Easy Home Equity Loan » economy

Can a house be foreclosed on if you have a home equity loan?

admin — Sun, 11 Sep 2011 02:43:10 +0000

I’m in an argument with my neighbor. He has a house worth approx 300,000. and he is worried because he is on a fixed income and has a home equity loan of 45,000. He’s worried about the state of the economy and afraid he might lose his home. He is making his payments just fine right now but is worried about the future. He’s a senior and unable to go back to work.

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Likelihood of two grad students getting second mortgage?

admin — Sat, 28 May 2011 18:51:53 +0000

My fiance and I purchased a house 2 years ago, but we recently decided to pursue doctoral degrees in a different state. We need to move to the other state by mid May, and given the current state of our economy, we are concerned that our house will not sell in time. A good friend of ours is willing to rent our house if we can’t sell it, and the rental income will more than cover the monthly mortgage payment as well as taxes and insurance. I understand that mortgage lenders are getting stricter about who they lend money to. Do you think there’s any way that a financial institution will grant us a second mortgage so that we can buy a second house? We have roughly ,000 equity in our current house, and the balance of the mortgage is only about ,000. We also have just over ,000 in savings (not including retirement), so we’ll easily be able to put 20% down. The kicker, though, is that I’ll be giving up my job for a graduate assistantship, so our total household income (not including potential rental income) will likely drop to about ,000. My fiance is a master’s student right now, so his income will not change considerably. If we cannot sell our current home and we’re forced to rent to our friend, then will mortgage lenders include this rental income in our total household income when deciding whether or not we qualify for a second mortgage?

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Pay off a mortgage or hold onto the cash?

admin — Sun, 08 May 2011 06:10:11 +0000

For family reasons in this risky market, I bought a new home in October before selling my existing home, taking out a mortgage to do so, about 0K on an 0K condo…I live in California, thus the prices. The interest rate is 5.25%.

I’m pretty sure I am FINALLY going to close escrow with a qualified buyer on my current home after falling through escrow 3 times before, usually because of bank loan rejection reasons. I own my current home (no mortgage) and was going to take the proceeds of the sale and pay off the mortgage to lower my monthly outgoing expenses and put the rest back in my investment account. I am in high tech so I was also laid off in October but was lucky to find a new job in November.

My question is, should I do the "safe thing" and take the proceeds and pay back the loan? I thought I was going to, but others have told me that (1) If I am laid off again in this economy no bank will approve giving any equity out of my house if I lose my job so keeping the money as "near cash" is a safety net to get through these hard times, and (2) With the record debt the USA has incurred, high inflation sooner or later is a near certainty and I may be able to get a higher return (possibly tax free in a muni) in a low-risk near-cash investment, while still getting a tax deduction.

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Would Dave Ramsey recommend paying off your mortgage first then investing is say an IRA?

admin — Thu, 05 May 2011 06:06:02 +0000

We are 30 years old and have a little over 200,000. mortgage. Even in this economy we have over 100,000. in equity because my husband built our home. We have no investments other than our home and my husbands display lot (he is a carpenter and building garages and storage sheds, this lot is a commercial piece of property and we owe about 35,000. it would sell right now for about 70,000. with some time on the market.) These two real estate investments are it for us. We have been making extra payments on the commercial lot and hope to pay it off int he next 5 years. We usually pay about 0.00 extra on our home each month. We are a corporation so we choose not to pay into S.S. We do qualify for it though because we have paid in for enough years. We need to think about our future and we just aren’t sure where we need to focus our attention….Pay the mortgage off asap or invest in a IRA or what? I will really look forward to some intelligent advice!!!! Thanks so so much!
P.S. We have very small car loans totaling about 10,000. for both vehicles. We have a very low interest rate on a school loan.

