Second Mortgage

Can an owner go up on the rent (say even for $400) if he has taken a second mortgage out on the house?

Now this all depends on whether you currently have a lease or are on a month-to-month tenancy. If you are in the middle of a lease term, he cannot unilaterally raise the rent. In the middle of a lease, he can’t change your rent. It is a contract and he must follow it just like he expects you to do.

If you do not have a lease, or if you used to have a lease but it expired, then you are on a month-to-month tenancy. In that case, he can raise the rent, but he has to give you advance written notice, usually 30-60 days in advance depending on the local laws. Read the rest of this entry »

Is 125% mortgage a first or second mortgage?

It is always a second mortgage and there are only a few banks out there lending 125% of your equity.

There is NO hard-money lenders willing to lend over 70% of the equity. Most common is 65% for hard-money lenders for those who don’t know. Why they’re called hard-money lenders? Because you almost can’t get a loan anywhere but through them due to having some bad credit and other bad credit situation like in bankruptcy, foreclosures, etc. Read the rest of this entry »

Can a Second Mortgage be used as a Business Loan?

Although many business owners overlook this convenient source of money, home equity is one of the most affordable ways to fund a commercial venture. Depending on your credit, in most cases you can do a second mortgage right after your 1st mortgage closes. If you have good credit you can borrow up to 125% of the value of your home.

Home equity loans or second mortgages will always be there at your rescue. So why not to use it in a smart way? While some of the closing costs and interest payments on a home equity loan are tax deductible, you can get additional tax perks by using the money for business. For instance, if your company is incorporated, you might consider taking out a personal home equity loan, and arranging a separate loan agreement for the venture itself. Read the rest of this entry »

Is it possible to remove a second mortgage lien after a bankruptcy?

Say that you have filed for bankruptcy, and put your house on it as well and a second mortgage too. Now you decide to sell your home and you get hold of the second mortgage lien holders to get the pay off. On the top of that you come to know that your first mortgage lender wants all of his equity he can get. So how do you deal with such situation?

If your house is worth more than what you owe, your mortgage lender will allow you time to sell the house and keep any profit after what is owed. It will be smart to sell the house to a friend as liens follow the property not the original holder. There is a possibility that your mortgage lender will most likely offer a lesser amount to the new lien holder — the amount owed minus interest. Read the rest of this entry »