Underwater Mortgage Definition #calculate #home #loan


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Underwater Mortgage

What is an ‘Underwater Mortgage’

A home purchase loan with a higher balance than the free-market value of the home. This situation prevents the homeowner from selling the home unless s/he has cash to pay the loss out of pocket. It also prevents the homeowner from refinancing in most cases. Thus, if the homeowner wants to sell the home because s/he can’t afford the mortgage payments anymore, perhaps because of a job loss, the home will fall into foreclosure unless the borrower is able to renegotiate the loan.

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BREAKING DOWN ‘Underwater Mortgage’

Underwater mortgages became commonplace in the aftermath of the 2000s housing bubble burst, and, combined with a bad economy, resulted in numerous foreclosures. In nonrecourse states, where mortgage lenders can’t pursue borrowers for more money once their homes have foreclosed, many borrowers who could still afford their mortgage and other bill payments strategically defaulted on their underwater mortgages because they believed they were cutting the losses from a bad investment.


Reverse Mortgage Definition #mortgage #calculat


#reverse mortgage wiki

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Reverse Mortgage

What is a ‘Reverse Mortgage’

A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage (principal or interest) is required until the borrower dies or the home is sold. After accounting for the initial mortgage amount, the rate at which interest accrues, the length of the loan and rate of home price appreciation, the transaction is structured so that the loan amount will not exceed the value of the home over the life of the loan.

Often, the lender will require that there can be no other liens against the home. Any existing liens must be paid off with the proceeds of the reverse mortgage .

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BREAKING DOWN ‘Reverse Mortgage’

A reverse mortgage provides income that people can tap into for their retirement. The advantage of a reverse mortgage is that the borrower’s credit is not relevant, and is often unchecked, because the borrower does not need to make any payments. Because the home serves as collateral. it must be sold in order to repay the mortgage when the borrower dies (in some cases, the heirs have the option of repaying the mortgage without selling the home ). These types of mortgages have large origination costs relative to other types of mortgages. These costs become part of the initial loan balance and accrue interest. Senior citizen borrowers with good credit should carefully analyze the options of a more traditional mortgage, such as a home equity loan, against a reverse mortgage .


Foreclosure legal definition of foreclosure #mortgage #rate #calculator #with #taxes


#mortgage foreclosure

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foreclosure

Foreclosure

A procedure by which the holder of a mortgage an interest in land providing security for the performance of a duty or the payment of a debt sells the property upon the failure of the debtor to pay the mortgage debt and, thereby, terminates his or her rights in the property.

Statutory foreclosure is foreclosure by performance of a power of sale clause in the mortgage without need for court action, since the foreclosure must be done in accordance with the statutory provisions governing such sales.

Strict foreclosure refers to the procedure pursuant to which the court ascertains the amount due under the mortgage; orders its payment within a certain limited time; and prescribes that in default of such payment a debtor will permanently lose his or her equity of redemption, the right to recover the property upon payment of the debt, interest, and costs. The title of the property is conveyed absolutely to the creditor, on default in payment, without any sale of the property.

foreclosure

n. the system by which a party who has loaned money secured by a mortgage or deed of trust on real property (or has an unpaid judgment), requires sale of the real property to recover the money due, unpaid interest, plus the costs of foreclosure, when the debtor fails to make payment. After the payments on the promissory note (which is evidence of the loan) have become delinquent for several months (time varies from state to state), the lender can have a notice of default served on the debtor (borrower) stating the amount due and the amount necessary to “cure” the default. If the delinquency and costs of foreclosure are not paid within a specified period, then the lender (or the trustee in states using deeds of trust) will set a foreclosure date, after which the property may be sold at public sale. Up to the time of foreclosure (or even afterwards in some states) the defaulting borrower can pay all delinquencies and costs (which are then greater due to foreclosure costs) and “redeem” the property. Upon sale of the property the amount due is paid to the creditor (lender or owner of the judgment) and the remainder of the money received from the sale, if any, is paid to the lender. There is also judicial foreclosure in which the lender can bring suit for foreclosure against the defaulting borrower for the delinquency and force a sale. This is used in several states with the mortgage system or in deed of trust states when it appears that the amount due is greater than the equity value of the real property, and the lender wishes to get a deficiency judgment for the amount still due after sale. This is not necessary in those states which give deficiency judgments without filing a lawsuit when the foreclosure is upon the mortgage or deed of trust. (See: mortgage. deed of trust. forced sale. execution. notice of default )

