I live in california and plan to purchase home near future. Will the interest I am going to be paying be tax deductible from both federal and state tax return? I belong 25% federal tax bracket and 9.3% state.Is mortgage interest tax dedictible from both federal and state ?
Most states use the federal tax return to determine your tax liability. Therefore, most deductions, such as mortgage interest, that are deductible on your federal return are deductible on your state return. In layman's terms, the deduction on your federal tax return for mortgage interest carries on through your CA tax return.Is mortgage interest tax dedictible from both federal and state ?
Yes. Use Schedule D on the Fed and the corresponding CA 540 form.
I did it myself when I lived in CA.
Yes. It is deducted on Schedule A on the Federal Return and then carried over automatically to the state.
If you are purchasing the house and paying points that is also deductible. One thing to watch out for is the amount of interest paid. If you close on your house towards the end of the year you may not have paid enough interest to warrant the deduction. Depends on other items you have to deduct.
If you need more information you can contact me at gfscfp@dslextreme.com
Yes. There are quite a few differences between California state and federal returns but this is not one of them.
Tuesday, December 22, 2009
How can I stop receiving unwanted loan & mortgage offers?
I am constantly getting unknown %26amp; unwanted names offering me mortgage offers loan offers.
How do I stop them sending e mails? Ia there a registry?How can I stop receiving unwanted loan %26amp; mortgage offers?
Go to www.dmaconsumers.org and opt out of the national mailing list.
This will remove your name for 5-years.How can I stop receiving unwanted loan %26amp; mortgage offers?
You can contact Transunion, Equifax or Experian and ask them to sign you up for opt out option so they don't give out your address anymore.
How do I stop them sending e mails? Ia there a registry?How can I stop receiving unwanted loan %26amp; mortgage offers?
Go to www.dmaconsumers.org and opt out of the national mailing list.
This will remove your name for 5-years.How can I stop receiving unwanted loan %26amp; mortgage offers?
You can contact Transunion, Equifax or Experian and ask them to sign you up for opt out option so they don't give out your address anymore.
What Laws and regs are manufactured home mortgage lenders subject to in Oregon?
I am having a problem with my lender potentially breaking laws. They are sending faxes to my landlord when we don't return a phone call and so on.
Can anyone tell me what laws they are subject to and what type of attorney I should contact about my concerns?What Laws and regs are manufactured home mortgage lenders subject to in Oregon?
manufactured home, meaning trailer? Landlord, meaning trailer park owner?
Go to http://www.ftc.gov, and look up the consumer credit information. You'll find the Fair Debt Collections Practice Act, which will tell you what can and cannot be done. If you see a violation, document it, and file a complaint with whatever state regulatory agency (usually Commerce) handles collection agencies in your state.
Can anyone tell me what laws they are subject to and what type of attorney I should contact about my concerns?What Laws and regs are manufactured home mortgage lenders subject to in Oregon?
manufactured home, meaning trailer? Landlord, meaning trailer park owner?
Go to http://www.ftc.gov, and look up the consumer credit information. You'll find the Fair Debt Collections Practice Act, which will tell you what can and cannot be done. If you see a violation, document it, and file a complaint with whatever state regulatory agency (usually Commerce) handles collection agencies in your state.
Where could I find terms and conditions (eg, disclosures, forbearance) for a sub-prime mortgage?
Ideally, I would be interested in finding a blank copy of a typical sub-prime mortgage agreement.Where could I find terms and conditions (eg, disclosures, forbearance) for a sub-prime mortgage?
The loan documents for a subprime loan are no different from those of a prime loan. All the same regulations apply regarding disclosures, collections, forbearance, etc. The only differences between a ';subprime loan'; and a ';prime loan'; is in the quality of the borrower's creditworthiness and the interest rate (higher to compensate the lender for taking a greater risk).
Regarding default (collections, forbearance, etc.), a borrower that doesn't pay is a borrower that doesn't pay. If a borrower doesn't make his payment on a ';prime'; loan, he will be taken to task just as a borrower who doesn't make his payment on a ';subprime'; loan. There's no such thing as ';subprime loan servicing'; vs. ';prime loan servicing.'; There is just ';loan servicing.'; There is no need to distinguish prime and sub-prime borrowers after the loan is closed and servicing begins.
Contrary to popular belief, there are no loan products that are ';subprime'; in and of themselves. Many subprime loans were Adjustable Rate Mortgages (ARMs) or Fixed-Adjustables (fixed rate for a few years and then the Interest Rate adjusts according to a schedule). ARM loans of all sorts also exist in the Prime market. There is nothing ';subprime'; about ARM loans.
Hope this helps! Good luck!
The loan documents for a subprime loan are no different from those of a prime loan. All the same regulations apply regarding disclosures, collections, forbearance, etc. The only differences between a ';subprime loan'; and a ';prime loan'; is in the quality of the borrower's creditworthiness and the interest rate (higher to compensate the lender for taking a greater risk).
Regarding default (collections, forbearance, etc.), a borrower that doesn't pay is a borrower that doesn't pay. If a borrower doesn't make his payment on a ';prime'; loan, he will be taken to task just as a borrower who doesn't make his payment on a ';subprime'; loan. There's no such thing as ';subprime loan servicing'; vs. ';prime loan servicing.'; There is just ';loan servicing.'; There is no need to distinguish prime and sub-prime borrowers after the loan is closed and servicing begins.
Contrary to popular belief, there are no loan products that are ';subprime'; in and of themselves. Many subprime loans were Adjustable Rate Mortgages (ARMs) or Fixed-Adjustables (fixed rate for a few years and then the Interest Rate adjusts according to a schedule). ARM loans of all sorts also exist in the Prime market. There is nothing ';subprime'; about ARM loans.
Hope this helps! Good luck!
Should I lock in my variable rate mortgage?
I live in Canada and right now the interest rate on my variable rate mortgage is very low. I don't really think that interest rates will go any lower. I have 4 years left on my current mortgage. Should I lock in now?Should I lock in my variable rate mortgage?
Remember that locking in your mortgage may carry additional fees or penalties, all designed to swing the balance of probabilities over in favor of the bank. The bank has already set the variable rate and the down payment so that they expect to profit (in general) from the mortgage, so the only way that you can really benefit from this situation is if the locking decision will cost you nothing, and the interest rate (on the mortgage itself) has dropped appreciably since you took it out. Certainly, if the current mortgage rate has dropped below what the *prime rate* was at the time you took it out, then time has been really good to you -- you may actually be making money compared to the bank, which may not.
If you're confident that interest rates will remain low for the next few years, or if locking the mortgage rate in will cost you more money than you would expect to save with a modest rise in rates, you can let the mortgage rate vary.
On the other hand, if you fix the rate of your mortgage, you can budget for exactly what the mortgage will cost you and be in a better position (information-wise) to make future financial decisions.
Personally, I would do a mathematical analysis (or have an accountant do one for you) and determine what the costs would be of fixing the rate or letting it vary, and what the consequences would be if the interest rate went up by 1 basis point, 2, 3, etc. along with the odds of it doing those things in the next four years.
My gut tells me, what with my penchant for certainty in life, to lock the rate in unless you have stiff penalties against that. But I'd run it by a financial consultant (not from your bank but a different one, possibly independent) for the final word.Should I lock in my variable rate mortgage?
There is no way to give a true answer without knowing all of the details of your transaction. It sounds like you want to refinance. If you only have 4 years remaining, then most of your payment right now is NOT interest. So, refinancing may hurt you more than help.
Remember that locking in your mortgage may carry additional fees or penalties, all designed to swing the balance of probabilities over in favor of the bank. The bank has already set the variable rate and the down payment so that they expect to profit (in general) from the mortgage, so the only way that you can really benefit from this situation is if the locking decision will cost you nothing, and the interest rate (on the mortgage itself) has dropped appreciably since you took it out. Certainly, if the current mortgage rate has dropped below what the *prime rate* was at the time you took it out, then time has been really good to you -- you may actually be making money compared to the bank, which may not.
If you're confident that interest rates will remain low for the next few years, or if locking the mortgage rate in will cost you more money than you would expect to save with a modest rise in rates, you can let the mortgage rate vary.
On the other hand, if you fix the rate of your mortgage, you can budget for exactly what the mortgage will cost you and be in a better position (information-wise) to make future financial decisions.
Personally, I would do a mathematical analysis (or have an accountant do one for you) and determine what the costs would be of fixing the rate or letting it vary, and what the consequences would be if the interest rate went up by 1 basis point, 2, 3, etc. along with the odds of it doing those things in the next four years.
My gut tells me, what with my penchant for certainty in life, to lock the rate in unless you have stiff penalties against that. But I'd run it by a financial consultant (not from your bank but a different one, possibly independent) for the final word.Should I lock in my variable rate mortgage?
There is no way to give a true answer without knowing all of the details of your transaction. It sounds like you want to refinance. If you only have 4 years remaining, then most of your payment right now is NOT interest. So, refinancing may hurt you more than help.
Do you have to pay off your mortgage before you can sell your house?
I am a first time buyer. I am unclear as how the selling process works if you want to sell your house before your mortgage is paid off. (ex. ';I have $500,000.00 left on my mortgage and my house is now worth $600,000.00. Can I sell my house and make a $100,000.00 profit???)Do you have to pay off your mortgage before you can sell your house?
Few people can afford to pay off their mortgage before they sell.
Normally it's done at closing. Proceeds from sale are used to pay off any debts, lien, taxes so that title can pass without issue.
And No you dont have $100,000 profit.
You are probably getting back your down payment, and possibly a little profit. Some people are LOSING money right now on loans they couldnt afford to begin with: ie, bought house for $700,000, owe $500,000 house now worth $600,000. Loss = $100,000
Cost minus Down Payment = Mortgage AmountDo you have to pay off your mortgage before you can sell your house?
No you do not have to pay off your mortgage before you sell your house. What the buyer pays for your home pays of any liens against the property including the mortgage you have. Good luck!
You can sell your house before you have it paid off. You will have to pay it off at closing I believe (or before)
although that sounds easy, it depends on where you are buying since in some states over the past 8 years the price on houses rose so quickly that now they have plumeted and people selling their homes are both having a heck of a time getting buyers, but are also losing a bundle because the prices of homes in their areas (several states) have decreased a lot....so no profit for them.
Don't think of buying a home for the profit aspect. Buy a home because you need one, want one, maybe for a yard for the children to play in, maybe just to have a roof over your head, etc. Remember also that there are closing costs to pay, and over the years you might have to pay for lighting, sidewalks, a new road, water and sewer lines, etc. as well that you won't get money back from, plus general maintenance on the home or bringing it up to code..
If on the other hand you're asking ';do you have to pay off your mortgage before you buy another home'; then the answer is ';no';.
No. If you can sell for enough to pay the existing mortgage you'd have no problem
You have to pay the mortgage off when selling your home. It will come out of your seller proceeds. Your house may be worth more than when you paid for it and yes you could possibly make $100,000 profit but realisically it may be down the road instead of at the present time. How long have you been in your house? I would suggest you wait to sell your home until you have at least 30% equity in so that if you were to sell your home to an investor, you could possibly receive cash back at the end of your transaction. Also if you are thinking about selling because you are afraid of foreclosure, ask your lender about refinancing or if you don't want the house anymore than ask about a short sale.
To answer your question. That is how money is made in real estate. buy selling the home for more than you paid. When you sell the home if their is a balance the mortgage lender will get the balance, you'll get the difference.
Yes you can sell your house before you pay off the mortgage. The house will be paid off at closing and any money you make above the balance on the mortgage is your profit. Of course with realtors fees and closing costs I doubt you'll clear $100,000 profit.lash liner make up foundation
Few people can afford to pay off their mortgage before they sell.
Normally it's done at closing. Proceeds from sale are used to pay off any debts, lien, taxes so that title can pass without issue.
And No you dont have $100,000 profit.
You are probably getting back your down payment, and possibly a little profit. Some people are LOSING money right now on loans they couldnt afford to begin with: ie, bought house for $700,000, owe $500,000 house now worth $600,000. Loss = $100,000
Cost minus Down Payment = Mortgage AmountDo you have to pay off your mortgage before you can sell your house?
No you do not have to pay off your mortgage before you sell your house. What the buyer pays for your home pays of any liens against the property including the mortgage you have. Good luck!
You can sell your house before you have it paid off. You will have to pay it off at closing I believe (or before)
although that sounds easy, it depends on where you are buying since in some states over the past 8 years the price on houses rose so quickly that now they have plumeted and people selling their homes are both having a heck of a time getting buyers, but are also losing a bundle because the prices of homes in their areas (several states) have decreased a lot....so no profit for them.
Don't think of buying a home for the profit aspect. Buy a home because you need one, want one, maybe for a yard for the children to play in, maybe just to have a roof over your head, etc. Remember also that there are closing costs to pay, and over the years you might have to pay for lighting, sidewalks, a new road, water and sewer lines, etc. as well that you won't get money back from, plus general maintenance on the home or bringing it up to code..
If on the other hand you're asking ';do you have to pay off your mortgage before you buy another home'; then the answer is ';no';.
No. If you can sell for enough to pay the existing mortgage you'd have no problem
You have to pay the mortgage off when selling your home. It will come out of your seller proceeds. Your house may be worth more than when you paid for it and yes you could possibly make $100,000 profit but realisically it may be down the road instead of at the present time. How long have you been in your house? I would suggest you wait to sell your home until you have at least 30% equity in so that if you were to sell your home to an investor, you could possibly receive cash back at the end of your transaction. Also if you are thinking about selling because you are afraid of foreclosure, ask your lender about refinancing or if you don't want the house anymore than ask about a short sale.
To answer your question. That is how money is made in real estate. buy selling the home for more than you paid. When you sell the home if their is a balance the mortgage lender will get the balance, you'll get the difference.
Yes you can sell your house before you pay off the mortgage. The house will be paid off at closing and any money you make above the balance on the mortgage is your profit. Of course with realtors fees and closing costs I doubt you'll clear $100,000 profit.
Any Mortgage banks you could suggest for lower interest rates?
- I am a first time home buyer .
- excellent fico score ( 820+)
- 20-25% down payment
- home price is around $220K
- loan amount is around $165K
Any banks you could suggest who could give me lower interest rates around 4 to 4.2% with zero points ?Any Mortgage banks you could suggest for lower interest rates?
Wells FargoAny Mortgage banks you could suggest for lower interest rates?
If you have mortgage brokers in your area shop your mortgage through them. Many brokers are paid by the financial companies at no cost to yourself (Canada) The broker can shop your mortgage out to many lenders to get the best rate for you.Much easier than looking for your self.
not going to happen. You want your cake and eat it too. There is no money in this for any mortgage professional. We either earn our living off origination or rates. You cannot ask any one to work for free unless you do. So do you work for free?
please please don't allow your credit to be pull a lot first of all it will hurt you for 7 yrs. U can go on line and find mortgage evaluation.
Try an Credit Union, but please watch running your credit.
Looks like the best is about 4.9% with no points. Anything lower is going to cost you points.
- excellent fico score ( 820+)
- 20-25% down payment
- home price is around $220K
- loan amount is around $165K
Any banks you could suggest who could give me lower interest rates around 4 to 4.2% with zero points ?Any Mortgage banks you could suggest for lower interest rates?
