Determine if an Equity Home Loan Second Mortgage is Right for You
If you're wondering whether or not you should tap the equity in your home for a loan, you may have discovered that there are a few different ways you can borrow that money. For example, you can borrow it as a home equity line of credit, or HELOC, which, similar to a credit card, allows you to draw off the balance over and over again. On the other hand, a home equity loan, sometimes referred to as a Second Mortgage, pays you the amount you borrow in one lump sum, and you can't access it again without taking out another loan. So, is an equity home loan second mortgage right for you? Probably, if you can answer "yes" to these questions:
Do You Have Significant Equity In Your Home?
Most lenders allow folks to borrow
up to 80% of the equity in their home. The equity is the value of your home
minus any amount you still owe on it. So, if your home is worth $200,000, and
you have $100,000 left on your current mortgage, you have $100,000 in equity.
Since you can usually borrow up to 80% of that amount, the maximum amount of
your loan will be $80,000. Do your own math to calculate if you have enough
equity in your home to borrow enough to meet your needs.
Do You Need One Lump Sum?
If you're paying for college, buying a car, remodeling
your home, or need the cash for a medical bill, chances are one lump sum payment
will be sufficient. However, if you'd like to use the cash for an emergency
fund, or if you'll be making small repairs to your house over a long period of
time, it might be better to choose the home equity line of credit since you can
borrow from it over and over again.
Can You Make Payments?
With any home equity loan second mortgage refinancing,
your home is used as collateral on the loan. That means, if you can't make payments on
time, and you default on the loan, the lender may be able to take your house.
You should only choose a home equity loan if you're certain that you'll be able
to make all your payments in the future.
An equity home loan second mortgage is a smart idea for responsible borrowers
who need an inexpensive, quick loan. You can check with your current mortgage
lender to find out if you qualify for the loan, or you can search online for
home equity lenders.
See our Recommended Home Equity Loan Lenders Online
วันพุธที่ 30 กันยายน พ.ศ. 2552
วันอังคารที่ 29 กันยายน พ.ศ. 2552
Removal of a 2nd Mortgage Through Chapter 13 Bankruptcy
Removal of a 2nd Mortgage Through Chapter 13 Bankruptcy
Chapter 13 Bankruptcy offers an important, and often unknown, option to consumers who have residential real estate mortgages. Namely, removing a junior lien holder or "2nd" from your debt. Since the value of real estate has decreased, a common complaint I hear is, "I cannot believe I am paying more than my house is actually worth."
If you purchased a home in the past three to four years and financed with 80/20 mortgages, or if you refinanced your home and took out a second mortgage, chances are you can completely remove that second mortgage and other junior liens from your home.
Imagine...file a chapter 13 Bankruptcy to eliminate all your credit card debt, reduce your car payments, cure the back payments on your first mortgage and now, entirely remove your second mortgage.
In addition, if your house value bounces back, that equity is yours to keep.
It is important to realize that the removal of a 2nd mortgage is available in a Chapter 13 bankruptcy only. The ideal candidate for this process has a 2nd mortgage on a home that is no longer appraised at or above the amount of the 1st mortgage. It is necessary to obtain comps for the property and an appraisal to establish your the fair market value of the home.
If the fair market value works, a motion to get court approval will need to be filed. The mortgage company may oppose this motion. This will then require an evidentiary hearing and perhaps an adversary complaint. If the court decides that the fair market value of the home is below what is owed on the first mortgage, the second mortgage is "stripped" from the home and the debt associated with the second mortgage is made an unsecured debt (essentially being treated like credit card debt). Typically, in a Chapter 13 bankruptcy, a small percentage of the unsecured debt is paid, if at all.
Once the motion is approved, you will need to make all plan payments (over a 3 to 5 year period) and obtain your discharge. Once the debts are discharged, the second mortgage is completely gone.
Under existing Bankruptcy laws, debtors are not able to force a first mortgage to modify the terms of the mortgage on loans for their primary residence. Many lenders who realize the alarming state of the economy are willing to negotiate a modification of their mortgage, allowing a debtor to lower their monthly payments. This is a relatively recent change for many lenders who had previously refused to accommodate such requests. Such a modification may drastically help a homeowner who wants to keep their home but who is suffering from a reduction in income and home value. This benefit is even more evident when used in conjunction with the removal of a second mortgage for debtors who have both a first and second mortgage.
