Archive for the ‘first mortgage’ Category
Do I still own the house for the second mortgage, but the first was foreclosed?
I had 2 mortgages, one for 80% and one for 20%. The first mortgage company foreclosed. It was sold. The second mortgage company did not foreclose. Public records now show my name and the new owners name. Do I still own 20% of the house?
* The mortgage really has nothing to do with the house other than as collateral. The mortgage is a contract between you and the lending company. They lent you $$ – you pay it back with interest. The 1st morgagor took the collateral. The 2nd will hound you to the grave for its pound of flesh.
First Time Home Buyer Loan, $8000 Tax Credit, FHA Low Down Payment Mortgage Assistance Program
Tax Credit for First Time Home Buyer Mortgage and Government Assistance Program to Help Home Owners Finance a Real Estate Loan with Low Down Payment and Interest Rate. Go To http://RealEstateMarketingThisWeek.com
Part 5 (Excerpt)
Inventory of foreclosed homes may be declining soon Home sales double in last year
So we are back in studio today with Dan Havey. Dan and I have known each other for many years and we have worked very close over the years in real estate. Dan and I are not necessarily 100% in agreement with where the market is today and whether we are at the bottom or not. I tend to believe that we are. Let me tell you my thinking on this.
Dan uses actual facts and figures to make his prognostications. Heres what I know, I know that Fannie Mae and Freddie Mac have put a moratorium on foreclosures. What that means is that they are slowing the supply of repos. What that means is that they are putting fewer homes on the market, which means the supply has been reduced to a 9 month supply of resale homes on the market. The builders are gearing up, getting ready to start building again, but they are not building again just yet. Thats a great indicator.
Interest rates couldnt be better. They havent been better than they are now, so not only can you buy a house at the same price you would have paid for that house in 2002, but you are going to get a significantly lower interest rate then it would have been then. Effectively a house today is going to cost you less than it would in 2002, with the interest rate and the home value being what they were. Now if property values do continue to increase and the average rate of 4%, your internal rate of return on your investment will increase exponentially.
One of the things that Dan Havey did say, and I kind of think you need to pound on this a couple of more times is this, you dont buy a house for you and your family as an investment, you buy a house because you want to live there, because you want to raise your family there, because its right for you. The investment part of it will come in time on its own. For now owning a home, owning that dirt, raising your family, making your new memories, is the best thing in our opinion that you can do.
Dan, why dont you take a minute and talk about the year over year numbers that you have. Well, there is a number of things I agree with you on Michael and one of the things I was really surprised by when I started looking at the numbers the other day is that since June of 2008, so 7 or 8 months ago, since then, year over year sales actually increased and in many cases have doubled. So lets just say for a specific example if there were 5,000 sales in Maricopa County in June of 2008 that would mean that there were 2,500 a year earlier, and so anytime you see an increase in sales year over year and especially when you see this big of an increase, 100% increase year over year for most all of the last 8 months, that is a huge indicator that the market is starting to recover. Now there are other factors as Michael said, the builders are not quite building yet, but I like the fact that there is the moratorium in many cases now on the foreclosures going through, and with the Mortgage Bailout Bill that came out today part of it was $75 Billion that they were going to throw at Fannie Mae, Freddie Mac, and all of the other lenders who received TARP funds to help modify loans.
One of the requirements is if the lender, Fannie, Freddie, or the servicer is working with the home owner they have to stop the foreclosure process, so hopefully what this is going to do is over the next six months its going to help out millions of people. I am not quite sure how they are going to get all of these loans done, there are an awful lot of people that need to have their loans modified, but even if they can just help some of these people to delay the foreclosure sale, help these people get their loans modified.