Wells FargoAny Mortgage banks you could suggest for lower interest rates?
If you have mortgage brokers in your area shop your mortgage through them. Many brokers are paid by the financial companies at no cost to yourself (Canada) The broker can shop your mortgage out to many lenders to get the best rate for you.Much easier than looking for your self.
not going to happen. You want your cake and eat it too. There is no money in this for any mortgage professional. We either earn our living off origination or rates. You cannot ask any one to work for free unless you do. So do you work for free?
please please don't allow your credit to be pull a lot first of all it will hurt you for 7 yrs. U can go on line and find mortgage evaluation.
Try an Credit Union, but please watch running your credit.
Looks like the best is about 4.9% with no points. Anything lower is going to cost you points.
What should you look for in a mortgage broker?
My bf %26amp; I are in the market of buying house... we are wanting the broker to do a pre-approval to see how much we could qualify for. What do we look for/what kind of questions should we ask.
(This would be our first home)What should you look for in a mortgage broker?
They are getting tougher and tougher on loans because of all the foreclosures. I would just get it from a bank, and skip the broker.What should you look for in a mortgage broker?
I would go to a large mortgage broker company not a broker right now I don't know if any of them are left anyway. (just kidding) Here is one that the government works with as an example
Express Path - lender working w/FHA (private site)
http://www.expresspath.com/home/landscap鈥?/a>
Best of luck to you
look for someone you think you can trust. ask friends about their past experiences and get a referral. i have been a mortgage broker for 23 years, and everyone needs a good mortgage broker.
Don't pick a mortgage broker, pick a mortgage company. If you have good credit go online to Countrywide.com, you can be preapproved and they will assign a local broker for you. They are the largest in the U.S. and have the best rates and terms. If you don't like that idea, go to your bank and talk to them.
Pre-approval means very little by the way. Until you submit an application they can tell you whatever you want to hear.
Mortgage brokers are in a cut-throat business that is very, very tough right now with low turnover of real estate and a credit crunch because of years of bad loans.
That said; I wouldn't deal with a mortgage broker unless I talked to someone I trust who has dealt with them before. Even then, I would ask for the phone numbers of 5 of their clients and I would call them. Someone reputable will give that up in a heartbeat and I'd walk if they weren't prepared to do it on the spot.
This is the biggest financial decision of your life. I'm all for investing in your primary residence - but don't fall in love or do what's expedient. Treat it like the most important financial transaction you'll ever enter and you'll be ok. Good luck!
Use a reputable bank rather than a mortgage broker. Substantial fees will likely be added by the broker and you risk working with a dishonest broker.
Check your credit report before submitting an application. You are entitled to one free report from each of the three credit bureaus once a year at annualcreditreport.com. Review it carefully and immediately report any errors to the reporting bureau and creditor. The process could take as long as two months but it is the additional cost of higher interest.
Inquire about the interest rate. Your local newspaper may give a comparison between banks and lenders. It is possble they'll push for a higher rated based on any number of criteria: too much credit, not enough credit, too high balances, not enough assets, no revolving credit. While a good score is a good start, there will always be a reason to increase you score above the advertised rate. Push hard for a lower rate or take your business else where.
Pre-approval means little or nothing since the ultimate value and cost of the house will also be factored into your ultimate approval. It helps, though to know how much house you may be able to buy.
Don't allow yourself to become anxious and rush through the loan documents. Read and understand every line before signing and make sure there are no blanks. Verify that all terms match the verbal promises.
You may be able to afford a larger house with an adjustble rate, but you income is less likely to grow a quickly as the interest and you could become a foreclosure statistucs. The same is true of 0% interest loans. At one point, you may find yourself among the many foreclosure tragedies that has swept the country.
I would ask the potential broker some knowledge questions. The more knowledgeable, the better. A) What does FHA mean? %26lt;%26lt;Federal Housing Administration%26gt;%26gt; B)What is a COFI arm? %26lt;%26lt;Cost of Funds Index adjustable rate mortgage%26gt;%26gt; C)What is a typical index for a 1yr T-bill ARM? %26lt;%26lt;2.75%26gt;%26gt; D)how much of your closing costs can be paid by the seller with a 95% conventional conforming loan? %26lt;%26lt;3%%26gt;%26gt; E) What are the debt to income ratios on a conventional conforming mortgage loan? %26lt;%26lt;28/36%26gt;%26gt;
You would take your gross base salaries (or avg 2 years of net income if self employed) times 28% = what house payment you can afford. 36% = total housing and other recurring monthly debt you can afford.
Below is a website from Housing and Urban Developement for buyers to use a worksheet to help you figure out how much you can afford, Also, gives a lot of very good information on the most widely used mortgage loans for first time buyer, FHA. Hope it helps.
(This would be our first home)What should you look for in a mortgage broker?
They are getting tougher and tougher on loans because of all the foreclosures. I would just get it from a bank, and skip the broker.What should you look for in a mortgage broker?
I would go to a large mortgage broker company not a broker right now I don't know if any of them are left anyway. (just kidding) Here is one that the government works with as an example
Express Path - lender working w/FHA (private site)
http://www.expresspath.com/home/landscap鈥?/a>
Best of luck to you
look for someone you think you can trust. ask friends about their past experiences and get a referral. i have been a mortgage broker for 23 years, and everyone needs a good mortgage broker.
Don't pick a mortgage broker, pick a mortgage company. If you have good credit go online to Countrywide.com, you can be preapproved and they will assign a local broker for you. They are the largest in the U.S. and have the best rates and terms. If you don't like that idea, go to your bank and talk to them.
Pre-approval means very little by the way. Until you submit an application they can tell you whatever you want to hear.
Mortgage brokers are in a cut-throat business that is very, very tough right now with low turnover of real estate and a credit crunch because of years of bad loans.
That said; I wouldn't deal with a mortgage broker unless I talked to someone I trust who has dealt with them before. Even then, I would ask for the phone numbers of 5 of their clients and I would call them. Someone reputable will give that up in a heartbeat and I'd walk if they weren't prepared to do it on the spot.
This is the biggest financial decision of your life. I'm all for investing in your primary residence - but don't fall in love or do what's expedient. Treat it like the most important financial transaction you'll ever enter and you'll be ok. Good luck!
Use a reputable bank rather than a mortgage broker. Substantial fees will likely be added by the broker and you risk working with a dishonest broker.
Check your credit report before submitting an application. You are entitled to one free report from each of the three credit bureaus once a year at annualcreditreport.com. Review it carefully and immediately report any errors to the reporting bureau and creditor. The process could take as long as two months but it is the additional cost of higher interest.
Inquire about the interest rate. Your local newspaper may give a comparison between banks and lenders. It is possble they'll push for a higher rated based on any number of criteria: too much credit, not enough credit, too high balances, not enough assets, no revolving credit. While a good score is a good start, there will always be a reason to increase you score above the advertised rate. Push hard for a lower rate or take your business else where.
Pre-approval means little or nothing since the ultimate value and cost of the house will also be factored into your ultimate approval. It helps, though to know how much house you may be able to buy.
Don't allow yourself to become anxious and rush through the loan documents. Read and understand every line before signing and make sure there are no blanks. Verify that all terms match the verbal promises.
You may be able to afford a larger house with an adjustble rate, but you income is less likely to grow a quickly as the interest and you could become a foreclosure statistucs. The same is true of 0% interest loans. At one point, you may find yourself among the many foreclosure tragedies that has swept the country.
I would ask the potential broker some knowledge questions. The more knowledgeable, the better. A) What does FHA mean? %26lt;%26lt;Federal Housing Administration%26gt;%26gt; B)What is a COFI arm? %26lt;%26lt;Cost of Funds Index adjustable rate mortgage%26gt;%26gt; C)What is a typical index for a 1yr T-bill ARM? %26lt;%26lt;2.75%26gt;%26gt; D)how much of your closing costs can be paid by the seller with a 95% conventional conforming loan? %26lt;%26lt;3%%26gt;%26gt; E) What are the debt to income ratios on a conventional conforming mortgage loan? %26lt;%26lt;28/36%26gt;%26gt;
You would take your gross base salaries (or avg 2 years of net income if self employed) times 28% = what house payment you can afford. 36% = total housing and other recurring monthly debt you can afford.
Below is a website from Housing and Urban Developement for buyers to use a worksheet to help you figure out how much you can afford, Also, gives a lot of very good information on the most widely used mortgage loans for first time buyer, FHA. Hope it helps.
My 86 year old father holds the mortgage on the home he lives in with my sister. When he passes away can she?
continue to live in the home if she makes the payments?My 86 year old father holds the mortgage on the home he lives in with my sister. When he passes away can she?
Have an attorney draw up a will for your father. You need to have everything in writing, otherwise the courts will divide up the estate as it sees fit when your father passes away.
Since there is more than one relative, each of you is an heir and will be considered an equal inheritor. But it may take months to determine that and a will can avoid the hassle.My 86 year old father holds the mortgage on the home he lives in with my sister. When he passes away can she?
No, she would have to 1.) be willed the home or 2.) be put on title. She needs to be on title, NOW, because if your father does pass away, she will need to refinance the home into her name and the lender will not do that if she is not on title, so add her to title NOW, or she may be faced with problems staying in the property if he passes.
Sure. Why not? If all the people that inherit an interest in the house agree to it then there is no problem. If the heirs want money instead of a piece of real estate then things can get sticky.
One other possible complication is the lender. They may try to call the loan upon your father's passing. If he is the only person on the mortgage note then I am not sure what will happen. The obligation will pass to the estate but after that, again the heirs are going to have to figure out what to do.
if she wants permanent access to the property, have the title deed names changed while hes still alive, the paperwork will be much easier, the taxes and assessments will change as the names are changed, but thats a small loss as compared to the entire property
I think it goes into probate, so no. There is a special way the deed can be written that can allow her to keep the property. Sorry, it has been a few years since I studied that.
yes. but remember that the house must go through probate at the court level in order to maintain a proper chain of title and that it is recognized by the bank
Your 86 year old Dad STILL pays house payments? How sad.
Have an attorney draw up a will for your father. You need to have everything in writing, otherwise the courts will divide up the estate as it sees fit when your father passes away.
Since there is more than one relative, each of you is an heir and will be considered an equal inheritor. But it may take months to determine that and a will can avoid the hassle.My 86 year old father holds the mortgage on the home he lives in with my sister. When he passes away can she?
No, she would have to 1.) be willed the home or 2.) be put on title. She needs to be on title, NOW, because if your father does pass away, she will need to refinance the home into her name and the lender will not do that if she is not on title, so add her to title NOW, or she may be faced with problems staying in the property if he passes.
Sure. Why not? If all the people that inherit an interest in the house agree to it then there is no problem. If the heirs want money instead of a piece of real estate then things can get sticky.
One other possible complication is the lender. They may try to call the loan upon your father's passing. If he is the only person on the mortgage note then I am not sure what will happen. The obligation will pass to the estate but after that, again the heirs are going to have to figure out what to do.
if she wants permanent access to the property, have the title deed names changed while hes still alive, the paperwork will be much easier, the taxes and assessments will change as the names are changed, but thats a small loss as compared to the entire property
I think it goes into probate, so no. There is a special way the deed can be written that can allow her to keep the property. Sorry, it has been a few years since I studied that.
yes. but remember that the house must go through probate at the court level in order to maintain a proper chain of title and that it is recognized by the bank
Your 86 year old Dad STILL pays house payments? How sad.
Will THROWING $ at mortgages that are in FORECLOSURE simply provide yet another OPPORTUNITY for..........?
...irresponsible consumers to continue to mismanage their $ and dig themselves into more financial trouble? How about those industries that need a rescue plan? Shouldn't they be allowed to FAIL and pay the consequences for their shoddy products and lousy management?Will THROWING $ at mortgages that are in FORECLOSURE simply provide yet another OPPORTUNITY for..........?
i highly agree with your statements ,why should financially irresponsible people get away with not paying their bills and why should i pay someone else's we work hard enough to pay our own .Along with bailing out the big 3 auto companies the banks and everyone else no one is their for me if my business should fail.its time to let them collapse i believe new better stronger companies will emerge given the opportunity (without the monopoly ford,gm %26amp;chrysler has held for far too long)Will THROWING $ at mortgages that are in FORECLOSURE simply provide yet another OPPORTUNITY for..........?
And perhaps you should ask why that same theory wasn't applied to the BAILOUT BILL OF THE BANKING and INSURANCE INDUSTRY...I often think that AIG should have been allowed to fail, Fannie Mae/Freddie Mac, and perhaps ALL THOSE holding 401Ks and IRAs and Stocks because the general idea is the RISK IS ENTIRELY ON THE INVESTOR! CORRECT! No need to shore up the stock market and people's retirement accounts especially when folks have been making poor decisions to expose their investments with too much risk...So, if Personal Responsibility is important to you...then let it apply to the RICH as well.
It's a very complicated matter. First of all many home buyers were approved for loans they can never pay. Fannie Mae %26amp; Freddie Mac, Barney Frank, Chris Dodd and lowered loan standards, a debt to loan ratio that wan't followed by lenders and banks because of threats by the feds..... It will work itself out in time. The bail-out is to try and stop the downward spiral in home prices and to slow down the foreclosure rate. Also I think it's designed to keep lenders fluid, active and solvent.
The government + Acorn, Forced these Sub-Prime mortgages on Lenders:
http://www.youtube.com/watch?v=3EyKiOE78鈥?/a>
Acorn using Blackmail on Lenders:
http://www.consumersrightsleague.org/Upl鈥?/a>
They are STILL ISSUING Sub-Prime Mortgages TODAY!!!!
Irresponsible Consumers will always be with us - But the Governments Encouragement of this is Totally Wrong! The numbers have gotten totally out of hand - You would not believe the Trillions Lost in equity values.
The US loans were spread Worldwide by Fanny %26amp; Freddie which is part of the Worldwide Collapse!
';Bail Outs'; will only be temporary - All those companies will STILL GO BROKE ANYWAY - but we will get stuck with the bill.
In the End = A depression will Force people to ';live fiscally responsible';.
So in a way - Depression will be good to get back to conservative values.
Wouldn't you think that it would be better for the banks, municipalities and the people who own the house right now for the house to stay occupied? Therefore, the people will still be paying their mortgages to the banks, still paying taxes to their municipalities and the house will not sit empty keeping the neighborhood attractive and kept up for other home owners and property values and new buyers. As far as the big three goes, you really don't want to hear me go on and on as to why I am for helping them. lol
The government should stay out of it. No one can guarantee someone that their choice to purchase a home will be profitable or not. It's a gamble. Sometimes you win and sometimes you lose. Mostly it varies up and down. I don't think that it is the role of the federal government to bail out someone from a contract that didn't turn out profitable. There are no guarantees. We need to be responsible for ourselves. No one forced anyone to sign on the dotted line.
And yes, my home's value has dropped 30% in two years. That doesn't mean that I am going to abandon my beliefs in self-responsibility and go running to mommy government to make it all better. I took out the loan, I signed on the dotted line and I'm responsible to pay for the loan regardless of what value my home has now. If the value of my home had gone up 30% should the bank have had the right to come in and change our contract to get more money from me? No, and neither should the government require them to change it now.
Don't you realize that the consumers aren't going to see a single penny of bailout money? That cash goes to the banks who, in theory, would re-negotiate the mortgages. People are still required to pay.
