What Is Holding a Mortgage?

Holding a mortgage means that, instead of selling a house to a seller who has gotten a loan from the bank, you instead arrange to receive monthly payments from them directly until the house is paid off. There are a few different sides to holding a mortgage, and we will explore several of them here. First off, holding a mortgage appears as undesirable to many people because instead of receiving a large lump sum right away, they get monthly payments over time. But then again, if you get payments instead of a large sum, you also get to earn interest. This interest would be a better return than what you would get putting the money into a savings account, so for this reason, some people like the idea of holding a mortgage.

Holding a mortgage is definitely a risk. If the buyer falls behind on the payments, then you can always foreclose and resell the house. However, you run the risk then of the occupants trashing the house. If you need to make costly repairs, you will spend money on that. Also, remember that money value changes, so the money that you would make in one large lump sum might be better invested than money gained over time.

Most of what causes people to decide on holding a mortgage lies with the situation, and whether or not they need, or want, a large lump sum of money up front. It is also pretty common to see a relation hold a mortgage if selling property to a family member.

What Are the Best Mortgage Interest Rates in New York?

If you live in New York, then you have no doubt been wondering what the cheapest interest rates are in your area. Whether you are looking at buying a new house, or looking to refinance, finding the right interest rate can often make or break the deal that you want to make. Even a small difference in interest rates can make a huge difference when it comes time to make those monthly payments which is why finding the best mortgage interest rates is an absolute must for anyone undertaking this big step.

Here are some of the best interest rates being offered in New York. Hopefully, you can find the perfect deal for you! First, M.T.G Capital is offering a rate of 4.750% with a 4.977% APR. This is a great deal, and is one that you should definitely consider looking into. Other good ones include TrustCo Bank, who is offering a rate of about 5.525% with a 5.555% APR, and HSBC Bank USA, who boasts a deal now in which you can get a rate of 5.250% with a 5.281% APR. There is also Emigrant Savings Bank, who is offering a 5.476% APR on rates of 5.375%. Also, keep in mind that these numbers do not necessarily reflect official numbers from these companies, and that they are subject to change on a daily basis. This is merely to show you a ballpark figure of what you can look for in the New York area as far as mortgage interest rates go.

Help to Avoid Short Sale

If a borrower is in dire financial straits, he or she may be unable to make the house payment. Before such an individual misses a number of payments resulting in the bank foreclosing on the property, other options must be considered.

The first viable course of action that a borrower must undertake is to attempt to keep the property by talking to the lender. A loss mitigation department is one of the entities that may be able to help. Keep in mind that the contact details on payment vouchers may be those of the customer service provider, and not the investor or lender of the loan. An owner must contact the appropriate people and explain the details as to why payments on the property have been missed, or will be missed in the future. Many homeowners possess the mindset that they cannot work with the lender to resolve the issue. The lender needs the money from the payments, and not the property itself.

Loan modification, or restructuring of the payment scheme and terms, is one option that a property owner should consider taking up with the lender. Loan refinancing is not always necessary. Loan modification will only serve to modify the existing loan’s terms. All of an owner’s credit and other relevant financial information will be open to examination and scrutiny by the lender before the borrower can be approved for this process. The loan balance may be augmented with the amount of any missed payments. The borrower needs to sign his or her name on documents for the agreement before changes to the monthly payment take effect.

A repayment or special forbearance plan may serve to mitigate the effects of a homeowner’s missed payments. If a borrower can currently afford to shell out money for payments, but was unable to pay for a number of payments in the past, this option is feasible. Foreclosure may be delayed by the insurer, investor, or lender if the individual promises to make up for the defaulted payments. All pertinent financial details must be submitted by the borrower before his or her case is studied for approval. The current amounts for payment will incur additional amounts from the missed payments up to the point that the account returns to a good standing.

Can You Get a Mortgage While in Chapter 13 Bankruptcy?

