Home Equity Loans – second mortgage

Filipinoy asked:


I have a friend who is very desperate because of all the debts, shortsale/foreclosure of his house, mounting credit card bills, etc, want to just leave the country for good to start anew. What would be the possible consequences of this? Will it clear all his debts, if he comes back to the US after 3 years would he be in trouble?

Beverly

wmfetv asked:

WMFE is helping the Orlando community face the on-going mortgage crisis by connecting people those in need with trusted community resources to help them address or prevent a foreclosure situation and deal with other aspects of the current financial crisis. Our work continues here at our new interactive web site – wmfe.org/mortgage. Youll find all the same great content, and hopefully even more resources to help you or those you know. As we all face the mortgage and financial crisis, we will continue to bring you information from experts, trusted resources, and the Orlando community United Way 2-1-1 & Elder Helpline is a free, one-stop source for referrals to approximately 800 health and human service agencies and 2000 programs and services in Central Florida. United Way 2-1-1 is accessed toll-free from anywhere in Orange, Seminole or Osceola counties by simply dialing 2-1-1. It operates 24 hours a day, 365 days a year. Multilingual call specialists and TDD access is available. Central Florida residents call 2-1-1 for many different types of help. Professional call specialists help callers with such complex issues as substance abuse, gambling, domestic violence programs, suicide prevention, financial problems, mortgage foreclosure assistance and much more. By dialing 2-1-1, a caller is connected with a highly trained call specialist who helps the caller assess their situation and find the community services in their area that can assist them. Visit wmfe.org/mortgage for …

Gerald

Sean Bailey asked:




You may know that a home equity loan is the possible answer if you urgently need cash. But are you aware too that this type of loan carries with it the danger of losing your home? Since your home is used as collateral, non-repayment of the home equity loan could mean foreclosure of your home. It is therefore necessary to have a deeper understanding on how does a home equity loan work. As mentioned before, if you take this type of loan you will use your home as collateral. What then is home equity? Let’s say you have purchased a house several years ago for a specified amount. Over the years you have made changes…you may have renovated the house; you may have added a wing or two. These changes have increased the market value of the house. The value that goes with the house is the home equity. Now, if you take out a home equity loan, you are in effect “using” your own money. It becomes a loan because it entails interest rates to be charged, monthly repayments to be paid in a specified period of time.

Basically, this type of loan would have a fixed loan term, a fixed interest rate as well as a fixed monthly payment. However, there is another type of home equity loan that has variable interest rates, monthly payments and terms – the home equity line of credit. Unlike the former type of home loan where the loan proceed is given in one lump sum amount, home equity line of credit can be withdrawn by the borrower as the need arises. Monthly payment varies as it would depend on the amount of money withdrawn.

One advantage of taking a home equity loan is the relatively low interest rates. The borrower is afforded savings opportunities because payment for this loan is tax deductible and interest rates can be written off from the taxes he/she has to pay. These type of loans are taken for a variety of reasons. The proceeds may be used to pay off credit cards with high rates of interests; it can also be used to infuse capital on a business.

If you have a good credit history and you have all the necessary documents, your loan will be approved in no time. The cash you urgently need will be in your hands but there is an important consideration you need to remember, your home ownership is at stake here. Non-payment of the loan could mean foreclosure of your home. As you can see, it is not as straight forward as you would like to think it is. I hope the article has given you some insights on how does a home equity loan work.

Bradley

Gressly Stevens asked:




Are you in the right situation to use a home equity loan to add on to your home, fix it up, consolidate some debt, or for any other reason you might have? If so, then you might consider using a no doc home equity loan if your situation is the right one. Here is what you need to know about the no doc options.

First, if you are self employed, then you are the prime candidate for this type of home equity loan. This type of loan was actually created to make it easier for self employed individuals to get a mortgage because it is very rare that someone that runs a business has an easy time proving all of their income. With business expenses and cash payments not getting documented it can be difficult to come up with your real income.

Second, if you are a tipped employee or someone that works mainly for cash, then you already know how hard it will be to prove your income and that makes it very difficult to get a good mortgage. However, if you have very good credit or at least pretty good credit, then you can use the no doc options and you will have a much easier time getting approved for your home equity loan.

Last, if you work a steady job and you get paid a regular paycheck, then you would be making a terrible mistake to get a no doc home equity loan. This is not for you and any mortgage broker or account executive that tries to talk you into this type of loan will be setting you up for failure. This is just not a good situation and this could be the cause of a foreclosure so be very careful if you find yourself in this category.

