooring is a rare find in this price range. Lower level has an additional family room and a large game room which would be ideal for table and video games. Nice hardwood floors in formal living room, kitchen and dining area and new kitchen countertops are sure to please. This is a quality home located in desirable D.C. Everest/Riverside Elementary School district.

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Duplex For Sale in Wausau West

2007-09-28T06:00:00Z

Wausau West Duplex

• 2,108 sq. ft., 2 bath, 4 bdrm duplex "Up and Down Duplex" - MLS® #707514 $72,500 - $750 per month rent

Wausau West, Wausau - B-2 zoned West side duplex with excellent rental history and good cash flow. Property is in good condition and recently has had new vinyl windows installed. B-2 zoning allows for a variety of uses for this property.

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1 1/2 Story For Sale in Town of Harrison

2007-09-14T06:00:00Z

Beautiful Lake Home

• 1,904 sq. ft., 2 bath, 3 bdrm 1 1/2 story "Walk Out Lower Level" - MLS® #701726 $195,000 - Great Value

Town of Harrison, Merrill - Charming 1 1/2 story cottage located in the Harrison Lakes Preserve features cedar siding, walkout lower level, large deck and great views of the lake. Exterior of home is complete and the iInterior of the home awaits completion. This tranquil and pristine wilderness setting is located less than 45 minutes from Wausau, borders Lincoln County forest land and is easily accessed via asphalt roads. Recorded building and use restrictions ensure aesthetic and investment protection.

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Lot / Land For Sale in Schofield

2007-09-14T06:00:00Z

Great Lake Wausau Views

• lot / land - MLS® #705279 $125,000 - 1.5 Acres Prime Frontage

Schofield, Marathon County - 1.5 acre commercial parcel located south of the Eau Claire River bridge, in Schofield, on high traffic count Schofield Avenue. Great building site, with possible lower level walkout and views of Lake Wausau, makes this an ideal location for a combination retail/office development.

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Lot / Land For Sale in Rib Mountain

2007-09-14T06:00:00Z

Beautiful 1.33 Acre Wooded Lot

• lot / land - MLS® $64,900

Rib Mountain, Marathon County - Beautiful Rib Mountain 1.33 acre wooded lot, with mature hardwoods, in Great South Mountain location. Located on private cul-de-sac but only 5 minutes from Highway 51/I-39 corridor. Five total lots to choose from priced from $49,900 - $64,900. Available separately or as part of building contract.

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Commercial For Sale in Wausau East

2007-09-07T06:00:00Z

Innovative Product Line

• commercial "Business Opportunity" - MLS® #700426 $150,000 - Less Than Cost To Develop

Wausau East, Wausau - Business opportunity. Innovative, patented, trademarked designer golf product line. Products are rotationally molded through Wisconsin subcontractor. Desirable business model - low overhead, niche products, good margins, wholesale and/or internet retail possible. Price includes mold, some inventory, marketing materials, website, shipping materials and negotiable consulting/training. Products have great durability and excellent consumer acceptance. Business has not been substantially operated for 18 months as Seller has made a career change.

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Duplex For Sale in Wausau East

2007-09-06T06:00:00Z

Two Homes Plus 3 Car Garage

• duplex "Two Homes " - MLS® #705725 $139,900 - Great Cash Flow

Wausau East, Wausau - Two nice homes, near downtown Wausau, located on one city lot with a newer 3 car garage. These properties are zoned R-4 and are currently being utilized as a "duplex" rental property. These well maintained and updated properties have great cash flow, good Tenants and excellent rental history.

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