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what is forgivable second mortgage?

admin — Wed, 29 Jun 2011 09:02:24 +0000

The buyers paid 5,000 for the property.The builder agreed to take back a"forgivable second mortgage" from the buyers for ,000 at 0% interest with the stipulation that the buyers never had to pay it back.What was the cash -equivalent sale price?
from the above ,does it mean that the buyers only need to pay 0,000?But the answer is that the cash -equivalent sale price may less than 0,000,because the buyers may have to paid a premium for the property.Why??
Thanks for your answer~but actually I’m a Chinese student .so I really could not understand what you mean .could you please explain it?
1. the builder took back "forgivable second mortgage" ,because he want to higher the reported sale price? the buyer only paid 0,000.but why the buyers may have to paid a premium for the property?
2.another question :
location:the land is always valued at its highest and best use as though vacant.
why think it is vacant?
the whole question is as followed:
The buyers of a new home in a platted subdivision paid 5,000 for the property,This home was speculatively built and the builder was having trouble selling it.It was listed in the MLS system for 6 months at a price of 9,900.To close the sale ,The builder agreed to take back a"forgivable second mortgage" from the buyers for ,000 at 0% interest with the stipulation that the buyers never had to pay it back.What was the cash -equivalent sale price?

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My mortgage company has a give it back to the bank program, but I might have a second mortgage? Help?

admin — Wed, 08 Jun 2011 09:04:19 +0000

My wife and I are going to be filing for bankruptcy but our mortgage company has a "give it back to the bank" program that keeps them from foreclosing and they waive the right to sue us for any shortcomings once they sell.
The problem is that this mortgage company is the only one who has a deed on the property according to the county, but we have a second mortgage (or so we thought). The second mortgage was sold to another company and they never filed the paperwork with the county.
The question becomes if we can "give it back to the bank" without the second company staking a claim to the property?

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What is the best method for my situation to pay off my credit card debt?

admin — Sun, 22 May 2011 22:51:56 +0000

I have about 10K in credit card debt that I would like to pay off. The problem is that I’m not sure how to go about doing it. I have the resources and just need to know what way is the best way in terms of being the most financially savvy. I’ve got 2K in cash, 5.5K in a stock which I believe is fundamentally strong and will blossom at some point (but who really knows when), and around 44K in a retirement plan invested in bond funds which is currently enjoying around a 4% rate of return which I can tap for a loan if needed without penalty (only a 2.75% interest for a loan) and I don’t plan on retiring for about 25 yrs. My job is secure too. Also I have about 2K in EE bonds. I am a home owner and considered a refinance loan but don’t want to use my equity to pay off cc debt. So, again I have the means but I’m a little unsure of what would be the "best" way of going about this. Needless to say, I won’t be accumulating anymore credit card debt in the future. Thanks in advance for any suggestions.

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Long question. Please read details before answering.Thx. I need advice on credit card debt?

admin — Mon, 25 Apr 2011 01:19:52 +0000

My wife has about ,000.00 in credit card debt. All on 1 card. They just jacked her rate to 17%. That is almost 0 a month in interest payments! The card is in her name only. We own a home. It’s in both our names. We have almost 0,000.00 in equity. My credit is shot due to credit card debt in my name only i recently negotiated down and payed off. My wife needs to keep her credit score around the mid 700′s where it is now. So we think if she applies for a home equity loan in just her name she can use that money to pay off her credit card. Problem is, she is an independent contractor and makes like ,000.00 a year. I’m thinking this is not enough to qualify her. Also, both our names are on the deed to our home. We owe about 0K and only have a 1st.
I am also confused about going with a ‘home equity loan" vs a "home equity line of credit".
Please explain the pros vs cons of each. Are both tax deductable? THANKS!!!

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Why not offer new Guaranteed US Bonds for the bailout?

admin — Thu, 17 Mar 2011 01:29:29 +0000

As it is, the proposed 0,000,000 bailout will cost every one of the 138,000,000 US taxpayers approximately .

But a bailout rewards the incompetence of government (who made the corruption possible), the bankers (who were happy to play along while they were making billions in the real estate market), foolish investors (who likewise figured they could buy a house for 0,000 and then sell it for 0,000 a year later), unqualified borrowers (who knew they were overcommitting themselves), and crooked CEO’s in the affected companies (who were happy to give themselves huge multi-million dollar bonuses for allowing this to happen).

The US government CONSTANTLY sells bonds to raise money, and so does every single municipality, from states to cities to small towns.

So why isn’t a US Government Guaranteed Bond being considered as the simplest solution to this problem, at a high interest rate (say 10%)vs. standard financial documents, and limited to US taxpayers only with a cap of say ,000?

THIS WAY, honest, hard-working americans WHO PLAYED BY THE RULES, saved their money, waited on extravagent purchases, didn’t get those home equity loans overreaching their ability to pay, didn’t buy the "flip this house" investments, and have GOOD CREDIT and SAVINGS (which is what the gov always claims it wants to see more of) end up reaping the rewards for this fiasco?

If you have good credit, you qualify, and you can buy up to ,000 of these special bonds. And it is guaranteed to pay 10% APR. And it is backed 100% by the US Treasury.