Further, recent legislation was introduced in Congress in the first week of 2009 that would now allow Bankruptcy judges in Chapter 13 cases to modify first mortgages by:
-reducing the amount of the secured claim (i.e. lowering the balance on the mortgage/deed of trust that is secured by the home);
-changing the interest rate of the loan or modifying the adjustable feature of certain loans; and/or
-changing the term of the loan.
This bill, if enacted, would finally provide some relief to homeowners. In the past, the mortgage lenders have vehemently opposed such a change. However, this time may be different. News reports indicate Citigroup has already suggested that it would support this legislation with some minor revisions, one of which is to require that a homeowner first attempt to modify the loan directly with the lender(s) before the loan can be modified by a Bankruptcy judge.
Call the Christopher Legal Group to discuss your options regarding removing a second mortgage from your home. It's worth it.
Shawn Christopher is an attorney licensed in Nevada and California. His office is located in the Las Vegas area. For more information on his firm, please visit his website, http://www.christopherlegal.com or for more specific information on bankruptcy, please review http://www.bklasvegas.com
Chapter 13 Bankruptcy offers an important, and often unknown, option to consumers who have residential real estate mortgages. Namely, removing a junior lien holder or "2nd" from your debt. Since the value of real estate has decreased, a common complaint I hear is, "I cannot believe I am paying more than my house is actually worth."
If you purchased a home in the past three to four years and financed with 80/20 mortgages, or if you refinanced your home and took out a second mortgage, chances are you can completely remove that second mortgage and other junior liens from your home.
Imagine...file a chapter 13 Bankruptcy to eliminate all your credit card debt, reduce your car payments, cure the back payments on your first mortgage and now, entirely remove your second mortgage.
In addition, if your house value bounces back, that equity is yours to keep.
It is important to realize that the removal of a 2nd mortgage is available in a Chapter 13 bankruptcy only. The ideal candidate for this process has a 2nd mortgage on a home that is no longer appraised at or above the amount of the 1st mortgage. It is necessary to obtain comps for the property and an appraisal to establish your the fair market value of the home.
If the fair market value works, a motion to get court approval will need to be filed. The mortgage company may oppose this motion. This will then require an evidentiary hearing and perhaps an adversary complaint. If the court decides that the fair market value of the home is below what is owed on the first mortgage, the second mortgage is "stripped" from the home and the debt associated with the second mortgage is made an unsecured debt (essentially being treated like credit card debt). Typically, in a Chapter 13 bankruptcy, a small percentage of the unsecured debt is paid, if at all.
Once the motion is approved, you will need to make all plan payments (over a 3 to 5 year period) and obtain your discharge. Once the debts are discharged, the second mortgage is completely gone.
Under existing Bankruptcy laws, debtors are not able to force a first mortgage to modify the terms of the mortgage on loans for their primary residence. Many lenders who realize the alarming state of the economy are willing to negotiate a modification of their mortgage, allowing a debtor to lower their monthly payments. This is a relatively recent change for many lenders who had previously refused to accommodate such requests. Such a modification may drastically help a homeowner who wants to keep their home but who is suffering from a reduction in income and home value. This benefit is even more evident when used in conjunction with the removal of a second mortgage for debtors who have both a first and second mortgage.
Further, recent legislation was introduced in Congress in the first week of 2009 that would now allow Bankruptcy judges in Chapter 13 cases to modify first mortgages by:
-reducing the amount of the secured claim (i.e. lowering the balance on the mortgage/deed of trust that is secured by the home);
-changing the interest rate of the loan or modifying the adjustable feature of certain loans; and/or
-changing the term of the loan.
This bill, if enacted, would finally provide some relief to homeowners. In the past, the mortgage lenders have vehemently opposed such a change. However, this time may be different. News reports indicate Citigroup has already suggested that it would support this legislation with some minor revisions, one of which is to require that a homeowner first attempt to modify the loan directly with the lender(s) before the loan can be modified by a Bankruptcy judge.
Call the Christopher Legal Group to discuss your options regarding removing a second mortgage from your home. It's worth it.