First off it is going to help keep people in their homes but the biggest thing from the standpoint of property values and first time home buyers is that its going to start taking some of that supply off the market there are going to be less repos out there for people to buy and because of that property values are going to begin to stabilize and quit dropping…
Duration : 0:5:43
Real Estate Conditions 4 – Mortgage & First Time Home Buyer Dec08 FHA Financing with low Rates
First Time Home Buyers use FHA Mortgage and Seller Paid Closing Costs to Buy Real Estate Now. Best Market Conditions for Foreclosures and Short Sales in Decades. Go To http://RealEstateMarketingThisWeek.com
Part 4 (Excerpt)
80% of homes can be purchased with FHA Financing
You also talked about this graph you put together, it talks about the month of November was a 25% increase over the previous year. Obviously prices have gone down and it looks like it then has gone back up, and so once we finish selling off this inventory there is a good chance that were going to be finding or hitting the bottom.
I think just in that region of $150,000 to $200,000 region that prices have really stabilized at this point, they may go down a little bit more, but I think for the most part, because that is where the financing is right now, with the FHA and the conforming loan limits, anybody in that price range can still get a loan. If youre looking to buy something over $400,000 youre going to have a lot more trouble just because the financing is not available.
Well the financing is a lot more difficult over the $417.000 loan amount number. Luckily Velocity Financial still has some of the interim small jumbo financing available, still with decent rates and the larger jumbos there is still financing available but nothing like this median home price of $275,000 and below. Well and I think what that goes back to, specifically with the FHAs, because, what percentage of the closing costs can be contributed by a seller on an FHA loan? Its pretty high right?
FHA financing, the Federal Housing Administration has had a standing rule for quite some time that the seller can contribute up to 6% of the sales price towards the closing costs. Realistically on a $250,000 purchase price youre not going to need 6% towards closing costs, so you would want to use that money to lower the price or buy down the interest rate, or any number of different things. So in a situation like that you could have the seller come in, pay all of your closing costs for you, you can keep that money in the bank, you could use it to fix up the house, you can do whatever, and all you would be responsible for is a small down payment.
Thats correct, 3% of the sale price down, you can have the seller pay the property taxes up to a year in advance, the home owners insurance, the home owners association fees, they are called prepaid or escrows. They can pay all of that. What is the loan limit right now for FHA? Currently the FHA loan limit is $346,250, its kind of an odd number, that does go away at the end of this month, December. However if youre lucky enough to have a home picked out in that price range, you want to try to get it done by the end of the year, so long as were able to get it underwritten in house, our firm will still be able to close on that with a higher loan limit after the first of the year.
The new limits probably going to be your next question, so as of January 1 in Maricopa County its $271,000. Even at 271, with the scenario I was talking about before, in Maricopa County, 70-80% of the home sales still would have fit within that 271 limit. Yes, one thing that I do want to point out is that when the Housing and Recovery Act of 2008 expires that huge loan limit of 346 expires, that was the deal, they are going to try to get it extended but we cant plan on that necessarily, but only 10% of the properties in Maricopa County fit into that 271 to 346 range.
Now I know the answer to this but you dont happen to be qualified to do FHA loans are you? Yes Velocity Financial is FHA approved, were one of less than 15% of the lending institutions in Arizona that can do FHA financing, not only for purchases but for refinancing as well. Which I think is some of the stuff we want to talk about as well because some of the old rules for refinancing simply dont apply anymore.
Brett did you have anything to add? Yes, two things stood out to me in that discussion and one of the things was the bigger picture concept in my mind thats the way it works. Its how I am wired, I start with that then I narrow my way down to the specific scenario given a clients circumstance.
What that big picture represented to me and one of the things that you pointed out with your charting Dan and the work that you have done, is the year over year home sales is shrinking the inventory that exists in Maricopa County, and when that inventory shrinks, we all know that new homes and building had pretty much dried up, so allowing that inventory to shrink is a very positive thing in terms of stabilizing, or placing a bottom, or putting the housing market back on a path of growth long-term, and so that was one of the things that stood out to me.
Duration : 0:6:32
Current on first, late on second mortgage. How does that work?
