Frequently Asked Questions

 

  • What is the Mortgage Takeover Program? This program can be executed in two different ways depending on the amount of equity you have in your home.  If you have no equity, you would simply transfer title and we make your mortgage payments on your behalf while marketing the property to a future homebuyer.  If you have a significant amount of equity, a Land Contract is more appropriate.  A Land Contract is simply an installment sale of real estate.  Instead of buying property with cash or with a bank mortgage, the buyer makes monthly payments, with interest, on the purchase price.  Payments are applied just like a bank loan with a large amount of each payment going to interest initially, while a very small amount pays down the balance.  This means the debt pays down very slowly during the first several years, which is very good for you, the seller!  All the while, the deed actually remains in your name protecting your equity interest in the home.

 

  • How Much Can You Pay Me For My House? If your home qualifies (and most homes do), we can pay top dollar for your house.  We don't make insulting low-ball offers and we structure our payments to you so that they cover your monthly payments.  We can do this because a sale like this provides us with an opportunity to eventually make a profit by selling it for a little more, with slightly higher payments.

 

  • How Does R. F. Miller Properties Profit? We are able to make our profit because our buyers are willing to pay us to find homes like yours for them to live in.  Our profit comes from our buyers, NOT FROM YOUR POCKET! Since we can offer our buyers an opportunity to refinance the house within 1 1/2 to 2 years, as opposed to forcing them to find new financing today, the house will have a little more market value than what it might appraise for this afternoon.  Also, it's easier to qualify to refinance than to get a mortgage on a new property.  Because we can offer our buyers these benefits, we are able to sell for a little more than market value.

 

  • Are There Any Drawbacks to this program?  Perhaps the only downside is the length.  Given the current state of the economy and the difficulty good, credit-worthy people are having securing a mortgage, it is difficult to predict when the lending market and house prices will stabilize.  Sometimes these contracts only go 24 months, others can go a few years longer.  The good news, though, is that most of our buyers can apply for a refinance after just 24 months.

 

  • What Happens If The Buyer Moves Out? Sometimes when we find someone who moves into the home, for one reason or another, they are not able to refinance the property and they give the house back to us.  Reasons usually include a transfer out of the area, a new baby or other life-changing events. When this happens, we make updates the home may need and we find another buyer.

 

  • That Is All Good, But What If I Want To Buy Another House Before You Can Refinance?   That is another beautiful feature of this program.  If you have the ability to otherwise qualify for a new mortgage loan on another house, the fact that this current loan has not been paid off won't be a problem.  The Take Over Mortgage program is a SALE of your home, even considered so by the IRS.  Most lenders have no problem giving you 100% credit of the monthly payments we are making toward the outstanding debt.  In other words, if your payment is $1,000 per month, and we are paying you $1,000 per month, your new lender should consider the debt to be fully covered, however we recommend you check with your new lender to make sure.  You may have thought of renting, but did you know that if you were to rent the same house for say $1,100 per month ($100 above your payment), your new bank will only give you credit for 70%-75% of the rent payment you are receiving, because as a landlord, the bank is assuming that you will have vacancy and repair responsibilities.  That means that they will only apply about $770 of the $1,100 rent payment toward your $1,000 monthly debt, and then will add the $230 monthly deficiency to your debt ratio.  This may prevent some people from qualifying.

 

  • How Do I Know R. F. Miller Properties Will Make My Mortgage Payments On Time?  We will make the mortgage payments directly to your mortgage company.  However, since your name will still be on the mortgage, you'll be notified right away if the payment is late.  Our company does not make money unless we sell the property and we can't sell the property if we don't make timely payments.  We will also be happy to provide you with references from people we have done business with in the past.

 

  • My House Is Listed With A Real Estate Agent.  Can Your Program Still Work?  Usually.  If your house is listed, you have two options.  First, you should leave it on the market until it expires and give us a call then.  Who knows, maybe your agent will bring you a buyer.  If you can not afford to wait until then and would like to sell your home immediately, we will try to work with your agent.  The success of working with your agent will depend on how flexible your agent is on how they receive their commission.

 

  • You Say No Fees Or Commissions, But Are There Any Other Costs?  Because our buyers pay us to find homes for them,  we do not charge you any commissions whatsoever for our services.  In fact, by selling your home to us, you will avoid many closing costs that you would typically encounter in a conventional sale.  It is not unusual to pay upwards of $3,000- $5,000 in various closing costs and that is NOT including any commissions you might typically pay an agent!  When we buy your home, the only costs to you are your prorated taxes and the title work and title insurance.  Title work typically costs about $400 and title insurance is based upon the sale price of the house. R F Miller Properties will split equally with you the title work and title insurance.  The cost of putting all the documentation together, R F Miller Properties covers.  Most people find they will only need a few hundred dollars to completely cover their expenses.

 

  • What About Liability?  Some of our clients are concerned about remaining on the deed for liability reasons.  If someone were to slip and fall on the property and your name is still on the deed, you will still be named in the lawsuit even though you have already sold the home.  R. F. Miller Properties typically sets up the program to keep the deed out of your name and keep you from being liable for events occurring on the property.  Ask us for more information about this option.

 

  • Do You Have References/Testimonials?  Yes!  Click here to hear what people are saying.

 

  • I am interested in seeing an offer, what is the next step?  First, you will need to contact us in order to provide us with some information about your house.  Next, we will come out and take a look at your house and the neighborhood.  After that, we can have a written offer for you within 24-48 hours.  This is a no obligation service, and there is no pressure to sign anything until you are ready.