For sale for a long period after the first two loans, a mortgage is already approved?

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Recently called the offer of a house that is for sale and sold for 7 months now. There are a total of three bids, my bid is the highest. We recently talked about the first mortgage lender has already accepted a payment of short selling, and make it but we are still awaiting news of a second mortgage lender? Does anyone know how long it will normally take and what the process is coming close? Thank you for any info. you can give! Thank you for all the answers! Replies I hear is what I fear. I asked the same question, which amounts to two loans, lenders are and what they have, but I can not answer. All I get a total of two loans of $ 199,000. It is in our offer is $ 175,000 and $ 170,000. It is a beautiful house and we are looking for more than 20 other houses, but none compare to what we want. Just hoping to go through us! Any suggestions to move the process forward?
Is it risky to take a mortgage is doc?

  1. Reply
    February 8, 2011 at 3:39 am

    the first mortgage is usually the easy one, as they get paid off first. Is there anything left for the second? If not, then why would they approve it?

    What are the numbers? 1st, 2nd, and amount offered?

  2. Reply
    Real Estate Guy
    February 8, 2011 at 3:57 am

    maybe never.

    Short sales are the hardest to close. The 2nd lender doesn’t have to reply. Most likely they are being totally cleaned out. Why should be reply. If they don’t and it goes into foreclosure, then they can come after the borrower.

  3. Reply
    February 8, 2011 at 4:35 am

    Unfortunately, you may never have an answer. Say you offered $ 500K on a house with a first loan of $ 550K and a second of $ 50K. The first lender will get a good portion of their investment back….in comparison to the second lender. Second lender will get nothing. There is no advantage for the second lender to agree to accept nothing. The second lender could actually foreclose, take the house back by paying off the first, and then sell it.

    I’d suggest you keep shopping and find another house to pursue. Without lender approval (both lenders) you should be under no obligation to wait around. If it works out later on and you haven’t found another property, then pursue it.

  4. Reply
    February 8, 2011 at 5:13 am

    the rates will be super high…and you will need to put at least 10% down. and have a 720+
    with FHA you can put 2.25% down….or with MyCommunity you can have a 620 and put zero down

  5. Reply
    Rush is a band
    February 8, 2011 at 5:56 am

    The risk to you is a sky high interest rate. This is one of those types of loans that are sub-prime and risky for the lender.

    The risk to the lender is that you don’t have anywhere near the income you tell them that you have and the loan goes bad (which is why they are pricey now).

    Good luck!

  6. Reply
    February 8, 2011 at 6:05 am

    Well the terms won’t be nearly as good as if you were able to document your income. Outside of that there’s not neccessarily any extra risk to you as a borrower. Like all mortgages, make sure that it’s fixed for an appropriate amount of time, or that you’re comfortable with the maximum payment adjustments possible, pre-payment penalties and all the other terms that come with the loan.

  7. Reply
    February 8, 2011 at 7:02 am

    only if you overstate your income and the housing payment is over your budget. All your monthly debt plus your new mortgage payment and taxes and insurance combined, divide that by your true monthly gross income should not be higher than 50%!!
    There are several no-doc loans. If your score is 680+ and you had a job for last 2year in the same field than you’re qualified for the best rate no doc has to offer.
    Although people are telling you that the rate is sky high, that’s not always true so look for a lender that specialize in the no doc deals. My customers who has average loan size of $ 300K with 10%down with 680+ credit gets 30yr fixed mortgage with no prepayment and zero points at 6.375% apr of 6.45%.
    ( I do not fish for business at this site. Feel free to ask me mortgage related questions but be advised that I will not take your case!!)

  8. Reply
    February 8, 2011 at 7:56 am

    Not for the borrower, but for the bank. Which means a high rate. It also means that you are going to have to put down a large downpayment, and your mortgage insurance (Assuming that you have it) will be huge.

  9. Reply
    Open Book Advisors™
    February 8, 2011 at 7:59 am

    You cannot accept broad generalizations about No Doc Loans.
    Some believe they are ALL BAD. Not accurate, the trick is getting a good mortgage person who knows when to use them and when not to.

    I just closed a 30yr fixed for a couple with above 692 scores and 30% equity at 6.5% – They went No Doc. That’s not a bad interest rate at all.

    If you have good credit scores and are not buying with 100% financing, the no doc loan is not always a huge difference in interest rate. It can actually simplify the process. It’s best to go full doc, but there are legitimate reasons for going NO

    The problem with NO DOC is getting a mortgage person who is using it to push your income beyond what you actually make so you can qualify. Then you are signing a paper in title that clarifies by doing so – you are lying……..brushed over quickly by some.

    You need to understand “afford” and “qualify”.
    You can likely “qualify” for a huge payment, but can you “afford” a huge payment? I may qualify for a 5k payment a month…….but I would never saddle myself with that much monthly obligation.

    If your loan is a fixed rate arm, you better make certain that your fully adjusted payment is manageable on your current income……..because you have no guarantee you will have the equity to refinance it when it adjusts. Plus the adjustable rate adjusts and could continue to adjust.

    If you dont understand why your going No Doc, or whether or not you assume more risk with a particular loan product, you need to keep asking. Do some research and see if the answers you are getting are trustworthy. There are bad loan officers…..some who don’t even understand homeownership or loans themselves.
    Remember you’re asking someone to advise you on the biggest and longest term purchase of your life……..have they made that purchase yet themselves and do they have the financial history to be advising others??

    Good Luck


  10. Reply
    February 8, 2011 at 8:58 am

    Risky for the lender, NOT you. It’s a piece of cake on your end. All you need to scrutinize is your monthly payment, how long it’s fixed for, and what happens if/when it adjusts.

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