Given that not most people can truly prepare for their future, it is a common trend nowadays for couples that want to buy their first home to buy a house and enter into a mortgage plan. Though this may seem ideal at the time, not having enough funds to actually make your purchase in cash, paying for the mortgage may prove costly in the long run.

If you have time to compute it, reports indicate that the interest rates on home mortgages, when totaled, is almost twice the cost of the house you purchased. Although the monthly payments may not seem to steep for you, it is only when you combine all the payments you made over the number of years that you will realize that the house you bought is really quite expensive for your taste. You might think that this is only fair considering the number of years you have to pay and the reasonable interest rate imposed. However, you can be proactive given your situation and do something to reduce your mortgage debt so that it will not amount to too much.

One way to reduce your mortgage debt is to increase or accelerate your payments. By increasing your monthly or weekly payments, the additional or extra payment you make will reduce the principal as well as the interest attached to it. For as long as the additional payments are consistent, you can expect that your total mortgage debt will correspondingly decrease. If you are expecting a sizable amount of money to come your way, then accelerate your payment and use it to pay off a major portion of your debt.

Try not to get a second mortgage on your loan so as not to burden yourself with multiple creditors. As much as possible in taking on a mortgage, understand the terms and conditions of the contract before agreeing to it. By fully comprehending the mortgage contract, you can find ways and means to reduce your mortgage debt.

Author: Jennifer Bailey

Britons reduce mortgage debt

The short article in full “Britons reduced their mortgage debt by a record £8 billion during the final quarter of the year, figures showed today.

How to Reduce Debt Without a Consolidation Loan

If your debt situation makes it difficult to meet the minimum payment, a consolidation loan may be easier for you to manage.

Many people trying to reduce their mortgage debt

According to a recent report more and more people are now trying to reduce their mortgage debt by overpaying on their mortgages as and when they are able to.

Technorati Tags: morgage contract, mortgage, Mortgage debt, Reduce Mortgage Debt

So you’re ready to get serious about your mortgage marketing plan huh? In today’s market loan officers should be doing all that they can to tip the odds in their favor. One activity in particular can add a much needed flow of leads to your pipeline without requiring you to resort to buying leads, or spending large amounts of cash on low return advertising. What is this activity?

Marketing to realtors! Yep, marketing to real estate agents is an activity that can easily turn your business around in short order. However, this mortgage marketing strategy requires a very specific approach, or you could easily end up dedicating a truckload of your time, energy, and resources for very little in return. So what are these 3 Rules of realtor marketing?

1. Don’t begin marketing to realtors until you’ve identified your ideal agents

Did you know that nearly 70% of all real estate agents in the U.S. close fewer than 4 transactions per year? This statistic comes directly from the NAR (National Association of Realtors). This means that if you take the approach of most loan officers and begin marketing without first identifying who the performers are, the odds are against you. Not exactly a great way to start out your new mortgage marketing strategy right?

Take some time to first research who the top agents are in your marketplace, and you’ll find that you’ll save yourself days and weeks of wasted time and effort later on.

2. Incorporate Sales Managers into your strategy

If you take a look at how most loan officers implement their realtor strategy, you’ll find that a large majority target 1 realtor at a time. This is fine early on as you’re “cutting your teeth” on a new strategy, but ultimately, you can supercharge your results by leveraging your time. Meeting with the sales manager, and offering to add value to his/her office could be the windfall you’ve been looking for.

Think of it this way. Once the sales manager endorses you as a trust-worthy lender within the office, your job of earning the trust and the loyalty of his/her employees has now become much easier. This is the social proof, or evidence that most realtors are looking for when deciding if using a new loan officer is worth the risk or not. Incorporate this tip into your mortgage marketing plan ASAP.

3. Stop following the crowd

Here’s a fatal mistake that more than 80% of all loan officers make. Following the crowd. Following the crowd is simply a reference to the manner in which most loan officers assemble their marketing strategy. They look at what everyone else is doing, perhaps asking around a bit, or browsing a message board here and there… That’s it! No creative thought process, no solid marketing fundamentals, and very little time and energy goes into the creation of their latest mortgage marketing plan.

Why is this a bad thing? This is what is known as “me too” marketing. If most loan officers fail at successfully generating business from realtors, then wouldn’t it stand to reason that most of their strategies are ineffective? Avoid copycat marketing, as more often than not, it will lead you down the path of frustration. The last thing you want is for real estate agents to think that you’re just “more of the same” and blow you off with that dreaded “I already have a loan officer” objection.

Apply these 3 rules to your mortgage marketing strategy as you plan your next foray into getting referrals from realtors. Many loan officers have found marketing to realtors to be an impossibly difficult task. What keeps many going is that the potential is career-changing. Even 2 or 3 high producers sending you referrals each month can quickly add up to a 6 figure income. So what’s the simple solution to get realtor business fast? Our free guide will answer this for you.

Author: Chad Weber

Mortgage Brokers Marketing Tips: 3 Steps to Realtor Referrals

Apply these 3 rules to your mortgage marketing strategy as you plan your next foray into getting referrals from realtors. Many loan officers have found marketing to realtors to be an impossibly difficult task. … 

Stockton Turner Secondary Marketing: Seeking Alpha – Wall Street …

Pending home sales rose for the third consecutive month, jumping 6.7% in April M/M and rising 3.2% Y/Y. The National Association of Realtors said buyers are responding to very favorable market conditions, and expects “greater … Richard Peek: I have been in the mortgage business for over 20 years and have worked in various facets of the business; including Secondary Marketing, Operations, Origination Support, and multiple functions in the Post Closing enviroment. …   

Mortgage Email Marketing Changes How Mortgage Originators Follow …

There are a few reasons for these lost communication nuggets including Spam filtering, overloaded inbox, forwarding rules or strai fef ghtforward avoidance. The best mortgage email marketing software employs key features for improving….