Shawn Christopher is an attorney licensed in Nevada and California. His office is located in the Las Vegas area. For more information on his firm, please visit his website, http://www.christopherlegal.com or for more specific information on bankruptcy, please review http://www.bklasvegas.com
วันจันทร์ที่ 28 กันยายน พ.ศ. 2552
Can a Second Mortgage Declare Foreclosure Before the First?
Can a Second Mortgage Declare Foreclosure Before the First?
In most cases of foreclosure, it is the first mortgage company that initiates the process. The second mortgage may file its own foreclosure in order to protect its interest in the property, but even this is somewhat uncommon. The second lender would much rather work with the homeowners to find a solution to avoid foreclosure entirely, if possible. However, if the homeowners are simply too far behind on the second mortgage but up to date on the first, there is a good chance that the second lender will declare foreclosure on the house.
Any lienholder can try to force a sale of the property through foreclosure, but usually only the first mortgage will get paid off through the proceeds of the sale. This is because there usually just are not enough proceeds at all for even the first lien to be paid in full, let alone extra ones after that. It just makes more sense for the second mortgage to try to work with the debtors to find a solution, since they would most likely not get anything from a sheriff sale. Especially with the declining real estate market right now, second mortgages may have loaned tens of thousands of dollars more than the home is currently worth, which guarantees they will not receive anything from a sheriff sale. County foreclosure auctions usually consist of very low bid amounts and few bidders, resulting in properties selling for far less than their current market values.
If a participant at the foreclosure auction placed a bid and won, the proceeds of the sale would be distributed like any other foreclosure, regardless of which mortgage company actually began the foreclosure process in the courts. The property taxes would be paid first, since the bureaucrats need to get their hands on the money as quickly as possible. Then the first mortgage would be paid off with as much of the proceeds as are left. Unfortunately for second mortgage companies and other junior lienholders, the winning bid at auction is usually not even enough to cover the entire first mortgage. In fact, most of the time it is one of the banks that bids on the property to ensure that they will be able to sell it after the foreclosure if there are no other bidders.
After the first mortgage is paid off in full, though, then any other liens, including the second mortgage, would be paid in order of when the lien was filed with the county recorder. If there is enough money to pay all of the second mortgage, then they get all of the rest of the money until their lien is paid in full. Then anything remaining goes to other liens or to the homeowners as their gain from the sheriff sale. If there is not enough to pay off the second mortgage (or even all of the first mortgage), then the second will not be paid off at all or in full. It will be up to the mortgage company to sue afterwards for a deficiency judgment after the foreclosure has ended (an unlikely occurrence).
Thus, just because it is a second mortgage who begins the process of foreclosure, it will not really change the order of how the liens are paid off through the foreclosure auction. Any bidder at sheriff sale, whether the bank or a third party, will still end up with a title that has had the liens on it discharged through the county foreclosure auction. And the homeowners will have to move out of the property at the appropriate time or be faced with the possibility of a forced eviction. No matter which mortgage company initiates the foreclosure, the process will move through the court system in exactly the same way.
The ForeclosureFish website has been created to provide homeowners in danger of losing their houses with relevant and important foreclosure help and resources. The site describes various methods that may be used to save a home, such as foreclosure refinance loans, mortgage modification, short sales, bankruptcy, and more. Visit the site to read more articles about how foreclosure works and how the process may be avoided before it is too late: http://www.foreclosurefish.com/
In most cases of foreclosure, it is the first mortgage company that initiates the process. The second mortgage may file its own foreclosure in order to protect its interest in the property, but even this is somewhat uncommon. The second lender would much rather work with the homeowners to find a solution to avoid foreclosure entirely, if possible. However, if the homeowners are simply too far behind on the second mortgage but up to date on the first, there is a good chance that the second lender will declare foreclosure on the house.
Any lienholder can try to force a sale of the property through foreclosure, but usually only the first mortgage will get paid off through the proceeds of the sale. This is because there usually just are not enough proceeds at all for even the first lien to be paid in full, let alone extra ones after that. It just makes more sense for the second mortgage to try to work with the debtors to find a solution, since they would most likely not get anything from a sheriff sale. Especially with the declining real estate market right now, second mortgages may have loaned tens of thousands of dollars more than the home is currently worth, which guarantees they will not receive anything from a sheriff sale. County foreclosure auctions usually consist of very low bid amounts and few bidders, resulting in properties selling for far less than their current market values.
