Why is a home a good inflation hedge

Q: What source of foreclosure leads comes with a built-in sense of trust and credibility with the…

A: SOLUTION-   FORECLOSURE  IS THE ACT OF A LENDER , ESPECIALLY A MORTGAGE LENDER , TAKING THE…

Q: Why should an individual not use an installment sale as opposed to a cash sale?

A: Under the normal method of accounting cash is collected from sale of goods or services and…

Q: Determine the indifference price for a property that had an assumable below-market-rate loan?

A: Indifference price is the price at which the investor is indifferent to investing in any of the two…

Q: In what circumstance would a property insurance claim be rejected?

A: An insurance claim is a written request for coverage or compensation from an insurance company for a…

Q: Which are the Borrower’s Rights to Reinstate?

A: The person that takes something from another person with a promise to return back at a specified…

Q: D4) What is absorption?   What is positive absorption? What is negative absorption? When evaluating…

A: Here discuss about the details of the absorption which are related with the real estate property…

Q: Explain the differences between actual cash value (ACV) and replacement cost for homeowner’s…

A: The difference between actual cash value coverage and replacement cost coverage is the depreciation.…

Q: Is leasing good for individuals? Why or Why not?

A: The answer for the theory question on leasing is discussed hereunder : A lease is a contractual…

Q: 5. explain what the benefits of escrow for both the borrower and the lender may be? Do disadvantages…

A: When you make big investment or purchase property in the market than there is need of third party…

Q: What are the advantages/disadvantages of real estate as alternative investments?

A: Following are the advantages and disadvantages of real estate as alternative investments:…

Q: Why would a buyer want to have a contract with a real estate brokerage?  What benefits would there…

A: Contract - It is kind of written agreement in the arrangement where one concerning about sales,…

Q: From the borrower’s standpoint, what are the advantages and disadvantages ofsecuring a loan?

A: Secured loans means offering an asset or  property to the lender as a collateral against the funds…

Q: What is meant by mortgage foreclosure, and what alternatives are there to such action?

A: A mortgage refers to a debt instrument which is secured by collateral of a piece of land or a real…

Q: why is insurance not included in the initial value of the asset?

A: Lets understand the basics.As per IAS 16 " property, plant and equipment", asset should initially…

Q: What are some of the types of risk that should be considered when analyzing real estate?

A: SOLUTION:- Risk is the chance of the uncertainty of the returns of an investment. While analyzing…

Q: What are the factors that you need to consider in applying for a loan? Why is it important to…

A: When applying for a loan one need to consider several factors at play. Some of them are quantitative…

Q: Without a financial market , purchasing a house would require a cash purchase . Choose options a .…

A: Financial Market is a market place where financial instruments are traded.

Q: Does collateral reduces moral hazard by borrowers? Why?

A: Introduction: A collateral asset is an asset that a lender accepts as payment for a loan. Depending…

Q: What factors would tend to make leasing more desirable than owning?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: Why might a borrower be willing to pay a higher price for a home with an assumable loan?

A: An assumable loan is a  loan that can be taken over by a purchaser, who may then continue making…

Q: What is a nonrecourse loan? Will a nonrecourse loan given by the seller of real estate to the buyer…

A: A nonrecourse loan is a type of loan where the borrower (the buyer, in this context) is not…

Q: Explain Alternatives to Foreclosure?

A: Assets can be mortgaged by borrower with the lender to secure debt. Foreclosure is a process…

Q: Explain Friendly Foreclosure?

A: Meaning of foreclosure: Foreclosure is the formal method in which a moneylender assumes possession…

Q: Should liability for rent deposit be amortized? Why or why not?

A: The assets are amortized as they provide benefits for the long period.

Q: Under what conditions might a property with an assumable loan sell for more than comparable…

A: Property along with the assumable loan is expected to be sold for more than the comparable property…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.