Scenario Summary
Joshua Michaels has decided to partner with a long-time friend, Jim Thompson, and formally invest in real estate. After consulting with his attorney, he decided that he would form a limited liability corporation (LLC) called Citadel, LLC, for the purpose of holding and managing future investments in real property. He also wants the company to serve as a consulting firm. He has built up a network of contacts including a mortgage broker at a local bank (American National) and many real estate agents in his area.
Joshua is preparing for an advisory board meeting for the newly formed LLC. As part of the by-laws, he is required to provide a status update on any recent and proposed activities. However, he is concerned that he may not have all the information needed to provide a comprehensive report related to current and anticipated real estate transactions. He is familiar with the basics of obtaining standard mortgage loans from personal experience. However, he now needs assistance with more complex scenarios.

Your Assignment
You have been hired as a real estate and financial consultant for Citadel, LLC. Joshua has tasked you with addressing the following concerns that will be presented at the advisory board meeting:
1. When purchasing real estate property, what methods can be used to provide a buyer with the assurance that a title is valid, marketable, and free of legal concerns? Discuss the advantages and disadvantages of each different method.

2. As Citadel, LLC, searches for future investing opportunities, there are questions regarding property rights and issues that may be encountered. What type of property right restrictions could potentially be found on a property? Explain how these restrictions could possibly be lifted.

3. Jim recently purchased a property at a foreclosure sale. It was originally owned by a person named Ms. Mary Smith, with American National holding the first mortgage and another lender, U.S. Bank, holding the second. Ms. Smith defaulted on her mortgage payments, but American National foreclosed without joining U.S. Bank in the foreclosure suit. What are the rights of U.S. Bank, if any? How does this situation affect Jim’s ownership (and subsequently the ownership of the LLC)?

4. What options are available to property owners that are facing default? Is foreclosure the only and final option? In addition, what advice would you give to an individual who is considering bankruptcy? What about a company that is considering bankruptcy? How would mortgage debt be affected under the different forms of bankruptcy?

5. Joshua purchased a property 10 years ago that is now a part of the company’s portfolio. It was a 30-year fully amortizing loan, and the original balance was $85,000 at an original rate of 9%. At this point in time, he would like to prepay the mortgage balance by $10,000. If the prepayment is approved, what would be the new balance? If the loan maturity is shortened, and using the original monthly payments, what is the new loan maturity?

6. Courtney Baxter indicates that she is excited about the current low interest rate levels and believes that Joshua and Jim should take advantage of this. She has found a property for $200,000 and believes they can be approved for an interest-only ARM for 30 years. The start rate is 3% and monthly interest-only payments will be made for 3 years. After the 3-year period, payments must be sufficient to fully amortize the loan at maturity. What will the interest-only payments be each month during the 3-year period? Assume that at the end of the 3-year period, the reset rate is 6% and again, payments must be made to fully amortize the loan. What will the new payments be for the remaining term of the loan? Are there any risks associated with this overall arrangement?
Questions must be addressed in a complete manner with an average of 50 words per question. For problem-based questions, the solution must be provided, but it is also recommended that mathematical work is provided for support.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages

Order your paper today and save 7% with the discount code HOME7