Financing the Purchase of Real Estate: the Choice between a Mortgage Loan and a Savings and Building Cooperative

2019 ◽  
pp. 23-39
Author(s):  
D. S. Tereshchenko
Keyword(s):  
Real Estate ◽  
Mortgage Loan

scholarly journals TO THE QUESTION OF ASSESSING RESIDENTIAL REAL ESTATE IN MORTGAGE LOAN

2019 ◽  
Vol 3 ◽  
pp. 82-87
Author(s):  
TATIANA A. CHERKASHINA ◽  
◽  
MAKSIM A. KALABIN ◽  
Keyword(s):  
Real Estate ◽  
Mortgage Loan ◽  
Residential Real Estate

Alternatives to Traditional Mortgage Financing in Residential Real Estate: Rent to Own and Contract for Deed Sales

2020 ◽  
pp. 2150007
Author(s):  
Min Park
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Mortgage Loan ◽  
Residential Real Estate ◽  
Embedded Options ◽  
Recent Financial Crisis

Due to the tightening of conditions required to obtain a mortgage loan following the recent financial crisis, the rent-to-own contract and contract for deed sales for residential real estate have become increasingly popular among potential home buyers and sellers. In this study, after analyzing the embedded options in the contracts, I use option-theoretic methods to develop models for valuing both contracts for deed sale and rent-to-own contracts, which can be used to determine equilibrium monthly payments and the equilibrium down payment.

The Paradox of the Global and the Local in the Financial Crisis of 2008: Applying the Lessons of Caritas in Veritate to the Regulation of Consumer Credit in the United States and the European Union

2010 ◽  
Vol 26 (1) ◽  
pp. 173-212 ◽  
Author(s):  
Elizabeth R. Schiltz
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Global Financial Crisis ◽  
The United States ◽  
Mortgage Loan ◽  
The European Union ◽  
Current Crisis ◽  
Contractual Relationship ◽  
Caritas In Veritate ◽  
The Individual

In his recent encyclical Caritas in Veritate, Pope Benedict XVI grapples with one of the most vexing paradoxes concerning the current global economic crisis. There is no question that it is a global financial crisis. The collapse of the subprime mortgage loan market in the U.S. in 2007 prefigured similar collapses of real estate bubbles in other parts of the world. The collapse of these real estate bubbles exposed the degree of interconnectedness among financial institutions across the globe created by the worldwide market for the derivate investment products created on the backs of the underlying real estate loans—the mortgage-backed securities in all their complex manifestations, and the credit default swaps that were essentially insurance policies on the risks of default of these securities. Various configurations of international coordinating bodies have called for global responses to the crisis. At its root, however, the current crisis is in a very important sense fundamentally a uniquely local phenomenon. It is the result of individual consumer transactions that are about as inherently local as a commercial transaction can ever get—loans to specific individual consumers tied to specific unique, unmovable pieces of residential real estate. Every single loan packaged into the bundles of investment opportunities that became “toxic assets” held by large institutional investors originated with a contractual relationship between an individual borrower and a single lender. In addition to the global macroeconomic consequences of the collapse of this market, every one of these loans that goes into default has personal consequences for the individual borrower whose home is the collateral for that loan.

Business as Unusual: Managing Commercial Property in Distress

2017 ◽  
pp. 1-19
Author(s):  
Craig Furfine
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Private Equity ◽  
Mortgage Loan ◽  
Strategic Decision ◽  
Optimal Decision ◽  
Economic Downturn ◽  
List Type ◽  
Commercial Property ◽  
The Right

In January 2010, Benedict Clarke, general partner of a small real estate private equity venture, faced difficulty with one of his properties. When purchased in early 2007, Tulaberry Plaza was a thriving retail shopping center outside Orlando, Florida. The financial crisis and severe economic downturn forced Tulaberry's anchor tenant into bankruptcy and weakened the other tenants in the plaza. Clarke now faces pressures placed on him by his limited partners, who were shown rosy projections of the returns they would receive, and by his lender, who is presently taking most of the property's cash flow to satisfy required debt service. Clarke must devise a plan that presents the most logical and profitable way forward, while also justifying his actions to elicit the necessary support from the others involved in the transaction. The case asks students to make decisions from the perspective of Clarke, giving them an appreciation not only of the details of strategic decision-making in real estate leasing, but also of the interplay between lenders and equity partners when managing a commercial property in distress.After reading and analyzing the case, students will be able to: Choose the right tenant for a retail establishment, with an understanding that it may not be the one that promises to pay the most rent Identify the connections among commercial property performance, mortgage loan covenants, and partnership agreements, all of which can influence optimal decision-making

scholarly journals Mortgage Loan: Assessment of the Current Situation and Impact on the Solution of Housing Problems

2020 ◽  
pp. 78-85
Author(s):  
Nelia Volkova ◽  
Kateryna Khamula
Keyword(s):  
Real Estate ◽  
Financial Market ◽  
Effective Means ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Legal Provisions ◽  
Current State ◽  
Mortgage Credit ◽  
Practical Recommendations

