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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1. Real Property is NOT: (Points: 10)
attached to the ground
often mortgaged
taxed
capable of being moved

2. When a large value item or asset is sold voluntarily, it could be called what? (Points: 10)
foreclosed
repossessed
liquidated
auctioned

3. If you break an automobile or apartment rental lease before the contract expires, you could be subject to what? (Points: 10)
prepayment penalty
early termination penalty
finances charges
higher interest rates

4. When you begin paying a 30-year loan, what part of the loan are you paying first? (Points: 10)
equity
interest
principal
assets

5. If you don’t own your residence, what kind of insurance do you need? (Points: 10)
Homeowners insurance
Supplemental insurance
Renters insurance
Private Mortgage insurance

6. What are expenses like telephone, electricity and natural gas called? (Points: 10)
assessment expenses
utility expenses
luxuries
budget items

7. Insurance approval and evidence of coverage is required to get a mortgage. (Points: 10)
True
False

8. When you rent your residence, taxes are paid as part of your rent payment. (Points: 10)
True
False

9. When you pay finance charges, or interest payments on your first home the amount is deducted from your federal income tax. (Points: 10)
True
False

10. What are good reasons for buying/mortgaging a home? (Points: 10)
to build equity as savings
you expect to reside in the same area for a long time
your credit is established and you can get a very low interest rate
your income is high enough to claim a deduction on your income tax
all of the above

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I live in Florida. The house that I purchased is now worth k less than when I bought it. My student loans are k and my second mortgage is k. Interest on my student loan is 1.625% and my second mortgage is 8.125%. I save several thousands each month and I fully contribute to my 401k.

I understand that Florida is a full recourse state so my thought was that the student loan should be top priority for paying down despite the fact that the second mortgage is at the higher interest rate.

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I’ve just lost my job, so my financial situation has just worsened signifianctly. The house is still pending several major repairs as a result of Hurricane Ike, and a recent devastating flood my neighborhood experienced back in April.

I had 100% financing on the home, I have no equity and I owe the amount that I financed it for before it experienced damaged by Ike and then the flood.

My credit is so poor right now that I seriously doubt that filing for bankruptcy (and having it own my record for years) even matters at this point. I do not even care if I keep the house at this point because I owe much more than I’ll be able to even sale it for in the future.

I’ve never filed for bankruptcy, but I’m not sure I have any other option at this point. I’m looking for a job, but even if I find one soon I still have weeks before I will even receive a paycheck, and I presently have about 0 to my name and a pile of past due bills that = over 00 (mortgage, utilities, student loans, etc) and I am a single parent of three young children who receives no support what so ever and our refrigerator is just about empty right now.

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When we bought the house, there was fear that the local Navy base would close and people were selling their homes to anyone who could breath. We got our house cheap and with a 5.7% fixed interest rate.

The base stayed open and close to 2,000 jobs have been added. Home construction is booming here. At last check, Zillow.com says our house is worth 1,000 after falling from a high of 6,000.

My question is, shouldn’t I be able to drop the mortgage insurance? If so, how do I go about doing it? I have heard it is almost a nightmare to have it dropped. I have not taken out any loans against the house and have paid an additional 0 on my principle almost every month.

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