You may be able to get a mortgage loan while you are still in Chapter 13 bankruptcy but the chance is quite small because most lenders and bankers would simply ignore your application when they see that you are in bankruptcy. Filing for bankruptcy should only be considered as the last resort when a person finds himself facing a lot of credit problems. However, in certain situations, it may be the only choice.

The two common kinds of bankruptcies that can be filed are Chapter 7 and Chapter 13. A Chapter 7 bankruptcy has been filed through the courts and will erase all existing debt. However, from the point of view of lenders, this is the worst kind of bankruptcy and it is not removed from your credit report until after 10 years have passed.

On the other hand, a Chapter 13 bankruptcy is where the debtor arranges to make some payments to a trustee. Usually, the debtor agrees to repay a certain percentage to what is due to the creditors. The payment process usually takes five years. Lenders are more lenient for Chapter 13 bankruptcy and the bankruptcy usually remains on the debtor’s credit report for seven years.

For those who have filed a Chapter 7 bankruptcy, banks and lenders usually would ignore any application for a loan for two to three years. However, a person in Chapter 13 may be able to obtain a home loan through the Federal Housing Administration or FHA if the trustee allows it.

There are a number of requirements for someone in Chapter 13 bankruptcy to get a mortgage loan. First of all, you must obtain permission from your trustee and you must find a lender who will agree to finance your FHA loan. Also, you should not have any collections or any late payments after you have filed for bankruptcy. You must also have a payment history of at least one year. For example, you may obtain letters from your utility companies indicating that you have been prompt in your payments for the past 12 months. An important step to take is to get a copy of your credit report to make sure that there are no records of late payments or collections that have been recorded.

Where To Find Cheap Dental Insurance

When it comes to taking care of your teeth for you and your family it can be very expensive. Especially that dreadful trip to the dentist’s office. By obtaining dental insurance at low cost you can easily save a significant amount of money over time. Before jumping on the first cheap dental insurance you find, it is important to sit down and take the time to research multiple agencies. (more…)

What Kind of Dwelling Can I Buy Using a VA Loan?

What are VA Loans?

VA loans typically refer to home loans given to qualified veterans. The Department of Veteran Affairs guarantees these kinds of loans.

Why get a VA Loan?

Many benefits can be gained from attaining a VA loan. The primary benefit is that VA loans permit individuals to buy property with a low down payment, and in some cases, no down payment at all. The other benefits of a VA loan are as follows:

 • Lack of pre-payment penalty fees

 • Lower potential closing costs

 • Removal of premiums for mortgage insurance

 • Potential for interest rate negotiation

 • Possibilities for home warranties if a property under construction has been VA-inspected

 • Options for VA aid for temporary incapability to pay, and

 • Loan assumption by buyers if an individual wants to sell his property

There are no set price limits for a home to be purchased with a VA loan. Note that lenders will typically give a maximum of four times the amount of a VA entitlement, if an individual wishes to acquire property with no down payment. However, if you are capable of setting aside an amount of money to use for a down payment, you will qualify for a larger loan amount (the increase of which is proportional to the down payment). VA loan limits vary. In Hawaii, for example, the VA limit for a loan is $625,500.

The property to be purchased must be the individual’s main residence. VA loans are not for use in buying commercial properties or other properties for investment. You are required to document that you will occupy the home if you wish to obtain a VA loan. Also, some condo units are ineligible for financing under VA loans. Check with the VA loan department if you wish to purchase a condominium with their assistance. Also, VA loans are not available for buying properties in other countries. VA loans may only be utilized to finance homes in the United States, as well as properties in US territories.

What Happens After I File Bankruptcy?

Bankruptcy is based on federal law that allows entities such as individuals or corporations to be relieved from their debts and obligations. The goal of bankruptcy law is to permit the debtors to start anew in their financial concerns. A bankruptcy means that the debtor will no longer be pursued by creditors to pay the debts that have been discharged.