Mortgage Email Marketing Changes How Mortgage Originators Follow …

There are Spam filters at multiple levels, mailboxes that have exceeded its quota, forwarding rules, and of course, they simply ignore your message altogether. The best mortgage email marketing software employs key features for …  

How I’m Winning New Realtor Referrals | Top of Mind Mortgage…

I make sure that I have so much in my arsenal that it is impossible for a Realtor to say “No”. The Big Guru’s call these USP’s (Unique Selling Propositions). I just call them having more bullets for my gun! Ben’s Rules for Annihilating the Competition: … The first marketing weapon I’d like to share on the Top of Mind fef Blog is called ePropertysites. When I call on a new Realtor, I like to take them by surprise and ask them if I can help market… 

Technorati Tags: leads mortgage, loan officer marketing, marketing mortgage, mortgage, mortgage marketing system, realtor, realtor marketing, realtors

Mortgage lenders lure homeowners to their products with teaser rates and frequently do not explain that their actual contract rate is buried in the loan paperwork. The larger the difference between the teaser and the contract rate, the greater the chances of contract shock for the unsuspecting homeowner. Here’s an example of how a teaser rate can land you in hot water.

Suppose you refinance your mortgage with an Adjustable Rate Mortgage at 2.95%. This is an amazing deal that should be setting of warning bells; however, this teaser is only valid for 12 months. At the end of the 12 month period the teaser will change to the contract rate. The lender will then adjust the contract rate to the index plus margin. The margin is your lender’s markup to boost their profits. This results in a contract payment amount that is hundreds of dollars higher than the teaser amount.

Payment shock with Adjustable Rate Mortgages only occurs when homeowners don’t pay attention to the details of their loans. When used properly, and adjustable rate mortgage with a teaser rate can save you thousands of dollars in mortgage finance charges. You can learn more about refinancing your home using an Adjustable Rate Mortgage with a free mortgage tutorial.

Author: Louie Latour

Fixed Rate or Adjustable Rate Mortgages Better

The most basic distinction between different mortgages depends on how the interest rate is charged. There are two types of mortgages, the first one is the fixed rate mortgage and the second is an adjustable rate mortgage. Generally, the lenders offer a very low starting rate which is also called a teaser. These rates lure the investors in to accepting the loan scheme and they end up paying higher interest rate as and when the rate of the underlying index increases.

Adjustable-Rate Mortgage Reset will Fuel Foreclosures

The “teaser” home purchase loan group is expected to see 32 percent of those mortgage defaults because of resetting, while 12 percent of subprime loans are expected to default. About 7 percent of market-rate adjustable loans.

Is Adjustable Rate Mortgage a Favorable Choice

If you’d like to go for a low initial rate and payment on your home mortgage with the aim to relocate after a short term, an adjustable rate mortgage (ARM) is what you may choose. Such a loan program helps you …. Check out the true/ indexed rate: When you shop for an ARM, don’t just go after the low initial rate (Teaser Rate). Instead ask the lender about the true rate or current Indexed Rate, that is, what rate you may currently get after adding the index to the margin.

Technorati Tags: adjustable rate, Adjustable Rate Mortgage, mortgage, mortgage arm, mortgage interest rates

This article will give you a basic understanding of your options when searching for mobile home mortgage lenders and help you to obtain the loan that you would like.

A mobile home is a great choice for people who are constantly on the move or really enjoy traveling. With all of the beautiful scenery, and great destinations to visit, owning a mobile home in California can be very convenient.

Searching for California mobile home mortgage lenders can be a little more difficult then looking for a mortgage lender for a normal home. This is because you are usually unable to get the same type of a home mortgage loan that you would with a traditional home mortgage, and will need to find someone who specializes in mobile home mortgages. Often times, a mobile home mortgage lender will treat the loan the same way they would when financing a loan for something like a boat or a car. Despite some of the limitations that you will face, this article will give you a basic understanding of your options, and help you to find the mobile home mortgage that you need.

 Internet Searches

One of the first things you should do is to do an internet search for “California Mobile Home Mortgage Lenders”. This will give you a list of specialized mobile home mortgage lenders in your area and you can begin calling and researching some of these companies to see what they offer. When financing with this type of lender, the word ‘mobile’ will often lead to a higher interest rate. The less ‘mobile’ your manufactured home is, the better the financing deal you will be able to get on a mobile home mortgage. Using one of the California mobile home mortgage lenders that you find might end up being the most expensive route, but it is a great place to start researching and maybe be your only option if the following two methods do not work.

Retail Installment Contract

This is a method where you finance your mobile home purchase directly through the mobile home retailer. It allows you to pay for your new mobile home in installments instead of having to pay for the entire purchase upfront. The benefit of this method is that the mobile home retailer wants to make the sale, so they will try to be flexible and setup a deal that will allow you to make your purchase from them. The disadvantage is that the retailer will not want to wait as long as your mobile home mortgage lender to receive full payment on the purchase. This means that your monthly payments may be higher, but you will not have to make payments for as long.

Apply with the Federal Housing Administration (FHA)

The FHA does not make loans, but it insures loans made by private lenders. This helps you because it means that your lenders will give you a better deal on your mobile home mortgage even though you do not make a large down payment. There are two types of FHA-backed mobile home loans: Title 1 and Title 2. A Title 1 loan can be used for anyone to buy a mobile home, if it will be the primary residence of the person obtaining the loan. With a Title 2 loan, you are required to have your mobile home on a permanent foundation, but it still may be an option depending on your needs.

When searching for California mobile home mortgage lenders, you will benefit greatly if you consider the three options mentioned above. Having a better understanding of your options will hopefully save you both time and money! Good luck with obtaining your new mobile home!

