Real Estate Financing

The Theron Real Estate Financing Property Deed program works like this.

• We take control of the property via the transfer of the Deed.
• We immediately start making all your mortgage payments.
• We pay any and all mortgage arrears to bring the mortgage current.
• We make all insurance, HOA and tax payments going forward.
• The loan remains in your name until paid off.
• If we even default on any payment, you get your property back and we lose all our money and possible all construction work we did to date.
• So it is fail safe for you as debt holder and property owner throughout the entire time we manage this deed program.
• The reason why we need the property deed in our name is so we can make all repairs and do construction on it and pull permits etc. during the renovation period, before it is ultimately sold.

After terms are accepted and due diligence completed, the closing is done through a local real estate attorney. At closing, the deed would be transferred into our company name and the mortgage loan would remain in your name until it has been paid off in full.

A good example of this is when you own a car and can not or do not want to continue owning it. For example, the payments are too burdensome for you or too high. So then you advertise the car so someone can take over the car payments. Perfectly legal. They take your car and make monthly payments. If they default at any time, you get the car back and debt back, but they lost all the money they have paid toward that debt. Same here.

The Theron Real Estate Financing Property Deed program works the same. We take control of the property via the Deed and start making all your payments. The loan remains in your name until paid off. The reason why we need the property in our name is so we can do construction on it and pull permits etc. during the renovation period.

Yes, on line 203 of the HUD statement (document provided when a home is bought/sold) there is a line option that indicates a property is being sold ‘subject to existing financing’.
This is exactly what we are doing by purchasing your property under this option.
We are keeping your current mortgage in place and making the payments on your behalf.

The timeframe to pay off the mortgage is typically set for the remaining life of the loan. However, as our profit is made once the property sells, it is our priority to pay off the mortgage balance sooner rather than later.

We typically close within 30 business days, but this can be adjusted according to the needs of the seller, status of the mortgage (example: if there were a pending foreclosure date) and/or if other issues impacting closing arise.

We do, our company will be responsible for all maintenance and repairs on the property per the terms of the agreement.
With the loan remaining in my name, how will that impact me getting a new mortgage in the future?
We cannot make any guarantees over future creditworthiness nor lending guidelines, however, if the lender requests any additional documents to confirm your prior mortgage is being paid, just contact us and we’ll be happy to provide them.

No, our company covers all expenses related to closing the transaction with the real estate attorney.

No, our company will purchase the property in as-is condition.

If payments are not made, it would reflect negatively on your credit report.
However, as our business reputation and financial investment (i.e expenses for bringing the loan current, paying for repairs/maintenance, closing costs, insurance etc.) would also be on the line, you can rest assured all payments will be made timely.

Payment confirmations can be made by contacting the lender’s customer service number or logging into your online account with the lender.

To ensure we keep a set amount in reserves for making timely mortgage payments, bringing loans current, and making any necessary property repairs, we typically do not provide a substantially large amount of money to sellers at closing.

Yes, equity is not a factor, as we purchase properties with varying amounts of equity.

Yes, at closing, the past due amount will be placed in escrow with the closing attorney’s office. The attorney will then forward it directly to the lender via wire transfer, thus bringing the loan current.

Our timely payments on your mortgage should strengthen your credit score. As the number of on time payments grow and the loan balance decreases you should begin to see a positive impact (given other items on your credit report are also in good standing).

No, they do not need to be notified, timely mortgage payments are the priority for the lender, not who is making the payments.

There would be no responsibility to the heirs. Since we would own the property, we’d continue to make payments to the lender as normal.

We do, our company will obtain a new non owner-occupied policy. All parties listed on the loan, the lender and our company will be listed as policy holders. If an insurance claim needed to be filed at any time, we would file it.

The purchase price will be set as the current loan balance.

Payments will typically begin on the first day of the month following the 30-day period after the close and be made directly to the lender.
(Example: Closing happens on August 30th, our first payment would be October 1st)
*Note: If the loan is past due and/or has a potential foreclosure date, the mortgage would be brought current at closing.

No, as we would own the property, the tax benefits of ownership would follow.

The motivation to sell a property varies from seller to seller, so that would be for you to decide.
This option typically works best for a seller who:

• Needs to sell but does not need cash upfront
• May have little to no equity in the property and is unable to sell through traditional means
• Has inherited a property with a mortgage, but has no desire to keep or maintain the property
• May be experiencing a financial hardship or have health concerns which impact them from keeping the loan current
• Has a mortgage with some equity, but do not have time to list it and wait for it to sell through a realtor (example: if relocating for a job/military etc.)