"Imagine you want to arrange a mortgage on your first house purchase. You need $200,000.00 Find the best rates and terms available from three different type of lenders such as a mortgage broker a major bank and a banking company such as president choice. Describe the advantages and disadvantages of each and choose the best one."
you can get into all kind of variables in the loan business. What you are attempting to do is almost impossible to do.
You are the one getting the loan. Which of the three do you feel comfortable with? Which is charging you less for the loan? Which has the best rate? Can you make the mortgage payments with ease? Did either give you a pre-approval?
The reasons it is difficult to tell you about the various mortgages is because one could be charging a processing fee while another is charging a lender’s fee.
One loan could be a no points no fee loan and this loan is costing you a .125, while the other is charging one point, but you can deduct the point off you income tax at the end of the tax year.
So as you can see it boils down to the APR and which ever is the cheapest. One might offer better service. or be closer to where you live.
You are not gonna save that much if the difference is .125 or .25.
What we are trying to tell you is that without the entire loan amount, interest rate, closing cost we are not able to separate the three.
Your best bet is the mortgage broker, he has more underwriters underwriting his loans. He also have more programs, he just might have your major bank and banking company with the president Choice program.
I hope this has been of some use to you, good luck.
"FIGHT ON"
He has moved out of the home and his soon to be ex-wife is still living in it. He had to give her his key, so he isn’t even allowed to go into the home without her permission. He isn’t paying anything towards it and doesn’t intend to.
Is there anything he can do to alleve himself of this mortgage that’s hanging over his head?
If his name is on the mortgage, he’s still legally responsible for paying the mortgage payments. The bank isn’t going to care whether he’s actually living in the house or not — they’re only going to care that he promised to pay them back all that money he borrowed, and now he’s not doing so.
Your boyfriend needs to get his lawyer to work on this ASAP. If his STBX can’t afford the mortgage on her own, then the house needs to be sold. The divorce agreement should spell out specific, detailed instructions on how this should be done and how the proceeds should be divided.
or for those who were not victims of outright mortgage fraud?
How do they explain the record mortgage foreclosures and still rising for those people? and how do they explain that certain regions or certain major cities of the USA have way more foreclosures than others?
For those for whom my question is not clear enough, I am referring to people who got regular A paper non subprime mortgages who did not lie or pad their assets and played by the rules and got regular fixed rate mortgages etc.. who are still losing their homes in record numbers.
Many ordinary Americans are losing there homes because of other factors, high gas, and everything else is causing chaos.
where i can find today’s wholesale market rate for fixed mortgage (2years)?
as i want to exit a fixed mortgage with ANZ, and they could not locate today’s wholesale market rate and told me to look in the news papers. is it available online?
Your bank is an idiot. They should be able to advise you of what break costs would be applicable if you paid out your loan. The pay out amount would only be valid for the day of your enquiry but would be a good indication of what the final amount would be. The amount will change each day but not usually significantly. Tell them you want to pay out your loan and request the amount due.
It is irresponsible of them to suggest that you locate the wholesale market rate. Get back to them and tell them to provide you with the service for which you are paying them.
It is not up to you to do their work for them
my mortgage company is harassing us. We told them we would make a mortgage payment on the 31st of December. they said they couldnt take a commitment that far out. They called me every 3 days since 12-3-07. We told them we would pay on that day every time. From 12-27-07 til 12-31-07 they called every day!(including Sunday at 9a.m.) On 12-29-07 a lady told me that they had all of my banking information, and would just take it out of our account! We paid it on the 31st, and already First Franklin Mortgage is harassing us for our Jan. payment. Is this harassment, and what can we do?
How often are you late? If you’re late often, they might have deemed you a financial threat. Sadly, it isn’t harassment. But if they are calling like crazy and you’ve never been late, maybe you should ask a few questions to a lawyer and see if he can give you some advice.
GOOD LUCK!
EDIT: She threatened to take it out of your account? Then YES, that IS harassment… seek a lawyer! And BTW, she can’t do that…. that would be illegal! (Sorry I didn’t read the bit!)