After a debtor files a bankruptcy petition, the court will send a notice to the creditors about the petition and the date for the First Meeting of Creditors. This event is a hearing that usually occurs within 20 to 40 days after the filing. The debtor should be present and the bankruptcy trustee who is selected by the United States Trustee will preside. During the First Meeting of Creditors, the trustee will pose questions to the debtor regarding the bankruptcy papers, debts, assets and other important details regarding his financial situation.

There are two kinds of bankruptcy that an individual may file. In a Chapter 7 bankruptcy, the debtor has to reveal to the court all debts and assets and transfer control of non-exempt properties to the bankruptcy trustee who sells these properties and distributes the proceeds to the creditors. After this, the court will usually issue an Order of Discharge within 60 to 75 days after the First Meeting of Creditors.

In a Chapter 13 bankruptcy, the debtor promises to repay creditors in installments for a period of three to five years. In this situation, the bankruptcy court will issue an order to confirm the debtor’s Chapter 13 repayment plan after he has complied with all of the requirements. During this period, creditors would not be able to continue or begin collection efforts. The Order of Discharge in this situation will only be issued by the court after the debtor has completed the repayment plan. It should be noted that partnerships and corporations are not allowed to file for Chapter 13. The debtor must be residing in the U.S. and has a regular income source. His unsecured debts must be less than $336,00 and his secured debts must be less than $1,010,650 on the date of filing.

Mortgage After Deed in Lieu

If a borrower cannot pay the mortgage on a piece of property, and has not been able to restructure payment plans with the lender, a deed in lieu of foreclosure is a viable option. This gives the property back to the lender, with which the lender can put the property up for sale to recover the balance of the loan.

However, if two mortgages exist for a single property, a borrower may be concerned as to how a deed in lieu affects junior liens. Many lenders may not agree with the deed in lieu of foreclosure if one piece of property has two loans. This is due to the fact that the junior liens are not erased. If the primary mortgage lender agrees to a deed in lieu, he or she takes responsibility for the property, as well as the second mortgage or junior lien. In this case, the property’s title is not clear.

When the primary lender gets the property through deed in lieu, it is now this lender’s obligation to put the property up for sale and submit payment for the junior lien. The lender has to do this, as a property with a pending lien will not sell.

Oftentimes, when the initial lender allows deed in lieu, he or she adds a non-merger section to the agreement for the deed in lieu. This part guards from any legal action the subsequent mortgage lender may take against the first one, if the primary lender does not pay the pending balance on the succeeding mortgage. This, however, does not guarantee that the initial lender is released from having to pay the other loan balance. The primary lender has to pay the junior lien if a deed in lieu is agreed upon, unless any negotiations are made with the second lender.

Also, the primary lender can withdraw the deed in lieu and instead initiate foreclose proceedings against the property if he or she observes that the entirety of the first mortgage’s loan balance will not be recovered. This also occurs if the two mortgages come from a single lender.

Save Money on Clothes By Shopping Online

Due to our economic crisis many people across America and around the world are in a tight financial situation. Just to make it by in this time of need, it is important to live thriftily and spend the least amount of cash as possible. Many people cannot enjoy some of the things they used to such as vacations, going out to a nice restaurant with the family, going shopping for expensive clothes, or even getting the monthly issue of you favorite magazine. Everyone needs to take the time and decide which expenses they can live without. (more…)

I’ve Been Turned Down for a Mortgage, What Can I Do?

Being turned down for a mortgage can leave you feeling down and helpless. However, nothing will ever happen if you do not act on it. There are several things that you can do to get another shot. You need to actively make sure that you get results.

First of all, you need to figure out why you have been turned down by a lender. Lenders are required by law to give an explanation as to why they deny you a loan. They are given 30 days to do this from your application date. The explanation comes in the form of writing. The most common reasons why you can’t get a mortgage loan include bad credit history, debt troubles, and insufficient down payments and many of these reasons can be corrected.