The bailout isn't about saving people. It's about saving banks.
I agree, I just think it could be dangerous, it could resemble the crash in the late twenties.
no, because their payments would be lowered. it's not as if they're getting new low interest loans to go out an buy more houses.
Probably
Quite possibly.
i highly agree with your statements ,why should financially irresponsible people get away with not paying their bills and why should i pay someone else's we work hard enough to pay our own .Along with bailing out the big 3 auto companies the banks and everyone else no one is their for me if my business should fail.its time to let them collapse i believe new better stronger companies will emerge given the opportunity (without the monopoly ford,gm %26amp;chrysler has held for far too long)Will THROWING $ at mortgages that are in FORECLOSURE simply provide yet another OPPORTUNITY for..........?
And perhaps you should ask why that same theory wasn't applied to the BAILOUT BILL OF THE BANKING and INSURANCE INDUSTRY...I often think that AIG should have been allowed to fail, Fannie Mae/Freddie Mac, and perhaps ALL THOSE holding 401Ks and IRAs and Stocks because the general idea is the RISK IS ENTIRELY ON THE INVESTOR! CORRECT! No need to shore up the stock market and people's retirement accounts especially when folks have been making poor decisions to expose their investments with too much risk...So, if Personal Responsibility is important to you...then let it apply to the RICH as well.
It's a very complicated matter. First of all many home buyers were approved for loans they can never pay. Fannie Mae %26amp; Freddie Mac, Barney Frank, Chris Dodd and lowered loan standards, a debt to loan ratio that wan't followed by lenders and banks because of threats by the feds..... It will work itself out in time. The bail-out is to try and stop the downward spiral in home prices and to slow down the foreclosure rate. Also I think it's designed to keep lenders fluid, active and solvent.
The government + Acorn, Forced these Sub-Prime mortgages on Lenders:
http://www.youtube.com/watch?v=3EyKiOE78鈥?/a>
Acorn using Blackmail on Lenders:
http://www.consumersrightsleague.org/Upl鈥?/a>
They are STILL ISSUING Sub-Prime Mortgages TODAY!!!!
Irresponsible Consumers will always be with us - But the Governments Encouragement of this is Totally Wrong! The numbers have gotten totally out of hand - You would not believe the Trillions Lost in equity values.
The US loans were spread Worldwide by Fanny %26amp; Freddie which is part of the Worldwide Collapse!
';Bail Outs'; will only be temporary - All those companies will STILL GO BROKE ANYWAY - but we will get stuck with the bill.
In the End = A depression will Force people to ';live fiscally responsible';.
So in a way - Depression will be good to get back to conservative values.
Wouldn't you think that it would be better for the banks, municipalities and the people who own the house right now for the house to stay occupied? Therefore, the people will still be paying their mortgages to the banks, still paying taxes to their municipalities and the house will not sit empty keeping the neighborhood attractive and kept up for other home owners and property values and new buyers. As far as the big three goes, you really don't want to hear me go on and on as to why I am for helping them. lol
The government should stay out of it. No one can guarantee someone that their choice to purchase a home will be profitable or not. It's a gamble. Sometimes you win and sometimes you lose. Mostly it varies up and down. I don't think that it is the role of the federal government to bail out someone from a contract that didn't turn out profitable. There are no guarantees. We need to be responsible for ourselves. No one forced anyone to sign on the dotted line.
And yes, my home's value has dropped 30% in two years. That doesn't mean that I am going to abandon my beliefs in self-responsibility and go running to mommy government to make it all better. I took out the loan, I signed on the dotted line and I'm responsible to pay for the loan regardless of what value my home has now. If the value of my home had gone up 30% should the bank have had the right to come in and change our contract to get more money from me? No, and neither should the government require them to change it now.
Don't you realize that the consumers aren't going to see a single penny of bailout money? That cash goes to the banks who, in theory, would re-negotiate the mortgages. People are still required to pay.
The bailout isn't about saving people. It's about saving banks.
I agree, I just think it could be dangerous, it could resemble the crash in the late twenties.
no, because their payments would be lowered. it's not as if they're getting new low interest loans to go out an buy more houses.
Probably
Quite possibly.
How can I stop receiving unwanted loan & mortgage offers?
I am constantly getting unknown %26amp; unwanted names offering me mortgage offers loan offers.
How do I stop them sending e mails? Ia there a registry?How can I stop receiving unwanted loan %26amp; mortgage offers?
add their names and domains to your blocked sender list
the bad thing as soon as you block one name...they come back with 10 more...so it is a constant process.
if you are using yahoo.mail...you can report them as spam also.
good luck
How do I stop them sending e mails? Ia there a registry?How can I stop receiving unwanted loan %26amp; mortgage offers?
add their names and domains to your blocked sender list
the bad thing as soon as you block one name...they come back with 10 more...so it is a constant process.
if you are using yahoo.mail...you can report them as spam also.
good luck
Can I take out more on a mortgage than what I need to buy a house?
If I take out a mortgage for a 10000 dollar home, can I take out more for moving costs and such?Can I take out more on a mortgage than what I need to buy a house?
Dont do it. You probably could, somewhere, maybe. Maybe their are still programs out there like that. But unfortunately with a question like that the sad fact is, you cannot afford a home. Save a year or so. Have cash ready. You need to be prepared to own a home. Your on the right track. Talk to your bank. See what programs they have for you. BUT, be cautios, its a big responsibility.Can I take out more on a mortgage than what I need to buy a house?
All of the money from the loan must be allocated at closing. It cannot be given to you for your own personal use. You could allocate some money into an escrow account, payable to a moving company. Ask your realtor how this works, they should be familiar with the process.
you will be lucky to get a mortgage that small at all - might have to get a different kind of loan-with a higher int rate-and no, you won;t be able to get it for more than the cost of the house and you'll still need cash for downpayment and closing costs
Not for the purpose you describe. However, there are mortgages that allow you to get 'more than you need' to purchase the home to make improvements to your new home. Talk to your mortgage broker.
No. Mortgage companies generally only allow extra to cover closing costs and some mortgages will allow extra if the house is in need of repairs. The repairs generally have to be extensive though.
No you cannot.
No.lash liner make up foundation
Dont do it. You probably could, somewhere, maybe. Maybe their are still programs out there like that. But unfortunately with a question like that the sad fact is, you cannot afford a home. Save a year or so. Have cash ready. You need to be prepared to own a home. Your on the right track. Talk to your bank. See what programs they have for you. BUT, be cautios, its a big responsibility.Can I take out more on a mortgage than what I need to buy a house?
All of the money from the loan must be allocated at closing. It cannot be given to you for your own personal use. You could allocate some money into an escrow account, payable to a moving company. Ask your realtor how this works, they should be familiar with the process.
you will be lucky to get a mortgage that small at all - might have to get a different kind of loan-with a higher int rate-and no, you won;t be able to get it for more than the cost of the house and you'll still need cash for downpayment and closing costs
Not for the purpose you describe. However, there are mortgages that allow you to get 'more than you need' to purchase the home to make improvements to your new home. Talk to your mortgage broker.
No. Mortgage companies generally only allow extra to cover closing costs and some mortgages will allow extra if the house is in need of repairs. The repairs generally have to be extensive though.
No you cannot.
No.
If an attorney asks for your recorded mortgage, what is he talking about?
I have an appointment with an attorney and he gave me a list of papers to bring. One of the items on the list was Recorded Mortgage. This was listed separate from Monthly Mortgage Statement. What exactly is the Recorded Mortgage? Is he looking for the big packet of papers that we signed at the closing table when we bought the place? The Deed was also listed separate, so I know he isn't talking about that either. Can anyone tell me what the attorney is looking for? I need to know ASAP. Thank you.If an attorney asks for your recorded mortgage, what is he talking about?
When you buy a home, two things are usually recorded with the County Register of Deeds: the deed to the property and the mortgage (or Deed of Trust) for the bank. Usually you can find this on the county website (do a search for your county's register of deeds) where the home is located. Most county's now have everything on-line so do a search for your name and it should come up. This is recorded to show the that the bank has a lien (or interest) in your home until the loan is paid off. If an attorney asks for your recorded mortgage, what is he talking about?
Yes, the packet. He wants the contract that you signed and agreed to.
When you buy a home, two things are usually recorded with the County Register of Deeds: the deed to the property and the mortgage (or Deed of Trust) for the bank. Usually you can find this on the county website (do a search for your county's register of deeds) where the home is located. Most county's now have everything on-line so do a search for your name and it should come up. This is recorded to show the that the bank has a lien (or interest) in your home until the loan is paid off. If an attorney asks for your recorded mortgage, what is he talking about?
Yes, the packet. He wants the contract that you signed and agreed to.
I receive a letter from united state mortgage crisis center with hope now bill and they could help should I go
They want to help me reduce my payments but I have to paid them 325.00 and they refinance my house for me should I do it? They contact my current lender and negotiate with them to lower my payments.I receive a letter from united state mortgage crisis center with hope now bill and they could help should I go
Sounds like a scam, you can contact your lender yourself.I receive a letter from united state mortgage crisis center with hope now bill and they could help should I go
NO ! These folks aren't going to refinance your mortgage, in all probability. They will merely attempt to do the work required in order to convince your current mortgage lender to modify your payment terms. Many of these offers are not worthwhile in the least. You should contact your lender DIRECTLY and try to do the same on your own.
that is a con; you can do it for free.
they cannot promise what any lender will do.
scam
Sounds like a scam, you can contact your lender yourself.I receive a letter from united state mortgage crisis center with hope now bill and they could help should I go
NO ! These folks aren't going to refinance your mortgage, in all probability. They will merely attempt to do the work required in order to convince your current mortgage lender to modify your payment terms. Many of these offers are not worthwhile in the least. You should contact your lender DIRECTLY and try to do the same on your own.
that is a con; you can do it for free.
they cannot promise what any lender will do.
scam
Does participating in debt management affect future mortgage applications?
The short answer is yes. It will show up on your report and is almost as bad as a bankruptcy. It stays on the report for at least seven years and as long as ten years.
Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. There is a better way.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an ';emergency fund'; category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for ';fun'; to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn't as hard as you think. Just follow the planDoes participating in debt management affect future mortgage applications?
In the UK?
Debt management is an informal arrangement between yourself and your creditors usually run by a 3rd party company,
If you enter debt management your creditors will often issue default notices against you, these will damage your credit rating but not too seriously to stop you from applying for mortgages.
Defaults will stay on your credit file for 6 years from the date the notice was issued.
The IVA is a different arrangement. It is a formal 5 year procedure which should be on your credit file for 6 years from the start of the arrangement.Does participating in debt management affect future mortgage applications?
No, if you get an IVA you get a clean slate after 5 years, which is the lenght of the IVA, the debt management company will confirm this for you
Don't believe everything you hear.
The simple answer is YES.
Even the none mainstream companies will be reluctant to touch you.
Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. There is a better way.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an ';emergency fund'; category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for ';fun'; to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn't as hard as you think. Just follow the planDoes participating in debt management affect future mortgage applications?
In the UK?
Debt management is an informal arrangement between yourself and your creditors usually run by a 3rd party company,
If you enter debt management your creditors will often issue default notices against you, these will damage your credit rating but not too seriously to stop you from applying for mortgages.
Defaults will stay on your credit file for 6 years from the date the notice was issued.
The IVA is a different arrangement. It is a formal 5 year procedure which should be on your credit file for 6 years from the start of the arrangement.Does participating in debt management affect future mortgage applications?
No, if you get an IVA you get a clean slate after 5 years, which is the lenght of the IVA, the debt management company will confirm this for you
Don't believe everything you hear.
The simple answer is YES.
Even the none mainstream companies will be reluctant to touch you.
Housing mortgage bailout? How will it effect responsible home owners?
Are the interest rates going to go up or down? Is this a good time to try and refinance for a better rate? We have owned our home for about 8 years and never been late on a payment. We are responsible home owners. Will this whole thing make the value of our house decline?Housing mortgage bailout? How will it effect responsible home owners?
hopefully a more stable economy.
I gotta figure there will be more people chasing after less money; thus classic supply and demand will probably raise rates for anyone not sponging off the government here.Housing mortgage bailout? How will it effect responsible home owners?
It should avert mass foreclosures which have sunk all real estate values and made so many of our national banks nearly insolvent.
Mark Haines, who I like a lot, said on CNBC that this would teach a generation of borrowers that its okay to over borrow because the federal government will bail them out if things get bad enough, Then he said something about letting capitalism work. But capitalism hasn't been working normally since Greenspan depressed interest rates in the wake of the dot com bubble.
To use a baseball analogy, it was steroids in the form of cheap money and easy credit that juiced the American economy over a 6-7 year period. Now the steroid era is over, and the economy has collapsed. It has to be rebuilt without steroids, and that is a slow and painful and uncertain process. It's easy to suggest that everybody who can't pay their mortgage for whatever reason should lose their home, but that means that those people will have to be supported by state and federal governments with housing assistance, maybe health insurance and food stamps and with other types of relief.
One way or the other federal intervention is needed and necessary, and if it comes in the form of helping people stay in their homes by restructuring their mortgage debt, I would say that this is an appropriate response with the potential for multiple benefits for the American economy if the real estate markets are stabilized.
If you can refinance now to a low 30 year fixed rate, why wouldn't you? You'll have a lower debt service that will enable you to save more, invest more, reduce more debt, or consume more.
Good luck.
1. if you have the credit scores and the equity, than now is a great time to refinance.
2. the mortgage bailout will hopefully keep more people in their homes. less foreclosures means that home prices might begin to stablize. this is the result of simple ';supply and demand'; economics.
Becareful about refi. Read the fee schedule and read every detail. Banks are really ramping up on fee's.. I have heard stories of people doing refi's now and paying a $1500 dollar application fee and then getting denied even though they have stellar credit. Banks are going after peoples wallets
鈾?I think if you can get a better interest rate, then take advantage of that and do it. I think the value of your home will decline some, but will go back up in a couple years.
in order:
the short term rates are artificially being lowered to spur corporate borrowing, as well as restart the ailing housing markets. these rates will begin to creep up as banks are no longer able to show a profit, and must entice both borrowing and also depositing of funds (our savings is what they lend to others, taking a cut and giving us part of the interest earned).
If you have good credit,
are confident that you are safe in your job for the foreseeable future,
intend to keep the home at least 7 years (the time it typically takes to see savings equal to the cost of re-financing),
or
can shorten the term of repayment (keep same payment but pay off in a few less years due to lower rate)
then re-fi may be a good thing to consider
Finally, yes, the re-adjusting of home values could lower your home's value, if you live in an area where there are:
too many homes for the demand
too few qualified buyers for the size/cost of your type of home
too high cost of construction to be affordable (housing starts are dropping as a result of developers not being able to turn over the homes already built for a profit)
Seriously inflated prices for premium homes or as a result of too few homes for the type of buyer in your price range (supply limited by the above condition can result in your home being over-valued for an economic cycle, but that cycle has ended, and you may be stuck with a house that cost more than what it is really worth on the market). What is even worse is if you owe more than you can realize on a property, which is why so many folks are opting to let their homes revert to the lender, to get out of a negative equity position.
these ';bad borrowers'; are the reason for this present crisis,
not that the borrowers intended to default, they just are cutting their losses and passing them on to other consumers
not every personal bankruptcy is because a person is morally bankrupt as well (they just aren't as prudent perhaps as other purchasers).