If a participant at the foreclosure auction placed a bid and won, the proceeds of the sale would be distributed like any other foreclosure, regardless of which mortgage company actually began the foreclosure process in the courts. The property taxes would be paid first, since the bureaucrats need to get their hands on the money as quickly as possible. Then the first mortgage would be paid off with as much of the proceeds as are left. Unfortunately for second mortgage companies and other junior lienholders, the winning bid at auction is usually not even enough to cover the entire first mortgage. In fact, most of the time it is one of the banks that bids on the property to ensure that they will be able to sell it after the foreclosure if there are no other bidders.
After the first mortgage is paid off in full, though, then any other liens, including the second mortgage, would be paid in order of when the lien was filed with the county recorder. If there is enough money to pay all of the second mortgage, then they get all of the rest of the money until their lien is paid in full. Then anything remaining goes to other liens or to the homeowners as their gain from the sheriff sale. If there is not enough to pay off the second mortgage (or even all of the first mortgage), then the second will not be paid off at all or in full. It will be up to the mortgage company to sue afterwards for a deficiency judgment after the foreclosure has ended (an unlikely occurrence).
Thus, just because it is a second mortgage who begins the process of foreclosure, it will not really change the order of how the liens are paid off through the foreclosure auction. Any bidder at sheriff sale, whether the bank or a third party, will still end up with a title that has had the liens on it discharged through the county foreclosure auction. And the homeowners will have to move out of the property at the appropriate time or be faced with the possibility of a forced eviction. No matter which mortgage company initiates the foreclosure, the process will move through the court system in exactly the same way.
The ForeclosureFish website has been created to provide homeowners in danger of losing their houses with relevant and important foreclosure help and resources. The site describes various methods that may be used to save a home, such as foreclosure refinance loans, mortgage modification, short sales, bankruptcy, and more. Visit the site to read more articles about how foreclosure works and how the process may be avoided before it is too late: http://www.foreclosurefish.com/
วันอาทิตย์ที่ 27 กันยายน พ.ศ. 2552
Using A Second Mortgage To Buy A Foreign Property
Using A Second Mortgage To Buy A Foreign Property
For many years now, British people seem to have had something of an obsession with buying 'a place in the sun'. Numerous TV shows including the one just mentioned, as well as multiple newspaper and magazine articles. All encouraging people to find their little piece of heaven in Spain, France, Bulgaria, or even further afield in Florida, or even Asia.
So many British people find this whole concept to be, a dream come true. In addition, huge numbers are not just dreaming about it. They are actually making it happen, and are buying their piece of foreign property, either as an investment is or as a place to permanently emigrate to in the future.
A survey last year by a well known UK mortgage Company showed that a massive 33% of all British residents fully intended to make owning a foreign home a reality. Some people are waiting for perhaps, a considerable amount of years, until they reach retirement. Then selling off their home and everything else to head for a new life in the sun.
Others cannot wait to make the leap much earlier, either as a permanent residency or as an investment that will have to sit and wait until retirement. In some countries such as Spain, there are limited opportunities, to obtain mortgage financing locally. Many people opt for local financing of some have trouble with ruthless operators who think nothing of fleecing foreign mortgage holders for huge sums in front fees.
SolBank a large Spanish bank and mortgage lender charges an upfront fee of €23,000 to cover 'application costs' on a mortgage of €200,000.
These days, the once stuffy traditional mortgage British lenders are far more amenable to second mortgages in the UK for the purpose of purchasing a house abroad. Below are some things to consider when planning, UK financing for a home in the sun. As with all real estate deals the first thing to consider, are actually three things, Location, Location, Location. Many people opt for the ever popular areas Spain France or maybe Florida, but there are other options.
There are many stunning and exotic places around the world, some highly developed some off the beaten track for tourists. Some of these of the beaten track locations can be equally beautiful, with warm friendly people and just as safe as well known tourist traps. To find such a property, you may not have to always go to some out of the way exotic country. Properties on the Costa del Sol sell for several times more than those in the northern areas of Spain.
Central France, is far cheaper than the Cote d'Azur, and the same applies to many well-known house buying destination countries. If you are financing your new foreign home with a second mortgage and you don't intend to live in it for the time being. You should consider location's that will bring in a decent income, especially in the local peak season.