By Kevin Sornberger

RealtyTrac: May foreclosures down 6 percent from April;

The mortgage industry has resumed cracking down on delinquent borrowers after foreclosures were temporarily halted by mortgage finance companies Fannie Mae and Freddie Mac and other lenders. …. May 13th, 2009 RealtyTrac: April foreclosures rise 32 percentMIAMI — The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California…

Real Estate Blog – 1st Continental Offers Mobile Home …

1 Continental Mortgage is offering an FHA, One-time close construction to permanent financing for Modular and Manufactured Homes. This means that the borrower is qualified for construction financing and an FHA loan prior to any … Remember we are direct FHA lenders providing single wide FHA mobile and modular home loans in the following states Alabama, California, Florida, Indiana, Kentucky, Louisiana, Maryland, Missouri, New Mexico, Pennsylvania,

San Jose Mortgage» Blog Archive » Private real estate loans

Mortgages in San Jose, California. … Historically, usury laws were used to prevent lenders from charging skyhigh interest rates mobile home financing lending money. And, because these loans are considered short term even though they typically extend for mobile home financing years, they often carry interest rates less than prevailing mortgage rates. Before you liquidate assets for your down payment, consider a down mobile home financing alternative. …..

Real Estate Blog – Real Property versus Personal Property~Mobiles …

There have been a few times this year that I’ve come across issues with agents and clients over the distinction between Real Property and Personal Property when it comes to mobile homes. In the eyes of many, mobile homes are just that… homes! … Oak Valley Mortgage-California Home Loans and Refinancing … 164759 Points Outside Blog. i have come across this issue plenty of times. Sometimes the borrower will fail to mention these facts. Which lender…

Prevent Foreclosure And Mortgage!: New Law Impacts FHA, Servicers

With the potential imposition of limitations on yield spread premiums and limitations imposed by the Home Valuation Code of Conduct, 1st Metropolitan Mortgage said now is the perfect time to evolve from a mortgage broker to a mortgage banker as it is acquired by a Dallas-based firm. … Actions against more than 100 lenders were not enough, according to a report on the oversight board for lenders that originate loans insured by the Federal Housing Admin…

Technorati Tags: 2nd mortgage lenders, home mortgage lenders, mortgage, mortgage lenders for bad credit, mortgagelenders, the mortgage lender

When a person wants to cancel or rescind his/her loan agreement, there is certain procedure one must follow. The procedure to rescind a loan agreement is outlined below.

1.On day zero, the applicant signs the loan document with the creditor. On the same day, he is provided with the Truth in Lending disclosure by the lender where all the terms and conditions involved in the credit contract are disclosed to the borrower including the annual percentage rate, finance charges, loan amount, total number of payments, payment schedule and penalty charges in case of prepayment of loan. Apart from this, the applicant would also receive two copies of a notice that explains the right to rescind. Now, the borrower has the right to cancel the loan agreement within 3 business days of signing the documents. One should note that Sunday is never considered as a business day.

2.In case the borrower wants to rescind his loan agreement, the same must be notified to the creditor within 3 days by writing a request letter to notify the lender about the cancellation of contract. One can even fill the form provided by the creditor and submit it. It is possible to rescind only by making a written application within the stipulated 3 days. One cannot cancel the contract by speaking over a telephone.

3.In case the borrower does not receive any notice of rescission from the lender, the borrower has the right to cancel the agreement at any time. However, rescission must happen during the first 3 years after signing the credit contract or before the borrower puts up the home for sale, whichever situation occurs first.

During these three days of rescission period, it is imperative that the lender must not release funds and disburse them to the concerned parties.

Author: Pauline Go

Harry Gross: Couple wants out of new loan agreement

The problem is that the loan officer is giving us all kinds of flak regarding charges we never heard of. We heard of the three-day rescission rule that will let us out of the agreement if we choose to do so after the settlement. …

Kitsap Caucus » Blog Archive » More on the Condo Loan

Garrido said the loan agreement does three things: It buys the county time to sell condos and other assets when the market is more favorable, it gives the county the value of the assets and will give the county final say on condo sales. … He also said county officials could rescind the new policy limiting the county’s ability to enter such agreements. Josh Brown agreed with Ross, but said new commissioners would at least have to do the work of rescinding it,

Real Estate Blog – Phoenix Arizona Loan Modification Attorney …

(3) Were the good faith estimate and preliminary truth in lending statements given to the borrower within 3 days of giving the loan application? (if not, a right to rescind may exist). (4) Were advance fees improperly collected? ….. Hmm.. . my Advance Fee Agreement has 4 phases and only 25% is contingent upon acceptance of loan modification agreement by the client. Better yet, I did it all on my own without paying a lawyer.

What is a “Forensic Loan Audit?” | War on the Home Front

According to the Truth in Lending Act even a small mistake with calculating the borrower’s annual percentage rate could be an actionable violation, enabling the borrower to rescind the loan. Therefore, the threat of a lawsuit is often … Did the loan officer accurately disclose the loan terms to you? Did you sign a separate broker fee agreement? Was your home’s value inflated by the lender’s appraiser? Did the lender fail to verify your ability to …

Advance Notice of Proposed Rulemaking: Mortgage Assistance Relief …

Mortgage servicers may provide various loss mitigation options to help distressed homeowners avoid foreclosure, including a repayment plan, forbearance agreement, short sale, deed-in-lieu of foreclosure, or loan modification. …… Some states require providers to give consumers who enroll the right to rescind or cancel their agreements with the providers. Should the Commission include the same or similar rights of rescission or cancellation in a proposed rule…

Technorati Tags: home loans, mortgage, mortgage law, mortgage laws, mortgage lending, mortgage loan, Mortgage Loans, mortgages

Attaining a mortgage quote is obviously helpful for the people who want to refinance their existing house and purchase a new house in the near future. While in the past this involved sitting through a sometimes arduous and always unnerving interview with a banker, the whole process has become simplified, thanks to the efforts of some companies who provide free mortgage quotes online. There are several companies who provide free mortgage quotes online. All you have to do it to fill a simple online form and send. The rest will be done by the companies who will process your information and quickly return the free quote to you as soon as possible. These quotes will enable you to plan your future in a better and efficient manner. You can get extensive information on fixed rate mortgages, variable rate mortgages and other capped mortgages. You will get an in-depth analysis of different options available to you. The free quotes will unravel the mystery that surrounded the different type of mortgages.