Guaranteed, WITHIN DAYS they would raise the 0,000,000 from TAXPAYERS who are willing and able to participate.

The economy would be stimulated, the problem would be solved, and the people who PLAYED BY THE RULES will FINALLY be REWARDED for their hard work and honesty.

It’s been decades since Americans can get a sound and solid financial investment that yields double-digits.

Isn’t this a golden opportunity vs. a problem?

If you have good credit, would you like to get 10% on your money (for lets say 3 or 5 years minimum), GUARANTEED INTEREST from the government?

Remember, this would be like a Certificate of Deposit… locked in for 3 to 5 years, guaranteed not to lose value by the gov, and earning 10% APR if you lock it for 3 years, 12% APR if you lock it for 5.

Supposedly, the gov stands to make billions of profit on this bailout, when real property value is realized. So this way, instead, WE THE PEOPLE make the billions, and the gov doesn’t suddenly find a huge chunk of money that it can squander as usual.

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Are heading for a second mortgage crisis?

admin — Mon, 14 Feb 2011 13:49:13 +0000

saw this segment in 60 minutes http://www.cbsnews.com/stories/2008/12/12/60minutes/main4666112.shtml

Are we really heading for a second mortgage crisis caused by "Alt-A" and "option ARMs". How will this effect the stock market in 2010?

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How easy is it to get a home equity loan? I would like to use that to pay off cc debt.?

admin — Wed, 19 Jan 2011 12:16:04 +0000

Im not quite sure if I should be going to a mortgage broker to apply for one, or just go to each bank individually? Also, are there any out there that do not have a repayment penalty? I am also assuming that once the property sells the loan needs to be automatically repaid.

I would also like to know how this will affect my credit score. Is it better to have an X amount on credit cards, or have that same amount on an equity loan.
Thanks
I already know the whole "you shouldint have gotten yourself into debt" speech. My husband and I paid for our own wedding, therefore the debt.

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Refinancing mortgage with Bank of America ripoff?

admin — Sat, 18 Dec 2010 13:36:30 +0000

A little background: my fiance and I bought our first home in February 2008. We qualified for a first time homebuyer loan. The interest rate is 6.3%. We do not pay PMI. We have about 11% equity. We have paid on time every month, and even paid a little extra towards principal.

A couple of weeks ago, I checked BOA’s mortgage rates and a 30 year fixed were at 5%. Refinancing into one fixed mortgage at that amount would save us a significant amount of money each month.

So I call to ask if we can refinance. They said we wouldn’t have to pay PMI, but the rate they offered me was 6.6%! I asked why I wouldn’t get 5%. They said it was because we didn’t have a whole lot of equity yet. But I feel that’s unfair because if I were a new customer just buying now, I would be getting 5%. Is this typical?

I’m pretty unhappy about this. I am contemplating applying for a mortgage at another (local) bank so we can refinance to a lower rate, but that means I’d have to go through that whole horrible loan process again! It would have been much easier with Bank of America since we already hold the mortgage with them.

Should I be more persistent with them? Or just accept my fate and let the "historically low" interest rates pass us by?
Hi, yes you’re right, we have a split loan, I forgot to spell that out. The interest on the larger chunk is low-ish but the smaller one is higher. Combined, the weighted average is 6.3%. I did suspect that they might tell us we would have to pay PMI if we got a regular 30 year fixed, but they said no, they just offered a ridiculous interest rate higher than our current. They did say, well yes, new customers will get a better rate. But how then are people refinancing at low rates? I guess they are going to another bank?

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Is it possible for mortgage rates to go down to 3%? I have a simple argument. Agree?

admin — Thu, 28 Oct 2010 11:01:58 +0000

Historically, home prices are super high compared to the average earnings even though the huge drop has already happened. People are angry that they are losing equity, are underwater on their loans, and some just walk away from their loan because they are paying a lot more than their worth. So I don’t see TARP or anything like that helping or protecting people’s home equity.

I bought a SUV last year and the deal was either ,000 off (and have 10% financing) or no rebate and offer 2.99% interest rate. To me, those who took the 2.99% deal paid 00 more for the same SUV. For the dealership though, they were able to sell it for more than what others thought it might be worth.

I think housing prices still need to go down a lot more. I am wondering if the government can offer incentives or interest free loans to banks so that they can offer super low rates in the 3% range to get people to buy at these higher prices. Then the economy awakens again. Yes there will still be foreclosures but then a turnaround will be coming quicker.
I have talked to realtors over the past few years and it is always the same. "There is no way rates will go lower than now.

So is my idea correct or is there pretty much no way we can have 3% mortgages. If not 3%, how far down can they go?

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Died-in-lieu of foreclosure and a second mortgage?

admin — Tue, 05 Oct 2010 04:56:59 +0000

I got the bank to do a "died-in-lieu of foreclosure" on my home. Am I responsible for my second mortgage still?
The bank already did the deed-in-lieu of foreclosure and forgave me of the loan and the second mortgage holder released their deed to the first bank and now they want me to pay the second loan.