If you're home in the sun is able to finance itself, it will give you more free cash to save of the day when you can jet out and live in it yourself. This option may also allow you to buy your dream house with a second mortgage today, rather than waiting for retirement.
You should also consider, not using the property yourself in any period of the year, when it can be rented out, and instead opt to use it in the 'off season'. Perhaps if you have friends or family, who also want their little piece of paradise. Why not consider pooling and the available funds, they you have between you. Again this can bring you to a point of a buying a property, much earlier. Then, if you sell that property 10 years from now, you will have on considerably more cash available to purchase a place in the sun of your own.
You could of course, opt to buy a property abroad, that needs some renovation, this may entail protracted work over several years to make the home come up to a good standard. However, you should be looking at a profit from your renovations; also, the property will hopefully have gone up in value in the meantime anyway.
Financing your home away from home using equity stored up in your UK house is a great way to jump onto the foreign ownership ladder. All that is needed is that your home is now worth more than you paid for it. You can then consider a remortgage to release this equity as cash which you can use to purchase your second home in the sun.
One good advantage to this option is that the money you draw out of the property is being reinvested into a second property purchase. So although you will have interest to pay until second mortgage loan, this should be outpaced by the increased value in your second home, and may even be paid for by rental income.
This may be a good way for many people begin their place in the sun dreams tomorrow, rather than waiting 15 or 20 years, for retirement. If this idea appeals to you, then contact an online mortgage broker, so that he can assess if this is a viable option for you.
Joe Kenny writes for Only Stop, compare bad credit remortgages in the UK, visit them today for mortgages or Glitec for more mortgages and information.
For many years now, British people seem to have had something of an obsession with buying 'a place in the sun'. Numerous TV shows including the one just mentioned, as well as multiple newspaper and magazine articles. All encouraging people to find their little piece of heaven in Spain, France, Bulgaria, or even further afield in Florida, or even Asia.
So many British people find this whole concept to be, a dream come true. In addition, huge numbers are not just dreaming about it. They are actually making it happen, and are buying their piece of foreign property, either as an investment is or as a place to permanently emigrate to in the future.
A survey last year by a well known UK mortgage Company showed that a massive 33% of all British residents fully intended to make owning a foreign home a reality. Some people are waiting for perhaps, a considerable amount of years, until they reach retirement. Then selling off their home and everything else to head for a new life in the sun.
Others cannot wait to make the leap much earlier, either as a permanent residency or as an investment that will have to sit and wait until retirement. In some countries such as Spain, there are limited opportunities, to obtain mortgage financing locally. Many people opt for local financing of some have trouble with ruthless operators who think nothing of fleecing foreign mortgage holders for huge sums in front fees.
SolBank a large Spanish bank and mortgage lender charges an upfront fee of €23,000 to cover 'application costs' on a mortgage of €200,000.
These days, the once stuffy traditional mortgage British lenders are far more amenable to second mortgages in the UK for the purpose of purchasing a house abroad. Below are some things to consider when planning, UK financing for a home in the sun. As with all real estate deals the first thing to consider, are actually three things, Location, Location, Location. Many people opt for the ever popular areas Spain France or maybe Florida, but there are other options.
There are many stunning and exotic places around the world, some highly developed some off the beaten track for tourists. Some of these of the beaten track locations can be equally beautiful, with warm friendly people and just as safe as well known tourist traps. To find such a property, you may not have to always go to some out of the way exotic country. Properties on the Costa del Sol sell for several times more than those in the northern areas of Spain.
Central France, is far cheaper than the Cote d'Azur, and the same applies to many well-known house buying destination countries. If you are financing your new foreign home with a second mortgage and you don't intend to live in it for the time being. You should consider location's that will bring in a decent income, especially in the local peak season.
If you're home in the sun is able to finance itself, it will give you more free cash to save of the day when you can jet out and live in it yourself. This option may also allow you to buy your dream house with a second mortgage today, rather than waiting for retirement.
You should also consider, not using the property yourself in any period of the year, when it can be rented out, and instead opt to use it in the 'off season'. Perhaps if you have friends or family, who also want their little piece of paradise. Why not consider pooling and the available funds, they you have between you. Again this can bring you to a point of a buying a property, much earlier. Then, if you sell that property 10 years from now, you will have on considerably more cash available to purchase a place in the sun of your own.
