Transferring a Mosaic Solar Loan When Selling Your Phoenix, AZ Solar Home
Selling a home in Phoenix, AZ can often be a multi-layered process. Between showing appointments, aiming for a profitable sale, managing home improvements, and navigating the emotional roller coaster of moving, the last thing you’d expect is a hitch from your buyer’s mortgage lender due to misunderstandings about your solar loan. For Phoenix solar homeowners, this issue is not rare. Fortunately, a little knowledge can effortlessly resolve this misunderstanding and pave the way for a successful home sale.
Understanding Liens on Your Solar Assets vs. Home
A lien signifies a lender’s legal claim over an asset, which can be used if a borrower fails to make payments or attempts to sell the asset before full payment. For instance, while a mortgage lender may have a lien on your Phoenix residence, solar loan companies like Mosaic have a claim on your solar equipment – encompassing solar panels, wiring, inverters, and potential battery systems.
For Phoenix homeowners wanting to sell, this solar lien presents two paths. First, the incoming homebuyer can assume both the loan and its associated lien, provided they qualify. Alternatively, as the seller, you could payoff the loan balance, possibly using your home sale’s proceeds. Given the increased value solar panels bring to homes, using this added value to clear the solar loan often emerges as the most straightforward option.
Steps for a Seamless Solar Home Sale in Phoenix, AZ
Preparation remains key. Awareness of your UCC-1 Filing and solar loan agreement plays a pivotal role in ensuring a smooth home sale experience in Phoenix. It saves all parties from undue stress and potential hitches.
When presenting your solar-powered home, it’s crucial to educate potential buyers about the solar installation and its associated benefits. If you wish to get the best price premium for your solar setup, consider collaborating with a local real estate expert, like Rob Madden of Green Leaf Realty, who is well-versed in Phoenix’s solar home landscape.
Factors That Shape the Sale of Solar Homes in Phoenix, AZ
Solar installations undoubtedly enhance a home’s value due to the long-term savings they offer. On average, Mosaic customers enjoy a whopping $30,000 savings on electricity bills over their solar panels’ lifespan.
However, how do you convincingly convey the value of these future savings to prospective buyers?
- Equipment Details: High-efficiency solar panels from reputed manufacturers tend to fetch higher prices.
- Generation & Savings Data: Highlighting your installation’s monthly electricity generation and bill savings can be influential. Also, mentioning your net metering status, especially in regions where it’s significant, is beneficial.
- Warranty Information: Potential buyers will be keen on understanding the warranty status of your solar panels. Ensure clarity on its duration and transferability.
- Financing Insights: For those who chose solar financing, understanding the loan or lease transfer process is paramount. Familiarize yourself with any prepayment penalties and other terms. Mosaic, for instance, imposes no such penalties.
For Phoenix solar homeowners aiming to sell, two options lie ahead:
- Offset the solar loan with the value increment that a clear solar system offers.
- Allow the home buyer to take over the Mosaic solar loan.
Benefits of Paying Off the Loan:
- Higher home valuation
- Quicker sales process
- Simpler transaction with fewer steps
- Buyer’s convenience as they avoid additional Mosaic payments
To successfully transfer a Mosaic loan:
- As the seller, give written consent to Mosaic in order to share loan details with the potential buyer.
- Mosaic will then share the current solar loan’s terms with the buyer.
- The buyer proceeds to apply for credit qualification for the solar loan.
- Upon credit approval, both seller and buyer sign the loan transfer agreement.
- Mosaic reviews this agreement and issues a UCC-1 termination agreement to be shared with the title/escrow officer.
- Post-closing, Mosaic transfers the loan into the buyer’s name upon receiving title transfer confirmation.
In summary, Phoenix solar homeowners can ensure a hassle-free home sale by being informed and prepared, making the transfer of their Mosaic solar loan a breeze.