Advantage of Free Mortgage Rates

The advantages of free mortgage rates are many. The biggest advantage, of course, is that you can get the mortgage quote free of cost, giving you a good general feel of what the market is bearing. There are no charges, no hard efforts, and no interviews. By simply filling out a form on the website, you can get a number of free quotes from a wide range of lenders. In doing this, you will be better able to look at the bottom line across many loans and in so doing decide which option offers the best solution for you. The world of lending is riddled with hidden contract clauses and indecipherable language. So without proper and careful planning, you can become lost rather quickly.

The fast service provided by the free mortgage quote providers is another advantage. All the mortgage quotes on the web sites are customized. When you answer the questions on the online form and submit it, your answers will be immediately matched with lenders and brokers who meet your exact financing needs. Typically, you will receive the quotes from multiple lenders very quickly and there will be no long waiting.

Disadvantages of Free Mortgage Quotes

Like all other things, free mortgage quotes have both the positive and negative aspects. Sometimes, it becomes difficult to know whether the prices are competitive or not. We have to believe the information we get from the lenders and could do little if these rates are not reasonable. But because lenders receive thousands of leads a day, whereas your local bank may receive only a dozen or so, the online lender may offer unfavorable terms in an effort to sell to only the suckers. That is not to say that all do, however, but merely that you should verify any quotes by attaining at least one quote from a brick and mortar lender. 

The quality of the lenders may be another reason to worry. To expand their business, new online lenders may promise terms they can never meet. While users can investigate the history and third party lending appraisals of the company, for the newest lenders it is difficulty to know the quality of their services only after dealing with them.

Author: Paul Lerner

Mortgage Rates Rise for Second Straight Week

Zillow Mortgage Marketplace is a free, open, and transparent lending marketplace, where borrowers connect with lenders to find loans and get the best mortgage rates. Borrowers anonymously submit loan requests and receive an unlimited number of custom mortgage quotes with real rates directly from thousands of competing lenders. Zillow Mortgage Marketplace also provides mortgage calculators, mortgage advice, mortgage widgets,

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Internet Advertising Join the free co-op advertising network and increase your traffic. Mortgages Get a free mortgage quote from the mortgage experts at moneyweb. Web Advertising Join the free co-op advertising network and increase….

When Will Mortgage Rates Stop Rising? – Developments – WSJ

Mortgage rates continued to rise, reaching past 5.6% on Zillow’s Mortgage Marketplace on Monday afternoon. The Zillow tool tracks mortgage rates in real time by using quotes from thousands of brokers who offer rates in the Marketplace to potential … With Obama’s out of control spending and the Treasury’s printing money like paper like no tomorrow, $100000 today will be worth over $1000000 in 30 years. So not only is a 5% mortgage “free”…

will I be eligible for an FHA loan if my name was on a deed to a …

my name was never on the mortgage, just the deed my husband and i are now trying to buy our first home and i will be the co-signer, i need to know if i am eligible for an fha my husband has never owned any property … Branch Partner RBI Home Loans Matawan, NJ 07747. Office: (732)290-1888. Direct: (732)979-7409. Fax: (732)290-1999. FREE QUOTE: www.RBILoans.com. Lending Territory: NY, NJ, SC, FL Residential & Commercial Conventional, FHA & VA, Hard Money, Reverse …

Home Mortgage Quote A Pain Or A Virtue? – Repair Your Credit Profile

free help for you to fix your credit rating yourself. … Apart from this, the Internet also makes it possible for certain aspects of home mortgage application to be handled completely online. For example, like all other online applications , getting a home mortgage quote on the internet is all about filling the form and giving the correct information to questions on the form. Several questions relating to the mortgage are often asked, and some of them go like this;

Technorati Tags: free mortgage quote, free mortgage quotes, mortgage, mortgage quote, mortgage quotes, mortgage quotes online, mortgage rate quotes, mortgages

A mortgage is an interest in land created by a contract, not a loan. Although almost all mortgage agreements contain a promise to repay a debt, a mortgage is not a debt by and in itself. It can be better characterized as evidence of a debt. More importantly, a mortgage is a transfer of a legal or equitable interest in land, on the condition sine qua non that the interest will be returned when the terms of the mortgage contract are performed. A mortgage agreement usually transfers the interest in the borrower’s land to the lender.

However, the transfer has a condition attached: if the borrower performs the obligations of the mortgage contract, the transfer becomes void. This is the reason why the borrower is allowed to remain on title as the registered owner. In practicality, he retains possession of the land but the lender holds the right to the interest in said land. In essence, therefore, a mortgage is a conveyance of land as a security for payment of the underlying debt or the discharge of some other obligation for which it is given. In a mortgage contract, the borrower is called ‘mortgagor’ and the lender ‘mortgagee’.

