REALTORMAG. REALTOR.ORG REALTOR® JULY/AUGUST 2016 9
HELP YOUR CLIENTS ANSWER THE DOOR
Quicken Loans has partnered with Freddie Mac on a loan option
that allows your well qualified buyers to purchase a home with just
1% DOWN AND STILL START OFF WITH 3% EQUITY*.
This includes single-family residences and condos.
*For example, the payment on a $200,000, 30-year fixed-rate loan at ( 4.25% APR) with an LTV of 97% is $983.88 and mortgage insurance of $73.33. Taxes and homeowners insurance not included. Rates show valid on publication date of XX/XX/XXXX.
Restrictions may apply. Quicken Loans NMLS #3030. Equal Housing Lender. Licensed in 50 states. AR, TX: 1050 Woodward Ave., Detroit, MI 48226-1906, (888) 474-0404; AZ: 16425 North Pima, Ste. 200, Scottsdale, AZ 85260, Mortgage Banker License
#BK-0902939; CA: Licensed by Dept. of Business Oversight, under the CA Residential Mortgage Lending Act; CO: Regulated by the Division of Real Estate; GA: Residential Mortgage Licensee #11704; IL: Residential Mortgage Licensee #4127 – Dept. of
Financial and Professional Regulation; KS: SL-0000693; ME: Supervised Lender License; MN: Not an offer for a rate lock agreement; MS: Licensed by the MS Dept. of Banking and Consumer Finance; NH: Licensed by the NH Banking Dept., #6743MB; NV:
License #626; NJ: Licensed Mortgage Banker – NJ Dept. of Banking, 1st (and/or 2nd) mortgages only; NY: Licensed Mortgage Banker – N YS Banking Dept.; OH: MB 850076; OR: License #ML-1387; PA: Licensed as a 1st Mortgage Banker by the Dept. of
Banking and licensed pursuant to the PA Secondary Mortgage Loan Act; RI: Licensed Lender; VA: www.NMLSConsumerAccess.org; WA: Consumer Loan Company License CL-3030. Quicken Loans NMLS #3030. Rates subject to change. Restrictions may apply.
©2000–2016 Quicken Loans Inc., All rights reserved. Lending services provided by Quicken Loans Inc., a subsidiary of Rock Holdings Inc. “Quicken Loans” is a registered service mark of Intuit Inc., used under license.
To refer a client or get more information
call (888) 831-8191.
Actual Size: 7. 5” w x 4.8125” h
nance into a traditional mortgage, usually
within a few years. Bridge to Success also
works out modified payment plans with
buyers who fall behind on payments.
Since 2008, Bridge to Success has
bought 177 properties in and around the
Twin Cities and sold them to low-income
buyers under contracts for deed at 7. 5
percent interest, says Pete Flom, vice
president of ShopHome Mortgage, the
program’s financing arm.
In Minneapolis, a hotbed for investors
during the downturn, contracts for deed
peaked at 1. 4 percent of all transactions
in 2011, according to the Minneapolis
Area Association of REALTORS®. Nene
Matey-Keke, CIPS, broker-owner of RNR
Realty International in St. Louis Park,
Minn., still works with about six buyers
annually on contracts for deed, always re-
ferring them to programs run by nonprof-
its or public agencies. “When you have
a private seller, the scrutiny of the deal
lessens,” he says. “Sellers can charge any
interest rate they want, and they know
they can evict someone whenever they
want. Organizations, on the other hand,
don’t want the reputation that they’re
putting people out of their homes.”
MAAR began to pay attention to the
issue after some investors were found
to be using contracts for deed to skirt
regulations affecting their rental prop-
erties, says Julia Parenteau, MAAR vice
president of public affairs.
Not all private sellers or investors are
out to exploit buyers, Parenteau says.
Sellers may just need guidance on how
to make the transaction work. “Maybe
both the seller and the buyer aren’t quite
clear on what they’re agreeing to,” she
says. “It’s not that contracts for deed are
inherently troublesome; it’s that people
don’t always use them appropriately.”
Whether it’s with a private seller or a
community agency, “it’s buyer beware,”
says Mike Spicer, a sales associate at
RE/MAX Metro in Brooklyn Park, Minn.
He counsels buyers who are rebuilding
their credit to wait until they qualify for
traditional financing. If they don’t want to
wait, “I tell them, ‘Hey, the seller has the
right to take the house if you don’t make
the payment,’” he says. “I try to prepare
them for the worst and not set them up
for a difficult future.”
By Graham Wood