Welcome to the introductory issue of The Seller Financing Insider E-zine! You may have noticed the real estate financing marketplace has been very dynamic the past two years. I will do my best to keep you up to date on the frequent and significant changes that are taking place with property financing. Of course this will be done with a focus on what it means to you, and how you might benefit most in the situations as they develop.

This E-zine is intended for everyone interested in purchasing or selling a property. Whether you are looking for help with your first home purchase or something much more substantial, the insider tips, tricks, and techniques shared with you will give you a very deep and personal understanding about the many ways to finance a property without the need for a bank or a mortgage lender.

Subscribe to The Seller Financing Insider for News, Views, Tips, Secrets and More brought to you for free every month from Keith S. Donald at TDO Properties, LLC.

Everything is designed to help you achieve your goals of home ownership with creative ways of financing your properties (single family or multi-family) with the innovative and effective use of promissory notes.

In This Issue…

Keep reading for story details but first...

How would you like to have a handy information guide that contains all you need to completely understand the features, advantages, and benefits of financing your own property? Whether you are a home seller, home buyer, a Realtor, or an investor, this information has been used by financial investing experts for years. They have made millions of dollars by simply using the secrets contained in this unique, very affordable E-book. Just one secret could be all you need to drastically improve your investing situation and business profits.

Get the details about The Secrets Of Selling Your House FAST In Good Or Bad Markets. The complete professional services and information package is valued at more than $1,200. If you act quickly, you can get this one of a kind E-book at an unbelievable discount. Once you have this information you will wonder how you ever got along without it. For details just click on the link above.

When predatory lenders meet predatory borrowers it can create a home mortgage "perfect storm". The question now is, who is responsible for cleaning up the mess? Part of the solution lies in this question, "What is the best kept secret in home mortgage lending"? Get the full story...

Things are not always as they seem. Have you heard that term before? The current real estate investing market is a good example of how true that term really is.

Now that the mortgage meltdown correction is well underway, the so-called "pendulum" is swinging one hundred eighty degrees. Mortgages that at one time were extremely easy to get are now much more challenging. Even good credit borrowers are being subjected to extraordinary scrutiny in the qualification process.

Sub prime and Alt-A borrowers are hearing "no" a lot more often than the market can bear at this time. You may find this hard to believe, but the extraordinary reluctance by lenders to actually lend money to qualified borrowers is driven by both internal and external factors. In this case internal factors are things like a re commitment to following underwriting guidelines. Those guidelines were intended to minimize loan losses.

Much has been written about the cause and effect of the mortgage industry meltdown, so I will not go into more detail about that here. What I will go into is an area you will never hear the mortgage lenders discuss. In this case I'm talking about external factors like federal regulations.

I'm sure you are at least aware of the incredible number of recorded foreclosures all over the country. Here is something you may not be aware of with respect to foreclosures and the lenders involved with them. Banking regulations require that mortgage lenders have a loan loss reserve in place. The simple explanation goes like this. An amount of money equal to 1.5 to 8 times the amount of a foreclosed mortgage loan is to be kept in a loan loss reserve account.

For example, a mortgage loan of $100,000 defaults and is foreclosed upon. The loan is reclassified as a "non-performing asset". On the low end of the spectrum, about $150,000 would be added to the loan loss reserve account. On the high end of the spectrum $800,000 would be added to the loan loss reserves.

When funds are deducted from a performing loan portfolio and added to a loan loss reserve, the amount of money available to lend to borrowers is directly affected. It is a situation like being all dressed up with no place to go. Rather than tell you they just don't have the funds to invest, they make you feel responsible instead. Understandably that is something mortgage lenders are not going to tell you. To do so would actually be an admission of their inability to effectively manage investor funds.

You can conduct your own "search" for loan loss reserves if you like. The link below is a short, simple explanation that may satisfy your curiosity.

http://www.answers.com/topic/loan-loss-reserves?cat=biz-fin

For the sake of all involved we need a lot more approvals than not approved applications from the mortgage lenders. The sooner, the better. In the meantime, it is reassuring to know that www.Cash-Now-Seller-Financing.com is available to help us through the tough times and beyond.

Property sellers and property buyers should do their home work. In a buyer's market there are more homes for sale than the number of buyers. Homes take longer to sell and home prices fall.

This buyer's market is further characterized by a "gun shy" mortgage lending industry. When many lenders have literally red lined certain areas, that means they will not lend on properties in those designated areas for any reason. "My dog died", is as good a reason as any in circumstances like that.

Of course red lining is illegal and you will never hear a mortgage lender admit to the practice at all. Just remember, it is not what you say but what you do that is the true measure of who and what you are.

Back to the home work. This is one of the most difficult times for sellers to price their property for sale. The market is so dynamic it literally changes from week to week. Normally property sellers would have a competitive market analysis, CMA, conducted. When home sales slow and home inventories rise the principal of supply and demand kick in to overdrive. The problem becomes access to real time market information. A CMA may not reveal the information you really need, like the sales price range and the overall market trend.

Here is one thing you can do to try to see the "big picture" as it constantly changes. Anyone can use a home valuation web site to get an estimate of value.

To keep it simple you might use two or three web sites just for the sake of comparison. I often use www.homegain.com and www.homescout.com for these very simple comparisons. The information on these two web sites are almost identical in the many searches I have done. It would be wise to add one more web site to the mix as a tie breaker or a wild card. There are plenty available, just take your pick.

Property sellers will need to be both informed and flexible. The most difficult part of selling a property in a buyer's market is the decline in home prices. We all know the explosion in foreclosures is fueling this buyer's market. Every time there is a foreclosure in a neighborhood, it has been estimated the values of other non-foreclosed homes drop between $17,000 and $18,000.

The longer your property is on the market, the more significant the potential loss in value. The message is, if you don't have to sell your property right now, don't. If you have to sell now be prepared for some painful reality. Then do what you have to do.

The reluctance to lower sale prices and disbelief of sellers that property values can drop significantly in a short period of time is the key to how long this buyer's market will last.

Another key is who funds the property sale and how. Sellers need to learn about their ability to control every aspect of their property sale, including the funding.

When they understand it can be done without a bank or mortgage lender things will start to move much more quickly.

Property buyer's really hold the keys to the kingdom right now. You are the literal kid in a candy store. There are more properties available than all of you can possibly buy. For you, that's the good news. The bad news is, there are a lot of mortgage lenders that are pretending to be in business. They will tell you money is available and the interest rates are still attractive, but everything is not as it seems. Getting your investment funded may still be much more difficult than you can imagine.

As easy as it was to get funding at the turn of the century, it is equally difficult to get funding today. Much higher FICO scores are required to qualify for a new mortgage. Even good credit borrowers are expected to have 10% to 20% down payments. There is also an expectation for you to have six months or more in living expenses in liquid funds.

In this market, home buyers must be focused on what they want. They must develop a strategic plan to get what they want. They must work much smarter, not harder than they ever have before. Home buyers must learn the secrets of having the seller or the property owner as a source of funding. Finally, home buyers must make offers to buy properties for prices and terms they can actually afford. Let's be real now. Don't expect to buy a $300,000 house on an income for a $100,000 property.

Home buyers that are properly pre-qualified to purchase a home will learn how much home they can afford. If done correctly they will be able to purchase a home they will grow in and enjoy in relative comfort. Home buyers are encouraged to enroll in our FREE Home-Buying-System. Get the details here.