You could of course, opt to buy a property abroad, that needs some renovation, this may entail protracted work over several years to make the home come up to a good standard. However, you should be looking at a profit from your renovations; also, the property will hopefully have gone up in value in the meantime anyway.
Financing your home away from home using equity stored up in your UK house is a great way to jump onto the foreign ownership ladder. All that is needed is that your home is now worth more than you paid for it. You can then consider a remortgage to release this equity as cash which you can use to purchase your second home in the sun.
One good advantage to this option is that the money you draw out of the property is being reinvested into a second property purchase. So although you will have interest to pay until second mortgage loan, this should be outpaced by the increased value in your second home, and may even be paid for by rental income.
This may be a good way for many people begin their place in the sun dreams tomorrow, rather than waiting 15 or 20 years, for retirement. If this idea appeals to you, then contact an online mortgage broker, so that he can assess if this is a viable option for you.
Joe Kenny writes for Only Stop, compare bad credit remortgages in the UK, visit them today for mortgages or Glitec for more mortgages and information.
วันเสาร์ที่ 26 กันยายน พ.ศ. 2552
Refinancing Second Mortgage–Whats the Difference Between a 2nd Mortgage and a Home Equity Loan?
Refinancing Second Mortgage–What's the Difference Between a 2nd Mortgage and a Home Equity Loan?
A 2nd mortgage and a home equity loan are basically the same type of financing. Both can cash out part of your home’s equity, require paying application fees, and have a variety of term options. The only difference is that you can use a second mortgage as part of your home’s down payment or apply for one once you are in the house. Home equity loans can only be secured when you have actually bought the house.
Second mortgages and home equity loans can both be refinanced for better rates or more favorable terms at any time, either separately or as part of a total mortgage refi.
Refinancing Options For Equity Loans
Equity loans have a number of refinancing options. You can refinance your second mortgage as just another second mortgage, only with better rates and terms. You can decide to change to a fixed rate mortgage for security. You may also want to shorten your loan period to pay less on interest charges.
Or you can rollover your loan as part of your first mortgage. By
refinancing both mortgages, you can qualify for lower rates. You also save on closing costs by only going through the application process once. Combining both mortgages is best for those with two high rate mortgages and a plan to stay in the house for several years.
Be A Smart Shopper With Your Refinance
While refinancing may be the answer for your budget, you need to spend some time making sure you are getting a good deal. With a little bit of time analyzing loan quotes, you can find lower rates and cheaper fees – saving you money.
With online lending companies, you can receive loan estimates without damaging your credit score. By providing information on your loan amount and credit standing, you can get quotes on rates and fees. With these numbers you can make an informed decision on which is the best financing for you.
Refinancing is also a great time to revaluate your over all finances. With a refi, you can cash out additional equity, allowing you to consolidate debts or invest in home repairs.
Visit Refinance Smarts to view our Recommended Refinance Lenders online. Also, visit Refinance Smarts for more information on a Refinance Second Mortgage.
A 2nd mortgage and a home equity loan are basically the same type of financing. Both can cash out part of your home’s equity, require paying application fees, and have a variety of term options. The only difference is that you can use a second mortgage as part of your home’s down payment or apply for one once you are in the house. Home equity loans can only be secured when you have actually bought the house.
Second mortgages and home equity loans can both be refinanced for better rates or more favorable terms at any time, either separately or as part of a total mortgage refi.
Refinancing Options For Equity Loans
Equity loans have a number of refinancing options. You can refinance your second mortgage as just another second mortgage, only with better rates and terms. You can decide to change to a fixed rate mortgage for security. You may also want to shorten your loan period to pay less on interest charges.
Or you can rollover your loan as part of your first mortgage. By
refinancing both mortgages, you can qualify for lower rates. You also save on closing costs by only going through the application process once. Combining both mortgages is best for those with two high rate mortgages and a plan to stay in the house for several years.
Be A Smart Shopper With Your Refinance
While refinancing may be the answer for your budget, you need to spend some time making sure you are getting a good deal. With a little bit of time analyzing loan quotes, you can find lower rates and cheaper fees – saving you money.
With online lending companies, you can receive loan estimates without damaging your credit score. By providing information on your loan amount and credit standing, you can get quotes on rates and fees. With these numbers you can make an informed decision on which is the best financing for you.
