Bond For Deed

A large percentage of private mortgage insurance in Mandeville, LA people, love.

A Timesaving Bond for Deed Contract in Mandeville, LA

You found a buyer for your property that is willing to pay your asking price. However, they cannot pay the full amount upfront. To avoid losing the sale, sometimes it makes sense to accept the payment over time, similar to the buyer making monthly mortgage payments to a lender. Finance your real estate transaction with a bond for deed contract in Mandeville, LA, from Pelican Escrow Services, LLC.

Investing in the Future

A bond for deed contract allows you to sell real estate by collecting the purchase price in installments and agreeing to transfer the title when full payment is reached. While the buyer cannot receive the title immediately, they can occupy the property during the transaction. These contracts are an excellent alternative for those who do not qualify for traditional mortgage loans.

How We Help

Our team offers escrow services to safeguard the property's buyer and seller. We act as an impartial third-party, ensuring the proceedings run smoothly and that both parties follow the agreement. Let us protect your interests until the fulfillment of the contract. Contact us to start the proceedings and learn more about our financing services.

Benefits to the Seller!

• Sellers often receive more than their asking price, even without an appraisal.
• Sellers enjoy peace of mind knowing the buyer has invested money and won’t want to lose their investment.
• Sellers no longer pay for maintenance, upgrades, property tax, or insurance.

Benefits to the Buyer!

• Buyers don’t need to meet the stringent requirements for a mortgage loan.
• Buyers don’t need a typical large down payment since it’s negotiable with the seller.
• Buyers may be self-employed, recently divorced, or maybe just trying to re-establishing credit.

Private Mortgage Services Also Available

We also provide private mortgage services. As a neutral, third-party administrator, we collect and hold funds for escrow expenses such as insurance, real estate property taxes, home warranty insurance, and homeowner's associations.

About Private Mortgage Insurance in Mandeville, LA (PMI)

Private mortgage insurance in Mandeville, LA, is insurance coverage that homeowners need to have in place if they wish to put down less than 20% of the home’s cost. Essentially, PMI gives mortgage lenders some protection if a house falls into foreclosure due to the homeowner not making their monthly mortgage payments.

Most banks are risk-averse and do not like to lose money. Knowing that they can only recover about 80% of a home’s value at a foreclosure auction if the buyer defaults, they protect themselves by requiring buyers to pay for a private mortgage insurance policy—the PMI—to make up the other 20%.

You can request to cancel your PMI monthly payments if your accumulated principal repayment adds up to 20% of the total loan amount so that the remaining 80% covers the value of the home. Because the lender assumes a far lower risk at this point, they may stop monthly PMI premiums and let you focus on repaying only your principal amount.

What You Should Know About Escrow

Escrow means you’re using a “third-party” (neither the buyer nor seller) to hold something of value, which makes your transaction safer. Our job as an escrow service company is to ensure everyone sticks the bargain and we facilitate the agreed upon contract details while also safeguarding the assets involved in the process.

Escrow opens when a signed agreement is delivered to an escrow agent. There are usually two closings: one at the time of signing the bond for deed contract, and one when the title and ownership transfers. After the details are outlined to an escrow agent for service in a contract, the buyer and seller simply need to do what they agreed to do.

Why You Need an Escrow Account

When you make your monthly house payments for your bond for deed contract, you probably pay for more than just your mortgage. Expenses such as homeowner’s insurance and property taxes are likely included as well. Sellers aren’t always confident that buyers will budget for those extra expenses properly, and if you miss those payments, the seller is at risk. That’s why ensuring that those expenses get paid is often a part of your monthly house payment called Escrow or Taxes and Insurance (T&I).

With an escrow account, the monthly portion for those extra expenses is deposited into a separate account. Each year, when your insurance or tax bills are due, the money in that account pays the bills. To make matters even more convenient, we handle this for you as your escrow agent.

Explore Your Options

To learn more about bond for deed contracts, escrow, and real estate legal services; contact our team today. We’re happy to answer your questions and help you explore the possibilities for property transactions. Our team understands how important the process is for you, so we make it our mission to help you move forward with greater confidence.