The History of Mortgage Law Mortgage Law originated in the English feudal system as early as the 12th century. At that time the effect of a mortgage was to legally convey both the title of the interest in land and possession of the land to the lender. This conveyance was ‘absolute’, that is subject only to the lender’s promise to re-convey the property to the borrower if the specified sum was repaid by the specified date If, on the other hand, the borrower failed to comply with the terms, then the interest in land automatically became the lender’s and the borrower had no further claims or recourses at law.

There were, back in feudal England, basically two kinds of mortgages: ‘ad vivum vadium’, Latin for ‘a live pledge’ in which the income from the land was used by the borrower to repay the debt, and ‘ad mortuum vadium’, Latin for ‘a dead pledge’ where the lender was entitled to the income from the land and the borrower had to raise funds elsewhere to repay the debt. Whereas at the beginning only ‘live pledges’ were legal and ‘dead pledges’ were considered an infringement of the laws of usury and of religious teachings, by the 14th century only dead pledges remained and were all very legal and very religious. And, apparently, they are still very religious in the 21st century. Express Contractual Terms of a Mortgage Following is an analysis of the clauses contained in most mortgage contracts. It should be emphasized, however, that the wording varies from contract to contract, and that the types of clauses change to conform to the particular types of securities mortgaged.

[ ] Redemption When the mortgagor fulfills his obligations under the contract, the mortgage will be void and the mortgagee will be bound to reconvey the legal interest to the mortgagor.

[ ] Transferability All the covenants made by the mortgagor will be binding upon him, his heirs, executors and administrators. This is the case whether the legal interest his held by the mortgagee, or by the mortgagee’s heirs, executors, administrators or assignees.

[ ] Personal Covenant The contractual promise made by the borrower is his personal covenant. Because of this, it does not run with the land, so that the lender can sue the borrower on his personal covenant even in the eventuality that the borrower has sold the interest in land to someone else who has assumed the mortgage. In practicality, this means that until the original mortgage contract is valid, in full force and effect the original mortgagor is always liable.

[ ] Title Integrity The mortgagor confirm 1ff8 s and guarantees that he is the owner in fee simple and holds all rights and powers that such ownership entails, including the right to convey the land to the mortgagee.

[ ] Free and Clear This is the very essence of the security for the debt: the title must be free and clear of all encumbrances (subject to certain statutory rights, such as taxation), so that conveyance can take place. Upon conveyance, the interest is transferred to the lender while the borrower retains possession. But on default, the borrower will deliver also possession to the lender subject to any encumbrance in priority. This can be a tax lien or, in the case of default on a second mortgage, a first mortgage.

[ ] Further Assurances In the event of default, the mortgagor promises to do all that is necessary to allow the lender to obtain title of the property.

[ ] Prior Encumbrances Except for statutory encumbrances, the mortgagor must make a declaration of any and all charges that have priority over the mortgage being contracted, otherwise the lender expects and has the right to be registered in first priority.

[ ] Insurance The mortgage covenants to either keep the buildings located on said land insured at all times or, in the alternative, to provide a cash bond covering the replacement cost of said buildings.

[ ] Release of all Claims The borrower gives up any claims he may have against the lender with respect to the property, except the borrower’s right to demand reconveyance when the underlying debt is repaid.

[ ] Acceleration on Default Acceleration is a proviso stipulating the on default the principal and interest of the underlying debt will both become due and payable forthwith at the option of the mortgagee.

[ ] Quiet Possession A stipulation that, until default, the mortgagor shall have quiet possession of said lands.

[ ] Omnibus Clause In default of any payment of money to be paid by the mortgagor under the terms of the mortgage contract, the mortgagee may pay the same and the amount so paid shall be added forthwith to the principal debt secured by the contract and carrying interest at the same rate stipulated by the contract.

[ ] Repairs The mortgagor has a duty and an obligation to keep the lands and the buildings thereon in good conditions and in a reasonable state of repair and, furthermore, he will not abandon or commit waste anywhere on the mortgaged property. This clause is intended to safeguard the value of the lender’s security. [ ] Advances The mortgagee shall not be bound to advance any part of the money intended to be secured by the mortgage contract. For example, where part of the money has been advanced and subsequently a builder’s lien is filed against the land, the lender will require the lien to be removed before advancing further funds. Note that builder’s liens have priority over mortgages.

[ ] Sale Clause Also known as ‘Due on Sale’ the mortgagor agrees to pay, at the option of the mortgagee, all principal and interest of the underlying debt upon sale of the property. This clause effectively prevents the mortgage from being assumed by anyone unacceptable to the lender. Obviously, the other option of the lender is not to call the loan if the mortgagor sells to a Buyer acceptable to the lender. In the absence of this clause, the mortgage is always assumable.

By: Luigi Frascati

Fundamentals of Mortgage Law

If, on the other hand, the borrower failed to comply with the terms, then the interest in land automatically became the lender’s and the borrower had no further claims or recourses at law. There were, back in feudal England,

The Fate of America’s Homebuilders: The Changing Landscape of …

They saved their money in a special account at the local savings & loan that paid a little more interest than the banks. Interest rates were fixed by law. A typical mortgage was written at a fixed rate for 30 years. Most American home owners stayed in their homes and celebrated …. And government needs to learn from its own mistakes and realize that a successful housing sector depends on solid market fundamentals as opposed to pursuing an agenda of social engineering…

Saudi eyes Fannie Mae-style firm in home loan push

The company would be formed in conjunction with Saudi Arabia’s first mortgage law, which should come into effect before the end of the year, Ibrahim al-Assaf said in an interview in Oman on Saturday. In the United States, Fannie Mae, or the Federal National Mortgage Association, is a primary purchaser of eligible home loans from issuers. … Rhodes discuses the fundamentals that could push gold over the $1000 price point – Business Breakfast,

