Creative real estate is used to describe the non-traditional methods of buying and selling property. In this system a buyer secures finance from a lending institution and pays the full amount of purchase by using his or her own funds as well as the borrowed funds. One way to buy real estate is to pay money in cash, but most families cannot afford making the heavy down payments and so have to take loans by mortgaging some asset. The larger the amount borrowed, the more is the interest.
Creative real estate systems are gaining more popularity because most families find it hard to pay off their mortgages and usually drop their listing prices so low that they lose a lot of money in this process. If the owner of the property fails to make the mortgage payments then he or she becomes a defaulter and the property owned is either foreclosed or put up for short sale. When the property is being foreclosed, the defaulter is first notified by lender. This notice is a public document that is recorded. After this, the property owner agrees to sell the property at a lower price.
There are many websites on the internet that contain a lot of resource on creative real estate systems and can thus help in answering all the queries one has related to creative real estate system.
There is one question that comes to the people’s minds when creative real estate system is involved. This is whether or not one can get a refund if, for whatever reason their house does not sell within 21 days. In case of creative real estate system, a person does get his or her money back if the property does not sell for a specific time period. One thing that must be kept in mind is that canceling a deal is difficult and so it is better not to purchase property if the deal has to be later cancelled.
Another issue related with Creative Real Estate System is how much extra money needs to be spent after purchasing this product. One needs to pay a very small amount and in many cases nothing at all after property is purchased under the creative real estate system. The commission of a broker or a realtor in this case has to be paid. Also it is better to get the advice of a broker before purchasing any property under this real estate system.