The development of the mortgage market solves both the economic problems of activation and efficient use of financial resources, and social problems in attracting social groups to meet their needs through the mechanism of the financial market. This determines the pattern of development of ways to ensure and develop these processes in Ukraine, their theoretical justification, taking into account the peculiarities of the national economy and current global trends in the development of housing mortgage lending. The purpose of the work is to develop theoretical principles, guidelines and practical recommendations for improving the mortgage lending system in Ukraine. To achieve this goal, the following tasks were set: to summarize the theoretical provisions on the essence of mortgage lending; to analyze the current state of mortgage lending in Ukraine; identify conceptual approaches to enhancing the importance of mortgage credit in solving housing problems. The object of study is the process of assessing mortgage lending. The subject of the research is theoretical-methodical and practical aspects of mortgage lending in Ukraine and its impact on solving housing problems of the population. The paper summarizes the theoretical provisions on the essence of mortgage lending as an effective means of transforming capital tied to real estate; thanks to the analysis of the current state of mortgage lending in Ukraine it is proved that it is one of the most mobile segments of the financial market and today real estate lending has intensified and started to grow, but significant mortgage lending as before the crisis, unfortunately, has not yet been achieved; conceptual approaches to strengthening the importance of mortgage credit in solving housing problems, which are to improve the mortgage lending system in Ukraine. The information base of the study consisted of official materials of the National Bank of Ukraine, performance indicators of JSC "State Savings Bank of Ukraine", JSC CB "Globus", PJSC JSCB "Arcade", JSB "Ukrgasbank", materials of scientific conferences, Internet sources. The scientific novelty of this work is to substantiate the theoretical, legal provisions and provide practical recommendations for improving the mortgage lending system in Ukraine.

KOREA N REAL ESTATE MARKET AND BOOSTING POLICIES: FOCUSING ON MORTGAGE LOANS

2010 ◽  
Vol 14 (2) ◽  
pp. 157-172 ◽  
Author(s):  
Sungjoo Hwang ◽  
Moonseo Park ◽  
Hyun-Soo Lee ◽  
Yousang Yoon ◽  
Bo-Sik Son
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Influence Factors ◽  
The United States ◽  
Real Estate Market ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Economic Activities ◽  
Mortgage Loans ◽  
Mortgage Crisis

The Korean real estate market is currently slowing down due to the global economic crisis, which resulted from subprime mortgage crisis in the United States. In response, the Korean government has adopted various policies in an attempt to deregulate real estate speculation. For example, the Loan to value ratio (LTV) has been increased in order to stimulate housing supply, demand, and housing transactions. However, these policies could potentially result in a mortgage crisis due to an increase in over‐amplified and high‐risk derivatives in Korea's secondary mortgage market. Consequently, the housing market could fall into such deep confusion that it will be even more difficult to perform empirically based housing market forecasting. Therefore, a comprehensive and systematic method is required to analyze the real estate financial market and the causal relationships between market influence factors. With an integrated perspective and an application of a system dynamics methodology, this paper proposes Korean Real Estate and Mortgage Market dynamics models based on the fundamental principles and causal loops of housing markets, which are determined by the economic activities of consumers, financial agencies, and real estate financing investors. The potential effects of the Korean government's deregulation policies are also considered by focusing on the main factor of these policies: the mortgage loan. Santruka Korejos nekilnojamojo turto rinka šiuo metu išgyvena nuosmuki del pasaulines ekonomines krizes, kuri kilo del JAV būsto paskolu rinkos krizes. Reaguodama i tai, Korejos Vyriausybe emesi ivairiu politikos priemoniu, siekdama užkirsti kelia nekilnojamojo turto spekuliacijai. Pavyzdžiui, buvo padidintas paskolos ir vertes santykis (angl. LTV), siekiant skatinti būsto pasiūla, paklausa ir būsto sandorius. Tačiau šios politicos priemones galetu lemti būsto krize del per daug išplestos ir dideles rizikos išvestinemis priemonemis, didinant Korejos antrinio būsto rinka. Tačiau būsto rinka gali atsidurti tokioje painioje situacijoje, kad bus dar sunkiau atlikti empiriškai pagrista būsto rinkos prognoze. Todel reikalingas išsamus ir sisteminis metodas, padedantis analizuoti finansine nekilnojamojo turto rinka ir priežastini ryši tarp rinka veikiančiu veiksniu. Be integruotos perspektyvos ir dinamiško sistemingu metodu taikymo, šiame straipsnyje siūlomi Korejos nekilnojamojo turto ir paskolu rinkos dinamikos modeliai, pagristi pagrindiniais principais ir pagrindinemis nesekmemis būsto rinkose, kurios nustatomos pagal ekonomine vartotoju veikla, finansuojančias institucijas, ir nekilnojamaji turta finansuojančiais investuotojais. Galimas Korejos Vyriausybes pertvarkymo politicos rezultatas - sutelkti demesi i svarbiausia šiu politikos krypčiu rodikli - būsto paskolas.

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