Thursday, 13. January 2011
I bought a house for very cheap with a low interest rate and I was told FHA can take up to 90% of the price of the home if I decided to sell my house before a few years. If I have about ,000 in equity and I go to sell my house in 2-5 years and pay off the remainding balance of my mortgage loan from the sell Can FHA take 90% of the equity also?
Sunday, 19. December 2010
Ok I’ll try to make this as short as possible (if it’s even possible)…
We have a first and a second mortgage on our home. I had developed somewhat of a friendship (via phone) with our broker over the years. He had done a 2 or 3 loans for me prior to the one’s I currently have. When we went into doing a good size remodel he did a 30 year fixed mortgage loan that was killing me financially during construction. So, during the end of construction May 05′ we refinanced into a Negative AM Loan and due to needing more $ to finish our project we took out a second in the amount of ,000 (,0000 was what our contractor told us we needed for completion). The plan was that a Negative AM would give us a little extra cash if we needed it for the finishing touches. With this loan I could choose month to month to either make a Neg AM minimum payment, interest only payment, 30 year fixed or 15 year fixed payment. After a year we would refinance the 1st and 2nd into 1.
Well, I had called our broker 3-4 times in the months following the signing of papers concerning when the payment for the 2nd was due and for how much. 1st contact was about 1 month after completion of the loan to let him know I hadn’t recieved a statement for the 2nd. He said it was on his desk and he hadn’t gotten to it but will soon. I called at least 3 more times over the next few months and was told the same thing during the 2nd and 3rd contact. Then by the 4th contact he said don’t worry about it just appreciate it now. I thought ok I guess we’ll just deal with it later (yes, I know that sounds stupid and why would someone do that right?) I didn’t really think much of it because like I said we had developed somewhat of a friendship over the years. (And NO not sexual, I have never met the man in person and I am MARRIED)
A year came and went, then a year and a half came. I called him sometime in January or February 07′ to asked him when we were going to refinance the loans. He said let’s do it. I started the process of submitting all the paperwork and he ordered an appraisal which we paid for out of our pocket. The result was that we had plenty of equity to qualify but due to our credit scores at the time (which weren’t to bad but not great) he advised us to wait because the interest rates were continuing to drop and he was confident that we could get a better interest rate if we were to wait a little longer. We both agreed.
Another year went by. In January 08′ I called him again to start the process of refinancing. Again, I submitted the paperwork and paid for another apprasial. I shared my concern with him regarding the news of foreclosures and it making it harder for me to get refinanced. I let him know I didn’t want to lose my home. He understood my concern but was still confident and advised me not to worry. He wanted us to somehow cut our credit card debt down by 50%. He suggested to borrow money from our family or friends. Well, needless to say that was not possible. I don’t have any rich family members or friends that would let me borrow 6 or ,000. This was so I could manipulate the balance of my close to being maxed out credit cards. So, that’s how we left it. I was to try and get my credit cards down. That was in March. I called him and July to let him know I wanted to get it done. He asked me to call him back next week. I agreed but didn’t. Not on purpose, but at my job, the summer is crazy.
Coincidentally, while our economy is going down the crapper, I recieved a phone call from him a couple of days ago letting me know we needed to come up with some kind of plan, he said I needed to come up with atleast ,000 in 30 days!!!! If I do that he will wait on the rest so I can continue to pay down my debts and refinance me later. He told me if I didn’t, we would have to sell our house because, at this time I still have enough equity to pay him off.
So, after this long story my question is… can he force us to sell our home? I have been loyal in paying my 1st on time without default. I don’t have a problem paying him back, I did borrow the money. It’s not like I’ve ignored the 2nd completely either. I have looked through my paperwork and it doesn’t have any payment address or who to make the payment out to. Can he just all of a sudden demand this money to be paid to him? Can he force my family out on the streets? For a ,000 debt I had inquired about a number of times and a first that has no default against it.
Friday, 17. December 2010
We’ve contacted our credit union about taking out a mortgage loan, they told us we’d have to have at least 15% down, which we could afford but we heard about first time home buyer grants to help with down payments. Our realtor owns the house we’re looking at and he told my husband he would contact his bank and see about a second mortgage? What did he mean by this? He will be calling back later but I’m confused!
Thursday, 2. December 2010
The situation
We bought a condo in 2005 at the height of the housing boom for 8,000. Our loan was financed by Wells Fargo, and the type of loan that we qualified for consisted of an 80%/20%, hence it was 100% financed. Both loans were called Smartfit Home Equity accounts and were fixed Interest Only for the first 3 yrs . We were ofcourse told by the loan officer that we should be able to refinance by or before the 3 yrs and get into a regular fixed loan.