Bruce

Constructionlenderca asked:

www.lendinguniverse.com find top 10 home equity loans lenders on http contact Mortgage Lenders, private investors, hard money brokers and credit union who can potentially refinance while house is in foreclosure and arrange your loan fast. In addition to being directly connected to the…

Kelly

JUICER asked:


I have 2 properties in florida. one is investment and the other is second home. I have not defaulted on any of my loans and both me and my wife have credit scores of 760 and above. I am spending more than i earn right now to maintain these mortgages and fear that if the one with a payoption arm recasts i will go into foreclosure. can i modify even though i am not in default as of right now? there is no equity in the home the mortgage is now more than the home is worth. what are my options? what are the repercussions for homowners who just stop paying their mortgages? can they foreclose on my primary if i stop paying my investment home? please advise.

COREY

Pascual B asked:


I bought a home 4 years ago and am now having trouble paying my mortgage. I have a first and second TD, the first was refinanced once as a rate/term refi, and the second, an equity loan with wells fargo, was partially used to cash-out. I have to consider foreclosure as an option, if the lender is not willing to modify the terms, but I’m unsure if either the 1st or 2nd lienholder can pursue any of my other assets, including a property my wife owns free and clear that was gifted from her grandmother, a pretty decent size 401K (over 100,000), or possibly even garnishment of my wages. Credit and Tax issues aside, is there any way the lender will seek repayment through the court system, or will foreclosure pretty much protect me? BTW this house is considered my primary residence. I am also trying to find where on the note/deed of trust that I signed, it states whether or not the liens are considered recourse or non-recourse, but cannot seem to find the pertaining verbiage

RANDELL

Jack Krohn asked:


Millions of Americans are up to their ears in debt. They struggle every month just to meet the minimum payment which just prolongs the debt. Credit cards have high finance fees. Hence, it is difficult to pay down balances. In most cases, the minimum payment barely covers the finance charges. This makes it difficult to reduce the credit card balance.

One approach for eliminating or reducing debts involves acquiring a debt consolidation loan. Although debt consolidation loans will not miraculously eliminate your debts, these loans make is possible to reduce your debts faster.

In 2005 the value of home equity across the US was $11.3 trillion. The percentage of home ownership in 2005 was 69% down slightly from the record 69.2 % in 2004. Almost 124 million Americans own their own home. There is plenty of money available to lend.

If you obtain a debt consolidation loan, all your credit balances are lumped into one loan. Furthermore, debt consolidation loans have reasonable interest rates. This enables you to become debt free within a few years.

There are various ways to obtain a debt consolidation loan. Individuals with good credit may qualify for a personal debt consolidation loan. If you own a home, it may be possible to get approved for a home equity loan. Home equity loans are ideal because the rates are low and the terms fixed. Usually, homeowners are able to repay the money in five to seven years – sometimes less.

Just beware that home equity does not automatically go up every month like some would have you believe. Several factors far beyond your control determine the value of your home. Just within the last six months or so the value of homes in some parts of the country dropped by 10% in a month.

Before you get a home equity loan you should know these facts.

• They are secured by a second deed of trust on your house.

• If your financial situation changes your home could be at risk of foreclosure.

• Having to make two payments on your home can be a lot of financial strain.

• A lot of unscrupulous lenders could care less.

• Keep your eyes open to what the local housing market is doing. Just recently many areas experienced a 10% decline in values in one month causing many homeowners to owe more than their home was worth.

It is essential to use the funds wisely and borrow only what you can afford to payback. Most Americans who use their home equity to pay off their credit card debt refuse to change their habits and lifestyles, and actually see their zero-balance cards as an invitation to go shopping – perpetuating the cycle.

Before you put your home at risk with a second mortgage understand the risks. Explore all the possibilities. Just because a home equity loan for debt consolidation seems so easy to do and easy to get, doesn’t make it the right choice for you. Don’t press the EASY button.



RICHARD

maria j asked:


I bought my home with a family member and we lived together for 4 years. We took out equity in the home and had a second mortgage. I consolidated both loans under my name only. He moved out and signed the deed over to me. I am the only one on the loan and deed. I have Countrywide and was in the process of a modification. Now because of their lies, I had no idea I was in foreclosure. Will my family member’s credit be effected negatively or show foreclosure on their credit? If so what can do about it?

MYRON

ahsa asked:


A foreclosure in the State of: Georgia

I have 2 homes. One is my primary residence, never been refinanced and has equity. The second home has been refinanced and has massive negative equity, with 2 mortgages. First loan is $163K, second is $87K. This home is worth $190 and I owe $250. There is not enough equity in primary home to cover neg. equity.

Should I foreclose or short-sell?

If I foreclose, can the bank come after my primary home? What is my best option here.. I cannot afford the second home.

NOAH