Second Mortgage

If you do not pay or default on your HELOC and continue to pay on first mortgage can the HELOC mortgage lender initiate foreclosure?

Does the HELOC holder contact your primary mortgage holder at loan origination? Do they contact the primary mortgage holder for permission to inititate foreclosure? Can the primary mortgage holder stop foreclosure? Read the rest of this entry »

Foreclosures are primarily handled out of court.

The foreclosure process can take 3-14 months depending on the length of the redemption period. The typical foreclosure takes about eight months.

So what happens during pre-foreclosure period ? Court foreclosures are permitted in any sate.However, most mortgages contain a clause enabling a lender to sell a property out of court once a borrower defaults. Read the rest of this entry »

Is it wise to refinance a fixed mortgage with a 2-year ARM?

Would it be wiser to do the 50-year fixed or a 2-year ARM and then refinance after 2 years for a fixed rate? Paying closing costs twice in two years seems like a lot of money to you.

You need to keep what you have and do NOT, don’t refinance a ARM. Read the rest of this entry »

Most people answering are getting confused.

There are two types of loans out there: Reverse Mortgages and Negative Amoritization Mortgages.

Reverse Mortgage are only for people 62 years or greater and they can be a great way to go. Increases cash flow, eliminates monthly payment. Read the rest of this entry »

Why would a mortgage appraiser reject to give you a second mortgage?

There are a few important questions that need to be answered to understand the role of mortgage appraiser in lending you a second mortgage.

The questions are does a mortgage appraiser have the right to reject a mortgage? Who has the right to reject a mortgage? What might be the most common reasons to reject a mortgage in addition to the condition of house?  Read the rest of this entry »

If you have your house put for foreclosure, you will still owe some money.

Suppose you are told that you will still owe to the bank the difference from the sale. So is there always a possiblity that the house will sell for less then the loan is?

More likely you will be told to do a “Deed In Lieu”, and walk away from it. You must try and call your Lender and ask for this. Read the rest of this entry »

This is the buzz all over now but sub prime housing market is still not improving.
Recently there has been much talk about the government stepping in to bail out the people who are losing htere homes do to sub prime loans. Some people have expressed their disagreement with this new step in the recent months.

With the highly unstable subprime market conditions, the government decided to bail people out when they cannot afford it. So do you think it is wrong with a government bail out? Read the rest of this entry »

Here you will know how foreclosures work and if they are risky?
Are you wondering if foreclosure is risky?

Foreclosure is what happens when a lender has not been paid and they “foreclose” on the collateral - (i.e. your home). Once the property goes into foreclosure you usually have to come up with the entire debt (entire loan amount) owed by a certain time.

Some states however, give you the opportunity to just pay what you neglected to pay before foreclosure. Read the rest of this entry »

Foreclosure would ruin your credit for over seven years.

Have you contacted the lender of that mortgage when you are unable to make the payments? The lender may negotiate with you on payments or selling the property.

The lender does not want the hassle of foreclosure and would most likely be willing to talk to you about selling it and/or forgiving the prepay penalty. Read the rest of this entry »

Can they force a foreclosure if you are currently holding second mortgage?

Suppose you have a second mortgage on your home and the combined mortgage is more than your house’s value. Now due some unexpected financial problems, you stop making payments on the second mortgage. So what’s next?

The answer is Yes. First of all, you need to talk to the second mortgage lender and come to an understanding about making payments. Read the rest of this entry »