Blogging On Interest Rates, Economics & Business in New Zealand

ASB’s insurance and mortgage arm, Sovereign, announced that it would raise its three, four and five year mortgage rates on Friday by between 20 and 50 basis points (bps). Sovereign distributes via brokers and directly. Mortgage rate announcements by …. Think of it this way, money assets mean nothing if humans are not around and remains constant, add the human factor that creates, drives the market up down sideways, that puts commonsense and fundamentals…

Commercial mortgage defaults set to surge — Short Sales Riches Blog

“The dramatic decline in real economic activity and labor markets since last September has undercut property fundamentals. The decline puts an increasing number of loans at risk,” said Sam Chandan, chief economist of Real Estate Econometrics … The law specifically forbids companies from using the money for paying dividends and buying back shares. Firms responded to this law by repatriating about $300 billion from foreign affiliates and taking advantage of the tax …

Technorati Tags: 2nd mortgage lenders, bad credit, loans, mortgage, mortgage laws, mortgage leads, mortgage lenders, mortgage rate, mortgages

In many cases, home buyers are in a financial position to afford the monthly payments associated with home ownership, but they lack the down payment necessary to purchase a home. Or the buyer’s credit score or rating may prevent him or her from obtaining the traditional bank or mortgage company financing required for the purchase of a home. When this is the case, it often makes sense for the buyers to consider purchasing a home or piece of real estate and have the owner/seller provide the financing for the purchase – called a Land Contract or Contract for Deed.

Likewise, selling a home by way a land contract can prove beneficial to the seller in many ways. Selling property with a land contract can provide a quicker and more inexpensive way for the property owner to sell the property – the seller does not need to comply with the often rigid and tedious guidelines of bank financing and the delays that often accompany those guidelines. Likewise, real property sold on a land contract can often be priced higher than sales with bank financing since the seller provides the all-important financing and the buyer is often times not required to come up with a large down-payment, thereby permitting a higher asking price for the property.

So how does a land contract work?

Land contracts are common throughout the United States. In some states, they are called Trust Deeds, Contract for Deed, Deeds of Trust, Notes, or (privately held) Mortgages, but they all represent the same thing: a way of selling property where the buyer “borrows” from or relies upon the seller for the financing rather than paying cash up front or borrowing from a bank.

The process is generally as follows:

The seller and buyer enter into a contract that normally states that the seller shall transfer ownership of the property to the after the buyer has fully paid the seller the agreed upon purchase price. In most cases, the contract requires the buyer to make a modest down payment and then to make monthly payments over time. The land contract can require the buyer to pay the seller interest on the money owed (just like a bank would). Also, because the buyer and seller privately negotiate and reach their own sales terms, the contract can also call for smaller monthly payments – beneficial to the buyer – and then a balloon payment to be made at some certain period of time; this balloon or lump sum payment will pay the balance of the purchase price for the property.

During the term of the land contract (i.e. while the contract is in force and effect, the buyer is not in default and until all of the payments are made), the buyer holds legal possession of and occupies the property. The land contract can call for transfer of the property once the seller has received all of the required payments or can call for the transfer at some time sooner, with the seller then holding a mortgage on the property to ensure that the balance of the purchase price will be paid in full. Whatever the terms agreed upon for transferring ownership, when the agreed upon transfer date is reached, the seller tenders (or gives) a deed to the property to the buyer who then records the deed in the county recorders office or the real property office of the county where the property is located.

While the benefits of land contracts are many, there are some potential pitfalls to a land contract that the parties must be aware.

If the buyer misses any payment under the land contract, he or she may lose the property (the right to have the deed transferred to him) and the seller may keep the money paid up to that point as rent. Thereafter, the seller would not be required to transfer the deed to the buyer.

Some states have laws providing that if a buyer makes a majority of the payments under a land contract (which cover a large percentage of a purchase price of the property), the seller may not be able to keep or refuse to transfer the deed if the buyer can make payments on the contract price at a later date (known as the right of redemption). Your state laws should be reviewed.

A disadvantage for the buyer can be found when the seller has a mortgage on the property that the buyer is purchasing and the seller does not payoff existing mortgages by the time the buyer pays the entire purchase price – thereby causing the property to subject to foreclosure. The buyer should determine whether or not any mortgages exist on the property being purchased and then require the seller to pay off all mortgages prior to the final payment being made – but if the seller does not, the buyer should be aware that he or she may be required to pay off the mortgages.

Author: Christopher Freeman

 U.S. Senate Seizing Control of Real Estate Investing

Selling YOUR OWN HOME using a land contract or owner-held mortgage so that you can get a quicker sale, higher sale price, or better rate of interest than is available in other investments; Carrying back owner-held second mortgages on …. IF YOU BUY HOUSES WITH OWNER FINANCING:Dear Senator [name];. My name is [insert name here] and I am a life-long resident of [insert city name here]. I am writing you to encourage you to vote NO on HR 1728,

Former sub-prime lenders are back to profit off the mess they made …

No? Okay then… In case you’ve been incarcerated in a foreign land, Countrywide sold itself to Bank of America in January of 2008, but they were back in the news last week because Mozilo, along with the former CFO and former COO, …. Then they’ll modify your mortgage so you can keep your home, sell your mortgage back to the investors they bought it from and make a huge profit from the transaction… which in turn will be returned …

Real estate mistakes you can’t afford to make

Spot on Rick as I say Wide Brown land of the MEGA MORTGAGE MUGS the easiest people on Earth to Mislead, Misinform and Manipulate, just Too easy, anything more than 2 + 2 and the average Australian MMM goes crying yo mummy and …. This means if you ascribe to the 2.5 times wage rule, you would only be able to buy a 180k odd house. The average Melbourne house price is $445k. See the discrepancy??? There’s no way people can limit themselves to 2.5 times…

A false dawn for house prices

Alas, the next rise in interest rates – whether by the Bank of England or market forces – is likely to choke any budding recovery. In addition, you still have to find some way to pay off the capital borrowed to buy a home, which can amount to £200000 or more. ….. If that house rises in value to £150000, then you can sell it and release at least £60000 after fees. You can then use that with the same 80% LTV mortgage to buy a £300000 house …

Mortgage Fraud – Mortgage Fraud News

He provided down payments to home buyers and referred falsified and inflated sales contracts to appraisers selected by Vanatta knowing that they would inflate appraisals to cover altered sales prices. …. Kan., where they marketed homes under the names Miller Enterprises, Dutch Custom Homes, Star Land and Development and Somerset Homes. They created advertisements soliciting home buyers with credit problems, promising no money down and financing….