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Are there any legitimate debt consolidation places?

admin — Wed, 20 Apr 2011 01:18:20 +0000

I have massive credit card debt. I don’t blame anyone but myself for this. However, the interest rates on the cards has gotten ridiculous. I have never missed a payment or been late, but my simple debt, meaning my debt to income ratio, precludes me from getting a normal loan or new credit card to which I could transfer some funds. All my cards are maxed out as well. Again, I could site the bad economy and poor job market, but ultimately I ran up this debt. The monthly bills for the CC’s alone represent a third of my pay. My debt to income ratio is 100%. Meaning that I make just enough money to pay my minimum payments. But at this rate, I will be paying my bills off forever. Are there any legitimate debt consolidation places out there that can help. My credit is extremely important to me, hence the reason I have never missed a payment or was late on one. I do not want to declare bankruptcy or do any kind of consolidation that puts a black mark on my credit. I own a home now, but because of the realestate crisis, I’m under water with that as well, so an equity line consolidation is out of the question. I don’t think that I am so out of the ordinary. I feel like I’m in the majority of americans suffering in this economy. So, can anyone help? Are there any hardship loans or consolidation services that actually help without hurting your credit score.
thanks

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Who's right – me or my husband?

admin — Mon, 18 Apr 2011 22:54:41 +0000

My husband wants to get out of his car loan. We have tons of negative equity in this car because we rolled over negative equity from the car before this one. Our payment is thus very high. Our finance company (Wells Fargo) won’t work with us to lower our interest rate, thus lowering our whopper monthly payment. Mind you, my husband’s hours have been cut due to the economy and we are struggling to keep our payments current on our mortgage which is more important. Here’s where we disagree: my husband wants to have the car voluntarily repo’ed (I am the co-signer). Our credit already pretty much sucks, but we are really going to need to refinance our house in about a year or so because our temporary modification will run out then and our monthly payments will go up about 0/month. My thoughts are that we really need to try and up our credit scores this year so we can refinance and I think a repo will make our credit even worse. My hubby is listening to people at work who are saying that it will only make a small dent in our scores and that we can pay back the deficiency balance after the repo (which will be probably about K) little by little. I say that they will take us to court, put a lien on our home, sue us, etc. My husband is using the defense that he wants to go and get another car using one of those programs where if you get laid off they will pay your car note for up to a year (he may get laid off too). And he wants to get a cheaper car, which is fine. But I really think its a bad idea to have a car repo’ed because it will hurt our scores a lot and leave us with a huge sum of money to pay back. What are your thoughts???? EXPERT advice would be helpful too…

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US blacks see 'financial apartheid' in subprime crisis – do you see their reasoning on this?

admin — Thu, 14 Apr 2011 20:30:01 +0000

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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How do I handle the mortgage and title of our marital home after divorce?

admin — Sat, 09 Apr 2011 20:37:15 +0000

The title and mortgage of our marital home, never had my name on it, since my credit had been lower than his, back when we were house shopping. Since then, he never did the footwork to have me added. Recently we were divorced, and due to the circumstances, I was awarded 100% of the house and all the equity built in it. I want the title in my name now, though I am not sure I would get approved for a refinancing of the mortgage in MY name, due to my low income, and the economy (combined with a merely fair credit rating). How do I handle this so that interest and taxes paid on the property are credited to my name, especially for tax purposes, but also so that insurance and the escrow covers the loan as it is now? Can I even do that?

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If I purchase a house with a friend and it is both our second homes is any of the mortgage tax deductible?

admin — Fri, 08 Apr 2011 01:55:05 +0000

I will be living in the second house when I am working at my job and go to my original home for my days off.

If it is not tax deductible, is there any tax breaks for being forced to move away from my home because the economy is much worse there than the average (according to media and government reports).

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Please anyone who knows anything about banking help me get a straight answer on this one.?

admin — Sun, 20 Feb 2011 20:33:14 +0000

My husband is not doing very well in his job, as it is tied directly to the economy. He is starting to panic about money, and informed me we will need to refinace a fixed 15 yr morgage (to which I only have about 9 years left to pay on) to a 30 year morgage and incorporate a 9,000 home equity loan that will be paid off in 2 years and also a 9,000 car payment scheduled to be paid off in 3 years. Our old interest rate is 5.62% and the new one will be higher at 6.375% And the real kicker with both my husband and I credit scores over 800 my bank is charging me over ,000 in refi fees. My husband thinks it is a good deal, but something is telling me this is not so. I suggested to him we cash in some iras to pay off the car and home equity, since we seem to be losing money on them anyway as they are tied to the market. If I do so my old payment will only be about 0 more than the new payment. I think we should hold off, especially since his child support will end in less than 4 mos