Do you want to sell your home in Mexico? Has your home been on the market for months? Are you a realtor with listings that seem to languish? Are you a developer that wants to offer affordable interest rates to your non-Mexican clients? There is a solution to this dilemma and the backlog of properties that are on the market and that is a SIMULTANEOUS SELLER CARRYBACK PROGRAM.
Even though things are getting better in the world’s economy, All Cash Buyers are few and far between at a time when record numbers of homes are becoming available in our area. At this time, AMPI (Mexican Association of Professional Realtors) statistics tell us that there is over a seven (7) year absorption rate for homes in key resort areas, including the Baja Peninsula. This means it will take over 7 years for all of the properties CURRENTLY ON THE MARKET to sell… and more and more homes and condos are being built! The numbers are more encouraging for condominium sales, but they too are taking longer than needed to sell.
The problem is simple, the majority of our resort markets are geared towards US and Canadian citizens and at this time there is only one mortgage option available for this critical market segment. This product has proven invaluable and will work for many, however the interest rates range from 14% to 16%, so it puts payments beyond reach for many. We find that the demographic that is utilizing these loans is one of a wealthier individual that is using the interest rate for a tax advantage, or someone who wants a bridge loan to be able to take advantage of a spectacular deal. This is great for those, but it leaves many, many prospective clients without a means to buy your property. Sales are being lost and you don’t have to let yours be one of them.
In order to sell your property, you have to stand out from the crowd. As soon as you or your realtor advertises “Seller Financing Available”, you will quadruple your buyer pool or more and reduce the time on the market by half. Just having the financing in place will increase your foot traffic, which includes all cash buyers. So instead of perpetually lowering the price of your home, why not offer SELLER FINANCING? The incredible part of this new program is that YOU DON’T HAVE TO HOLD THE NOTE… because the investors will buy that note/mortgage from you at the closing table and you will never have to worry about monthly payments.
MEXLend in partnership with Alaska Financial, have come through with this creative program to help sellers and realtors move property and give buyers a relief on high mortgage rates. How does it work? Essentially, instead of continually lowering the price of your property, you offer Seller Financing at a lower rate than is normally available. You pay the lender the difference from the rate that they would normally charge to “buy” that loan from you at the closing table. You are still taking a reduction in the price of your home, however, you are opening the marketing up to hundreds of more interested parties that require financing, and therefore you reduce the time on the market.
How does it work: The first step is to give our office a call and our representatives will begin working the numbers for you. Everything is absolutely transparent. Once the numbers have been agreed upon, the lender will issue you a contract that provides the terms of the loan that they will buy from you and ensures that they will indeed come through for you at the closing. This contract is strictly for the seller’s protection and does not bind you to close with financing at all. It only gives you and your realtor another tool to get that property sold. If you find an all cash buyer… congratulations, there is nothing to restrict you from that closing and no cost from MEXLend or Alaska. The charges only come into effect we purchase a loan. You can even build the cost of the program into your sales price!
The process: So, you and your realtor work with MEXLend to modify your sales contract to incorporate specific language for this program should your buyer wish to participate and obtain a mortgage. At the closing, funds are wired into an escrow account. The Lender, buys your mortgage SIMULTANEOUSLY and now becomes the lender of record. All funds are distributed from escrow to pay the seller and fees to the lender, realtor etc. It is so simple.
In any market, being creative is the way to put yourself ahead of the crowd. This SIMULTANEOUS SELLER CARRYBACK PROGRAM could be the perfect solution to get your home sold and put money in your pocket. Dropping the price of your property is just not enough these days. Give your property the advantage over all of the others and sell your home fast. It is that easy.