When you get your loan denied, you can ask for a second opinion from your lender. As long as you are willing to give an explanation as to why you are eligible, you can be given a second chance. There may be a couple of things that a lender may not have known. Unexpected late payments may ruin your credit. This may be taken into consideration by the lender.

However, if you cannot get a second chance from one lender, there are other lenders that can help you. It may not be easy being turned down. But, if you do not act, you will never get a mortgage loan. Continue to search for other mortgage companies who may be willing to do business with you. Lenders have different criteria when it comes to approving loans so you might still be able to find the right loan company to borrow money from.

Never give up on finding a mortgage company to approve your loan – there are lots of lenders out there, even hard money temporary loaning solutions. If you still run out of luck, you can seek help from a mortgage broker. You do not have to worry about paying for the services of the mortgage broker as they are usually paid by lenders to look for borrowers.

Can You Qualify for a Mortgage on Workers Comp?

A person who is on workers compensation may still be employed despite the injury that has caused the provision of the the workers comp. When a person wants to get a mortgage loan, his income will still be evaluated to determine his capacity to repay the loan for the first three years of the loan. If he is out of work and he is only receiving workers comp as income, he may find that it would be very difficult to get a mortgage because hypothetical income cannot be used to determine whether a person can qualify. He cannot simply declare that he will get a job soon.

However, the workers comp may still be considered and it should be determined whether it is reasonable to expect that this income will continue for the first three years of the mortgage. If the borrower plans to retire within this three-year period, the effective income that will be considered will be based on what can be documented as his retirement benefits. This could be his Social Security pension and other retirement benefits.

For a borrower who has found a new job, his expected salary can be used in determining his income to determine if he could qualify for a mortgage loan. He must be able to show that the job has been guaranteed through a contract of employment that is non-revocable. He should also begin working within 60 days after the mortgage loan has been closed. The potential borrower must also have enough cash reserves and income during the time that he is not yet receiving his pay. The amount of savings and the income that he has should be sufficient for the monthly payments. This is a situation that is common among doctors who will start their residency or teachers who will begin teaching at the start of a school year.

However, if the employment will begin more than 60 days after the loan is to close, he may not qualify for a mortgage. He will have to wait until he could present a payslip or any other indication that he has started in his new job before he could qualify for a mortgage.

Can I Lock in a Mortgage Rate for 6 Months?

Some lenders can permit you to lock in the current mortgage interest rate for six months and even up to one year. However, to allow you to do this, they usually charge a non-refundable lock-in fee of 1.25 percent for six months, and 2.375 percent for 12 months. For example, if the size of your loan is $100,000, you would be paying $1,250 for a six-month lock in.

Consumers who are planning to buy a home may want to lock in the mortgage rate for six months if they feel that interest rates are likely to go up within that period. If you think that you would be able close in 30 to 45 days, there would be no need for a lock in. Many lenders usually offer a lock in up to four months for free.

However, if for some reason, you are not able to close within three to four months, such as when the house you are planning to buy has not yet been built, you may consider paying the fee to lock in the mortgage rate. Of course, if the interest rates do not rise as you have predicted, you would have wasted the lock in fee.

For locking in the mortgage rate for up to 60 days, most lenders do not request for any additional fee. However, they may ask you to pay a certain amount in advance to make sure that the mortgage loan will close. The amount will be credited to the borrower when the loan closes. Therefore, this is different from the non-refundable lock-in fee for six months or one year.

The reason for the lock-in fee is that there is an expense for the lender when he agrees to maintain the rate for a longer period of time. This is because investors require a higher rate for their investments with the lender if the loan requires a longer period to close.

From the point of view of the consumer, locking in the mortgage rate makes sense when the rates are expected to go up. Lenders will usually provide you with a written agreement about the locked-in rate and both borrower and lender will have to sign it.

Can I File Bankruptcy for a Judgment against Me?