I am current on my first mortgage, but about 2 months late on my second. Can the second mortgage foreclose on my home if I am current on the first?
Yes. They already have a lein on your home. It’s called a "Jr. lein" and they have the right to start foreclosure proceedings if you don’t pay. If it is a matter of just being late on the Jr. lein, then it will adversly affect your credit.
Your second mortgage is separate from your first mortgage. When you secured the loan, it might have been an 80/20 loan. In essence, the 80% is your first mortgage and the 20% is your second mortgage. Though they cover the same home, they are two separate mortgage payments.
However you obtained this second mortgage, it will always remain separate from your first mortgage unless you refinance them together into one payment.
Find the bill to your second mortgage and pay it immediately. If you have a first AND second mortgage on your home, then you haveTWO mortgage payments each month and maybe two separate banks holding the mortgages. Not just one. Pay it as soon as you can.
Does anyone know the laws forclosure in the state of Ariizona when there is a first and second mortgage?
I have a first and second mortgage on my home. The first mortgage is in forclosure. What is the obligation of the second lender. Is he obligated to pay his portion of the second mortgage and then forclose and then recoop his money? Or does the home just go into forclosre and then go to auction if not brought current on time.
Is the second under any obligation to bring the loan current or is it there choice?
The second can do nothing and hope there is money to pay him/her or the second can bring the first current and to their own foreclosure.
March 1st Mortgage Interest Minute Toronto
http://SonOfABroker.com – Toronto mortgage interest rates for the first week of March 2010. Find out more about Toronto Mortgage broker Christopher Molder through his blog or website http://Tridacmortgages.com
Duration : 0:1:40
Quicken Loans Mortgage Insiders – Matt LaVaute Mortgage Banker
Quicken Loans client, Alex from New York, discusses in this video testimonial how Quicken Loans helped him and his wife purchase their first home mortgage as well as their first refinance. Alexs mortgage banker worked with him daily in order to lock in the best rate. Alex was surprised at how easy, quick, and worry-free the overall process was. Two years after his first mortgage Alex contacted Quicken Loans to refinance his home. By adding a small amount of money to his loan and increasing his monthly payments slightly, he was able to reduce his interest rate by over 1% and was able to pay off more principle in each of his monthly payments, leading to an eventual savings of over $100,000 in interest over the course of his loan. Alex looks forward to working with Quicken Loans again and would recommend Quicken to anyone who wants to get a mortgage or refinance.
Duration : 0:4:27
When money is tight, is it better to pay some of your first mortgage or all of your second mortgage?
My wife recently lost her job, and our finances are too small to pay all of the first and second mortgages on our home. Is is smarter to pay some of the first mortgage, or all of the second mortgage? The first mortgage is with Indy Mac, second is with CIT. Anyone have any luck modifying loans with them? Since I am only one month behind with Indy Mac, they will not work with me. Thanks.
Paying "part" of your payment is not appreciated by the lenders unless you call first and work out a payment plan. Otherwise the entire amount you send them is credited to interest and does not pay down the loan at all. You want that loan to disappear.
Apx 4 out of 100 people who ask for a loan modification can get any help. Most of the modifications are to give you 6 months of no payments at all. This money is added to the "end" of your loan, so it is not a gift.
In some cases, the smartest move is to ask if they will accept a deed from you today. And you move into a small apartment or with family. You avoid a foreclosure on your record..
Real Estate Conditions 7 – Mortgage & First Time Home Buyer Dec08 Refinance & Interest Rates
First Time Home Buyers use FHA Mortgage and Seller Paid Closing Costs to Buy Real Estate Now. Best Market Conditions for Foreclosures and Short Sales in Decades. Go To http://RealEstateMarketingThisWeek.com
Part 7 (Excerpt)
The old rules no longer apply and Suze Ormond should know that.
We have Dan Havey the author of Real Estates Future in the studio today.
