Second Mortgage

Sub prime lenders are being pretty stupid with their lending.

However, it takes two to tango. A lot of people borrowing money are being pretty stupid as well. They are jumping into loans without investigating the responsibilities and ramifications.

There are people who are getting second mortgages who do not have jobs. Read the rest of this entry »

What is the best kind of mortgage insurance here in Canada?

If you are healthy, get individual insurance rather than through your bank. Individual Insurance requires a medical exam/test, and assuming your are healthy, the insurance premiums will be considerably lower than insurance through the bank. Read the rest of this entry »

5 year fixed rate means the fixed rate of interest on the capital loan of the total.

After five years the interest rate will resume to the normal variable rate.

The type of mortgage taken depends on many factors like the intent of the buyers for the house. Are they planning to sell it or stay on it long term. Read the rest of this entry »

Supoose you had a fixed rate mortgage for the last two years.

And now it’s about to expire. What do you do next? Will your mortgage lender offer you a new deal or he will just change to the standard rate? Well, read on… Read the rest of this entry »

So what really is the end results when someone has there home foreclosed?

Well it normally takes about six months for a morgage company to forclose on a home. It can be sooner or later, just depends on how much of careless the creditor is?

Then within three months this will show on there credit report. It will affect the credit score as soon as it is reported to the credit bureaus. Read the rest of this entry »

Do you need to stay away from a second mortgage interest only loan?

If you have been approved for the first mortgage at a fixed rate and a second mortgage interest higher than your first mortgage. And suppose you want the second mortgage interest only loan for an investment property.

Is there a possiblity that your second mortgage payments may go up? If yes, should you go for another loan? 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 »

If you allow a buyer to pay you partially with a second mortgage what are the taxes like?

Suppose you are selling a rental house and will hold a $26,000 private second mortgage for the buyers. Will the government tax you on this as money you received at the closing?

Even though it is just paper? Or will you pay captial gains on any amount above your basis only when you get the payments from the purchaser? 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 »

Before taking any new loan, always ask yourself if the payments are to much for you.

If they are, then you may want to sell, and start over. If you have equity you will have some cash in hand to buy a cheaper place. If not you may want to short sell, and walk away with your cerdit saved.

If the reason your in forclosure is not because your payments are to much for you, then you have otions. Read the rest of this entry »