Bankruptcy is based on federal law that enables individuals to be relieved from their debts and obligations. The aim of bankruptcy law is to permit the debtors to start again in their financial situation. A bankruptcy means that the debtor will no longer be pursued by creditors to pay the debts that have been discharged.

In the case of a judgment that has been made against the debtor, this may also be discharged as a result of bankruptcy. Of course, it would depend on the eligibility of the person filing for bankruptcy. If he is merely trying to escape the debt resulting from the judgment and he does not qualify for bankruptcy, he may fail in his attempt.

However, assuming that he qualifies for a bankruptcy in which several of his debts may be discharged, a debt resulting from a judgment may also be discharged. On the other hand, there are certain things that the debtor must keep in mind. In the case of a complaint claiming fraud that would transform the debt into a non-dischargeable one after bankruptcy, the entry of a judgment against the debtor may prohibit him from contesting the facts at a later date. A debtor may only be able to avoid a judgment lien attached to a property if it impairs an exemption. For unliquidated debts, a judgment against the debtor may liquidate the debt and cause the amount of debt to surpass the limits imposed for Chapter 13 bankruptcies.

With regards to judgments involving the garnishment of wages, bankruptcy will be able to stop it. The debtor may be able to recover from the creditor or sheriff, the pay that has been earned before the filing of bankruptcy if the wages are indeed exempted. If the debtor is unable to obtain the pay from the creditor, he may file a lawsuit in the bankruptcy court.

It should be noted that the decision to file a petition for bankruptcy should not be the result of a single debt. It should be made after taking into account the complete financial situation, possible alternatives, and the scope of relief that would be provided by bankruptcy.

Things to Consider When Renting a New Home

Today many people are looking for a place to rent for themselves and their families. While you are considering renting a new home, it is important to understand how the process works. If you do not fully understand the renting procedure it can be a very complicated and stressful process. People who do not know the ends and outs of the process often end up losing quite a bit of money. There are actually many how-to-rent guides all over the Internet that will walk you step-by-step throughout the process. These guides will help tremendously and make the task much easier to complete.

If you have children who live with you, the location of your property is going to play a huge role when finding your new home. Before deciding the area in which you want to live you will want to check out the schools located in that district. You also want to look at the commuting distance from your childrens school and your work. It would be a major hassle if you ended up choosing an area that was far from work.

Making sure the neighborhood is safe, is also a major factor that many homeowners will want to look into. Most cities will have crime reports available to the public that will allow you to realize which neighborhoods are safe, and which ones are not. You can also get a good idea by just walking around the area. If most houses have bars on the windows and their cars locked in the garage, the area is most likely not that safe. It should be easy to tell if the neighborhood is ok for you and your family.

After you have found an area that you feel is right for you, it is now time to see what homes are availabe on the local market. Choose a number of homes that look good and schedule appointments to look around. When you are looking at the homes make sure to ask the landlord or leasing company as many questions as possible.

If their is anything noticeable that needs to be fixed, make sure the landlord is willing to fix it before you move in. Be very picky when looking at the condition of the property. Look around the bathroom and kitchen floors,walls, and ceilings for signs of rot, mold, or mildew. Make sure the flooring in all rooms is in decent condition and the walls as well. If carpet and/or paint is destroyed ask the landlord if they are willing to repair any damages before you move in.

So overall the condition of the home, the district it is located, and the safety of the neighborhood should be three major factors you should look into.

Can Mortgage Servicing Companies Foreclose a Property?

Mortgage servicing companies usually initiate foreclosure proceedings. Foreclosures occur when homeowners fail to make monthly mortgage payments. There are three servicing companies that are involved in foreclosure actions.

The master servicer, or the first servicer, is responsible for overseeing servicing operations and other companies involved in foreclosure proceedings. The next one, called the sub-servicer, is who homeowners maintain contact with during mortgage payments because they collect the mortgage payments from borrowers. They are also responsible for paying homeowner insurance and property taxes. (more…)