Eshwarya Patel asked:




An augmentation in the amount of an outstanding home loan is referred to as a ‘home mortgage refinancing’. It requires the complete payment of a stupendous loan along with the earnings from the new one.

If you have built equity in your home, mortgage refinancing is, no doubt, an excellent option for you. You can opt for it in case you are willing to free up cash, invest in renovation of your home or consolidate all your debts.
The two most popular home mortgage refinancing options are second mortgage and reverse mortgage. These are described in detail as follows:

Second Mortgages

o It permits you to avail a second loan on your property or home in addition to your previous home loan.

o With second mortgages, it becomes possible to pull cash out of your home as you are required to give nominal monthly interest payments.

o However, the interest rate and the percentage of lender fees are higher than the first mortgage owing to the high risk involved in the former.

o Home loans are of two types: fixed rate mortgage and adjustable rate mortgage. Depending on which of the two you have, second mortgages might differ in length. The period varies from 1 year to as long as 20 years.
Reverse Mortgages

o With reverse mortgages, you are permitted to transfer your home equity into cash.

o Also, you need not repay your home loan until you no longer live in that home.

o They are very advantageous as they are tax deductible.

o If you are a retiree and looking to leverage your home equity, you can opt for reverse mortgages.

Norma

‘ > V M D ‘ < asked:


~~~~~~~~~~ BREATHE~~~~~~~~ ? DOES THAT COAST ?

Lewis

ready asked:


My aunt was telling me when you buy your first house you should get the extended so you can consolidate all your debt/student loans. And by the time you sell it 3 to 5 years later you will build equity in the house so you will be able to pay off that extended loan. This sounds flaky (I know it all depends on the market and where you live). Has anyone done this? Tell me your experiences and what you think. What the best way to get rid of the debt.

Andrea

dizz asked:


Every time you go get you gas tank filled ? lol

Cost of filling your gas tank ?
Thanks & have a good Eve . D oops : YOUR gas tank , lol

Glen

Kevin Stith asked:




A mortgage is a long-term loan for a large amount, commonly taken for a property or a house. It is a kind of home loan except that it is termed for longer. Mortgages are available through a bank, private lenders, or property sellers.

One advantage of considering a mortgage loan over other kinds of loans is that there can be multiple mortgages for a particular property. Although more than one mortgage can exist, it is essential to pay off the mortgages in the order of priority, i.e., the first mortgage needs to be cleared of first, and then the second and so on. However, mortgages taken on an already mortgaged property carry higher rate of interest and so are to be considered only in times of dire financial status.

Second Mortgages have the same initial costs as the initial first mortgage. Also they carry a higher rate of interest than the first mortgage. Hence, second or third mortgages are expensive and hard on the pocket. Second Mortgages are usually given based on the amount of equity available with the property owner after the first mortgage. Such types of Second Mortgages are the least expensive kind of Second Mortgages because of the equity security.

As with first mortgages, a number of varieties of second and third mortgages are available. The most common is the mortgage given on equity left with the property owner after the first mortgage, as mentioned. Another popular kind is the line-of-credit mortgage, wherein a line of credit is provided to the property owner to be used as and when required, instead of providing the same as a lump sum as in the case of equity secured Second Mortgage.

Multiple mortgages can be taken simultaneously for building on some property or developing and renovating the same to rent or lease it out for some extra income. The calculation would be similar as if the mortgages were taken one after the other, rather than simultaneously. Also, they provide some extra cash when the property owner is strapped with all the EMI due for the mortgages.

Although a Second Mortgage is given as per the total property value after the house is mortgaged for a certain amount, some mortgage lenders also lend some extra amount that might be more than what the property actually costs. However, this is not a usual occurrence, and the lender needs to be sure that the same would be repaid back without any hassles. Also it requires approval from higher-ups due to the risk involved in loaning more than the property’s worth. The interest would be charged on the whole amount and is usually very high on the EMI.

All mortgage lenders would be able to provide ample advice on Second Mortgages at no cost. It is a good option to look into all the pros and cons before getting into an agreement for a Second Mortgage.

Clarence

preacherwife62 asked:


He want’s to get off the loan, so he will not be sued or have to pay for the home. he is on 2 loans and one is the car
the other the home, Plus he has his name on a qick claim deed, with our neighbor. and Husband is 80 years old andI am 62, we are both handycaped, all the insurance is in my name on the home,and car. because I am younger. he said that he won’t sine off of the neighbor’s unless I get the loan company to give him a affdavid to get him off of the house and the car, before he will sine off of the neighbor’s home what can I do to keep my home and car, and my friend have Husband taken off of his land also, Please answer soon.

Cindy

Thomas W asked:


I have a credit card that has a large amount on it and would like to keep things cycling by paying the morgage through the card, so there’s less interest on the card for the month. Is this possible?

Phillip

karina h asked:


we are seperated and he doesnt live in the family home now

Norma

Steve Valentino asked:




There are several brokers who help people to sell and buy mortgage notes. They match people who want to sell their note with people who want to buy that note. Their professional fee is paid entirely by the note buyer. The real estate notes are today a massive industry, worth more than $400 billion.

Mortgage brokers are independent contractors who usually shop for loan applications amongst lenders to find the most attractive term for a borrower. Mortgage brokers offer loan products of multiple vendors. These multiple vendors are known as wholesalers. The mortgage broker gets paid for his services by the lender.

