About PicRealty... Just very curious

Hello Everyone,

I think the PicRealty program sounds terrific.

May I suggest that complete and candid information about how that program really works be placed somewhere so that members could get their questions answered?

For instance, when jhutch says members will need to pay a fee of 10% of the Principal, does he mean that if my residence property is $100,000, that I will need to have a $10,000 to pay to PicRealty, up front, before I will be allowed to participate in the programs?

What would be the use in that approach? These questions should be already answered somewhere on the site. (There is not much said on the www.picrealty.com website.)

Instead, what I am reading is a lot of guesses from other members who themselves are not sure what the program all means.

Can someone help us all to understand how this program is operated?

I still think it's a terrific idea. But help us understand... Please... Someone....Anyone.

Thanks a million.

Sidneiye

P.S. I could've have missed that information which gave complete clarification. If I have , please forgive me, and just lead me to it. Thanks again.

Quote:
For instance, when jhutch says members will need to pay a fee of 10% of the Principal, does he mean that if my residence property is $100,000, that I will need to have a $10,000 to pay to PicRealty, up front, before I will be allowed to participate in the programs?
Unquote:
That is wrong

Before you participate in the program, you must obtain a loan from a bank or a financing company with your residential property as a collateral or as morgage. For instance, if you borrowed 100,000usd from a Bank for your residential house, you then apply for PicRealty morgage payment program. After your application is approved, you pay 10% of your loan amount, or 10,000PicPay$ to PicRealty. After 30 day, PicRealty wil start the monthly repayment of the 100,000usd loan until it will fully repay within 2 to 3 years and your house will become "morgage free".

If you've already paid $25k off your original $100k is the 10% payable on your original mortgage amount or the outstanding amount?

I'd have thought its from your outstanding amount, I guess you'd need an up to date mortgage statement from your lender to varify and then pay 10% of whatever that is.

Actually, the bottomline is as follows, and this was how I came to understand it back then at a face to face exchange/talk (no beers but good coffee with caffeine :P in it) with ...yup, yr guess is right, so I'll skip his initials this time round.

Remember, when we talked about it, back then, it was months before it was breaking news before Christmas showed up in 2004.

Firstly, you either have an ongoing property with your monthly mortgage loan regularly paying off as arranged and according to the package you qualify for, albeit 10, 15, 20 or 25 and in some cases/countries, 30 years!

Or, you are about to be approved of a mortgage loan based upon your qualified status for the amount that your current financial standing could support it.

Once all that is processed and approved and you are approved for it and coupled by the notarized certificate that comes with the keys handed over, you are then, and only then, in the position to have those details "xeroxed" and submitted to PicRealty (by snailmail/courier), for recognition and approval from PicRealty..

Remember, before one reaches this stage, one is already committed with all the legal charges and costs that are tied to the amount the loan is meant to be for.

Thus, if the property was based on a 20-year mortgage plan at a value of 100K, with legal and tax costs topping that which amounts somewhere between 12% to as much as 20% subject to lending rates in the country involved, the Notary fees and the taxes imposed, the amount which one initially has to be prepared to cough up by hook or by crook (but legally of course), is anywhere between 12K and 20K per property.

This shows, 120K in all and in some countries, the initial costs and fees can also be absorbed into the 120K loan altogether but you need to check with your local bodies to be certain of this possibility.

Now, whatever arrangement it turns out to be, and whether you have already paid back through an arranged payback scheme through your bank account, and based upon the amount still remaining open that you still have to pay back, including the *% interest* tied to it, and based on between 1 or 3 years left or perhaps 19 years and 10 months more to go, the the remaining amount left is what the 10% for PicRealty is all about!!!

That is the method it should be first understood and whether you qualify for it is quite another matter altogether... hopefully that you do, subject to the conditions that are spelled out from the Agreement drafted up by the Mortgage lenders you first started with, remember, in most cases though not always, early settlement of a mortgage loan comes with a fine imposed by the mortgage company. That fine may have to be sttled separately on your own and I don't think, PicRealty would absorb that costs but it may change as things develop.

In conclusion, you can't just contact PicRealty to let them know of a property that you are "interested in" when you are NOT in anyway a legal owner as yet and there are no legal documents available to prove it, which may take several weeks to a month or 3 in some cases to get it all going and again, subject to just how much you qualify in the eyes of the mortgage institution that approves your loan.

Without all these in place, DON't bother PicRealty just yet.... yes, you may be looking at several weeks from now or months in some cases before you make that application to PicRealty.