Hopefully you will weather this, and if you don't intend to sell in the near future, your home value will eventually increase again, just like 401Ks and IRAs will rebound, but it's tough to think in the short term about the losses suffered...
at least if your assets diminished you will get a reduced tax burden this year....
hopefully a more stable economy.
I gotta figure there will be more people chasing after less money; thus classic supply and demand will probably raise rates for anyone not sponging off the government here.Housing mortgage bailout? How will it effect responsible home owners?
It should avert mass foreclosures which have sunk all real estate values and made so many of our national banks nearly insolvent.
Mark Haines, who I like a lot, said on CNBC that this would teach a generation of borrowers that its okay to over borrow because the federal government will bail them out if things get bad enough, Then he said something about letting capitalism work. But capitalism hasn't been working normally since Greenspan depressed interest rates in the wake of the dot com bubble.
To use a baseball analogy, it was steroids in the form of cheap money and easy credit that juiced the American economy over a 6-7 year period. Now the steroid era is over, and the economy has collapsed. It has to be rebuilt without steroids, and that is a slow and painful and uncertain process. It's easy to suggest that everybody who can't pay their mortgage for whatever reason should lose their home, but that means that those people will have to be supported by state and federal governments with housing assistance, maybe health insurance and food stamps and with other types of relief.
One way or the other federal intervention is needed and necessary, and if it comes in the form of helping people stay in their homes by restructuring their mortgage debt, I would say that this is an appropriate response with the potential for multiple benefits for the American economy if the real estate markets are stabilized.
If you can refinance now to a low 30 year fixed rate, why wouldn't you? You'll have a lower debt service that will enable you to save more, invest more, reduce more debt, or consume more.
Good luck.
1. if you have the credit scores and the equity, than now is a great time to refinance.
2. the mortgage bailout will hopefully keep more people in their homes. less foreclosures means that home prices might begin to stablize. this is the result of simple ';supply and demand'; economics.
Becareful about refi. Read the fee schedule and read every detail. Banks are really ramping up on fee's.. I have heard stories of people doing refi's now and paying a $1500 dollar application fee and then getting denied even though they have stellar credit. Banks are going after peoples wallets
鈾?I think if you can get a better interest rate, then take advantage of that and do it. I think the value of your home will decline some, but will go back up in a couple years.
in order:
the short term rates are artificially being lowered to spur corporate borrowing, as well as restart the ailing housing markets. these rates will begin to creep up as banks are no longer able to show a profit, and must entice both borrowing and also depositing of funds (our savings is what they lend to others, taking a cut and giving us part of the interest earned).
If you have good credit,
are confident that you are safe in your job for the foreseeable future,
intend to keep the home at least 7 years (the time it typically takes to see savings equal to the cost of re-financing),
or
can shorten the term of repayment (keep same payment but pay off in a few less years due to lower rate)
then re-fi may be a good thing to consider
Finally, yes, the re-adjusting of home values could lower your home's value, if you live in an area where there are:
too many homes for the demand
too few qualified buyers for the size/cost of your type of home
too high cost of construction to be affordable (housing starts are dropping as a result of developers not being able to turn over the homes already built for a profit)
Seriously inflated prices for premium homes or as a result of too few homes for the type of buyer in your price range (supply limited by the above condition can result in your home being over-valued for an economic cycle, but that cycle has ended, and you may be stuck with a house that cost more than what it is really worth on the market). What is even worse is if you owe more than you can realize on a property, which is why so many folks are opting to let their homes revert to the lender, to get out of a negative equity position.
these ';bad borrowers'; are the reason for this present crisis,
not that the borrowers intended to default, they just are cutting their losses and passing them on to other consumers
not every personal bankruptcy is because a person is morally bankrupt as well (they just aren't as prudent perhaps as other purchasers).
Hopefully you will weather this, and if you don't intend to sell in the near future, your home value will eventually increase again, just like 401Ks and IRAs will rebound, but it's tough to think in the short term about the losses suffered...
at least if your assets diminished you will get a reduced tax burden this year....
Are adjustable rate mortgages a good idea?
Never, when interest rates go down, your mortgage will not. When they go up your rate will go up. I am not sure why that person said an arm may be a good idea.
People who opt for mortgages other than fixed either have bad credit or don't know any better. The mortgage company's get you hooked by giving you a rate of 1% the first year and then it increases. Arms give you an extremely low rate then jump up extremely high to make up for those years. They assume you will have more money and be in a better financial position. Your best bet for any mortgage if you have good credit is fixed with the going rate at the current time.Are adjustable rate mortgages a good idea?
yes - great idea
no reason to pay a higher % for a fixed rate when you won't get any benefit out of it when you refinance 3-5 years later
and the guy that said no, you're a moron.Are adjustable rate mortgages a good idea?
yes this is good idea if you have bought a home where the payment will be going higher. If you need help with a mortagage plz give me a call jim 703918 0033 ext 28
i am sure to get you the best price and rates and a excellent deal
take care
jim
thats a big question my man.. Ive sold tons of arms..
it depends how long youre going to be int he hsoue.. what kind of property etc.. if youre going to be in the house 5 years a 3-27 or 3-37 arm is acceptable. you have to look at how high it can go up every year. some are .25% some are 2% per year. then work out your payment. also pay attention to pre payment penaltys. ive also sold 2 year arms (fixed for the first two years olny) and put a 5 year pre payment penaly on them. No re fi or sale without paying off 5% of the loan amount straight to the bank out of the proceeds. jsut use common sense. if youre goign to stay int hat house forever go with a 30 or 40 year fixed rate.
If its investment propert or you plan on flipping it get an adjustable.
Rule no. 1. Do not buy too much house. Dont say well the rates cant go up so i guess i can afford this.. wrong.. the rates were at 18% not too long ago and they could go right back. and guess what? youll be in the long line of people begging for a refinance on a property in foreclosure. good luck. youre gonna need it. lots of hidden danger in mortgages.
It depends on the terms of the mortgage. If you get a mortgage when the rates a relatively high, and can see that rates are going to stay the same or decrease in years to come, there may be a benefit to an ARM.
No one can predict the future. I think it is more practical to have a fixed rate mortgage. The only thing that goes up are real estate taxes.
ARM's are perfectly safe loans. They allow you the lowest rate, in the event your not creditworthy, gives you an opportunity to clean up some issues, and all the while, in most cases you property is increasing in value and when it's time to get in a fixed loan, your financial situation will be more favorable. If you are creditworthy, then good for you. That proves that you are finacially savvy enough to take advantage of this and any other loan product that's out there. In most cases, borrowers refinance out of the arm product before the adjustment period kicks in. They are usually fixed for 2 to 5 years, in some cases up to 10.
People who opt for mortgages other than fixed either have bad credit or don't know any better. The mortgage company's get you hooked by giving you a rate of 1% the first year and then it increases. Arms give you an extremely low rate then jump up extremely high to make up for those years. They assume you will have more money and be in a better financial position. Your best bet for any mortgage if you have good credit is fixed with the going rate at the current time.Are adjustable rate mortgages a good idea?
yes - great idea
no reason to pay a higher % for a fixed rate when you won't get any benefit out of it when you refinance 3-5 years later
and the guy that said no, you're a moron.Are adjustable rate mortgages a good idea?
yes this is good idea if you have bought a home where the payment will be going higher. If you need help with a mortagage plz give me a call jim 703918 0033 ext 28
i am sure to get you the best price and rates and a excellent deal
take care
jim
thats a big question my man.. Ive sold tons of arms..
it depends how long youre going to be int he hsoue.. what kind of property etc.. if youre going to be in the house 5 years a 3-27 or 3-37 arm is acceptable. you have to look at how high it can go up every year. some are .25% some are 2% per year. then work out your payment. also pay attention to pre payment penaltys. ive also sold 2 year arms (fixed for the first two years olny) and put a 5 year pre payment penaly on them. No re fi or sale without paying off 5% of the loan amount straight to the bank out of the proceeds. jsut use common sense. if youre goign to stay int hat house forever go with a 30 or 40 year fixed rate.
If its investment propert or you plan on flipping it get an adjustable.
Rule no. 1. Do not buy too much house. Dont say well the rates cant go up so i guess i can afford this.. wrong.. the rates were at 18% not too long ago and they could go right back. and guess what? youll be in the long line of people begging for a refinance on a property in foreclosure. good luck. youre gonna need it. lots of hidden danger in mortgages.
It depends on the terms of the mortgage. If you get a mortgage when the rates a relatively high, and can see that rates are going to stay the same or decrease in years to come, there may be a benefit to an ARM.
No one can predict the future. I think it is more practical to have a fixed rate mortgage. The only thing that goes up are real estate taxes.
ARM's are perfectly safe loans. They allow you the lowest rate, in the event your not creditworthy, gives you an opportunity to clean up some issues, and all the while, in most cases you property is increasing in value and when it's time to get in a fixed loan, your financial situation will be more favorable. If you are creditworthy, then good for you. That proves that you are finacially savvy enough to take advantage of this and any other loan product that's out there. In most cases, borrowers refinance out of the arm product before the adjustment period kicks in. They are usually fixed for 2 to 5 years, in some cases up to 10.
Want a divorce but own a house w/2 mortgages not enough equity HELP!?
I want to divorce my husband but we have 2 mortgages the house is not worth what we owe. How do you get out of this? I am told that if we sold the house we would still owe what's left, we don't have that money avail. I don't understand the short sale, I just want to divorce my husband and he can't afford the house himself. What is a person to do?Want a divorce but own a house w/2 mortgages not enough equity HELP!?
Hire a good Real Estate attorney with Foreclosure experience. Explain your situation, and have them request a short sale. That is the process of offering your lender less money then what is owed on the house. A good attorney is best at this process. My experience with lenders is they aren't good at working with the public on short sales, they often won't return your calls, but they HAVE to legally answer an attorney, so find a good one that handles only real estate. If the lender thinks you are going to bail on the mortgage, then he might just take a short sale. Or call your lender and explain the situation and maybe they will refinance the house with lesser payments because of the hardship.
Other options, bancruptcy or foreclosure. Have you spoken with your divorce attorney? What does he recommend?
Vicki Watzlawick
Broker Owner
Exit Platinum Realtylash liner make up foundation
Hire a good Real Estate attorney with Foreclosure experience. Explain your situation, and have them request a short sale. That is the process of offering your lender less money then what is owed on the house. A good attorney is best at this process. My experience with lenders is they aren't good at working with the public on short sales, they often won't return your calls, but they HAVE to legally answer an attorney, so find a good one that handles only real estate. If the lender thinks you are going to bail on the mortgage, then he might just take a short sale. Or call your lender and explain the situation and maybe they will refinance the house with lesser payments because of the hardship.
Other options, bancruptcy or foreclosure. Have you spoken with your divorce attorney? What does he recommend?
Vicki Watzlawick
Broker Owner
Exit Platinum Realty
Can mortgage interest paid by spouses be split if they are now divorced?
We (husband and wife) sold our house in January 2007. We used to file a joint return.Through escrow, there was $2,087.94 in mortgage interest paid. We always filed jointly, but since we divorced mid-2007, we will fill single.
Can the mortgage interest be split 50/50?Can mortgage interest paid by spouses be split if they are now divorced?
Yes, it is the same as having a business partner. You may be divorced but after the divorce you were partners in the property. When you receive the 1099 from the bank just make a copy for you ex-spouse so they have documentation for their filing and you are good to go to deduct 50% each. Good Luck!Can mortgage interest paid by spouses be split if they are now divorced?
Sure it can be split.
Can the mortgage interest be split 50/50?Can mortgage interest paid by spouses be split if they are now divorced?
Yes, it is the same as having a business partner. You may be divorced but after the divorce you were partners in the property. When you receive the 1099 from the bank just make a copy for you ex-spouse so they have documentation for their filing and you are good to go to deduct 50% each. Good Luck!Can mortgage interest paid by spouses be split if they are now divorced?
Sure it can be split.
In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults do I lose?
In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults on his mortgage and loses his property in foreclosure, do I also lose my mineral rights? Can I redeem my mineral rights? What are my options in this kind of situation?In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults do I lose?
Generally if he has a mortgage in place, and THEN conveys the mineral rights, without having the lender join in, and the property is foreclosed, you are IMHO out of luck. The mineral rights would be subject to the mortgage.
The lender should have conveyed his interest just as he should release interest in an outsale of a few acres.In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults do I lose?
I would do some Googling and other research on this if I were you, because I've always been told that mineral rights and surface rights are two separate things. If a person had a mortgage out on a bunch of land, and sold you a few acres of it, he would first have to survey the land separately from the land he intends to keep and work through the lender to sell you that parcel so that he can either give you a title to it, or (if you took out a loan to buy it) allow your lender to place a lien on it. Mineral rights are not surface rights and are usually sold as completely separate real estate. If the home owner sold you the mineral rights, you should have gotten some sort of title, deed, certificate---I don't know what, but you should have gotten something that showed you bought it. It wouldn't matter then what happens on the surface because you have paid for the mineral rights way below. In fact, most people who own pieces of property (like myself) don't even know who owns the mineral rights because it has nothing to do with the surface property. It could be sold 50 times to different owners and you'd never know it. The way it was explained to me was that buying a home with mineral rights would be like buying a house along with the car that's parked in the garage. You might buy them at the same time, but they are completely unrelated and each have their own title. You could sell the car, and provide the buyer with the title....then that same car could sell 50 more times and it would have no effect on your house. If you had some sort of arrangement with the owner of the mineral rights where you were making the payments directly to him, I might question whether or not he even owned the rights in the first place. Find out if his home mortgage loan included a loan for the mineral rights, or if owned them outright. Again, this is all either my opinion or what I've been told in the past so, if I were in that predicament and could possibly lose my mineral rights, I believe I'd be contacting me a real estate lawyer, pronto.
Generally if he has a mortgage in place, and THEN conveys the mineral rights, without having the lender join in, and the property is foreclosed, you are IMHO out of luck. The mineral rights would be subject to the mortgage.
The lender should have conveyed his interest just as he should release interest in an outsale of a few acres.In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults do I lose?
I would do some Googling and other research on this if I were you, because I've always been told that mineral rights and surface rights are two separate things. If a person had a mortgage out on a bunch of land, and sold you a few acres of it, he would first have to survey the land separately from the land he intends to keep and work through the lender to sell you that parcel so that he can either give you a title to it, or (if you took out a loan to buy it) allow your lender to place a lien on it. Mineral rights are not surface rights and are usually sold as completely separate real estate. If the home owner sold you the mineral rights, you should have gotten some sort of title, deed, certificate---I don't know what, but you should have gotten something that showed you bought it. It wouldn't matter then what happens on the surface because you have paid for the mineral rights way below. In fact, most people who own pieces of property (like myself) don't even know who owns the mineral rights because it has nothing to do with the surface property. It could be sold 50 times to different owners and you'd never know it. The way it was explained to me was that buying a home with mineral rights would be like buying a house along with the car that's parked in the garage. You might buy them at the same time, but they are completely unrelated and each have their own title. You could sell the car, and provide the buyer with the title....then that same car could sell 50 more times and it would have no effect on your house. If you had some sort of arrangement with the owner of the mineral rights where you were making the payments directly to him, I might question whether or not he even owned the rights in the first place. Find out if his home mortgage loan included a loan for the mineral rights, or if owned them outright. Again, this is all either my opinion or what I've been told in the past so, if I were in that predicament and could possibly lose my mineral rights, I believe I'd be contacting me a real estate lawyer, pronto.