Refinancing is also a great time to revaluate your over all finances. With a refi, you can cash out additional equity, allowing you to consolidate debts or invest in home repairs.
Visit Refinance Smarts to view our Recommended Refinance Lenders online. Also, visit Refinance Smarts for more information on a Refinance Second Mortgage.
วันศุกร์ที่ 25 กันยายน พ.ศ. 2552
Second Mortgage Refinancing - Dirty Secrets the Banks Dont Want You to Know!
Second Mortgage Refinancing - Dirty Secrets the Banks Don't Want You to Know!
Second mortgage refinancing has become one of the most attractive concepts in the mortgage industry. Many homeowners at one point or another have either considered or obtained this type of loan for many different reasons. Justifications may be different; such as home improvements, consolidating compounding credit card debts, going on a long awaited and deserved vacation, or simply investing in a child's future and education. The idea is always the same...money talks!
People with money spend their money. People who don't have money but like to live like the ones who do are the ones who go after this type of loan. A second mortgage loan is taken against the property's equity which is the difference between the preexisting mortgage on the home and its current market value. However, what needs to be understood by homeowners and potential borrowers is equity is not a savings account that they have worked for and earned. Rather, it's inconsistent, unreliable and if misused has a negative consequence on the property and their lifestyle. Just like fire, enough of it will warm you up, too much of it will burn you.
I have knowledge in every type of mortgage, and taught each of their consequences if abused. However I believe that many people should consider the advice of an objective financial adviser before they commit themselves to a second mortgage loan or any loan for that matter. I find it ironic that many do not consider financial counseling when the stakes are so high. Purchasing or refinancing a house is the biggest financial investment for the majority of people, financial counseling should be mandatory.
The home owner's appetite to spend the easy money they never worked for cannot be condemned. We have an impartial system of checks and balances in the mortgage industry. The idea that in the event of a foreclosure or short sell, the first mortgage is protected and the bank has the priority is not right at all. The second mortgage loan along with the homeowner is abandoned. Innovative financial solutions aligned with the public ability during it darkest hour is yet to be seen.
To start we must bring the two concepts of home and house together. While the banks are in the business of providing loans to people to purchase or refinance a house, people are more concerned just to have a place called home. Where the house is nothing but an empty lot with certain materials and fixtures, a home is where life happens. People have the highest level of attachment to their homes. Many have a hard time letting go of their past homes, even when purchasing a new and even better house. Home means memories; it means families, pets and some place to call home. That is why it is so imperative for the banking industry to recognize this, and realize the importance of creating a reliable procedure independent from the markets uncertainties, not only for the public peace of mind, but for theirs as well. For the public it is important to realize the responsibility of home ownership and not jeopardize their home to the inadequacies of impartial system.
You can also find more information about Second Mortgage Refinancing and learn to stay one step ahead of the banking industry.
http://www.livedirtcheap.org is a comprehensive resource which provide information about Mortgage Refinancing for the people by the people.
Second mortgage refinancing has become one of the most attractive concepts in the mortgage industry. Many homeowners at one point or another have either considered or obtained this type of loan for many different reasons. Justifications may be different; such as home improvements, consolidating compounding credit card debts, going on a long awaited and deserved vacation, or simply investing in a child's future and education. The idea is always the same...money talks!
People with money spend their money. People who don't have money but like to live like the ones who do are the ones who go after this type of loan. A second mortgage loan is taken against the property's equity which is the difference between the preexisting mortgage on the home and its current market value. However, what needs to be understood by homeowners and potential borrowers is equity is not a savings account that they have worked for and earned. Rather, it's inconsistent, unreliable and if misused has a negative consequence on the property and their lifestyle. Just like fire, enough of it will warm you up, too much of it will burn you.
I have knowledge in every type of mortgage, and taught each of their consequences if abused. However I believe that many people should consider the advice of an objective financial adviser before they commit themselves to a second mortgage loan or any loan for that matter. I find it ironic that many do not consider financial counseling when the stakes are so high. Purchasing or refinancing a house is the biggest financial investment for the majority of people, financial counseling should be mandatory.
The home owner's appetite to spend the easy money they never worked for cannot be condemned. We have an impartial system of checks and balances in the mortgage industry. The idea that in the event of a foreclosure or short sell, the first mortgage is protected and the bank has the priority is not right at all. The second mortgage loan along with the homeowner is abandoned. Innovative financial solutions aligned with the public ability during it darkest hour is yet to be seen.