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A mortgage is an interest in land created by a contract, not a loan. Although almost all mortgage agreements contain a promise to repay a debt, a mortgage is not a debt by and in itself. It can be better characterized as evidence of a debt. More importantly, a mortgage is a transfer of a legal or equitable interest in land, on the condition sine qua non that the interest will be returned when the terms of the mortgage contract are performed. A mortgage agreement usually transfers the interest in the borrower’s land to the lender. However, the transfer has a condition attached: if the borrower performs the obligations of the mortgage contract, the transfer becomes void. This is the reason why the borrower is allowed to remain on title as the registered owner. In practicality, he retains possession of the land but the lender holds the right to the interest in said land.

In essence, therefore, a mortgage is a conveyance of land as a security for payment of the underlying debt or the discharge of some other obligation for which it is given. In a mortgage contract, the borrower is called ‘mortgagor’ and the lender ‘mortgagee’.

The History of Mortgage Law

Mortgage Law originated in the English feudal system as early as the 12th century. At that time the effect of a mortgage was to legally convey both the title of the interest in land and possession of the land to the lender. This conveyance was ‘absolute’, that is subject only to the lender’s promise to re-convey the property to the borrower if the specified sum was repaid by the specified date

If, on the other hand, the borrower failed to comply with the terms, then the interest in land automatically became the lender’s and the borrower had no further claims or recourses at law. There were, back in feudal England, basically two kinds of mortgages: ‘ad vivum vadium’, Latin for ‘a live pledge’ in which the income from the land was used by the borrower to repay the debt, and ‘ad mortuum vadium’, Latin for ‘a dead pledge’ where the lender was entitled to the income from the land and the borrower had to raise funds elsewhere to repay the debt. Whereas at the beginning only ‘live pledges’ were legal and ‘dead pledges’ were considered an infringement of the laws of usury and of religious teachings, by the 14th century only dead pledges remained and were all very legal and very religious. And, apparently, they are still very religious in the 21st century.

Express Contractual Terms of a Mortgage

Following is an analysis of the clauses contained in most mortgage contracts. It should be emphasized, however, that the wording varies from contract to contract, and that the types of clauses change to conform to the particular types of securities mortgaged.

[ ] Redemption

When the mortgagor fulfills his obligations under the contract, the mortgage will be void and the mortgagee will be bound to reconvey the legal interest to the mortgagor.

[ ] Transferability

All the covenants made by the mortgagor will be binding upon him, his heirs, executors and administrators. This is the case whether the legal interest his held by the mortgagee, or by the mortgagee’s heirs, executors, administrators or assignees.

[ ] Personal Covenant

The contractual promise made by the borrower is his personal covenant. Because of this, it does not run with the land, so that the lender can sue the borrower on his personal covenant even in the eventuality that the borrower has sold the interest in land to someone else who has assumed the mortgage. In practicality, this means that until the original mortgage contract is valid, in full force and effect the original mortgagor is always liabl 1ff8 e.

[ ] Title Integrity

The mortgagor confirms and guarantees that he is the owner in fee simple and holds all rights and powers that such ownership entails, including the right to convey the land to the mortgagee.

[ ] Free and Clear

This is the very essence of the security for the debt: the title must be free and clear of all encumbrances (subject to certain statutory rights, such as taxation), so that conveyance can take place. Upon conveyance, the interest is transferred to the lender while the borrower retains possession. But on default, the borrower will deliver also possession to the lender subject to any encumbrance in priority. This can be a tax lien or, in the case of default on a second mortgage, a first mortgage.

[ ] Further Assurances

In the event of default, the mortgagor promises to do all that is necessary to allow the lender to obtain title of the property.

[ ] Prior Encumbrances

Except for statutory encumbrances, the mortgagor must make a declaration of any and all charges that have priority over the mortgage being contracted, otherwise the lender expects and has the right to be registered in first priority.

[ ] Insurance

The mortgage covenants to either keep the buildings located on said land insured at all times or, in the alternative, to provide a cash bond covering the replacement cost of said buildings.

[ ] Release of all Claims

The borrower gives up any claims he may have against the lender with respect to the property, except the borrower’s right to demand reconveyance when the underlying debt is repaid.

[ ] Acceleration on Default

Acceleration is a proviso stipulating the on default the principal and interest of the underlying debt will both become due and payable forthwith at the option of the mortgagee.

[ ] Quiet Possession

A stipulation that, until default, the mortgagor shall have quiet possession of said lands.

[ ] Omnibus Clause

In default of any payment of money to be paid by the mortgagor under the terms of the mortgage contract, the mortgagee may pay the same and the amount so paid shall be added forthwith to the principal debt secured by the contract and carrying interest at the same rate stipulated by the contract.

[ ] Repairs

The mortgagor has a duty and an obligation to keep the lands and the buildings thereon in good conditions and in a reasonable state of repair and, furthermore, he will not abandon or commit waste anywhere on the mortgaged property. This clause is intended to safeguard the value of the lender’s security.

