Short Sale Earnest Money Risks

On the Outer Banks, short sales are not as successful as they are elsewhere. A buyer trying to purchase an Outer Banks short sale risks losing their escrow/earnest money deposit if the sale does not go through. There are a lot of reasons why a short sale may never come to fruition.

Sometimes, there the deal is worked out between everybody involved and the property is heading to closing. The buyer has paid for the appraisal and the home inspection and the house is all ready for the new owners when it is discovered that the short sale department of the bank did not communicate with the foreclosure department. The foreclosure department ends up foreclosing on the house without realizing it would have sold for more if they had just waited a little while.

Most of the time a short sale dies is because there is a second mortgage on the property. The holder of the second mortgage or lien will have to agree to take nothing or maybe settle for pennies on the dollar. If the second note holder does not agree, and most of the time they do not agree, then the property will end up going to foreclosure. One common similarity between most of the property owners on the Outer Banks is that they have seconds mortgages on their investments.

Another commonality is most Outer Banks foreclosures where short sales first. Only about 30% of the short sales avoid foreclosure.

If the seller gets foreclosed on during the short sale process it usually comes as a surprise to them because they thought they were going to be able to complete the sale and move out on an arranged schedule. If they get evicted they usually leave town with their tails between their legs and they do not leave a forwarding address. The last thing on the owner’s mind at this point is helping the buyer get their earnest money back.

Their signatures are needed to release the earnest money deposit back to the buyer. Without their signatures the buyers will have to wait and then work with the county clerk court to get their money back. It is a time consuming process.

Sometimes it is simply because the banks are so unorganized and have such a hard time retaining employees to handle the short sale. If a transaction ends up on the desk of 4 or 5 different asset managers you might be looking at a deal which is not going anywhere.

This is why it is best to use as small an earnest money deposit as you possibly can. This way if you do not have access to your money for a while you will not have to put your house shopping plans on hold.

Best Money Market Accounts – Advantages and Disadvantages

Money market accounts are those which are offered by banks, financial institutions and credit unions, for people who wish to put aside their hard earned bucks, as savings. The savings may be kept in these accounts for a period of one year or more. People do not wish to risk their savings and lose their money.

But the money market accounts also have certain advantages and disadvantages. They are:

1. Security:

Normally, all these accounts are insured to the extent of $250,000, with the Federal Deposit Insurance Corporation. In case the financial institution fails, the depositors do not have to face the risk of losing all their money. Deposits in this accounts are hence believed to be the safe one in comparison to mutual funds and stocks.

2. Minimum transaction:

The major disadvantage with these accounts is the maintenance of minimum balance. The minimum balance that a depositor is required to maintain is $5,000 which is on a higher side compared to the usual savings account that requires merely $50.

3. Maintenance fees:

As long as you maintain the minimum required balance, you will not be charged with any fees. If the balance is not maintained and decreases because of number of cheques being presented, then you are sure to be charged with the stipulated fee. The depositors need not pay any fee to the financial institutions for the purpose of their managing your accounts.

4. Liquidity:

These accounts are easily accessible by the depositors. They are highly liquid as compared to the certificate of deposits that usually carry a maturity date. The disadvantageous part is that the money market deposits are not as liquid as your checking account. In the money market deposit accounts, there is a restriction regarding the number of cheques that can be presented and the maximum amount for which cheques can be presented.

5. Rates of return:

Usually, these deposit accounts that are insured with FDIC carry a higher rate of interest. The more your deposit in the account, more will be your interest earnings. But compared to the returns on risky investments like shares and stocks, the return on money market accounts is not that potential which is a disadvantage.

Next Step: Find the best latest rates offered by the banks for Money Market Accounts.

HSBC Fixed Deposit Interest Rates in Singapore – Value for Your Money

Before jumping onto rates of interests on various kinds of deposits, I think it is important to have a basic know how of what exactly time deposits are. If you already know, just brush up on that knowledge with me. A time deposit is a money deposit with a bank which cannot be withdrawn at the whims and fancies of the investor. There is a strict time limit that needs to be followed before withdrawal. Usually, more the time involved, more are the returns. Now, certificates of deposits and fixed deposits are the two kinds of time deposits or according to some “term deposits”.

The current interest rate being offered by HSBC Singapore is the best as far as time deposits in the market are concerned. They are offering the highest rates in the market. The HSBC Singapore has many branches where you could just walk in to invest your money. Some of them are:

  • HSBC Claymore Branch, claymore hill, Singapore,
  • HSBC Marine Parade Branch, Marine Parade, Singapore.
  • HSBC Jurong Branch, Jurong East Street, Singapore.

The rest of the branches of the bank can be located from their website.

Higher rates of interest are a boon for investors. They would be able to get higher rates of interest at the same amount of investment. The interest rates are changed periodically and you can keep a track of such changes from the website of HSBC Singapore. Investing in Singapore Dollar Deposits will get you smart incomes of extraordinary returns.

So if you are opting for fixed deposits this is the best option for you. HSBC is a reputed bank and you need to just visit them to get a loan. They have various loan packages and you can select the best one for you. So wait for a while before you opt for any other bank as you can get the best interest rates loan from HSBC Singapore.