In a mortgage, the third in a house?

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Hello everyone. I had a question. I still have not a mortgage company because I thought of this recently visited. I have two houses that I have to pay their mortgage. My main residence where I live, and I have a second home that is occupied by tenants. My question is, with every foreclosure there I thought about one third. Would I be able to get the third mortgage to buy a house for investment? I’ve never been too late on a payment and can make three mortgage if I can not find a tenant to occupy. I ask because I heard because of mortgage defaults, which makes it extremely difficult now to obtain a mortgage.
Is it possible if I have a house by owner taking on mortgage payments, etc. .. What if he had used the house as security for loans is a full-fledged third, and later in default after the property was transferred to the mortgage, even myself, will the third person. or can / will they go home? and I find myself stuck with the bill?

  1. Reply
    April 29, 2011 at 9:42 pm

    You say that you “can afford three mortgages.” If the lenders agree, you’ll probably get it. They’ll be looking at debt-to-income ratio.

  2. Reply
    I Sail Alone
    April 29, 2011 at 9:56 pm

    You’re a safe borrower so a third mortgage would not be a problem, especially as your income from rent will likely be more than the mortgage payment.
    The credit crunch is affecting borrowers who pose a risk to lenders – but if you have good credit then you’re fine. The financial institutions still have to make money so they have to lend it!!

  3. Reply
    April 29, 2011 at 10:33 pm

    If you have good credit with good credit scores you will not have a problem securing a loan. As you probably know the interest rate will be a bit higher since this is an investment property.

    If you plan to purchase other investment properties you might consider forming a LLC or another form of corporation so as to put your investment properties in.

    Building your corporation up will give it the ability to purchase property and qualify as though it was an individual.

    It will also take off all your rental property from your personal credit report and leave you with just your residence on that particular report.

    All your rentals will be on your corporation credit report called a Dun & Bradstret.

    You should check with your advisors and your tax consultant when making such a move to see about the tax ramificatiions that you might incur.

    Good luck on your investments.

    I hope this will be of some use to you, good luck.

    “FIGHT ON”

  4. Reply
    Steve M
    April 29, 2011 at 11:03 pm

    Great post! I completely understand your question. Money is hard for a lot of people right now since the enconomy is going down. My friend told me about this website of an organization that gives people up to $ 1500 towards their rent or mortgage. It’s available in most areas, so I think you should check it out.

    Hope this helps!

  5. Reply
    Steven G
    April 29, 2011 at 11:52 pm

    It depends, if you still pay mortgages on both houses, then it’s going to be hard since you already have liabilities.

    But it’s still possible, when you buy a house, the bank or lender will only loan 80% of the house value based on municipal appraisal and not what the owner wants. As long as you can cover the 20% missing and will be generating enough income to live off and pay your liabilities, then your odds are good.

    So let’s do the math, a sixplex appraised by the city at $ 300K will net you a loan of $ 240K, the owner ask for $ 400K, as long as you can cover the $ 160K + Refund what he paid for the property tax and insurance, then your okay. You can refinance your current mortgages to obtain extra money and whatever you cannot cover, it has to come out of your pocket.

  6. Reply
    April 30, 2011 at 12:13 am

    They’ll go after the house. You should always make sure you can get a clean title when buying a house.

  7. Reply
    April 30, 2011 at 12:59 am

    If the house was indeed used for collateral, then the 3rd party probably has a lien on the title, which will not transfer with the individual. If you are serious, you should pay for a title search to see what’s up, but it sounds like it’s probably not a good deal unless you can pay off the liens on the title.

  8. Reply
    Debra Mora
    April 30, 2011 at 1:56 am

    They will go after you. It is a good deal that the house is completely paid off by you or the former owner (depending on your agreement) to avoid any problems in the future.

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