To start we must bring the two concepts of home and house together. While the banks are in the business of providing loans to people to purchase or refinance a house, people are more concerned just to have a place called home. Where the house is nothing but an empty lot with certain materials and fixtures, a home is where life happens. People have the highest level of attachment to their homes. Many have a hard time letting go of their past homes, even when purchasing a new and even better house. Home means memories; it means families, pets and some place to call home. That is why it is so imperative for the banking industry to recognize this, and realize the importance of creating a reliable procedure independent from the markets uncertainties, not only for the public peace of mind, but for theirs as well. For the public it is important to realize the responsibility of home ownership and not jeopardize their home to the inadequacies of impartial system.
You can also find more information about Second Mortgage Refinancing and learn to stay one step ahead of the banking industry.
http://www.livedirtcheap.org is a comprehensive resource which provide information about Mortgage Refinancing for the people by the people.
วันพฤหัสบดีที่ 24 กันยายน พ.ศ. 2552
Second Mortgage Foreclosure and Home Equity Loan
Second Mortgage Foreclosure and Home Equity Loan
The past ten years leading up to 2007-08 were amazing years for the real estate market. Home values were skyrocketing at double-digit percents across the entire nation and everybody was building up equity in their homes. Home loan providers and lenders capitalized on this thriving real estate market by providing second mortgages and home equity loans to people who had built up a significant level of equity in their property and wanted to access this equity as cash. It became routine to use your property as a virtual ATM machines by extracting the equity via a second mortgage or home equity loan and then using the money for whatever reason.
The problem came in 2007-08 when the entire real estate market began to tumble and home prices began to drop and stagnate. People who took out second mortgages and home equity loans were often left with notes on upside down properties with no way to payback the lenders. People began to go into foreclosure, and this meant that they were going to eventually lose their homes unless they began making payments on the variety of loans that were against their property.
Many people began to wonder what would happen if they only defaulted on their second mortgage and kept paying their first mortgage. Would they still have to foreclose and lose their property? Well, not so much because often times with situations like this the person that defaults on their second mortgage will still be able to stay in their property and if the house is upside-down then it is pretty much commonplace for the homeowner to reach an agreement with the bank or lender so that they can come to terms with the second mortgage that they may have taken out years ago. The majority of homes that default on second mortgages do not end up going into foreclosure and if you find yourself in this situation you can be rest assured that if make an effort to contact your lender then you shouldn't have to go into foreclosure unless you stop paying your first mortgage.
Blake Fisher is an expert writer on such financial topics as Second Mortgage Foreclosure and Second Mortgage and Home Equity Loan.
The past ten years leading up to 2007-08 were amazing years for the real estate market. Home values were skyrocketing at double-digit percents across the entire nation and everybody was building up equity in their homes. Home loan providers and lenders capitalized on this thriving real estate market by providing second mortgages and home equity loans to people who had built up a significant level of equity in their property and wanted to access this equity as cash. It became routine to use your property as a virtual ATM machines by extracting the equity via a second mortgage or home equity loan and then using the money for whatever reason.
The problem came in 2007-08 when the entire real estate market began to tumble and home prices began to drop and stagnate. People who took out second mortgages and home equity loans were often left with notes on upside down properties with no way to payback the lenders. People began to go into foreclosure, and this meant that they were going to eventually lose their homes unless they began making payments on the variety of loans that were against their property.
Many people began to wonder what would happen if they only defaulted on their second mortgage and kept paying their first mortgage. Would they still have to foreclose and lose their property? Well, not so much because often times with situations like this the person that defaults on their second mortgage will still be able to stay in their property and if the house is upside-down then it is pretty much commonplace for the homeowner to reach an agreement with the bank or lender so that they can come to terms with the second mortgage that they may have taken out years ago. The majority of homes that default on second mortgages do not end up going into foreclosure and if you find yourself in this situation you can be rest assured that if make an effort to contact your lender then you shouldn't have to go into foreclosure unless you stop paying your first mortgage.
Blake Fisher is an expert writer on such financial topics as Second Mortgage Foreclosure and Second Mortgage and Home Equity Loan.
สมัครสมาชิก:
บทความ (Atom)