Michael, I was just curious, back when I got into the industry many, many years ago there used to be a rule of thumb that if you were going to refinance you had to lower your interest rate by at least two percent and I know as time went along and products changed that really became unnecessary, but I am just curious in todays mortgage market its a lot different than we were dealing with even two years ago. Is that still true that there is a 2% rule? Whats going on now?
I happened to catch Suze Orman on television and she was talking about mortgages, the caller who called in to the program, the question became I believe similar to what Dan just asked, her comment was that basically if you’re in 6% interest rate or above now is the time to re-fi. That is what she said, a blanket recommendation. I know a lot of people put a lot of credence into what she says, maybe you could speak to that, the lowest interest rates you’ve seen in your career, you have been doing this for a while.
I have, and they are. You know there was a lot of speak the last couple weeks about the Fed, the Fed funds rate by the way is the lowest it’s ever been in history. As of this week the discount rate is to the point that banks are lending money to each other at nothing, the Fed funds rate for intrabank lending is at zero, the problem is the banks don’t have any money.
To be serious about the refinancing, because its a serious topic, I think people are starting to see their mail boxes filled with lots of advertising crap about refinance. I believe that doing the refinance is no different from doing a loan modification or buying a house, you need to sit down with the human being that’s local, that you can know is a legitimate source. You’re going to give all this personal information about you, your family, your kids, your Social Security number, you want to make sure you have somebody there that you know whos legit.
In regard to the old rule of thumb 2%, nothing could be further from the truth, and I will expand, but to the point of Ms Ormond that if youre at 6% or higher, that is a blanket statement and blanket statements never work. We just did a refinance for a guy who was at 5 1/2%, and it makes sense. Every situation is different, as far as how much do I have to lower my interest rate to make it work? It depends on the type of mortgage that you get.
The only type of loan to get today in December of 2008 is a 30 year fixed. I know that one of the things that was really interesting to me, and that you and I have referred clients to one another for several years, so we share a number of clients, were familiar with those families and those households, and this is Wednesday, on Monday and Tuesday of this week I’ve had seven phone calls from clients who you’ve already done loans for, refinances for, asking if this is the time to refinance a loan that is only a couple years old.
And I know in several of those cases the answer is yes you’re actually helping families right now with that process. I am and we do. To answer the question, you need to determine what the payback term is, in other words when your refinance is done it’s a new loan, there’s the title insurance, appraisals, lots of different things may need to be done, not in every case, but in most cases there are costs associated with that. The cost has to be offset by the amount of savings. Its a breakeven analysis
Absolutely it is, the shorter the breakeven the better the loan. I am working on a case right now which is going to be done in the next couple of days where the guy lowered his interest rate by an1/8 of a percent and it made sense for him. It’s not for everybody, 2 percent or lower, 2% is significant, now you’re talking about really significant savings in terms of cash flow…
Duration : 0:6:31
Is the first mortgage payment a double payment?
I am hopefully completing on my first property next Friday. How does the first mortgage payment work? Will it be a double payment?
No.
On your mortgage, you always pay interest in arrears. This is part of the reason that you end up paying so much money over the life of your loan.
If you carefully review the HUD-1 Form that you received from the Escrow Company (Closing Statement), you will see that you were charged interest from the day of closing through the end of the month. Since your first payment won’t be until after the next month, it includes interest for the prior month.
So, if you close in March, your HUD-1 includes interest through March 31. You have no payment to make in April. Your May 1 payment includes the April interest. What many people don’t realize is that your mortgage company will probably accrue interest beyond the first, until the day they receive your check. This is common practice, but it really is a violation of the terms of your mortgage. Good luck enforcing this one later.
So, the answer to your question is no, the first payment is not a double payment, but you are welcome to pay extra each month as additional payments to principal. If you choose to do this, be sure to include a letter explaining that you want the excess applied to additional principal, or else the mortgage company will simply consider that a prepayment of the next month’s payment. This means you won’t get an interest credit, if you don’t tell them your intentions.
Good luck, and enjoy your new home!