Part I: Understanding Mortgages [mortgagefraud101.blogspot.com]

Part I: Understanding Mortgages [mortgagefraud101.blogspot.com]

WASHINGTON â€" As some older Americans try to improve their finances by tapping home equity through reverse mortgages, many are at risk of ending up in a worse situation because of confusion over the complex terms of the loans, according to a new ... Report: Seniors facing reverse-mortgage risk

Parody on the HAMP Mortgage Modification program also known as the "Obama Plan". Warning: Content might be considered offensive to Members of Congress who voted for the bailout and borrowers with 0000 mortgages making 000 a year.. Do not play within earshot of children unless they are well versed on the Obama Bailout and have a solid grasp on their future tax liability. Highly recommended as pre-education for financial and marriage counselors embarking on emergency interventions. This is the flip side to Blood Sucking Vampire Realtors.

mortgagefraud101.blogspot.com Bail Pail Mortgage, How Can I Help You?

Owning a home is one of the biggest financial decisions a person will make in their lifetime; they are not only building a home for their family, but they are investing in their future. One of the most important steps you can take when looking to buy a home is to get a full understanding of your home loan and how it will affect your budget, expenses, and your life.

Credit - Your credit score will have one of the biggest impacts on the amount of money a lender will allow you to borrow. Your credit score is like a timeline of how you manage your money and how punctual you are on repaying your loans. Lenders have gotten much tighter on who they are willing to lend to, so a damaged credit score may hurt you on obtaining a loan. One of the best things to do is to clean up your credit score a few months before starting your home search.

Close out any accounts that you don’t use, don’t charge any major expenses the month before obtaining a loan, and pay down your credit cards with the highest percentage first.

Application - Applying for a home loan can be one of the most nerve-wracking parts of the home-buying process. While it’s always a good idea to get yourself “pre-qualified” for a loan, to make sure you don’t have any glaring issues with your creditworthiness, and to find out how much a lender is willing to loan you, applying is the actual official process of obtaining your loan. Once you’ve made your final offer on your home, your Real Estate Agent should have placed a contingency in the contract based on obtaining financing. This way, if anything falls through, you can still walk away from the deal without losing your deposit.

Under the Real Estate Settlement Procedures Act (RESPA), lenders are legally required to provide a good faith estimate within three days on receiving and approving your application. The good faith estimate will give you an idea of the kinds of closing costs you can expect as well as an estimated monthly pay ment.

Origination Fees - Origination fees, otherwise known as “application fees” or “processing fees,” origination fees are typically a set amount for any loan, based on your lender. A “point” is one percent of the loan amount, and your lender’s origination fee will vary between 0.5% and 2% (points). You can also buy “discount points” to buy down the interest rate either temporarily or permanently.

For more information on buying and selling real estate, or to check out our Denver real estate for sale, please visit us at PorchLight.com.

More Part I: Understanding Mortgages Topics

Question by buad0118: What happens to a second mortgage when a home is purchased at a foreclosure auction? I am going to bid on a house at foreclosure and it has a 1st mortgage of $ 280K and a second of $ 70K. The lender on the first two mortgages is Decision One Mortgage. The lender at foreclosure is Countrywide. Does this mean that if I buy this house at foreclosure that I will own additional money to the second mortgage or just the first mortgage and back taxes? Best answer for What happens to a second mortgage when a home is purchased at a foreclosure auction?:

Answer by Karen R
If Countrywide is currently the 3rd mortgage and you buy it at their foreclosure sale you will be responsible for the 1st and 2nd mortages plus taxes.

Answer by girlwhoknowsitstrue
BTW, there's a redemption period where the original owners can pay back what's owed and reclaim the house - can be anywhere from 6 months to 1 year - so don't be quick to dump money and updates into that house.

Answer by David D
The answer may be here.

Answer by Searchlight Crusade
When a senior lien forecloses, a junior lien is wiped out. So if the first mortgage holder forecloses, the second trust deed goes away. If the second forecloses, you'll still owe the first. Oftentimes, if a senior lien forecloses, the junior lien holder will send a representative to the auction to defend its interests by making sure the property goes for enough to pay the junior lien as well. Or they buy it themselves with the idea of reselling. Costs money, yes. But better than losing their whole investment.

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