About the Book

Streetwise Seller Financing is designed as a complete guide to the entire process of seller financing real estate. Starting with the homework before the sale, Eddie Speed moves through underwriting, structuring the sale, complying with applicable state and federal laws, preventing default and what to do if your property does enter default.

Table of Contents:

Introduction

Part i: Homework Before the Sale

Should I Owner-Finance?
The Application
Employment Section
Rental History
Reference Verification
Balance Sheet
Credit Report
Understanding the Credit Score
Public Record Information
Trades Information
Sources of Public Records
Common Sense Underwriting
Underwriting Food for Thought
Calculating Ability to Pay
The 5 C's of Credit

Part ii: Structuring the Sale

The Credit Score and Loan to Value
The Property Type and Loan to Value
A Word About Interest Rates
What is the "Right" Structure for my Note?
Why Loan to Value is Important
Legal Requirements for Notes
Real Estate Settlement Practices Act (RESPA)
Truth in Lending Act (TILA)
Equal Opportunity Credit Act
Home Mortgage Disclosure Act
Gramm-Leach-Bliley Act
Fair Credit Reporting Act
State Laws
A Word on Late Fees
Escrow Accounts
Why collect Escrow?
Legal Limits
Interest on Escrow accounts
Other Legal Issues
IRS 1098 Reporting Requirements
Organizing Your Portfolio

Part iii: Conditions Leading to Default

P&I Delinquency
Unpaid Property Taxes
No Hazard Insurance
Other Liens
Poor Property Management
Common Sense Collection Calls
The Importance of Collecting on Your Note
Establishing Payment Expectations
Permanent Corrective Action
Collection Schedule
Telephone Collection Calls
Keeping Good Pay Histories
Skip-Tracing
Fair Debt Collection Practices Act
Alternatives to Foreclosure
Forbearance
Recasting
Government Assistance
What to Expect When Your Loan Enters Default
Bankruptcy
Foreclosure
Judicial Foreclosure
Power-of-Sale Foreclosures
Deficiency Judgements
Surrender of Deed
Presale of Property
Tax Consequences of Default
Selling Your Note
Partial Purchases

Conclusion

Appendix A: Glossary of Terms

Appendix B: Important Forms

US Bankruptcy Court Proof of Claim
Sample Freddie Mac Universal Loan Application
Payment Reminder Letter
Notice of Non Payment - Letter # 1
Notice of Non Payment - Letter # 2
Notice of Non Payment - Letter # 3
Sample Breech Letter
Notice of Intention to Foreclose Sample
Borrower's Financial Statement
Notice Required by Fair Debt Collection Practices Act
IRS Form 1099-A Acquisition or Abandonment of Secured Property
IRS Form 1099-C Cancellation of Debt
Notice to Users of Consumer Reports
Sample Truth in Lending Disclosure Statement
HUD-1 Settlement Statement
Seller Disclosure of Condition
IRS Form 1098 Mortgage Interest Statement
IRS Form 1096 Annual Summary and Transmittal of Returns

Appendix C: Delinquent Servicing Schedule

Index