[ ] Advances

The mortgagee shall not be bound to advance any part of the money intended to be secured by the mortgage contract. For example, where part of the money has been advanced and subsequently a builder’s lien is filed against the land, the lender will require the lien to be removed before advancing further funds. Note that builder’s liens have priority over mortgages.

[ ] Sale Clause

Also known as ‘Due on Sale’ the mortgagor agrees to pay, at the option of the mortgagee, all principal and interest of the underlying debt upon sale of the property. This clause effectively prevents the mortgage from being assumed by anyone unacceptable to the lender. Obviously, the other option of the lender is not to call the loan if the mortgagor sells to a Buyer acceptable to the lender. In the absence of this clause, the mortgage is always assumable.

Author: Luigi Frascati

The Fate of America’s Homebuilders: The Changing Landscape of …

They saved their money in a special account at the local savings & loan that paid a little more interest than the banks. Interest rates were fixed by law. A typical mortgage was written at a fixed rate for 30 years. Most American home owners stayed in their homes and celebrated …. And government needs to learn from its own mistakes and realize that a successful housing sector depends on solid market fundamentals as opposed to pursuing an agenda of social engineering…

Saudi eyes Fannie Mae-style firm in home loan push

The company would be formed in conjunction with Saudi Arabia’s first mortgage law, which should come into effect before the end of the year, Ibrahim al-Assaf said in an interview in Oman on Saturday. In the United States, Fannie Mae, or the Federal National Mortgage Association, is a primary purchaser of eligible home loans from issuers. … Rhodes discuses the fundamentals that could push gold over the $1000 price point – Business Breakfast,

Blogging On Interest Rates, Economics & Business in New Zealand

ASB’s insurance and mortgage arm, Sovereign, announced that it would raise its three, four and five year mortgage rates on Friday by between 20 and 50 basis points (bps). Sovereign distributes via brokers and directly. Mortgage rate announcements by …. Think of it this way, money assets mean nothing if humans are not around and remains constant, add the human factor that creates, drives the market up down sideways, that puts commonsense and fundamentals..

Gold Harvest Under A Silver Moon: But just as the President’s …

Plus, in an even larger effort to support mortgage prices — and to suppress mortgage rates — the Fed has poured a whopping $507 billion into direct purchases of mortgage-backed securities (MBSs). … Looking at silver, based on fundamentals , it is totally obvious that silver is headed for a spectacular explosion in its price. At a time of record demand for gold and silver, there are lower inventories of silver (relative to gold and in absolute terms) ,

“Throwing Away Money” | Seattle Bubble — News & discussion about …

Over the past three years Couple B have spent around $67000 on mortgage interest alone, and their home is now valued at around $340000—15% less than they paid. If they decide they want to move they have three options: Come up with about …. Given the fundamentals, 30-40% will probably suffice for most neighborhoods. I’m seeing more and more units at the lower end of the market priced at levels that almost make sense from a price/rent perspective..

Technorati Tags: mortgage, Mortgage companies, mortgage law, mortgage laws, mortgages

If you are shopping for a mortgage loan you have probably seen the acronym PITI in many of the loan offers you receive. PITI stands for principal, interest, taxes, and insurance. Here is what you need to know about PITI.

Principal

Mortgage principal is the total balance of your loan. When you make your monthly mortgage payments you are gradually paying down this balance along with the interest due for that month. Mortgage loans are front loaded with interest so in the early years of your mortgage you will find very little of your mortgage payment is being applied to the principal loan balance. The interest paid on any given month is based on the outstanding principal balance; as the years go by more of your payment is applied to the principal balance and less is paid to the lender as interest.

Interest

Interest is what you pay the lender for loaning you the money to pay for your home. The interest is a percentage of the principal balance due. Interest rates come in two flavors: fixed rates that do not change over the term of the loan, and adjustable interest rates that change at regular intervals set in your loan contract. If you have an adjustable rate mortgage your interest rate is tied to some financial index plus the lender’s markup. When the lender periodically updates your interest rate the amount of your monthly mortgage payment will change with it.

Taxes

Property taxes are often included in your monthly payment amount. Lenders do this to protect their investment in your home; if you allow your property taxes to lapse, your State or local government could put a lien on your home. If this happens the lender would be unable to foreclose if you fall behind on your payments.

Insurance

Your homeowner’s insurance policy protects your home from damages. Insurance premiums can be rolled into your monthly payment like property taxes; again, lenders do this to protect their interest in your property. Most homeowner’s insurance policies only protect your home against fire, vandalism, and certain other damages. If you live in an area prone to flooding the mortgage lender could require you to purchase flood insurance in addition to your homeowner’s policy. Mortgage lenders may require borrowers with poor credit or low down payments to purchase Private Mortgage Insurance in addition to their homeowner’s policy. Private Mortgage Insurance protects the lender from loses in the event of foreclosure. This insurance does nothing to protect you, the homeowner.

To learn more about shopping for the right mortgage and avoiding common mistakes, register for a free mortgage guidebook using the links below.

Author: Louie Latour

PITI Mortgage Payment

When a new homeowner applies for a mortgage loan application the problem with a mortgage, is not whether a mortgage loan application will get approved or not; it is more of a question of “Will I be able to pay it on a timely manner?

Loan Modification Explained

Filing for bankrupcy stops the foreclosures process but seriously limits your ablity to obtain a new mortgage loan. Consider speaking with legal counsel specializing in these areas to find a solution that works best for you.

Mortgage Refinance Catia mortgage

The term of your mortgage can mortgage piti calculator go by remarkably quickly. There’sa point to watch out for, though. About six months before the end of your mortgage agreement, you need to look around for another deal.

Technorati Tags: Loan Modification, mortgage loan, Mortgage Refinance, PITI Mortgage Payment