That was a question that brought someone to the site and the answer is very simple: they don’t give you the loan. You haven’t agreed to pay them back, so why should they? If you applied for a back-up loan, you can sign the other loan papers. But since most people don’t fall into either …
Continue reading “What Happens If I Don’t Sign Mortgage Documents?”
UPDATE: This article is still good for a basic understanding. However, for an article written specifically for the new form that becomes mandatory January 1, 2010, please go to the 2010 Good Faith Estimate I had a great rant about the limitations of the Good Faith Estimate all planned out in my head when I …
Just like Mohandas Gandhi and Genghis Khan and Attila the Hun were (despite their differences) all human beings, lenders (despite their differences) make money by lending money to people who want it. That’s about the limit of the truth in that statement. Lenders do, by and large, get their money to lend from the bond …
Cold Hard Fact for today: The average Real Estate Agent or Loan Officer is not motivated to tell you that you can’t afford your property. For the agent you are trying to talk people out of a property after they have already fallen in love with it. Let’s face it, if it’s higher in price, …
One of the things that has a lot of issues is any transaction between related people. This is not limited to purely family transactions, but applies also to transfers among partnerships and their partners, corporations and their officers. The market theory holding that the value of a property is what is agreed to between a …
Continue reading “Loans On Related Party Transfers of Real Estate – Family, Corporate, or Partners”
The most recent hot thing in mortgage circles is a mortgage accelerator program. Now I’ve heard other things, most notably biweekly payment programs, called mortgage accelerators in the past, so let me take a moment to define exactly what I’m talking about. A mortgage accelerator is essentially a combined mortgage and checking account, where every …
Continue reading “Mortgage Accelerator Programs: A Good Basic Idea, But the Devil Is In the Details”
This is part and parcel of the system that’s abused. Here are sample rates from one A paper lender, picked at random, that were in effect when I originally wrote this. Rates are lower now, but it’s a good example nonetheless. These were Fannie and Freddie conforming 30 year fixed rate mortgages with full documentation …
Continue reading “Loan Rate Sheets: The Games Lenders Play With Rate and Cost Adjustments”
An email I got Tuesday November 28, 2006: My husband and I are not specifically on the market at the moment for a property but are always on the lookout for a great bargain. We have children, so school district is a big factor, but if the right place for the right price comes around, …
Continue reading “Solicitation for Fraud and Conspiracy, or Entrapment?”
I live in (City 1) and recently signed a work order on a semi-custom new construction house in (City 2). My wife and I make a combined 120K income and still can’t afford a decent place in City 1. It was preapproved rather quickly from both the builder’s mortgage company and a few outside companies …
I got a question about what I think about those online quote services. The answer is that they vary from okay to putrid. There are two sorts of online quote sources. The first is where mortgage companies have their rates online, and people come along and browse. Those are pretty much a waste of your …