Are responsible feminists angry that Obama's mortgage plan will force them to subsidize irresponsible men?
Since feminist women have worked so hard to build highly remunerable careers, buy homes, pay their taxes and otherwise behave as responsible citizens, does it anger them that Obama's mortgage plan will require them to pay the mortgages of many irresponsible (and probably misogynistic) men?Are responsible feminists angry that Obama's mortgage plan will force them to subsidize irresponsible men?
No, I'm mad that irresponsible lenders put people in houses they couldn't afford in the first place, and that the CEO's of companies that needed to be bailed out with a trillion dollars of our tax payer money STILL ';earned'; their six figure bonuses despite the company almost going completely under. THAT is an irresponsible use of tax payer dollars. I don't think we should keep those fat cats in jets and yatchs while other people are potentially being put on the street. I'm fine helping poor people stay in their homes, not so much with helping billionaires make another billion, THIS time at the tax payer's expense.
BTW, how DOES someone earn a bonus when the company is going bankrupt?Are responsible feminists angry that Obama's mortgage plan will force them to subsidize irresponsible men?
If I paid taxes (which I don't because I'm 19 and not working during the school year), I wouldn't be upset with having some of my tax money diverted to help out homeowners in dire straits. They need it more than I do. And as Obama made clear, only those who played by the rules would be rewarded with this new stimulus.
feminist movement = ruination of the family unit.
Cut it out already.
what Know it All said
No, I'm mad that irresponsible lenders put people in houses they couldn't afford in the first place, and that the CEO's of companies that needed to be bailed out with a trillion dollars of our tax payer money STILL ';earned'; their six figure bonuses despite the company almost going completely under. THAT is an irresponsible use of tax payer dollars. I don't think we should keep those fat cats in jets and yatchs while other people are potentially being put on the street. I'm fine helping poor people stay in their homes, not so much with helping billionaires make another billion, THIS time at the tax payer's expense.
BTW, how DOES someone earn a bonus when the company is going bankrupt?Are responsible feminists angry that Obama's mortgage plan will force them to subsidize irresponsible men?
If I paid taxes (which I don't because I'm 19 and not working during the school year), I wouldn't be upset with having some of my tax money diverted to help out homeowners in dire straits. They need it more than I do. And as Obama made clear, only those who played by the rules would be rewarded with this new stimulus.
feminist movement = ruination of the family unit.
Cut it out already.
what Know it All said
In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults do I lose?
In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults on his mortgage and loses his property in foreclosure, do I also lose my mineral rights? Can I redeem my mineral rights? What are my options in this kind of situation?In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults do I lose?
Generally if he has a mortgage in place, and THEN conveys the mineral rights, without having the lender join in, and the property is foreclosed, you are IMHO out of luck. The mineral rights would be subject to the mortgage.
The lender should have conveyed his interest just as he should release interest in an outsale of a few acres.In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults do I lose?
I would do some Googling and other research on this if I were you, because I've always been told that mineral rights and surface rights are two separate things. If a person had a mortgage out on a bunch of land, and sold you a few acres of it, he would first have to survey the land separately from the land he intends to keep and work through the lender to sell you that parcel so that he can either give you a title to it, or (if you took out a loan to buy it) allow your lender to place a lien on it. Mineral rights are not surface rights and are usually sold as completely separate real estate. If the home owner sold you the mineral rights, you should have gotten some sort of title, deed, certificate---I don't know what, but you should have gotten something that showed you bought it. It wouldn't matter then what happens on the surface because you have paid for the mineral rights way below. In fact, most people who own pieces of property (like myself) don't even know who owns the mineral rights because it has nothing to do with the surface property. It could be sold 50 times to different owners and you'd never know it. The way it was explained to me was that buying a home with mineral rights would be like buying a house along with the car that's parked in the garage. You might buy them at the same time, but they are completely unrelated and each have their own title. You could sell the car, and provide the buyer with the title....then that same car could sell 50 more times and it would have no effect on your house. If you had some sort of arrangement with the owner of the mineral rights where you were making the payments directly to him, I might question whether or not he even owned the rights in the first place. Find out if his home mortgage loan included a loan for the mineral rights, or if owned them outright. Again, this is all either my opinion or what I've been told in the past so, if I were in that predicament and could possibly lose my mineral rights, I believe I'd be contacting me a real estate lawyer, pronto.
Generally if he has a mortgage in place, and THEN conveys the mineral rights, without having the lender join in, and the property is foreclosed, you are IMHO out of luck. The mineral rights would be subject to the mortgage.
The lender should have conveyed his interest just as he should release interest in an outsale of a few acres.In Texas, if I buy mineral rights from a homeowner who has an existing mortgage then he defaults do I lose?
I would do some Googling and other research on this if I were you, because I've always been told that mineral rights and surface rights are two separate things. If a person had a mortgage out on a bunch of land, and sold you a few acres of it, he would first have to survey the land separately from the land he intends to keep and work through the lender to sell you that parcel so that he can either give you a title to it, or (if you took out a loan to buy it) allow your lender to place a lien on it. Mineral rights are not surface rights and are usually sold as completely separate real estate. If the home owner sold you the mineral rights, you should have gotten some sort of title, deed, certificate---I don't know what, but you should have gotten something that showed you bought it. It wouldn't matter then what happens on the surface because you have paid for the mineral rights way below. In fact, most people who own pieces of property (like myself) don't even know who owns the mineral rights because it has nothing to do with the surface property. It could be sold 50 times to different owners and you'd never know it. The way it was explained to me was that buying a home with mineral rights would be like buying a house along with the car that's parked in the garage. You might buy them at the same time, but they are completely unrelated and each have their own title. You could sell the car, and provide the buyer with the title....then that same car could sell 50 more times and it would have no effect on your house. If you had some sort of arrangement with the owner of the mineral rights where you were making the payments directly to him, I might question whether or not he even owned the rights in the first place. Find out if his home mortgage loan included a loan for the mineral rights, or if owned them outright. Again, this is all either my opinion or what I've been told in the past so, if I were in that predicament and could possibly lose my mineral rights, I believe I'd be contacting me a real estate lawyer, pronto.
Are responsible feminists angry that Obama's mortgage plan will force them to subsidize irresponsible men?
Since feminist women have worked so hard to build highly remunerable careers, buy homes, pay their taxes and otherwise behave as responsible citizens, does it anger them that Obama's mortgage plan will require them to pay the mortgages of many irresponsible (and probably misogynistic) men?Are responsible feminists angry that Obama's mortgage plan will force them to subsidize irresponsible men?
No, I'm mad that irresponsible lenders put people in houses they couldn't afford in the first place, and that the CEO's of companies that needed to be bailed out with a trillion dollars of our tax payer money STILL ';earned'; their six figure bonuses despite the company almost going completely under. THAT is an irresponsible use of tax payer dollars. I don't think we should keep those fat cats in jets and yatchs while other people are potentially being put on the street. I'm fine helping poor people stay in their homes, not so much with helping billionaires make another billion, THIS time at the tax payer's expense.
BTW, how DOES someone earn a bonus when the company is going bankrupt?Are responsible feminists angry that Obama's mortgage plan will force them to subsidize irresponsible men?
If I paid taxes (which I don't because I'm 19 and not working during the school year), I wouldn't be upset with having some of my tax money diverted to help out homeowners in dire straits. They need it more than I do. And as Obama made clear, only those who played by the rules would be rewarded with this new stimulus.
feminist movement = ruination of the family unit.
Cut it out already.
what Know it All said
No, I'm mad that irresponsible lenders put people in houses they couldn't afford in the first place, and that the CEO's of companies that needed to be bailed out with a trillion dollars of our tax payer money STILL ';earned'; their six figure bonuses despite the company almost going completely under. THAT is an irresponsible use of tax payer dollars. I don't think we should keep those fat cats in jets and yatchs while other people are potentially being put on the street. I'm fine helping poor people stay in their homes, not so much with helping billionaires make another billion, THIS time at the tax payer's expense.
BTW, how DOES someone earn a bonus when the company is going bankrupt?Are responsible feminists angry that Obama's mortgage plan will force them to subsidize irresponsible men?
If I paid taxes (which I don't because I'm 19 and not working during the school year), I wouldn't be upset with having some of my tax money diverted to help out homeowners in dire straits. They need it more than I do. And as Obama made clear, only those who played by the rules would be rewarded with this new stimulus.
feminist movement = ruination of the family unit.
Cut it out already.
what Know it All said
What will happend for not paying the mortgage loan to bank?
my father have a mortgage loan from Allahabad Bank since 2000.he got a loan Rs.2lacs for years.He was an employee in a private company,but since last 11 months he was left from his job, now he is about 53years %26amp; totally unemployed.for this reason we're completely unable to pay the EMI to the bank for last 9 months, now we've nothing to give to the bank.If this situation will going on, then what will happen with us.Will bank force to leave the house?What will happend for not paying the mortgage loan to bank?
You are very lucky they haven't already thrown you out, most banks are knocking on your door if you are a month late.
They will eventually kick you out and sell the house.What will happend for not paying the mortgage loan to bank?
When payment of the loan guaranteed by a mortgage on real property is defaulted, the bank has the right to sue and execute the mortgage. This is to mean, the bank declares de loan due in its totality, sues for payment in full, after some procedural events the court enters judgment against your father for the full amount owed. If he pays, nothing happens. If he does not pay the amount in full plus legal fees and other charges contained and expressed in the judgment, the court will proceed to order the sale of the property in a public auction. The proceeds of the sale are used for payment of the loan. If the property is sold for more than what was owed, the difference belongs to your father. If the proceeds of the public sale are not enough to pay the amount expressed in the judgment, then your father remains as debtor for the difference. Normally the bank is the sole auctioneer and becomes owner of the property, If the amount offered by the bank is lower than the total amount of the debt as per the judgment, your father remains as a debtor for the difference and the bank has the right to make good the judgment on any other property owned by your father. Adian.
Bank may recall the loan and can have the right of auction of the Mortgaged property but it takes some time. And you will also be informed.lash liner make up foundation
You are very lucky they haven't already thrown you out, most banks are knocking on your door if you are a month late.
They will eventually kick you out and sell the house.What will happend for not paying the mortgage loan to bank?
When payment of the loan guaranteed by a mortgage on real property is defaulted, the bank has the right to sue and execute the mortgage. This is to mean, the bank declares de loan due in its totality, sues for payment in full, after some procedural events the court enters judgment against your father for the full amount owed. If he pays, nothing happens. If he does not pay the amount in full plus legal fees and other charges contained and expressed in the judgment, the court will proceed to order the sale of the property in a public auction. The proceeds of the sale are used for payment of the loan. If the property is sold for more than what was owed, the difference belongs to your father. If the proceeds of the public sale are not enough to pay the amount expressed in the judgment, then your father remains as debtor for the difference. Normally the bank is the sole auctioneer and becomes owner of the property, If the amount offered by the bank is lower than the total amount of the debt as per the judgment, your father remains as a debtor for the difference and the bank has the right to make good the judgment on any other property owned by your father. Adian.
Bank may recall the loan and can have the right of auction of the Mortgaged property but it takes some time. And you will also be informed.
Can I sell my half of the mortgage to a bank?
I am currently broken up with my ex and we own a home together with both of our names on the deed.
I am moving out and want to sell, but he won't. So can I sell my half of the mortgage?Can I sell my half of the mortgage to a bank?
NOPE.
u can however do a 'forced sale' where he either buys u out and off the mortgages or u/he sell the house.
either way expect of have money loss.
NEVER EVER do a 'quit deed' that takes u off the deed and control of property BUT NOT the liability of the mortgage due.Can I sell my half of the mortgage to a bank?
No. In order to get off the original mortgage, he needs to refin in his name only. If there is any equity, it would be split.
Until then, you are responsible if he doesn't pay.
THIS IS THE REASON NOT TO PURCHASE REAL ESTATE IF YOU ARE DATING.
Nope, you sure can't.
You'll have to go to court and ask a judge to force the sale of the home, and you will be entitled to 50% of the equity, but ONLY if equity exists.
A judge will give your ex first option to buy you out, but if he can't qualify, a sale will take place.
No, and even in the divorce if he is given the house you might still owe on the mortgage. You don't owe half a mortgage each of you owes 100% it just depends who they can get to pay. I wouldn't move out until the divorce is final and the mortgage is refinanced.
I am moving out and want to sell, but he won't. So can I sell my half of the mortgage?Can I sell my half of the mortgage to a bank?
NOPE.
u can however do a 'forced sale' where he either buys u out and off the mortgages or u/he sell the house.
either way expect of have money loss.
NEVER EVER do a 'quit deed' that takes u off the deed and control of property BUT NOT the liability of the mortgage due.Can I sell my half of the mortgage to a bank?
No. In order to get off the original mortgage, he needs to refin in his name only. If there is any equity, it would be split.
Until then, you are responsible if he doesn't pay.
THIS IS THE REASON NOT TO PURCHASE REAL ESTATE IF YOU ARE DATING.
Nope, you sure can't.
You'll have to go to court and ask a judge to force the sale of the home, and you will be entitled to 50% of the equity, but ONLY if equity exists.
A judge will give your ex first option to buy you out, but if he can't qualify, a sale will take place.
No, and even in the divorce if he is given the house you might still owe on the mortgage. You don't owe half a mortgage each of you owes 100% it just depends who they can get to pay. I wouldn't move out until the divorce is final and the mortgage is refinanced.
Why would someone who has a fixed mortgage rate and a steady income wish to sell their house now?
why and how so?
meaning this is really a bad time to sell a house, in this type of circumstance??
why and how so??
thanks for your answers!Why would someone who has a fixed mortgage rate and a steady income wish to sell their house now?
They may be offered a better job in another city. Or, maybe they are in the military and they are being re-assigned to another duty location. Sometimes, you have no choice. Other times, you have a choice, but the opportunity is greater if you relocate.Why would someone who has a fixed mortgage rate and a steady income wish to sell their house now?
Maybe they don't have a choice. He/she has been transferred by the employer. An elderly parent needs help. A child needs to be closer to a hospital.
There are all kinds of reasons why people need to move.
Not all of us look at our home as a financial asset. It's a place to gather and shelter and feel at ease. Sometimes circumstances change that.
meaning this is really a bad time to sell a house, in this type of circumstance??
why and how so??
thanks for your answers!Why would someone who has a fixed mortgage rate and a steady income wish to sell their house now?
They may be offered a better job in another city. Or, maybe they are in the military and they are being re-assigned to another duty location. Sometimes, you have no choice. Other times, you have a choice, but the opportunity is greater if you relocate.Why would someone who has a fixed mortgage rate and a steady income wish to sell their house now?
Maybe they don't have a choice. He/she has been transferred by the employer. An elderly parent needs help. A child needs to be closer to a hospital.
There are all kinds of reasons why people need to move.
Not all of us look at our home as a financial asset. It's a place to gather and shelter and feel at ease. Sometimes circumstances change that.
