The main idea behind English grammar is that one word will indicate one meaning while another word will indicate another meaning. In simple English this is expressed as the idea of subject, object, or verb. The subject in an English sentence like John is a dog, John is a runner, or John has been run over by a vehicle, is the thing or person who the sentence is speaking about, in this example John. Traditionally the main subject is also the first word that takes the place of the verb in the sentence, which is to say that with which the other verb agrees. The idea of the subject is expressed in the imperative mood, which means that with what object the subject is acting, and which is subject of the sentence.
For example- “A cash-to-loan subject to a mortgage balance due.” This is pretty easy to translate into English, but we will not. This is because we will focus on the idea of a cash-to-loan subject, the idea that it is an existing mortgage balance that needs to be paid off, and we will translate the idea of subject into the future tense. “A cash-to-loan subject to a mortgage balance due.”
We will now translate our original statement- “A cash-to-loan subject to a mortgage balance due.” What does this mean? The buyer is buying the property now, and the seller has the mortgage payments due out to the buyer at the end of the term of the sale. The buyer has “cash” in order to fulfill the obligation to pay.
Now we know what that means- we need to learn about the real estate contract. What does “closeout” mean? That would be the time when the buyer has all of his or her mortgage payments due and the seller has to turn in the property. The closing costs refer to the amount of money the seller must pay. In California, the closing costs are limited to “the net amount of cash paid to a seller for the real estate sold in the foreclosure sale and any interest due on that money.” Although the phrase “closing costs” can make closing down your real estate deal sound like a devastating condition, it is not.
Closing down your real estate transaction- also takes into account the interest that the buyer is facing. It is the leader’s job to assess how much the buyer will be paying. In most California real estate transactions, the buyer’s lender will require a certain percentage, called the” Closing Cost” from the seller. These numbers will vary depending on the seller and the real estate deal.
If the contract has a sub 2 percent closing cost- the buyer’s mortgage payment will likely be more than two to one half the total amount that the seller was entitled to. The “Net Amount of Cash Paid to Seller” number is derived by subtracting the buyer’s interest from the seller’s mortgage payments. For a typical California real estate transaction, this number is around five to six hundred dollars. For the seller, the “Net Amount of Cash Paid to Mortgage” is around one to two thousand dollars.
Because of these figures, you can see that the buyer’s mortgage payment is limited by the closing costs the lender must account for.