Mortgage brokers do not lend; they primarily counsel borrowers on the problems involved in qualifying for the loan. Brokers also help by compiling all the documents that are required for the transaction. This reduces delays in the loan processing.

Mortgage notes are usually produced by banks or mortgage companies. The federal government secures these notes. There are several agents who facilitate the sale of existing private mortgage notes or commercial mortgage notes. These agents or service providers can easily arrange for point of sale funding, commonly known as table funding or simultaneous closing. This enables the seller and the agent to offer financing to their buyers, without taking the trouble of securing their bank lines of credit.

While issuing mortgage notes, agents or service providers look at the type of property, location of the property, the way in which the mortgage is structured, and the credit history of the buyers. These elements essentially dictate the guidelines for the valuation of the mortgage note. The more information given to the service agent, the better they can evaluate the right transaction for sellers. To collect information, service providers usually seek information by E-mail, fax or telephone.

Frederick

Richard Geller asked:




Is a mortgage short sale possible if you have not one mortgage company to deal with, but two?

I am the developer of the Mortgage Relief Formula home study course. In my work I receive hundreds of questions from homeowners who owe more than their house is worth and cannot afford to continue making the payments. They want to avoid foreclosure appearing on their credit and they also want to do the right thing under the circumstances.

A mortgage short sale beats foreclosure both from the homeowner’s viewpoint and from the perspective of a mortgage lender. If you cannot pay on a mortgage, the bank would rather get partial payment of the mortgage, and not get your house back.

They can in fact deal with getting your house back because they are set up for it. But when they get a house back they must add it to their already bulging inventory. They must insure it. They have to fix it up. They have to put it on the market and sell it. They are selling into the same terrible market that you are facing.

But, a mortgage short sale helps the lender get partial payment on your mortgage and avoid getting your house.

Let’s recap what this type of sale is. It’s when you sell your house for less than the mortgage. The lender approves the sale and the lender collects the proceeds from the buyer, whatever is left at closing after paying closing costs and real estate broker commissions and so forth. They mortgage lender releases the mortgage so the transaction can close.

The mortgage company now has a financial loss. They may pursue you for that financial loss, which they can sometimes do through a civil court proceeding. Sometimes they cannot pursue you at all because state law prevents them from doing so. And sometimes you can negotiate with the home loan lender before the sale goes through, and they will agree in writing not to come after you for their financial losses.

But be that as it may, the question we are addressing is how you can do a sale that yields only partial payment of your first mortgage, if you have a second mortgage and not just a first mortgage?

What people forget is that even if they do a sale of their house, the loans go with the house so if they deed their house to someone else, the loans stay in place. A sale of a house does not affect the loans on that house.

The reason a short sale works is that the lender agrees to release their claim on the house at the closing table. So the new buyer can get the house free from your crushing mortgage. But if you have two mortgages such a sale is much more complicated. The buyer will want to be free of both your first and second mortgage.

That makes it twice as complicated.

Because if the first mortgage lender agrees to the sale even though it will not pay off the first mortgage, that isn’t enough. The house will be sold and still have a second mortgage on it.

A foreclosure sale, on the other hand, wipes out all the loans on the property. The lender who forecloses may get the property back through their “credit bid”. That is, if nobody bids higher than the balance on the loan including all delinquent payments and fees, the lender gets the house back. If someone bids higher, they will get the house.

Either way, all the junior loans are extinguished in the foreclosure sale. A foreclosure sale results in a transfer of title through a trustee’s deed or sherriff’s deed. A trustee’s deed or sheriff’s deed transfers title to either the lender, or the high bidder if there is a party that outbids the lender. And with that foreclosure deed, the junior loans are wiped out. So junior loans are not an issue in a foreclosure and in fact a lot of houses go through foreclosure in order to wipe out the junior loans.

But what if you want to avoid foreclosure through a short sale process, in order to help your credit and the lender? And what if you have junior loans?

There is a way to do it. Actually three ways.

Is the second mortgage a piggyback loan? Sometimes the lenders who made the first mortgage also made the second. Maybe they can allocate the short sale proceeds to release both loans.

Or, you may be able to buy out the second. They are in a position where they will get nothing at this point. If you can offer them a nickel on the dollar of debt, or a dime, maybe they will take it. That assumes you have a bit of cash. But it may not take much. After all they are already prepared to be wiped out. If you do a deal like this, make sure you get the arrangement in writing including how they will report to the credit bureaus (you want to avoid foreclosure appearing there) and also that they will not go after you any more — this is full payment of the second mortgage and forever wipes clean that debt.

And there is a third option for most folks who do not have cash to buy out the second mortgage.

This third option is doing a deal with the second mortgage holder: They will release the second mortgage in order to allow the short sale to go through. In return, you will sign a note for a percentage of that loan.

Such a note is a personal loan, an unsecured loan, and would be dischargeable in bankruptcy. But if you can manage the payments this is a good outcome for all concerned compared to the alternatives. Remember that if they get wiped out, the second mortgage holder can still come after you in civil court but by signing a note you make it cheaper for them and either way, something is better than nothing.

These three options are the best ones to consider if you want to do a short sale and avoid foreclosure, but have a second mortgage on the property. I would always recommend you consult a good lawyer to help you and best of luck.

Adam