What's rationale of giving up home that's less the value of the mortgage? Won't value rise in the long term?
There's been much debate about people giving up their homes (i.e. returning keys to bank) because the house value is less than the mortgage. But what's the rationale? Won't the value in the long term rise again and exceed the mortgage? Also, by paying off the monthly mortgage, the amount owing to the bank will reduce anyway, benefiting the owner.What's rationale of giving up home that's less the value of the mortgage? Won't value rise in the long term?
You are correct - If you can make the mortgage payments and hold onto the house, then in the long term you will probably do OK.
But some people can't afford to make the mortgage payments. There can be many reasons for this, including people who lost their job. Another reason is that their adjustable mortgage payment went up, and they can't refinance because their house value went down (i.e. the value of the house is less than the amount of the loan).
Someone who absolutely can't make the mortgage payments, or someone who absolutely has to move (for example, to take a job in another city) will have to sell the house in order to pay back the loan. But if the loan was (for example) $300k, and the house sells for $200k, then they owe the lender $100k in cash in order to pay off the loan. That is a lot of cash.
The loan agreement was that you pay your mortgage, or else the bank gets the house. Well, some people just say to the lender, I can't pay the mortgage, just take the house. This does not always let the person who defaults entirely off the hook, but if they do not have significant income or assets, there is little the bank can do to recover anything.
Anyway, this is the rationale.What's rationale of giving up home that's less the value of the mortgage? Won't value rise in the long term?
There is no rationale to what these people are doing. Your approach is the correct approach. For some reason, many people view or viewed their personal residence as a real estate investment. It's not. They bought a place to live. Investment real estate is other than the residence in which on resides.
You are correct - If you can make the mortgage payments and hold onto the house, then in the long term you will probably do OK.
But some people can't afford to make the mortgage payments. There can be many reasons for this, including people who lost their job. Another reason is that their adjustable mortgage payment went up, and they can't refinance because their house value went down (i.e. the value of the house is less than the amount of the loan).
Someone who absolutely can't make the mortgage payments, or someone who absolutely has to move (for example, to take a job in another city) will have to sell the house in order to pay back the loan. But if the loan was (for example) $300k, and the house sells for $200k, then they owe the lender $100k in cash in order to pay off the loan. That is a lot of cash.
The loan agreement was that you pay your mortgage, or else the bank gets the house. Well, some people just say to the lender, I can't pay the mortgage, just take the house. This does not always let the person who defaults entirely off the hook, but if they do not have significant income or assets, there is little the bank can do to recover anything.
Anyway, this is the rationale.What's rationale of giving up home that's less the value of the mortgage? Won't value rise in the long term?
There is no rationale to what these people are doing. Your approach is the correct approach. For some reason, many people view or viewed their personal residence as a real estate investment. It's not. They bought a place to live. Investment real estate is other than the residence in which on resides.
I want to know how to access the goverment web site about home owners mortgage modification?
Ive been trying to find this website for a couple of daysI want to know how to access the goverment web site about home owners mortgage modification?
Google ';Federal Home Mortgage Modification'; and its' the 5th one down.
Google ';Federal Home Mortgage Modification'; and its' the 5th one down.
Is it better to sell some investments and pay %100 cash for a home or is it better to get a mortgage?
Would the tax benefits of the mortgage outweigh the income from the dividends? - Providing that I have good credit and that capital gains tax is not an issue with the sale of the investments.
So basically is it better to have a fully paid off home or to keep that money in the stock market?Is it better to sell some investments and pay %100 cash for a home or is it better to get a mortgage?
If your investments are earning more than you are paying in a mortgage interest rate than its always better to get a mortgage. For instance if your mortgage interest rate is 5%, and your investments are getting you 10% than obviously you are going to make more money with you investment than with the house.
Another factor is to look at what your LONG term rate of of house value could go up. The nation average over the past 20 years is 7%, subtract out your 5% mortage and you get a return of investment of 2% + whatever your cash is earning invested, 10%. Total return of 12% opposed to just the 7% if you paid in cash.
Keep in mind, you can't just sell you house immediately if something comes up and you need money like you can with stocks or mutual funds.Is it better to sell some investments and pay %100 cash for a home or is it better to get a mortgage?
I think that the best way to decide would be to look at the Rate of Return on your investiments , will they exceed the increase in value of your home annually usually about 3-5% depending on the area you live in. You also have to look at regardless of credit if you have a mortgage over 80% of the value of the home you will have to have Personal Mortgage Insurance, which runs about $70 monthly per 100k. This is not tax deductible unless you until this year you have an annual income not exceeding 120k.
This is not a problem most people have. Either way you seem to be in good shape.
The tax question first - you get a $10,000 standard deduction (married joint or $5,000 single). If you have enough deductions without mortgage interest and RE taxes to itemize then you get full advantage of paying these. Assume a 40% federal and state tax rate - then a 6% mortgage costs you only 3.6%. Pretty cheap money. If you cannot itemize then you only get part of the tax advantage of the interest RE tax payments making your cost somewhat higher.
Next as an investor you should know about leverage. Let's say you buy a $100,000 house with 20% ($20,000) down. Next let's say the house only appreciates 2% next year or $2,000. That gives you 10% on your $20,000 investment. Next year say with principle payments you have $21,000 invested and it appreciates another 2% ($2040) it gives you a 9.7% return on your $21,000 investment. The third year say you get a 5% increase in the home's value and thru principle payments you have $22,200 invested. Your return ($5,200) is over 23% on your investment. Your average return over 3 years is over 14% a year. A pretty darn good return because of the 5 to 1 leaverage by mortgaging.
I don't know what you earn on your money, but it would seem to me you would want the leverage of a mortgage and let your investments ride. If things change you can always cash your investments in and pay off the mortgage, because mortgaging gives you high returns in even a morderately rising market.
JMHO
I think you want to have a mortgage so you dont have a bunch of cash tied up in a house..it doesnt make you any money until you sell it, whereas in the mean time you are losing out on the possibilites of investing.
Get a mortgage. 100% financing or put down no more than 20%. Their are plenty of lenders that will not require you to pay PMI for 100% loans.
So basically is it better to have a fully paid off home or to keep that money in the stock market?Is it better to sell some investments and pay %100 cash for a home or is it better to get a mortgage?
If your investments are earning more than you are paying in a mortgage interest rate than its always better to get a mortgage. For instance if your mortgage interest rate is 5%, and your investments are getting you 10% than obviously you are going to make more money with you investment than with the house.
Another factor is to look at what your LONG term rate of of house value could go up. The nation average over the past 20 years is 7%, subtract out your 5% mortage and you get a return of investment of 2% + whatever your cash is earning invested, 10%. Total return of 12% opposed to just the 7% if you paid in cash.
Keep in mind, you can't just sell you house immediately if something comes up and you need money like you can with stocks or mutual funds.Is it better to sell some investments and pay %100 cash for a home or is it better to get a mortgage?
I think that the best way to decide would be to look at the Rate of Return on your investiments , will they exceed the increase in value of your home annually usually about 3-5% depending on the area you live in. You also have to look at regardless of credit if you have a mortgage over 80% of the value of the home you will have to have Personal Mortgage Insurance, which runs about $70 monthly per 100k. This is not tax deductible unless you until this year you have an annual income not exceeding 120k.
This is not a problem most people have. Either way you seem to be in good shape.
The tax question first - you get a $10,000 standard deduction (married joint or $5,000 single). If you have enough deductions without mortgage interest and RE taxes to itemize then you get full advantage of paying these. Assume a 40% federal and state tax rate - then a 6% mortgage costs you only 3.6%. Pretty cheap money. If you cannot itemize then you only get part of the tax advantage of the interest RE tax payments making your cost somewhat higher.
Next as an investor you should know about leverage. Let's say you buy a $100,000 house with 20% ($20,000) down. Next let's say the house only appreciates 2% next year or $2,000. That gives you 10% on your $20,000 investment. Next year say with principle payments you have $21,000 invested and it appreciates another 2% ($2040) it gives you a 9.7% return on your $21,000 investment. The third year say you get a 5% increase in the home's value and thru principle payments you have $22,200 invested. Your return ($5,200) is over 23% on your investment. Your average return over 3 years is over 14% a year. A pretty darn good return because of the 5 to 1 leaverage by mortgaging.
I don't know what you earn on your money, but it would seem to me you would want the leverage of a mortgage and let your investments ride. If things change you can always cash your investments in and pay off the mortgage, because mortgaging gives you high returns in even a morderately rising market.
JMHO
I think you want to have a mortgage so you dont have a bunch of cash tied up in a house..it doesnt make you any money until you sell it, whereas in the mean time you are losing out on the possibilites of investing.
Get a mortgage. 100% financing or put down no more than 20%. Their are plenty of lenders that will not require you to pay PMI for 100% loans.
What is a typical penalty charge that you would recieve if you repaid your mortgage early?
It was taken out in march 2007 0n a fixed term of 5 years i think (its not for me so am a bit sketchy on details).It was also a remortgage for 拢70,000.
Thanks for all answersWhat is a typical penalty charge that you would recieve if you repaid your mortgage early?
Sounds like you're in the UK based on the denominations you speak of. Here in the States the typical penalty is 0%. Very few institutions charge any kind of penalty for early payment of a mortgage. What is a typical penalty charge that you would recieve if you repaid your mortgage early?
Unfortunately prepayment penalties are a lot more common than most people realize. A lot of people have them, but never realize it. The terms of the prepayment penalty can vary greatly. Some lenders will charge 1-3% of the loan balance at the time of the payoff. Some will charge 6 months of interest. It all depends on your loan program and how it was structured. You'll want to pull out that big packet of information that you received at closing and grab your mortgage NOTE. It will say ';mortgage'; or ';note'; at the top and will contain a section that refers to whether or not you will be subject to a prepayment penalty.lash liner make up foundation
Thanks for all answersWhat is a typical penalty charge that you would recieve if you repaid your mortgage early?
Sounds like you're in the UK based on the denominations you speak of. Here in the States the typical penalty is 0%. Very few institutions charge any kind of penalty for early payment of a mortgage. What is a typical penalty charge that you would recieve if you repaid your mortgage early?
Unfortunately prepayment penalties are a lot more common than most people realize. A lot of people have them, but never realize it. The terms of the prepayment penalty can vary greatly. Some lenders will charge 1-3% of the loan balance at the time of the payoff. Some will charge 6 months of interest. It all depends on your loan program and how it was structured. You'll want to pull out that big packet of information that you received at closing and grab your mortgage NOTE. It will say ';mortgage'; or ';note'; at the top and will contain a section that refers to whether or not you will be subject to a prepayment penalty.
What does 'WAN' mean when related to mortgage lending regulatory compliance?
I'm reading some documents I ran accross online which references ';prohibited WAN practices and practices'; when covering anti-predatory lending and high-cost mortgage loans. I've searched every wehre i can think of to locate the definition of ';WAN'; but have yet to find anything.What does 'WAN' mean when related to mortgage lending regulatory compliance?
The only thing I could think of would be ';Wide Area Network'; ... =P
The only thing I could think of would be ';Wide Area Network'; ... =P
What does 'WAN' mean when related to mortgage lending regulatory compliance?
I'm reading some documents I ran accross online which references ';prohibited WAN practices and practices'; when covering anti-predatory lending and high-cost mortgage loans. I've searched every wehre i can think of to locate the definition of ';WAN'; but have yet to find anything.What does 'WAN' mean when related to mortgage lending regulatory compliance?
The only thing I could think of would be ';Wide Area Network'; ... =P
The only thing I could think of would be ';Wide Area Network'; ... =P
Will I be able to get a mortgage? I have a bad credit rating but I do have $40K and looking for a 120K house?
I want to know if I will be able to get a mortgage from anywhere even though I have very bad credit from the past. I have $40 K for a down payment and the houses I am looking at are around $120k.
I do have a full time job grossing $700 a week so what am I looking at here?Will I be able to get a mortgage? I have a bad credit rating but I do have $40K and looking for a 120K house?
I don't know how bad your credit is nor do I know your credit scores.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
Make sure your mortgage broker explain all your options so you may make an intelligent decision.
What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
So select the best option for you and your financial situation.
You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
I hope this has been of some use to you, good luck
';FIGHT ON';Will I be able to get a mortgage? I have a bad credit rating but I do have $40K and looking for a 120K house?
your income should be fine for what you are trying to do. FHA is probably out of the question if your credit is bad. it would help to know scores and what is exactly on your credit report. You may be able to do a conventional loan since you have such a large portion to put down. I'm sure you could find a broker to find a loan for you since you are only looking for a LTV of around 70%. Good luck with it.
I bet you can find a foreclosure for 40k and own it outright. Some people bought 3 years ago and were forced to move on military orders. They foreclose, and you reap the benefits even though you have bad credit. And they probably didn'tn have bad credit but now they do because of the foreclosure. Ironic ain't it?
In today's market, it is very doubtful you will find a bank or federally regulated institution willing to loan to you. Your best chance it to look for private mortgage money that comes from places like family trust and private investors.
Private Lenders charge higher interest because the risk they take is greater than the risk banks will take.
One other source may be to look for OWC (Owner Will Carry) properties. The seller is willing to take a contract and have you make payments to him through an escrow company.
You probably can get one from a lender that specializes in poor credit. You will have to pay more upfront and more in interest. Really what it is - is a 'crap'; loan. I would refinance as soon as your credit starts to improve. But from here, I predict rates will be going back up - not down. So your bad rate now, might not be so bad later, just make sure you get a FIXED rate - not one of those ADJ ones!!!
No, in addition to the credit issue the low income will prevent a loan. You will be hard pressed to make payments for the house, taxes and insurance, and your credit rating proves that you do not step up when hard pressed, you default.
I would check in to an FHA loan program. There guide lines for credit is much lower. In MN I think the lowest credit score is 585. Remember that in order to tell if you qualify for a loan they take all 3 reports but they only use the one in the middle
freecreditreport.hotusa.org - try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.
I do have a full time job grossing $700 a week so what am I looking at here?Will I be able to get a mortgage? I have a bad credit rating but I do have $40K and looking for a 120K house?
I don't know how bad your credit is nor do I know your credit scores.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
Make sure your mortgage broker explain all your options so you may make an intelligent decision.
What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
So select the best option for you and your financial situation.
You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
I hope this has been of some use to you, good luck
';FIGHT ON';Will I be able to get a mortgage? I have a bad credit rating but I do have $40K and looking for a 120K house?
your income should be fine for what you are trying to do. FHA is probably out of the question if your credit is bad. it would help to know scores and what is exactly on your credit report. You may be able to do a conventional loan since you have such a large portion to put down. I'm sure you could find a broker to find a loan for you since you are only looking for a LTV of around 70%. Good luck with it.
I bet you can find a foreclosure for 40k and own it outright. Some people bought 3 years ago and were forced to move on military orders. They foreclose, and you reap the benefits even though you have bad credit. And they probably didn'tn have bad credit but now they do because of the foreclosure. Ironic ain't it?
In today's market, it is very doubtful you will find a bank or federally regulated institution willing to loan to you. Your best chance it to look for private mortgage money that comes from places like family trust and private investors.
Private Lenders charge higher interest because the risk they take is greater than the risk banks will take.
