Mortgage and loan mess of money! Please help …?

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The family pays the mortgage on the house. This family took the money to lend his name to help my friend, the Scotsman in his business, and is set in the house. Scot would pay the family and the family would pay pank.Küsimus is whether it is possible to pledge the house, they are already paying the mortgage? Is this what you call a second mortgage or junior? The problem is that the company went bankrupt and the Scot left the family a cash loan, because the Scot is impossible to make such payments. And the Scotsman asks the family to pay (lump sum or installments), otherwise they would lose the house. Is it legitimate? Am I missing something this time? Scot can not pay immediately, but he certainly wants to repay them, but I do not want to give them false scenarios Scot. And the Scot has no communication with pangaga.Tänan you well!

7 Comments
  1. Reply
    sunshine_today
    February 1, 2011 at 5:11 am

    Okay, here is the deal–

    If they had a mortgage and they have decent credit and equity in the house, they could get a 2nd mortgage/equity line of credit. That line of credit is considered a 2nd mortgage and it is recorded on the deed just like the first mortgage was. They can indeed lose their house, either lender can decide to forclose on the house for missed payments. Usually what happens is the first mortgage holder buys out the 2nd and then forcloses on the house.

    If they got a 2nd mortgage, they probably got a checkbook, so they could have written a check and gotten cash to give to Scott, but it was still a 2nd mortgage. Payments will be due just like the first mortgage, every month.

    If they aren’t getting enough to pay both, they should immediately contact the first lender and see if they can refinance with both their mortgage and the equity line of credit. This might be difficult because they have used all their equity in their house, so they are reborrowing for full value of the house and the bank might not go for it.

    It would be terrible for these people to lose their home because they tried to help somebody out. I hope they can all find a solution.

    They might also contact http://www.naca.com

    It’s a non-profit housing advocacy group and they do some refinancing. They are very much about people keeping their homes, so they might be able to help you where a bank might be less helpful.

    Good luck!

  2. Reply
    jafnarf
    February 1, 2011 at 5:16 am

    It sounds like “the Family” has a 1st mortgage and a 2nd mortgage. My advice to the family would be to refinance, if possible as soon as possible, just the balance of their existing mortgages into one loan. My reasoning for this is that i know that interest rates are a lot higher on 2nd mortgages and the combination might lower their overall mortgage payments. Scot might be a friend of the family and all but business is business. I would push him to get a loan HIMSELF to pay the family back. It is not fair for the family to lose their home over his failed business venture. Also I would advise him that if he cannot met his obligations as agreed, he would be responsible for any late fees or penalties that “the Family” might incur because of his delinquency. I would hate to see it go this far but i have seen it many times. Sue him in court for breach of contract/failure to pay.

  3. Reply
    falsi fiable
    February 1, 2011 at 5:27 am

    No, you need to pay for the down payment through personal savings or a gift of up to $ 10,000 (else it is subject to gift taxes). You cannot get a loan for the down payment. That’s what got us into this mess.

  4. Reply
    usma1150
    February 1, 2011 at 5:48 am

    If you are buying a condo on a short sale, you need to front the entire sum in cash. A way around this is to leverage existing properties with home equity lines of credit. You can become a real estate mogul! Then send the economy into a spiral of financial ruin, only to be saved by uncle Sam. But seriously, you can’t buy a condo on the cheap through SS without the cash.

  5. Reply
    Christopher B
    February 1, 2011 at 5:48 am

    You do not need cash to pay for a short sale, you can have a loan – however, in order for a short sale to be approved, the banks will want to know that the sale will close once they approve the sale amount.

    So, it would improve the chances of your short sale offer to be pre-approved (and not just pre-qualified) for a loan prior to making an offer. Cash of course is king, but a loan will work if it looks guaranteed.

  6. Reply
    godged
    February 1, 2011 at 6:01 am

    I have never heard of a cash deal making a short sale going smoother. Find another Realtor, put in your offer with a pre-approval letter for your financing and that should be fine.

  7. Reply
    NeedzWerk
    February 1, 2011 at 6:31 am

    Absolute nonsense. You do NOT have to pay cash to buy a short sale. If this is a realtor that told you this, get a new realtor because she doesn’t know what she is talking about.

    While a cash offer can make a difference in a conventional sale, it has absolutely no advantage in a short sale. This is because the investor that holds the note on the property is going to get cash one way or the other. When you close on a short sale, you can show up with a certified check because you got a mortgage, or you can walk in with a briefcase full of cash. It makes no difference to the investor.

    All we do is work short sales for realtors and have been doing it for years so I think I know what I’m talking about.

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