Saturday, 4. September 2010
My house was auctioned off on August 2, 2010. But I have a home equity line of credit that I still owe on, but now it is unsecured because the house has been foreclosed on. Can I file bankruptcy on that dept?
Saturday, 28. August 2010
Hi I have a simple but little tricky question.
I believe there are three ways to purchase a house.
1.Pay cash – If you are a millionaire..
2.Hire Mortgage Broker – They will contact with Wholesale Lender
3.Contact with Bank directly – Bank has it’s own Loan Officer.
*If someone doesn’t tell the difference between mortgage broker and loan officer, go to yahoo and search "mortgage broker vs. loan officer" .
Here is my story.
Year 2004 I met Mr.Kim who was a mortgage broker.He always tell others that if someone wants to buy a house, they have to hire a mortgage broker to process their loan(He was acting that option #3 does not exist. That way he could get more jobs to sell.). *Someone might say "Why did you trust the mortgage broker? You are stupid…" You will be surprised to know how so many people have no knowledge about these whatsoever.
Anyway I trusted him and year 2005 I purchased my first house.
I filled out loan application and prepared all the documents which was prepared by Mr.Kim. The loan was approved: both first and second lender was major Banks. Exactly 2months later, I received a check book by XX (also major bank) bank. I asked my mortgage broker about this and he said that this was a home equity line of credit by XX bank (3rd mortgage): it was issued based on the current value of my property (there’s no loan application and no appraisal report..ect.) and my excellent credit. I had no doubt about this at that time (because it was issued from a major bank) and I used the money for home improvement. My mortgage broker, Kim was sentenced for financial fraud for other cases(currently he is in federal prison)
In the mean time, my mortgage payment was increased dramatically because it was a MTA program which I had no idea what that was at that time… My monthly payment doubled after 2 years and I had reached a point where I could not make all three mortgage payment including the 3rd mortgage. As the real estate market crashed, the value of my house dropped greatly and I could no longer able to make payment. I knew something was not right. I heard about Mortgage Audit from internet one day and decided to do that. I requested all the documents (including original loan applications..) from the all three lenders.
I was surprised to see that there were loan officer’s name which I had no idea because I had never met any loan officers. Not only that but also the information on the loan application had wrong information which was prepared by mortgage broker?? or the loan officer??
Since the lender was not a whole sale lender, I had learned that the loan officer from the lender must meet with the borrower directly(Patriot Act?).
What do you think about this whole loan process? I want to know how big crime it is when the loan officer never contacted the borrower and accept all the documents from the mortgage broker and approve the loan despite of all the wrong information on the loan documents??
* Some of you might say, "You signed the documents at the settlement and it is your responsibility"
However both the mortgage broker and the title agent are currently imprisoned. During the settlement, it is almost impossible to review every single document and sign them. I had to trust whatever I sign because it was conducted by title lawyer. Who would not trust "LAWYER" ?? DO YOU THINK LENDER GAVE US A MONEY BECAUSE THEY ARE CHARITY WORKERS?
Wednesday, 25. August 2010
My wife and I are both self employed less than two years, and we were told that makes it impossible for us to get a Home Equity line or loan given what we want and where are scores are (we want about 85% LTV and our middle scores are between 620-650). I was told by a loan guy at a major bank that this would have been possible several months ago, but since the real estate market went downhill restrictions are much tighter. It is important to note that we are both 1099 workers with large companies, not people who started up a new buisness (although we are technically self employed). The man I spoke to said that he understood the distinction but the underwriters are very rigid about the rule. He said that if I really wanted the loan I could go out and get a W-2 job and he could get me approved as soon as I got my first check. Any advice?
Sunday, 22. August 2010
Is it better to get a home equity loan, or a home equity line of credit? I want to pay off my credit card debt.
Saturday, 21. August 2010
OK heres the deal… I have bad credit however i have my own house all paid for, nothing owed. I need a new car since mine decided to freakin blow up! I tried with Bank of America to get a home equity line of ,000… which was the min, and they denied me because of my credit. I HAVE COLLATERIAL! Anyone know where else i should apply? or am I just basically screwed? You would thing that my house is all paid for that someone would give me a home equity loan…I am trying to avoid going to a car dealership to finance due to the interest rates…Thanks for all your help! any suggestions are also welcome
Monday, 16. August 2010
I am involved in a 3-way investment on a rental property and we are being forced to sell because of a DOT project. Our profit on this property will be approximately ,000 and we need to figure out how to split this up. Being close family members, we weren’t too concerned about figuring this out we bought the property.
I would really appreciate any suggestions from real estate investors experienced with partnership investments like this.
Here are the figures for the capital and work/mangement invested by each party.
Investor #1:
Invested 0, 000 by taking out a regular home loan.
Lived at the property and payed "rent".
Did 85% of the maintenance, improvements and rental property management.
Investor #2:
Invested ,000 from a home equity line of credit.
Did 0% of the maintenance, improvements and rental property management.
Investor #3:
Invested ,000 from a home equity line of credit.
Did 15% of the maintenance, improvements and rental property management.
Thank you!
Sunday, 15. August 2010
I know a HELOC is a "Home equity line of credit" but what is the difference between that and a "Home Equity Loan"?
Saturday, 14. August 2010
I have been paying on this line of credit for 3 years and becasue it has a flexible interest rate although I pay extra because the interest rates continue to rise most of the payment is almost all interest. I need help getting out of this mess but I also need to put as much money in the 401k as I can because that is not where it should be either. If I do take a inservice withdrawal I will not be able to contribute for 6 months. This means i will lose the interest on the money I take out and on the money I cannot contribute for six months. I will lose my employers 5 percent matching and the tax advantages. What do I do? I plan to retire within the next 3 to 5 years. This is such a mess. I cannot take a loan out because I did so to payoff credit cards and I can only have one outstanding loan at a time. I feel so trapped! The home equity line of credit balance is 13000 dollars.