One other source may be to look for OWC (Owner Will Carry) properties. The seller is willing to take a contract and have you make payments to him through an escrow company.
You probably can get one from a lender that specializes in poor credit. You will have to pay more upfront and more in interest. Really what it is - is a 'crap'; loan. I would refinance as soon as your credit starts to improve. But from here, I predict rates will be going back up - not down. So your bad rate now, might not be so bad later, just make sure you get a FIXED rate - not one of those ADJ ones!!!
No, in addition to the credit issue the low income will prevent a loan. You will be hard pressed to make payments for the house, taxes and insurance, and your credit rating proves that you do not step up when hard pressed, you default.
I would check in to an FHA loan program. There guide lines for credit is much lower. In MN I think the lowest credit score is 585. Remember that in order to tell if you qualify for a loan they take all 3 reports but they only use the one in the middle
freecreditreport.hotusa.org - try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.
I have an investment property and can not rent for the amount close to mortgage and HOA. I don't earn much?
I am planning to put for SHOER Sale. Will that affect to my day to day life?I have an investment property and can not rent for the amount close to mortgage and HOA. I don't earn much?
Do you mean a short sale?
The effects will be very dependent on your state.
If you don't need credit in your every day life then it shouldn't change at all.I have an investment property and can not rent for the amount close to mortgage and HOA. I don't earn much?
Sorry, the only reference I can find for the word SHOER refers to horses. Please explain a little more.
What does SHOER mean???
Do you mean a short sale?
The effects will be very dependent on your state.
If you don't need credit in your every day life then it shouldn't change at all.I have an investment property and can not rent for the amount close to mortgage and HOA. I don't earn much?
Sorry, the only reference I can find for the word SHOER refers to horses. Please explain a little more.
What does SHOER mean???
Will mortgage lenders penalise someone who has a small / no deposit by only offering a higher interest rate?
And is it true that banks avoid people who want 100% mortgages?Will mortgage lenders penalise someone who has a small / no deposit by only offering a higher interest rate?
No, it depends upon their credit history.
There are 3 categories
1.Sub prime (very bad credit history)
2. Near Prime (not bad)
3. prime (very good)
So, sub prime customers get very high interest rate to avoid risk involved in lending.
This is how it is calculatedWill mortgage lenders penalise someone who has a small / no deposit by only offering a higher interest rate?
Yes - after all, if they have to foreclose, they will not get 100% of the value of the house back.
Most high street banks dont offer 100% mortgages but its best that you contact a few brokers who can do all the legg work for you, just becareful on how much they these other companies charge for a 100% mortagage!
Yes you will have to pay a slightly higher rate then normal but then you cant have everything!
With the way the market is going you maybe better off saving a depoist and watch what happens to the housing market over the next 6 month. Im sure the bank will lower their rates again to get the market moving again.
Yes.
To get the best rate you need a 40% deposit (i.e. borrow max. 60%).
Typically, if you borrow 80% or over they will insist you pay out for Payment Protection Insurance.
Few places offer 100% anymore .. those that do will have high 'application fees', long 'tie-ins' / penalty clauses and typically offer higher rates (or no 'special offers')
it depends on your credit score%26gt; for your intrest rate... the interest rate is always negotiable too.
lenders can still do 100%, but after all the arms %26amp; subprime loans going in forclosure, they are really trying not too. again what is your score???
Many banks and even FHA loans are asking for 20% down and give backs from the builders. I sold a house I built, and the FHA bank was asking for a 10 year warranty. Unreal.
Housing prices are not going up in most places. but that is still based on LOCATION%26gt; My advice is to do some checking to see what a existing house sold for last time. Doing some leg work at the recorders office can save you MANY thousands. and give you a much better bargaining position.
The larger the deposit often means a better rate.
Not many high street banks offer 100% mortgages but there are lenders who do. Speak to a mortgage broker who will have access to the whole market.
Best advice is to speak to an IFA (independent financial advisor)
It is true, some banks won't lend 100%. some charge a higher interest rate the greater the %age they lend.
an IFA will be able to explain the ins and outs... try and get one by personal recommendation.... most don't charge for an initial meeting
No, it depends upon their credit history.
There are 3 categories
1.Sub prime (very bad credit history)
2. Near Prime (not bad)
3. prime (very good)
So, sub prime customers get very high interest rate to avoid risk involved in lending.
This is how it is calculatedWill mortgage lenders penalise someone who has a small / no deposit by only offering a higher interest rate?
Yes - after all, if they have to foreclose, they will not get 100% of the value of the house back.
Most high street banks dont offer 100% mortgages but its best that you contact a few brokers who can do all the legg work for you, just becareful on how much they these other companies charge for a 100% mortagage!
Yes you will have to pay a slightly higher rate then normal but then you cant have everything!
With the way the market is going you maybe better off saving a depoist and watch what happens to the housing market over the next 6 month. Im sure the bank will lower their rates again to get the market moving again.
Yes.
To get the best rate you need a 40% deposit (i.e. borrow max. 60%).
Typically, if you borrow 80% or over they will insist you pay out for Payment Protection Insurance.
Few places offer 100% anymore .. those that do will have high 'application fees', long 'tie-ins' / penalty clauses and typically offer higher rates (or no 'special offers')
it depends on your credit score%26gt; for your intrest rate... the interest rate is always negotiable too.
lenders can still do 100%, but after all the arms %26amp; subprime loans going in forclosure, they are really trying not too. again what is your score???
Many banks and even FHA loans are asking for 20% down and give backs from the builders. I sold a house I built, and the FHA bank was asking for a 10 year warranty. Unreal.
Housing prices are not going up in most places. but that is still based on LOCATION%26gt; My advice is to do some checking to see what a existing house sold for last time. Doing some leg work at the recorders office can save you MANY thousands. and give you a much better bargaining position.
The larger the deposit often means a better rate.
Not many high street banks offer 100% mortgages but there are lenders who do. Speak to a mortgage broker who will have access to the whole market.
Best advice is to speak to an IFA (independent financial advisor)
It is true, some banks won't lend 100%. some charge a higher interest rate the greater the %age they lend.
an IFA will be able to explain the ins and outs... try and get one by personal recommendation.... most don't charge for an initial meeting
Can I rent out my ex-council property without having a buy-to-let mortgage?
I am about to buy the council property I live in. Does anyone know for certain, or have experience in buying a council property, and then renting it out? Also, so you know whether I would definitely need a buy-to-let mortgage to do so? And, could I rent to a relative?
Please let me know.Can I rent out my ex-council property without having a buy-to-let mortgage?
you have to have permission from your mortgage lender as technically, they own the house. theres no reason why you shouldn't rent to relatives as long as you have a formal tenancy agreement.Can I rent out my ex-council property without having a buy-to-let mortgage?
Yes, once you own it you can rent it out, the restrictions are on selling it. You can rent it to who you like, you are the owner. You cannot sell within 3 years or you will have to pay back the discount you got - in other words, pay the full market price.
A buy to let mortgage is no different from any other mortgage - I had ordinary mortgages on all my letting properties - paid them off now, though. Go for it.
There may be a proviso in the purchase arrangements with your council which restricts what you can do with the property for a certain length of time afterwards - some councils do, some don't. I'd check with them if I were you.
Regarding the mortgage, most mortgage lenders are happy for you to rent out, providing there's a formal arrangement in place. Mind you, some lenders don't even notice that you are doing that, as long as the payments are kept up they're happy!
Yes lots of people do but your not supposed to, when i bought my council property 1 year ago i got a mortgage which would let me rent out, and when i do it will be a case of paying 拢100 one off fee, u must let your insurance company know, as its not worth the hassle if anything were to go wrong, yes you can rent to relatives, and if you are on any benefits you may have to pay tax on the extra you make on what your mortgage payment was. you can rent but you can sell within a certain time mine is within 5 years, due to those greedy people who bought to sell asap!
No, you don't need a buy-to-let. Once you have a mortgage in place, the house is yours and you can do what you like with it. You don't have to tell them you're going to let it out. As long as you keep up the repayments, they really don't care.
You can sell when you like too. Rent to whoever you fancy. If you get a buy to let, your lender will need you to prove that you'll be able to get a rental return high enough to cover the mortgage.
Call your local council, They would tell you for sure.
Good luck
You would need to let your mortgage company know if you are renting out the property.
Ask your financial adviser (make sure he/she is independent, as this gives you more lenders to choose from)
Try inside track Google them.
no you don't need a buy to let mortgage it should be no problem.as long as you make your lender aware of your intention to rent it out.they may charge you a small yearly fee.any insurers would also need to know.good lucklash liner homemade mask
Please let me know.Can I rent out my ex-council property without having a buy-to-let mortgage?
you have to have permission from your mortgage lender as technically, they own the house. theres no reason why you shouldn't rent to relatives as long as you have a formal tenancy agreement.Can I rent out my ex-council property without having a buy-to-let mortgage?
Yes, once you own it you can rent it out, the restrictions are on selling it. You can rent it to who you like, you are the owner. You cannot sell within 3 years or you will have to pay back the discount you got - in other words, pay the full market price.
A buy to let mortgage is no different from any other mortgage - I had ordinary mortgages on all my letting properties - paid them off now, though. Go for it.
There may be a proviso in the purchase arrangements with your council which restricts what you can do with the property for a certain length of time afterwards - some councils do, some don't. I'd check with them if I were you.
Regarding the mortgage, most mortgage lenders are happy for you to rent out, providing there's a formal arrangement in place. Mind you, some lenders don't even notice that you are doing that, as long as the payments are kept up they're happy!
Yes lots of people do but your not supposed to, when i bought my council property 1 year ago i got a mortgage which would let me rent out, and when i do it will be a case of paying 拢100 one off fee, u must let your insurance company know, as its not worth the hassle if anything were to go wrong, yes you can rent to relatives, and if you are on any benefits you may have to pay tax on the extra you make on what your mortgage payment was. you can rent but you can sell within a certain time mine is within 5 years, due to those greedy people who bought to sell asap!
No, you don't need a buy-to-let. Once you have a mortgage in place, the house is yours and you can do what you like with it. You don't have to tell them you're going to let it out. As long as you keep up the repayments, they really don't care.
You can sell when you like too. Rent to whoever you fancy. If you get a buy to let, your lender will need you to prove that you'll be able to get a rental return high enough to cover the mortgage.
Call your local council, They would tell you for sure.
Good luck
You would need to let your mortgage company know if you are renting out the property.
Ask your financial adviser (make sure he/she is independent, as this gives you more lenders to choose from)
Try inside track Google them.
no you don't need a buy to let mortgage it should be no problem.as long as you make your lender aware of your intention to rent it out.they may charge you a small yearly fee.any insurers would also need to know.good luck
I need to know what recourse my mortgage company has or will take against my rental property?
I have a rental property that hasn't been rented for over 6 months because of vacanacies and foreclosures in the neighborhood. Other than taking the house back and screwing up my credit I'm wondering what the bank will most likely due to me if I stop paying the mortagage...will they come after my assets?I need to know what recourse my mortgage company has or will take against my rental property?
Sure they will. You went after their money.
Investments have no protections. You might try filing for bankruptcy, but you need to sell all of your assets to do that as well.I need to know what recourse my mortgage company has or will take against my rental property?
I believe that your lender will come after your assets if you default on your mortgage payments, especially on an investment property.
You should probably check with a legal adviser so you can know what to expect, especially if your investment property is in another state from where you live. Different laws may apply, but which? The ones where the property is? Or, where you live?
Yes.
But only if the foreclosure sale isn't enough to cover the balance. What you may do to save your credit is re-check the market rate for rental...if you aren't renting it you are charging too much. Foreclosures have absolutely nothing to do with the rental market..in fact, when foreclosures are high, rental rates GO UP, b/c the displaced homeowners can't buy another house.
Of course they will and the IRS will tax you on the total bank loss.
This property is NOT!!!! protected against the bank coming after you.
YOU CAN';T JUST WALK AWAY. Talk with a lawyer.
The lender will come after you for what you put up as collateral for the loan you got on your property.
Look at your loan docs you signed at the closing for your mortgage it will list that collateral.
Now about coming after additional assets. This is called a deficiency judgment, the name alone indicate they have to go to court, hire additional attorneys to defend themselves. While they are in court they can not do anything with the property that is being contested.
Mostly what they do is write off any loss they have on their federal income tax.
So any additional assets you have will not be ok.
I don't know why others continue to say a lender will go after a person in foreclosure for a deficiency judgment. I have been in the real estate/mortgage field in some way or the other since 1979 and have heard of a deficiency judgment only once of a lender seeking one. The lender went after this person because the house was burnt to the ground.
If you look at the foreclosure procedure used by most lenders they do not even go to court for the foreclosure, even though most states allow two types of foreclosure procedures.
#1 Non-judicial foreclosure
#2 Judicial foreclosure
Most lenders use the non judicial foreclosure because they stay out of the court system, it is very fast, they can immediately dispose of the property if it does not sell at the foreclosure auction.
If they use the judicial foreclosure procedure they are at the mercy of the court calendar. They can come after you for a deficiency judgment using this procedure. Under this procedure you are also entitled to reclaim the property for up to a year in some states. Since you are entitled to redeem the property they must keep it for this redemption period.
Which procedure would most smart business people use? One that ties the property up? Or one where they can immediately dispose of a non performing asset?
I hope this has been of some use to you, good luck.
';FIGHT ON';
Sure they will. You went after their money.
Investments have no protections. You might try filing for bankruptcy, but you need to sell all of your assets to do that as well.I need to know what recourse my mortgage company has or will take against my rental property?
I believe that your lender will come after your assets if you default on your mortgage payments, especially on an investment property.
You should probably check with a legal adviser so you can know what to expect, especially if your investment property is in another state from where you live. Different laws may apply, but which? The ones where the property is? Or, where you live?
Yes.
But only if the foreclosure sale isn't enough to cover the balance. What you may do to save your credit is re-check the market rate for rental...if you aren't renting it you are charging too much. Foreclosures have absolutely nothing to do with the rental market..in fact, when foreclosures are high, rental rates GO UP, b/c the displaced homeowners can't buy another house.
Of course they will and the IRS will tax you on the total bank loss.
This property is NOT!!!! protected against the bank coming after you.
YOU CAN';T JUST WALK AWAY. Talk with a lawyer.
The lender will come after you for what you put up as collateral for the loan you got on your property.
Look at your loan docs you signed at the closing for your mortgage it will list that collateral.
Now about coming after additional assets. This is called a deficiency judgment, the name alone indicate they have to go to court, hire additional attorneys to defend themselves. While they are in court they can not do anything with the property that is being contested.
Mostly what they do is write off any loss they have on their federal income tax.
So any additional assets you have will not be ok.
I don't know why others continue to say a lender will go after a person in foreclosure for a deficiency judgment. I have been in the real estate/mortgage field in some way or the other since 1979 and have heard of a deficiency judgment only once of a lender seeking one. The lender went after this person because the house was burnt to the ground.
If you look at the foreclosure procedure used by most lenders they do not even go to court for the foreclosure, even though most states allow two types of foreclosure procedures.
#1 Non-judicial foreclosure
#2 Judicial foreclosure
Most lenders use the non judicial foreclosure because they stay out of the court system, it is very fast, they can immediately dispose of the property if it does not sell at the foreclosure auction.