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.
Example, I own a house worth 100000, but the mortgage is 110000. Will mortgage lender demand the 10000 difference?
If you own a house worth $100,000 but the mortgage is $110,000 – and you walk away – the lender has the option of foreclosing and coming after you for the difference. It’s up to the lender, but if you just walk away without any communication, they will most likely come after you.
If the bank takes the house into inventory (bank owned) it will try to sell it for the best price, fast.
That could mean a sales price of $80,000 (just an example).
At that point, the bank has the option to forgive you the difference of $30,000 and not go after you or your other assets.
However, the IRS will treat that $30,000 forgiven loan as taxable income to you – and yes, the IRS will go after you for it.
I would suggest you talk to your lender about extending the term of your loan to add any missed payments back into the principal or as additional payments at the tail end of your mortgage life – so you can try to keep the house.
If you absolutely can not make the payment anymore, talk to your lender about a short sale – giving you the chance to sell it quick and pay off what you can, so it does not become bank inventory.
With a short sale, ask your lender to forgive the difference after the sale. A short sale on your credit rating is not as devastating as a foreclosure.
However, the IRS will still look at the loan balance forgiven as a taxable item.
For more information, call the Home Ownership Preservation Foundation, a non profit group dedicated to helping people in trouble keep their houses. 888-995-4673
Good luck and best wishes.
With 1 in 8 homes going into foreclosure, and mortgage lenders unable to keep up with tons of applications for help, is there really an answer to this problem? Jobs are being lost at alarming rates. Should lenders simply write these loans off as losses and call it?
No. I really think there is a better way for everybody, but sadly nobody wants to look at this.
1. Allow people to stay in their homes, this keeps the place nice, and keeps out the rift-raft
2. Put in place a mandatory 40-year loan instead of the 30 year loan. We did it for cars in the eighties and nineties. That lowers the monthly payments.
3. Allow those who are behind on their mortgages to put that amount at the end of their loan. You can’t bleed a turnip or a person out of work. But you can help them out. What good is writing off a trillion dollars in bad debts.
4. Outlaw credit cards and pay-day loans to everybody, this is what got many people in trouble to begin with. And now people with $800 and more in credit card payments can’t keep their homes. This is a scandal that keeps on giving. And it is worse than loan-sharking.
5. Make money management a mandatory course for anyone needing a loan. People have to know how to live within their means.
6. Knock of the welfare and food stamps for those who will not give back in their communities in for of work-fare, and volunteer in gardens.
We are a strong nation, only 10-12% out of work, that means at least 85-88% are willing to work, and are employed. We can and must help each other, but not in give-aways.
If you provide the mortgage company with all the requested info do they typically follow up on that. Does it vary from company to company or is it a common practice for them to execute the 4506t form. Also, has anyone everheard of first choice mortgage in charlotte? Any thoughts on them?
Hi,
The primary reason behind using a 4506 form is to prevent mortgage fraud. Lenders use such a form to collect copies of the tax returns of self-employed borrowers for the past 2 years from the IRS. Most big lenders and mortgage companies ask borrowers to fill out such a form. To know more on why 4506 form is used, refer to http://www.mortgagefit.com/know-how/irs4506form.html .
Regards,
Jessica,
Mortgage mentor
MortgageFit Community
… People? Was it because they were mostly minorities in heavily Hispanic states of ca,az, nv, nm, fl and tx?
I think it’s all tied to conspiracy world banking…. don’t laugh now. The Feds are printing, spending, loaning, and taxing at record rates…… central banking is pulling the strings though, and all of this is meant to cripple we the people in favor of globalism.
Which president attempted to tighten our borders? Not even GWB (I’m still upset with him over this) and of course the liberals love it, more entitlement programs, irresponsible spending, excuses for bailouts, print more money…. where will it end?
I think that is why the "rewarding" for personal irresponsible and poor corporate performance. The eye in the sky wants to keep us all under control.