Having written several articles on Negative Amortization Loans, telling of the details of what is wrong with them, and even destroying the myth of Option ARM cash flow, I sometimes get asked if I would like to see them banned completely. Well, given the pandemically misleading marketing that surrounds these loans, and pandemically poor disclosure …
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Ken Harney had some welcome news on Move afoot to end uninvited mortgage pitches To a certain extent, these are a good thing for consumers. However, it gets way overdone. What happens is this. Let’s sat I get a client into my office, they apply for a mortgage, and I run their credit. The three …
Continue reading “Making Certain You Shop Your Mortgage – Whether You Want To Or Not”
I’ve seen a fair number of questions on impound accounts in the last several months. An impound account, also known by the confusing term escrow account because the lender is holding it in escrow, is money that you give the lender in order to pay the property taxes and homeowner’s insurance on the property when …
The question that inspired this was can a mortgage company use the flood insurance claim money towards homeowners mortgage loans? This is equally applicable to every other form of insurance on your home – earthquake, regular homeowner’s insurance, and any others that you may have or require. The short answer is yes. The reason that …
“What do I do when the loan falls through” That depends upon when it falls through and what situation you’re in. If you’re in a refinance situation, you generally keep making payments on your old loan until and unless you can find a refinance that is better that you qualify for. There is one exception …
Hello, I’ve been reading your website for awhile now, and have found it very helpful as I’m learning to navigate this crazy loan process! I had a question I was wondering if you could write about/answer. We currently have a mortgage and a secondary line of credit on our condo (we didn’t have a down …
Continue reading “Games Lenders Play, Part V – Selling a Low Payment”
do mortgage company’s usually seek a deficiency judgment on home foreclosures Depends upon whether it is a recourse loan or not. A recourse loan is one where the lender can come after you for any excess amount of money you owe. Whether a loan is recourse or non-recourse varies with the state you are in, …
I got an ill-mannered complaint email about how an evil loan officer from another company ordered the appraisal without waiting for the inspection to be done, and it turned out there was a minor problem that the seller likely could have had repaired, but this clown chose to walk away, and as a result is …
Continue reading “Why Do I Have to Pay For The Appraisal When I Cancelled Escrow?”
How do you transfer house ownership after someone dies and leaves you the house in a will? The will must be probated. Once all debts of the estate are paid and the court agrees to a final disposition of assets, the executor will then create a deed giving whoever it is title to the property. …
Minorities get higher rates. They add that the fact minorities are more likely to borrow from institutions specializing in high-priced loans could mean they are being steered to such lenders or that some lenders are unwilling or unable to serve minority neighborhoods. What they describe is called redlining. It is illegal. HUD (correctly!) really gets …
Continue reading “The Consequences of Not Shopping Multiple Lenders”