If they use the judicial foreclosure procedure they are at the mercy of the court calendar. They can come after you for a deficiency judgment using this procedure. Under this procedure you are also entitled to reclaim the property for up to a year in some states. Since you are entitled to redeem the property they must keep it for this redemption period.
Which procedure would most smart business people use? One that ties the property up? Or one where they can immediately dispose of a non performing asset?
I hope this has been of some use to you, good luck.
';FIGHT ON';
Our mortgage broker in Toronto is being very difficult to deal with. How do we complain about him?
We got a house and he said we got the loan so we signed the release form and the house is technically ours. we are currently on vacation and he knew all about it yet he never told us about specific documents he needs to send to the bank to get the loan in time for closing day. Getting all the things he wants is exterimly difficult now if not impossible and now he says we might not be able to get the loan by then. Can we do anything to speed up the process?Our mortgage broker in Toronto is being very difficult to deal with. How do we complain about him?
If he has violated any laws, you can file a complaint through FSCO (http://www.fstontario.ca/english/). If its just poor service, look for a new Mortgage Broker.Our mortgage broker in Toronto is being very difficult to deal with. How do we complain about him?
Hi,
Most of the mortgage brokers behave in same way. If you aren't comfortable, you can easily switch over to another guy as lenders will vie with each other to extend the loan. You can get some useful tips on handling mortgage from http://mortgage.creditmortgagepro.com . Good luck!
If he has violated any laws, you can file a complaint through FSCO (http://www.fstontario.ca/english/). If its just poor service, look for a new Mortgage Broker.Our mortgage broker in Toronto is being very difficult to deal with. How do we complain about him?
Hi,
Most of the mortgage brokers behave in same way. If you aren't comfortable, you can easily switch over to another guy as lenders will vie with each other to extend the loan. You can get some useful tips on handling mortgage from http://mortgage.creditmortgagepro.com . Good luck!
Why no credit on tax return for mortgage interest?
I just finished doing my taxes on Turbo Tax. Before entering my one mortgage payment (we bought the house at the end of last year), I owed $568 to the feds. I thought that entering the amount of mortgage interest I paid ($1541.02) would somewhat off-set what I owed. However, it did not change the amount at all. WHY?Why no credit on tax return for mortgage interest?
In order to Itemize and take your mortgage interest you must have enough itemized deductions to exceed the standard deduction (10700 for married filing joint or 5350 for single)Why no credit on tax return for mortgage interest?
you have to itemize your deductions on a separate page and this will reduce your taxable income by $1541.
$1541 x your tax rate = your federal savings.
It is a matter of personal deductions verses itemized deductions. Sometimes you win, sometimes you don't.
That isn't very much in interest! There are two ways to file taxes, taking the ';standard'; deduction or itemizing deductions. You can take a deduction for the mortgage interest only if you itemize. You should figure the taxes BOTH ways, and take the way which does the best for you. I am almost at a point in my mortgage where it will will be a toss-up this year as to which will be better for me, take the standard or itemize, because I am only a few years from paying off my house and the further along you go in a mortgage, the more of each payment goes toward the balance left and the less goes to interest.
Mortgage interest deduction is available as itemized deduction. When you itemize, then you don't get standard deduction. So you will itemize only when your itemized deductions are more than standard deduction.
In your case, your itemized deductions are less than the standard deduction. So you only get standard deduction.
depends on the tax bracket and your income, perhaps the standard deduction is higher than your itemizzed amount, try that. one month of mortgage payment might not have done much for u but next year will, check the standard deduction amount against your itemized amount and use the one that is higher
In order to Itemize and take your mortgage interest you must have enough itemized deductions to exceed the standard deduction (10700 for married filing joint or 5350 for single)Why no credit on tax return for mortgage interest?
you have to itemize your deductions on a separate page and this will reduce your taxable income by $1541.
$1541 x your tax rate = your federal savings.
It is a matter of personal deductions verses itemized deductions. Sometimes you win, sometimes you don't.
That isn't very much in interest! There are two ways to file taxes, taking the ';standard'; deduction or itemizing deductions. You can take a deduction for the mortgage interest only if you itemize. You should figure the taxes BOTH ways, and take the way which does the best for you. I am almost at a point in my mortgage where it will will be a toss-up this year as to which will be better for me, take the standard or itemize, because I am only a few years from paying off my house and the further along you go in a mortgage, the more of each payment goes toward the balance left and the less goes to interest.
Mortgage interest deduction is available as itemized deduction. When you itemize, then you don't get standard deduction. So you will itemize only when your itemized deductions are more than standard deduction.
In your case, your itemized deductions are less than the standard deduction. So you only get standard deduction.
depends on the tax bracket and your income, perhaps the standard deduction is higher than your itemizzed amount, try that. one month of mortgage payment might not have done much for u but next year will, check the standard deduction amount against your itemized amount and use the one that is higher
Can a person/couple get a mortgage on a home if they have an outstanding civil judgment against both of them?
The judgment will be actively pursued. The person/couple will have zero to minimal money for a down payment for such home to our knowledge. No relatives to help. Thank you.Can a person/couple get a mortgage on a home if they have an outstanding civil judgment against both of them?
Our company collects on civil judgment. Here's my take on your situation...
Having a judgment on a credit report is not a magic bullet that either forces the debtor to satisfy the judgment, or keeps a credit manager from granting a mortgage or loan. The credit report is not a legal document, and the credit manager is not bound by law to refuse credit because of what it says. It is only a guide upon which a credit manager can base a decision.
Therefore, a good inference you can derive from this, if in fact this couple is, in the end, granted a mortgage: there was something on their credit report that indicated to the credit manager their ability to pay on the mortgage.
Which could be good news for you, in terms of making a recovery...
But that is, frankly, a secondary issue. You do not need to wait to find this out before you proceed. Indeed, I am curious exactly what steps to investigate the financial condition of the debtor you have taken.
You do understand that as a judgment creditor, you have the legal right to know EVERYTHING the debtor owns or holds that can be used to satisfy the judgment - employment, property ownership, investment accounts, bank accounts, stock accounts?
If you know this, have you then followed through with an asset investigation? Or are you relying on what you've heard through the grapevine (';to our knowledge';...)?
Whoever is pursuing the judgment for you needs to conduct a thorough asset search on your debtor. If they have not yet done so, ask them why. If they feel it is not important, find another judgment collector. Trying to satisfy the judgment without investigating your debtor's assets is like going hunting, and not taking any bullets.
If your asset investigation turns up nothing, patience and time can work wonders. What's true this year may not be true in 3, 5, 7 years from now. In the meantime, your judgment is accruing interest.Can a person/couple get a mortgage on a home if they have an outstanding civil judgment against both of them?
ok.. so someone owes your company a lot of money.
($200, $500k same difference as far as this question goes).
When they apply for a loan, they need to tell this to the lender if there are any outstand debts or obligations. When they do a lender is unlikely to provide funding since, there is a real possibility that you could lien the house (and therefore the equity that secures their loan).
If they do not tell the lender and he later finds out, then he can accelerate the loan ..
So it is unlikely that they will get a mortgage unless they hide this fact..
If they can afford a house, then they must have some form of steady income. Why isn't your company pursuing an attachment of that income?
In addition, as the judgement debtor, you can have them called to court to give testimony under oath as to what assets they have and then act accordingly. If they do not disclose assets and you can later prove them, then it becomes a criminal matter. So consider that option also.
Bankruptcy: Yep... that's what its for. Giving someone a clean start. So if they go that route, your judgement may be extinguished by the court. This varies with the circumstances and I am not familiar with those laws, but it is a real possibility. I know if *I* had a judgement slapped on me for that amount I would be looking at that option very closely.
So should you to see if there is anything you can do about it if it happens.
Why are you concerned about the judgment affecting their ability to purchase a house?
If I were you I would be hiding the fact as much as I can, even though it is public records.
Once they purchase a home you can then attached the home with your judgment. They might not be able to pay you at the time, but your judgment will accrue interest. In the state of California the interest is 10% per year.
Now with the judgment on their home, they will not be able to refinance it or sell it without paying you off or making some type of deal with you, so you can get some type of payment for you signing off on the judgment. You might not get it all, but half a cow is better than none of the cow, unless you are vindictive and both of you get nothing.
Once the house is placed in escrow the escrow closing officer will immediately send a demand to you, so you will not even have to follow up or anything except in some states the judgment dies after about 7-10 years so check and see what it is in your state.
You are pulling for the wrong end of he stick. Don't look a gift donkey in the mouth that could be the best thing that happen to you is they purchase a house.
I hope this has been of some use to you, good luck.
';FIGHT ON';
It will be more difficult if it shows up on your credit report.
Irregardless of the amount as long as it does not affect title I have a lender who will approve the deal. Keep in mind that the rate is not friendly and there would be a prepayment penalty (providing the state allows it) but I can do it. Let me know if you need any assistance or if you have any further questions. www.dantadgerson.com.
An open judgement will make it extremely difficult if not impossible for these people to obtain a mortgage. Even if they can get a mortgage, a title search on them would prevent them from closing.
That's not to say they can't get one through a third party.
Re: the BK remedy. I believe if the judgemnet was obtained first, they can list it in a BK.
A 500k judgment will probably prevent this borrower from owning a home. The issue is not the credit, but title. Some companies will finance a borrower with a judgment so long as title is not affected, but I fear with a 500k amount, that will assuredly attach to title.
A possible remedy: Bankruptcy. File the motion to vacate the judgment and state your bankruptcy as the reason. Check with an attorney..Good luck!
Our company collects on civil judgment. Here's my take on your situation...
Having a judgment on a credit report is not a magic bullet that either forces the debtor to satisfy the judgment, or keeps a credit manager from granting a mortgage or loan. The credit report is not a legal document, and the credit manager is not bound by law to refuse credit because of what it says. It is only a guide upon which a credit manager can base a decision.
Therefore, a good inference you can derive from this, if in fact this couple is, in the end, granted a mortgage: there was something on their credit report that indicated to the credit manager their ability to pay on the mortgage.
Which could be good news for you, in terms of making a recovery...
But that is, frankly, a secondary issue. You do not need to wait to find this out before you proceed. Indeed, I am curious exactly what steps to investigate the financial condition of the debtor you have taken.
You do understand that as a judgment creditor, you have the legal right to know EVERYTHING the debtor owns or holds that can be used to satisfy the judgment - employment, property ownership, investment accounts, bank accounts, stock accounts?
If you know this, have you then followed through with an asset investigation? Or are you relying on what you've heard through the grapevine (';to our knowledge';...)?
Whoever is pursuing the judgment for you needs to conduct a thorough asset search on your debtor. If they have not yet done so, ask them why. If they feel it is not important, find another judgment collector. Trying to satisfy the judgment without investigating your debtor's assets is like going hunting, and not taking any bullets.
If your asset investigation turns up nothing, patience and time can work wonders. What's true this year may not be true in 3, 5, 7 years from now. In the meantime, your judgment is accruing interest.Can a person/couple get a mortgage on a home if they have an outstanding civil judgment against both of them?
ok.. so someone owes your company a lot of money.
($200, $500k same difference as far as this question goes).
When they apply for a loan, they need to tell this to the lender if there are any outstand debts or obligations. When they do a lender is unlikely to provide funding since, there is a real possibility that you could lien the house (and therefore the equity that secures their loan).
If they do not tell the lender and he later finds out, then he can accelerate the loan ..
So it is unlikely that they will get a mortgage unless they hide this fact..
If they can afford a house, then they must have some form of steady income. Why isn't your company pursuing an attachment of that income?
In addition, as the judgement debtor, you can have them called to court to give testimony under oath as to what assets they have and then act accordingly. If they do not disclose assets and you can later prove them, then it becomes a criminal matter. So consider that option also.
Bankruptcy: Yep... that's what its for. Giving someone a clean start. So if they go that route, your judgement may be extinguished by the court. This varies with the circumstances and I am not familiar with those laws, but it is a real possibility. I know if *I* had a judgement slapped on me for that amount I would be looking at that option very closely.
So should you to see if there is anything you can do about it if it happens.
Why are you concerned about the judgment affecting their ability to purchase a house?
If I were you I would be hiding the fact as much as I can, even though it is public records.
Once they purchase a home you can then attached the home with your judgment. They might not be able to pay you at the time, but your judgment will accrue interest. In the state of California the interest is 10% per year.
Now with the judgment on their home, they will not be able to refinance it or sell it without paying you off or making some type of deal with you, so you can get some type of payment for you signing off on the judgment. You might not get it all, but half a cow is better than none of the cow, unless you are vindictive and both of you get nothing.
Once the house is placed in escrow the escrow closing officer will immediately send a demand to you, so you will not even have to follow up or anything except in some states the judgment dies after about 7-10 years so check and see what it is in your state.
You are pulling for the wrong end of he stick. Don't look a gift donkey in the mouth that could be the best thing that happen to you is they purchase a house.
I hope this has been of some use to you, good luck.
';FIGHT ON';
It will be more difficult if it shows up on your credit report.
Irregardless of the amount as long as it does not affect title I have a lender who will approve the deal. Keep in mind that the rate is not friendly and there would be a prepayment penalty (providing the state allows it) but I can do it. Let me know if you need any assistance or if you have any further questions. www.dantadgerson.com.
An open judgement will make it extremely difficult if not impossible for these people to obtain a mortgage. Even if they can get a mortgage, a title search on them would prevent them from closing.
That's not to say they can't get one through a third party.
Re: the BK remedy. I believe if the judgemnet was obtained first, they can list it in a BK.
A 500k judgment will probably prevent this borrower from owning a home. The issue is not the credit, but title. Some companies will finance a borrower with a judgment so long as title is not affected, but I fear with a 500k amount, that will assuredly attach to title.
A possible remedy: Bankruptcy. File the motion to vacate the judgment and state your bankruptcy as the reason. Check with an attorney..Good luck!
Can I pay in advance for mortgage insurance?
Can I ask my lender to pay mortgage insurance in advance instead of in my monthly payment?Can I pay in advance for mortgage insurance?
Of course. Everyone always smiles, and accepts it when you offer them money!Can I pay in advance for mortgage insurance?
If you have extra money, why not put it on the principal instead? It will reduce your mortgage insurance a great deal. I know what you're thinking....but when your mortgage reaches 80% of the appraised value, your mortgage insurance is gone. (You have to request it, though, they will continue to collect it if you don't....)
You could reach 80% in no time with increased property values....
Think about it, I don't think it's a wise decision...
You could but I can't understand why you would want to do so. It's bad enough that you have to give them an interest-free loan for the impounds and I can't imagine anyone wanting to give them even MORE free money. But it's your money so knock yourself out if that's what you want to do.
Of course. Everyone always smiles, and accepts it when you offer them money!Can I pay in advance for mortgage insurance?
If you have extra money, why not put it on the principal instead? It will reduce your mortgage insurance a great deal. I know what you're thinking....but when your mortgage reaches 80% of the appraised value, your mortgage insurance is gone. (You have to request it, though, they will continue to collect it if you don't....)
You could reach 80% in no time with increased property values....
Think about it, I don't think it's a wise decision...
You could but I can't understand why you would want to do so. It's bad enough that you have to give them an interest-free loan for the impounds and I can't imagine anyone wanting to give them even MORE free money. But it's your money so knock yourself out if that's what you want to do.
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