At this very moment, it serves only those that already own a property and in case you own several, remember also, this fabulous solution is meant to assist genuine private ownership situations.....NOT for owners having a string of properties that are leased out....and until one can prove that you have paid off totally to PicRealty within the 18-months arrangement, and you decide to "move out" to another, can you then re-apply all over again...yes, one at a time only! :wink:

Goodluck and plan well with all the documents prepared. One other thing, once PicRealty officially takes over, you are FREE from any legal issues with the mortgage company! You are now legally binded with PicRealty and should PicRealty go bust after 3 months out of the 18 more months, Lucky YOU is all I can say.... :lol: :lol:

YB.http://img.photobucket.com/albums/v4...ds/Rainbow.gif

GREAT POST YOGI!!
Thank you for that, atleast i needed that information.:)
But 1 thing that i would like to ask you, How does it work with taxes on that? i mean, the authorities see that your house is being paid of by a company in Malaysia? I live in Sweden and they are everywere, looking at every hole to dig up some money.:)

You think it will work in Sweden aswell?

It should and thats where PicRealty has their legal team needed in the 2-3 weeks of research and arrangements made to overcome that field including Swedish Representatives involved.

Remember, every month that the amount is "repaid", is done between your acct and PicRealty, NOT in anyway with your ex Mortgage lender company/financial institution.

So, once the contract is again drafted up, it is between you and PicRealty...and each country will be dealing separately with the legal platform that governs "foreign" intervention on behalf of a local owner.

REmember again, you are already the full-fledge owner of the house once PicRealty squares off the reamaining amount with your ex-mortgage company. Very legal is that. Just imagine, your grandma won the largest lottery on the planet but she stays in some hill like a hermit by the mountains of Tibet, if she can afford it and willing to absorb the remaing loan, your mortgage company won't say no either to an early settlement, there's nothing to stop you becoming the "full" owner much earlier than anticipated. :wink:


YB.

Quote:

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Originally Posted by Raditz

GREAT POST YOGI!!
Thank you for that, atleast i needed that information.:)
But 1 thing that i would like to ask you, How does it work with taxes on that? i mean, the authorities see that your house is being paid of by a company in Malaysia? I live in Sweden and they are everywere, looking at every hole to dig up some money.:)

You think it will work in Sweden aswell?

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Living in Sweden with a high mortgage makes me highly interested in this. If only I hade the 10% picpay $ I'd be willing to try this out and deal with irs when due time.
//KeLLoGs

First of all, thanks to all that put rolclub together. Can't tell you how much it's helped me.

Now, on the agreement for picrealty. I'm going through the agreement now and ready to send it in. Please help me understand somethng.

All the paper work is pretty simple except the agreement on page 8.

It says.... signed by and or behalf of pips realty...etc.

then it has an area next to it which looks like I need to have it notarized. Please, anyone that has filled out these apps. could you help me out. I don't want to send these in and then have them sent back because I goofed it up.

Regards,

Extremewealth

The legal papers look incomplete to me.. I read them over for a friend
What is you house burns down during this period?
Also this is binding for 18 months.
the english is so badly written that it makes the legal writing even harder to read. so it is speculation as to what it is really saying.
I am a Realtor and I would not do this.
There is too much left out .
Good luck to those who do.
hopefully a better explaination or better written paperwork will be presented.

Hi Again Everyone,

Thank you very kindly for all of your input.

And especially to Yogibrood. Thanks a million.

Great explanation.

I do own my $100,000 property (5 years); and yes, I do pay a monthly mortgage; and yes, it is my primary place of residence. But $10,000 is a bit much right now. And my Pipsinc income has not yet grown to that much.

So, I'll just sit around a bit longer, pray much, hope a lot, and wait until I am fully able to participate.

One thing I absolutely will not do, and that is to take out a second mortgage, in order to hasten my participation in PicRealty. Never! Ever!

Not on your life!

But PicRealty is a terrific idea.

Thanks again, everyone. I will keep watching and reading the posts here.

Regards,

Sidneiye

Quote:

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Originally Posted by truepipster

The legal papers look incomplete to me.. I read them over for a friend
What is you house burns down during this period?
Also this is binding for 18 months.
the english is so badly written that it makes the legal writing even harder to read. so it is speculation as to what it is really saying.
I am a Realtor and I would not do this.
There is too much left out .
Good luck to those who do.
hopefully a better explaination or better written paperwork will be presented.

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As far as ownership and current ongoing mortgage goes, the house has to remain "insured" and better to be insured according to the index laid down for the location where the home rests on....

Even if it burns down one day, with 10 more months to go before all dues are settled with PicRealty and the next day, PicRealty closes shop for good.... if the property isn't adequately insured, a new rebuild isn't likely to either, not unless you cough up the rest with your own funds. :wink:

YB.

I just got a home equity loan, not a mortgage, but I have to pay the bank every month for 10 years on the loan. And the house is the collateral for the loan just like with a mortgage. The bank had to do a mortgage search, and had to make sure that the value of the house was greater than the loan.

I wonder if this would qualify for the P--Reality service? Any thoughts about this?

Unfortunately, it won't but if you do find a buyer to take over pretty soon, that will speed up on your next pick by Malibu perhaps... :D :D

YB.

http://luxuryhomebuyers.com/images/malibu.jpg