Forward 2 yrs later and with the bust of the economy, deep decline in housing values, and unemployment, we are just one number among the millions of people facing default on their mortgage loan.
One of us lost our job last year in 9/2007, and that is when we started contacting Wells Fargo trying to be proactive with our situation because we knew in 2008 the loan accounts were becoming variable, and we wanted to be ahead of the ball. At that time, Wells Fargo said they couldn’t help us because we were not in a hardship and we were not past due. All they were offering us was to modify the loans for 1 yr. However, we didnt want a temporaty modification cause we knew 1 yr later we would be in the same situation again, facing variable unpredictable loan payments (needless to say it is 1 yr later and the economy is worse than it was in 9/07). We decided to keep making payments until early 2008 when the payment on the 80% loan converted to variable and we saw that we could not afford it. Again, Wells Fargo could not offer us any assistance because supposedly we could still afford the variable payments. We were told we could not refinance since the value of our property was not there (duh!). That left us with upside loans and variable rates.
So here we are in 11/2008 we tried getting assistance from Wells Fargo one year ago and currently STILL trying. It has been several months since we have stopped paying and still no notice of forclosure and currently waiting on a representative from Wells Fargo to call us in regards to HUD’s HOPE for homeowners program.
To top it all off we were never informed that our 20% loan became due and payable after the 3 years expired.
We recently found out both of our loans might not be considered regular mortgage loans. Since we have a Smartfit loans which are Home Equity accounts and possibly recourse loans. Meaning they can come after us after the difference opposed to a regular mortgage loan.
We strongly feel we were painted a pretty picture and since we were young and eager into getting our own place we took the Wells Fargo information as face value and belived what they had to say and not knowing we would not be able to afford our monthly house payments if this was a principal/interest and taxes regular 30 year loan. I guess you can called it stupid or naive but this loan was basically a bad loan to start with, not a Smartfit……..
Wednesday, 1. December 2010
The construction loan is financed for about 0,000. My husband and I have about 00 worth of debt. We want to obtain a debt consolidation loan just to pay off these debts. By paying this off we will raise our credit scores almost 40-60 points. My husband is at a 631 score. He wants to be at a 700 or 720 by the end of the loan to secure a low interest rate. Once the mortgage is finalized we will roll this 00 debt into the new mortgage loan. Although we are approved for 0,000…we are thinking the home can be built for 0,000. We plan to pull some equity out of the house and put it to aside for a rainy day.
DOES THIS PLAN SOUND EFFECTIVE TO YOU?
ANY OTHER SUGGESTIONS?
Wednesday, 20. October 2010
I currently owe 60000.00 on my original mortgage loan and 25000.00 on my home equity loan the 2 are from different financial institutions.My home was used of course as collateral for the equity loan,what happens to my house if im current on the mortgage but maybe defaulting soon on the equity loan???
Tuesday, 5. October 2010
I bought a timeshare last year and is looking to get it refinanced. I am the only one on the loan, but me and my boyfriend are on the deed. I went to my credit union and wanted to refinance, they said i need a cosignor. My boyfriend suggest takin a home equity loan so it would be less interest rate and we have collateral. I talked to my credit union and they said he cant put the house up since I am not on the deed. So if i got added on the deed, do I have to get put onhis mortgage loan as well? I didnt think so but the lady said I did. I dont want to be put on the loan but I do want to be added on the deed.
Friday, 10. September 2010
I am wanting to purchase a 2 family house that is already occupied and rented for 0 a month, the asking price is only around 15,000 and it’s real estate value is at least double that. The owner is retired and just looking to get rid of the house cheap. I have 550 credit and have no capital to add to the deal. I have gotten a responce from one hard money lender. However, I have been thinking about a hypothetical way to make this happen where all parties win. Please everyone let me know what you think, and if I’m missing anything.
1. Get a private loan (not hard money) from a willing investor for 15k.
2. Purchase the property outright.
3. Get an equity loan for the appraised value of the home (est. 40k).
4. Pay back the private loan with interest.
I’m sure I may be missing something, so let me have it. lol.
I think the key issues I want to know are:
A. Will I need to hold onto the property for a substantial amount of time before I can get an equity loan on it?
B. Will the equity loan terms be affected by my credit scores and debt-to-income ratio like in a mortgage loan?
C. What return would be fair to the private lender for use of their 15k?
The whole thing about it being a "private" loan, is so the bank dosen’t know I didn’t buy it outright with my own money. Therefore the 15k+ private loan will have no bearing on the Equity loan.