GREETINGS FROM VERNA ACKER
REALTY EXECUTIVES Elite
414.534.7400
FOR YOUR INFORMATION:
Real Estate Information from Western Racine County; Waterford, WI 53185
September 20, 2000

TABLE OF CONTENTS
Laptop Catastrophe
Need boat storage or boat mechanic in Waterford?
AOL listings

NO IMPORTANT NEWS IN THIS NEWSLETTER. I WILL JUST TELL YOU MY TALE OF WOE!!
I ran over my brand new laptop with my car on Friday after- noon, September 1. Left a tire print right down the center of the case!!!! My Palm V was there, too. What a mess!! Now you know why the newsletter has been a bit “screwed up.” The one that went out 9/7 went to people that had asked to be removed and many who wanted it didn't get it. Because all of my records were on their way to the “computer-doctor” in Memphis, I was working off of my July list and the few that I hadn't loaded yet. If you asked to be removed and are still getting this, please ask again. I am still working on the resolution of the two computers and trying to figure out what I need to update. DO NOT TRY THIS AT HOME!!!! It makes a real mess out of your life in a hurry! Computers and Palm Pilots are not made to withstand the weight of a full-size Chrysler. “Haste-makes-waste” would be a good title for the last two weeks.

Now that the ordeal is over I can laugh about it. It wasn't funny at the time!! When I booted the computer up it made the most awful whirring and whining sound. Then the computer screen lit up….looked like a 3-tone kaleidoscope. I must have broken the monitor in a million or more pieces. The hard drive survived, however.

“It took a lickin' and it kept on tickin!” About $1,000 later and a new Palm Pilot later, I am back in business.

PREFERRED MARINE SERVICES
824 Ela Avenue, Waterford WI
262-514-3636
Tony Acker (my grandson) stores boats for the winter in the facility in the Waterford Industrial Park: October 1 – May 31 @ $2.50 per sq. ft. He also offers a full line of maintenance and repair options to complement the storage facility. Any items that need repair can be taken care of before storage. He offers a free exterior power wash to any storage customer that refers another storage customer to the facility. Call Tony for more details. Grandma's Note: He does a great job. Our boat came back this spring looking like new. I didn't miss the “every-spring” scrub job to get the winter grime and mildew off the upholstery and the carpeting..

AOL users! We've wanted this newsletter to be AOL friendly without changing the appearance for everyone else. We've finally accomplished that. AOL users will have a direct link to a page on my web site where you can then directly click on the links that will give you the property information sheet on the new listings. This page will be accessible for one week, and will change with each new newsletter. Your new link is Property Information Links

GREETINGS FROM VERNA ACKER
REALTY EXECUTIVES Elite
414.534.7400
FOR YOUR INFORMATION:
Real Estate Information from Western Racine County; Waterford, WI 53185
September 27, 2000

TABLE OF CONTENTS
*Site Map and Search Engine Added to my Web Site
*Land Contracts – Briefly, what are they and when they are used

EXCITING NEW FEATURE ON MY WEB SITE:
Thanks to the talent of my web master, my web site (http://www.vernacker.com) is much easier to use. Two new features have been added. A “Site Map” has been included. Each topic/report on the site has been indexed into four categories. It is easy to scroll down and find the specific information that you are looking for.
BUT, BEST OF ALL, WE NOW HAVE OUR OWN SEARCH ENGINE!!
Just like using Yahoo, Alta Vista, etc… simply go to the search engine link at the opening page of the site and type in the word or words you are researching. All of the places on my site that the topic is discussed will be shown. Just like in the commercial search engines, use quotation marks to make the search more specific. For instance, enter the word, build, and lots and lots of links will come up…..every time build, building, builder, etc is mentioned, it will show as a link. Use quotation marks around the specific search and your results will be much more confined. Hope you enjoy the new features. We would love to hear your feedback!

LAND CONTRACTS
Every now and then I am asked if there are any properties available on a land contract. In these times of lower interest rates and easier mortgage money, land contracts are seldom used. From the seller's perspective, most would like to sell the property, get their money and move on. Occasionally a seller has a tax benefit available if they close with a land contract. Perhaps the property being sold needs so much work that a short-term contract is advisable while the buyer improves the property to the point of being able to obtain a conventional loan. Perhaps zoning, present or future use, business type, etc. make a land contract the best way to convey the property. Contrary to popular belief by buyers, the land contract is seldom a way to get into a property if you don't have any money or if you have bad credit. Sellers, especially if they are working with a professional broker or with a knowledgeable attorney, will likely require much of the same qualification requirements that a lender will require, i.e. a decent down payment and a satisfactory credit report.

Land contracts are usually computed at a rate either at or slightly higher than the common rate in the area and they are usually written with balloon clauses. Typically, they will be computed on the negotiated rate, probably amortized over 20 or 30 years and likely due and payable in one, two, or three years. These days, most land contracts are written without a pre-payment penalty, designed for the buyer to pay out the seller as soon as they are able to obtain a commercial loan. Some are written so that the payout comes in a specific year that will be advantageous to the seller.

Buyers and sellers should understand that a land contract is sort of a layaway installment plan. The buyer has not yet received the title to the property. The seller has become the mortgage holder but they are still the titleholder of the property. The buyer has an equity position based upon the terms of the contract. The seller can foreclose if the buyer does not make timely payments. Foreclosure procedures are much the same as with a commercial loan. If the buyer fails to make the payments, they may be able to sell the property so that they can keep their equity and pay off the seller, the same as if they had their loan with a Savings & Loan or a bank. The buyer is usually responsible for the real estate taxes and the insurance, as they are with a conventional loan. The buyer has the benefit of deducting the taxes paid on their income tax form. Since the buyer does not have title to the property he is probably not able to obtain any equity loans or construction loans against the property. To the seller, the property has become similar to a stock, bond or other paper investment. The seller is, typically, able to mortgage the property based upon their paper investment. The seller is usually prohibited from mortgaging more than the amount on the paper with the buyer. The transfer form that is recorded at the time of a conventional closing is not recorded until such time as the contract is paid off and the title is conveyed to the buyer.

BE SURE TO CONSULT AN ATTORNEY ANY TIME YOU ARE GETTING INVOLVED WITH A LAND CONTRACT!!
If you are getting into a land contract with a transaction that you are doing through a real estate agent you will likely use an addendum that spells out most of the details of the agreement. Most REALTORS have a basic addendum that they use. If you are not working with professional assistance, be certain that the basics are spelled out in detail somewhere in the contract between you and the seller. (It is the details that you often take for granted that can cause the biggest problems.) The addendum used by most professionals usually spells out the specific finance agreements, the basics of the final paperwork, asks for a credit check and requires that State Bar Form No. 11 be used. Offers to purchase that are working with land contract financing should include an attorney approval clause. BOTH the seller and the buyer should consult legal counsel before being committed to any land contract.