Easy Home Equity Loan

Why don’t payday loan companies and other loan companies that provide loans over ,000 and provide first & second mortgages in Ohio be required to have loan officer licenses & mortgage broker licenses? Does anyone know?

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We bought a new home 3 1/2 years ago for 260,000 dollars and improved it in many ways. We have significant equity in this home; we owe just 113,000 dollars on a 30 year conventional (fixed) mortgage at 6.25 percent. My wife and I have credit scores of 750-760 depending upon the bureau asked. Aside from our home loan (113k), we have no debt whatsoever. My wife & I are both teachers.

About six weeks ago, we decided to refinance the home at a much lower interest rate and pull out 15,000 dollars equity. Everything was going fine until, about three weeks later, I decided to relocate for a better-paying job out-of-state. Because property values have declined in my community, we chose to rent the home for 1,500 per month with the goal of selling it after a year or so when the housing market improves. The home will be rented tomorrow.

Unfortunately, the appraiser somehow got the idea that we were selling our home, and our bank initially declined to refinance because of this. When I explained the situation to my loan officer, she said they’d have to “start the process over again” and that we’d pay higher fees and have a higher interest rate if approved.

So I have a couple of questions.

First, how long is this approval process going to take on average? Will it take another month?

Second, what is the possibility of getting a second mortgage to buy an inexpensive home where I am now? In today’s market situation, is that difficult to accomplish?
Our income isn’t very high because my wife chooses to only work part-time these days and spend more time with the kids. We generally have a 55-60K income. We had planned on initially renting in our new community, which is a rural area, and then (after a year or so), selling our home and purchasing with mostly cash. But the rental market is outrageous due to the military base I think. It’s much cheaper to buy: a fairly nice home (15 years old) rents for 17-800, but can be purchased for 150k. So rents are high, but prices are pretty low.

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This is for my primary residence in California.

My first & second mortgage (80/20) purchase money loan are with the same lender.

I never refinanced the first mortgage, but I did refinance the second (HELOC) loan.

I am now considering foreclosure due to financial hardship.

My question is:

1. Does the One Action Rule prevent the lender from seeking a deficiency judgment on the HELOC loan?

2. Based on past trend, for the HELOC which becomes unsecured debt, is there a certain specific percentage that the lender generally settles for with the borrower e.g. a certain most likely percentage of the amount.

Thanks.

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After about a year of back and forth my wife said she now wants a divorce. I am very sad and trying to figure things out. We have a house. . . with a first and second mortgage. I just got off the phone with the bank that holds the second mortgage to our house and they said that if you do a short sale or deed in lieu we would still be responsible for the remaining balance on the second mortgage, and if we foreclose upon the house the same answer. If this is true, how do they collect on the debt now that it is unsecured? Wouldn’t we both be responsible half & half? Please let me know. . .I cannot stay there due to emotional & financial reasons & she says she no longer wants the house either.

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I mean both are similar, and can be used for the same reasons. What’s the difference, which ones are better to apply, which ones are you more likely to get approved of, and WHY are many banks not offering lines of credit/loans…but yet, DO offer "home equity lines & loans?"

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I am considering having my brother help out with the downpayment on a house that I will live in and solely own. His share would be ,000. In return he will receive a yearly rate of return on his investment, with a payout at the end of the 10th year. I am guessing that a 10% annual interest rate would be attractive given the state of the stock market.

This deal would be on the side and under the table so as not to create a Mortgage 2 on the property.

Is the interest rate that I described acceptable…too much…too little?

Here is an example that I’ve worked out:

Purchase Price: 8,000

Down payment: 00

In 10 years: Market value (2% per year incr.) 1,176
Mortgage Balance: ,274
Equity: ,902

Payout of ,000 loan at 10% over 10 years = ,937

Therefore, Remaining equity would be ,965.

I would be personally responsible for all of the mortgage P&I, taxes, upkeep etc. while I live in the property as the owner.

Over 10 years: My current rent that I pay now would be: (0 x 120mths)= 2,000
Over 10 years: The mortgage P&I + property taxes (estimated) (1 x 120mths)=0,920

So at the end of ten years, I will have paid out much the same, however…with the home ownership, I will surely have paid additional for upkeep/maintenance. However, I would also now have accumulated ,965 in equity even after paying off my brother.

Does this make sense….am I missing something?

If anyone has any advice, I would really appreciate it!

Thanks,

I will use 00 for downpayment and the rest to go to closing costs.

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SO…you are crying RACISM for being given a chance to own a home and FAILING because you did not pay your bills? How is this apartheid?
This all goes back to being treated EQUALLY. It is not MY fault that you chose to buy something you could not afford. Whites do it too. It is just stupidity and greed…nothing else.

http://www.breitbart.com/article.php?id=080127181914.e1z8r2hd&show_article=1

"People of color are more than three times more likely to have subprime loans," concluded the organization United for a Fair Economy in a recent report which estimated that minorities have seen between 163 billion and 278 billion dollars of their equity go up in smoke since 2000.
The city has responded by suing lenders, accusing them of targeting black borrowers and steering them to the loans granted with few formalities and at hefty interest rates to people with poor credit histories.
READ THE ARTICLE – this is not MY ISSUE

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Here’s what’s going on: We purchased a single family home in 11/07 at a 6.5% interest rate for 30 years (conventional loan.) It was our 1st time purchasing-we just went thru the motions. Anyhow, I have wanted to refi for a lower rate and term, but we have a little negative equity and lenders will only lend 90% with PMI. That’s quite a bit of money for us to fork out (not including the thousands of dollars to actually refi), so I say forget the refi & figure out what I need to pay each month to pay this loan off in 15 years. Pretty much there are 2 equations I’d like to know-

1) How much do I need to pay each month to pay my loan off in 180 payments/months?

2) How much do I need to pay each month to pay off my loan in 160 payments/months?

Let’s presume I’m paying the 1st of every month. I know that interest rate will change my p/o greatly if I vary from the 1st of the month plan-no plans to do that.

I am just looking for the most accurate estimate I can get, so please ask me any questions if I am missing information, I will happily update my question and you can update your answer.

Assuming homeowner’s insurance does not change-78/yr
Assuming taxes do not change-8/yr
Current loan balance 3,500

Here’s a copy of my mortgage site based on a 50(ish) payment I made this month:

Your payment is comprised of the
following amounts:
Principal and Interest 8.48
County Tax: .57
PMI Escrow: .41
Hazard Escrow: .17
Overage/Shortage: .02

3) What’s Hazard Escrow????? Geez.
Lauren, you are an asset to Y! Answers! Thanks for your time & information!

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