according to demand on a note second mortgage?

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Can anyone give me some examples of what would be a feature of the application on a second mortgage? Mortgage has a check box in the TIL that this loan has a function of demand as indicated, but I see nothing anywhere in note hei├čt.Ich think a ball sometimes confused with the function of the demand, n ‘There was not a balloon in this Fall.Ich stumpped am.
I read that in a loan application.

4 Comments
  1. Reply
    Silly Mouse
    January 24, 2011 at 10:16 am

    It could be a couple different things – A demand could be the payoff or it could be when the loan comes due – for example if you have a fixed rate loan 30/15 that would imply that your payment is made like you have 30 years to pay the loan off but really at the 15th year on the day the loan recorded it will come due. at that point you need to refi or pay it off

    Hope that helps !!

    – it would be a lot easier to answer your question if i knew the context of how “demand” was used on the note.

  2. Reply
    Yanswersmonitorsarenazis
    January 24, 2011 at 10:23 am

    Sounds like a balloon note.

    Most typical in a 2nd mortgage would be to set it up with a 30 year payment, but having the remaining balance due in full after 5, 10 or 15 years.

    Since they demand the balance before the payments would actually pay the loan off, that would fit the “demand feature”.

  3. Reply
    donfletcheryh
    January 24, 2011 at 11:13 am

    When a demand feature is inserted, it allows the lender to call for you to repay on demand… usually within 30 days of demand. This is put in in many loans for new construction, to allow the lender to pull the plug on the project if it is not going well, if the lender wants to stop financing this folly.

    The money being advanced is withheld by the lender until it id needed, and turned over on demand, but with the lender taking an opportunity to inspect to see that the property will be worth more than the loan

  4. Reply
    renglc
    January 24, 2011 at 11:42 am

    “It gives the lender the right to ask for full loan repayment for any reason. If your agreement includes such a feature, you would like to explore all the sections pertaining to it.

    A demand feature is even more lender protecting than the due on sale and acceleration clauses, since lenders are enabled to even raise your interest rates, or else… They could threaten to call the loan even if the borrower is not selling.

    Sometimes, due on sale and acceleration clauses are referred to as demand clauses. With a due on sale option the loan is due in full at house sale, as the lender would like to be repaid rather than have the loan transferred to the new buyer. The acceleration clause allows for calling the loan any time any of the agreed upon terms is violated by the borrower. “

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