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Kenny Gays
Principal Broker / REALTOR
®, SFR, ABR
Smoky Mountain Real Estate Corp.

459 Glades Road
Gatlinburg, TN 37738
Phone: 865 805-2541 Cell Direct
Office: 865 277-8115
Fax: 8777151213
Email: kennygays@investthesmokies.com

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Thank you for visiting my site today. If this is your first visit, take your time and look around. I have plenty of information and resources available to You. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

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Creative Financing

Creative financing: You’ve heard of it, and, as a seller, the idea sounds pretty attractive. But, do you know everything you need to know about carrying back a second; essentially, about becoming a lender? You better know the same things that financial institutions know - you better know about lender’s title insurance.

It’s time to sell your $150,000 home, a home that you have owned for fifteen years, a home in which you have substantial equity. The loan terms call for a $20,000 down payment from your buyer, a new $100,000 loan from a local savings and loan, and for you, the seller, to carry back a note for the remaining $30,000.

Will you, the seller, need title insurance?

Yes, you will. Everyone who retains an interest in the property needs title insurance. When you took on the role of lender, you retained a record title interest which you will want to protect for the term of the loan.

But, why would you need lender’s title insurance when the repayment of your loan is assured by a lien in the form of a recorded deed of trust against the property? What could possibly go wrong?

You must insure yourself for the same reason that financial institutions obtain title insurance - for the protection of your investment. You must be assured that your lien on the property cannot be defeated by a prior lien or other interest in the property, which, if exercised, would wipe out your security.

Anything that involves the new buyer’s ownership rights to the property is of direct interest to you because you are holding the second mortgage. If such ownership rights are in question or defective, you may have trouble collecting your monthly mortgage payments. But, you say, there is nothing in your property’s history that could cause problems: no problems with easements, no problems with boundaries, no problems with rights-of-way.

Contrary to what may be popular belief, these matters are not the only source of title problems; a large proportion of title problems arise out of man’s interaction with man. The fact of a marriage, a divorce, a death, a forgery, a judgment for money damages, a failure to pay state or federal taxes - these occurrences can and usually will affect your rights as a mortgage lender.

As an example of what can befall the lender, did you know that a federal tax lien recorded against your buyer before the loan transaction is concluded may result in the loss of security in your home? Sophisticated mortgage lenders are aware of this possibility as well as many others which could jeopardize their loan security and seek the protection afforded by a lender’s title insurance policy.

If you are considering carrying back a second, be sure to get all the facts regarding the benefits of lender’s title insurance. Your local title insurance company should be happy to provide the information you need.

Article by CLTA

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Testimonials

Here is what georgethomas wrote: How likely are you to recommend this agent? highly likely Rate agent on specific characteristics Local knowledge: ***** Process expertise: ***** Responsiveness: ***** Negotiation skills: ***** Summary of their experience Kenny Gays sold 2 rental properties for me and helped me find a home in Sevierville for my personal use when I moved from Florida in 2008. As a listing Agent he helped me sell 2 rental properties in Gatlinburg during a very difficult real estate market. As a Buyers Agent he went way above and beyond the call of duty helping me find a personal residence. He spent several days searching for a property he thought I would like before I even arrived here to begin my search. He worked with me for almost a week showing me different properties before I finally made my decision. As both a Buyers Agent and a Listing Agent I found him to be helpful, sincere and honest. He always worked in my best interest and never tried to push me in any direction although he did give me invaluable advice at times. I will always be indebted to him because the house he found for me has turned out to be the house I am enjoying more than any house I've ever owned. Whenever I need to buy or sell property I will certainly contact Kenny. I highly recommend him. Service provided Helped me buy and sell homes From Zillow.com George Thomas
Kenny helped us find our dream cabin in Gatlinburg. We were unsure of the foreclosure process but Kenny helped us through the entire process and made us feel at ease with our purchase. Thank you The Marcil Family
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