Finding the Uncommon Deal: A Top New York Lawyer Explains How to Buy a Home For the Lowest Possible Price

295 Pages·2011·1.96 MB·English

by  Adam Leitman Bailey

Contents
Foreword
Preface : Greed, Fear, and Opportunity in the New Real
Estate Environment
Introduction
The Greatest Producer of Wealth for American Families
The United States Government Encourages Homeownership
The Pride of Having a Place to Call Your Own
The Time to Buy
The Cost of Buying and Maintaining a Home
Building Equity
The Case for Renting
Part One : Finance
Chapter 1 : Get Ready to Buy
Make a List of Your Assets and Liabilities
Creating a Budget and Living within Your Means
The Down Payment and Private Mortgage Insurance
Obtaining a Credit Report
FICO Score
Chapter 2 : How to Get the Cheapest Loan at the Best
Rate
How Banks Make Money by Giving You a Loan
What Is a Mortgage?
Obtaining the Loan: Learning the Bank’s Requirements
The Mortgage Broker
Getting the Best Loan: Fitting the Loan into Your Plans and
Financial Means
The New Good Faith Estimate: Keeping the Lender Honest
Choosing the Most Appropriate Inexpensive Loan
Annual Percentage Rate (APR)
Tax Deductions and the Interest Rate on Your Mortgage
Paying Points
The Amount of the Loan
Documents Required to Obtain a Loan
The Different Types of Loans
The Loan Process
The Financing Process
Chapter 3 : Buying a Home with Little or No Money
Down and Obtaining Seller Financing
Putting Little or No Money Down
Part Two : Finding the Uncommon Deal on a
Home
Chapter 4 : Becoming an Expert on Finding the Dream
Home
The Real Estate Broker
Finding a Property to Purchase: Various Choices and Forms
of Shelter
Making the Decision
Chapter 5 : Conducting the Search
Insider Trading—The Legal Way
Making Friends in Strange Places
Location, Location, Location
Determining Fixed Monthly and Yearly Housing Costs
Making a Wish List
Real Estate Brokers: The Guardians of Real Estate
Maximizing the Success of the Search
Chapter 6 : The Secret to Buying a Distressed Property
The DNA of a Deal Finder
Distressed Homes: The Most Common Uncommon Deals
Finding the Uncommon Deals Using the Most Common Means
Becoming a Proactive Deal Hunter
Chapter 7 : Pre-Foreclosures and Short Sales
Finding a Pre-Foreclosure
The Foreclosure Filing
Buying a Short Sale
Learning More About the Distressed Property
Making Contact with a Distressed Owner
Chapter 8 : Foreclosures and Bank-Owned Properties
Finding a Foreclosure Sale
Buying a Foreclosed Property
Attending the Foreclosure Auction
Determining How Much Money to Bring to the Auction
Foreclosure Pitfalls: Taking the Property As Is and Evicting
the Occupants
Losing the Property to Redemption Laws
Financing the Purchase
REO/Bank-Owned Properties
Chapter 9 : Hidden Land Mines to Look Out for
Determine Whether the Home Is Legally Habitable
Be Aware of the Number of Units Sold and Occupied in Newly
Constructed Apartment Developments
Clear All Liens and Obtain Signoffs for Extensions and
Alterations before Closing on a Home
Inspecting for and Understanding the Underground Oil Tank
Buying a Home with Occupants or Tenants in Possession
Purchasing a Land Lease in a Cooperative Apartment:
Determine Whether You Are Buying or Renting the Land
Property Taxes Can Change
Different Ways to Take Title to the Home
Chapter 10 : Creative Ways to Get the Seller to Accept
Your Below-Market Offer
Offer All Cash or Do Not Make the Deal Contingent on
Obtaining a Loan
Know How to Play the Negotiation Game: Making and
Responding to the Counter Offer
Get the First Call When the Price Drops: Give Sellers Your
Price and Ask Them to Call You When the Asking Price Falls
Become the Real Estate Broker’s Best Friend
Bring Your Financial Resume to Demonstrate Your Ability to
Close on the Home
The Right of First Refusal
Buyer Flexibility: Learn the Seller’s Moving Preferences
Endear the Seller through Thoughtful Gestures and
Remembering Names and Life Events
Place an Ad or Create a Web Site or Commercial
Chapter 11 : Negotiating a Great Deal on a Newly
Constructed Property
Conduct an Extensive Inspection of the Premises Using a
Qualified Inspector/Engineer
Know the Builder’s Past Performances
Obtain Warranties from the Builder
The Brand Names and the Appliances and Fixtures Installed
Should Be Itemized in the Contract of Sale
The Most Common Problem When Purchasing a New
Construction: The Move-In Date
Locking In an Interest Rate
Part Three : Getting Uncommon Deals on
Closing Costs
Chapter 12 : The Closing Map
Obtaining Financing
Making the Offer
Hiring an Attorney
The Acceptance of the Offer and Drafting of the Contract of
Sale
Signing the Contract of Sale and Making the Contract Deposit
Insurance and Tax Escrow
The Mortgage Contingency Clause and Other Contingencies
The Closing Date
The Engineer
Due Diligence for Cooperative and Condominium Purchases
Reviewing the Building’s Financials
Termite Inspection
Board Applications
Title Insurance and Lien Search
The Board Interview
Obtaining the Right of Possession of the Home
The Closing
Chapter 13 : Using the Home Inspection to Lower the
Price
The Inspection
Finding the Right Home Inspector
Protecting Yourself When Signing the Contract of Sale
Chapter 14 : Finding, Hiring, and Utilizing an
Aggressive Attorney
Whether to Hire an Attorney
Finding an Attorney
The Mini-Interview
Questions for the Attorney Candidate(s)
When to Consult an Attorney
The Functions of the Purchaser’s Attorney
The Makings of a Good Real Estate Attorney
Chapter 15 : The Walk Through
The Walk Through as an Inspection
The Punch List
Let the Buyer Beware
Chapter 16 : The Importance of Homeowner’s
Insurance
The Homeowner’s Insurance Policy
The Function of the Homeowner’s Insurance Policy
Ways to Reduce the Cost of Homeowner’s Insurance
Maintaining a Homeowner’s Insurance Policy
Insurance through the Federal Government
Homeowner’s Insurance in Cooperatives and Condominiums
Obtain References
What You Should Know Before Making a Claim
Chapter 17 : The Purchase of Title Insurance
What Is Title Insurance?
Who Pays for Title Insurance?
Why an Owner’s Policy Should Always Be Purchased
The Function of a Title Insurance Company
The Cost of Title Insurance
Examples of When Title Insurance Becomes Important
Title Insurance and Purchasing a Cooperative Apartment
The Abstract
Chapter 18 : Closing Cost Guide
Customary Purchaser Closing Costs
Purchaser Closing Costs Unique to Cooperatives and
Condominiums
Closing Cost Example: New York Customary Purchaser
Closing Costs
Customary Seller Closing Costs
Conclusion
Acknowledgments
Index

Copyright © 2011 by Adam Leitman Bailey. All rights reserved.
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Library of Congress Cataloging-in-Publication Data: Bailey, Adam Leitman.
Finding the uncommon deal: a top New York lawyer explains how to buy a
home for the lowest possible price/Adam Leitman Bailey.