foreclosure

foreclosure

the right to take mortgaged property in satisfaction of the amount due. Where a mortgagor has defaulted on his obligations under the terms of the mortgage, the mortgagee has a number of powers available to him to protect his investment. One of these is the power to foreclose. Foreclosure can be effected only by an order of the court that involves, first, the granting of an order of foreclosure nisi, which effectively gives the mortgagor six months grace within which to raise the sums due; if the mortgagor has failed to do this, the foreclosure becomes absolute, whereupon the rights of the mortgagor in the property cease and become vested in the mortgagee.

Ask a Lawyer

Question

Country: United States of America
State: Florida

We have an upcoming date concerning foreclosure on our home during which they are going to set a sale date. We need to delay this first meeting by a week so we can get a payoff figure from the mortgage company. Is there any way to file paperwork or reasons that we can file a motion that will help buy us some time?

Answer

It is difficult to do unless the parties agree. you can say you are unavailable for some serious reason etc.

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Ohio’s foreclosure total of 15,709 ranked third behind California and Florida.

New York City: Number of New Foreclosure Auctions: There were 425 new residential foreclosures in New York City (5 boroughs), an overall decrease (-21%) in new foreclosures in the current quarter from the second quarter of 2006 (538 foreclosures ).

Colorado, Nevada and Florida post top state foreclosure rates

Foreclosure equity-stripping scams, which have existed since the 1930s, are on the rise across the country.

California reported 7,674 properties entering some stage of foreclosure. a 27 percent increase and the third most new foreclosures reported by any state in December.

David Washington, president and CEO of Forbes Capital Group, who gives seminars on foreclosure prevention.

Upon receipt of property through voluntary reconveyance, foreclosure or abandonment, the mortgagee neither recognizes a gain or loss nor considers the debt worthless or partially worthless under the bad debt provisions of IRC section 166.

Lower mortgage payments – Get rid of the second mortgage – Lower their principal balances – Eliminate past balances due to the lender – Keep their cars, homes, and other property while eliminating debt – Save homes from foreclosure within 1 hour of the time of sale – Stop the foreclosure date altogether with a court order

Most of the January increase in foreclosure starts is due to repeats.

This longer time in foreclosure has economic consequences, as well.

Foreclosure statistics in the boroughs varied widely year-over-year.

Foreclosures increased across all regions despite temporary halts by major banks and Fannie Mae and Freddie Mac, primarily in the second half of February, in anticipation of the Obama administrations foreclosure mitigation effort.


Underwater Mortgage Definition #mortgage #reduction #program


#underwater mortgage help

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Underwater Mortgage

What is an ‘Underwater Mortgage’

A home purchase loan with a higher balance than the free-market value of the home. This situation prevents the homeowner from selling the home unless s/he has cash to pay the loss out of pocket. It also prevents the homeowner from refinancing in most cases. Thus, if the homeowner wants to sell the home because s/he can’t afford the mortgage payments anymore, perhaps because of a job loss, the home will fall into foreclosure unless the borrower is able to renegotiate the loan.

VIDEO

Loading the player.

BREAKING DOWN ‘Underwater Mortgage’

Underwater mortgages became commonplace in the aftermath of the 2000s housing bubble burst, and, combined with a bad economy, resulted in numerous foreclosures. In nonrecourse states, where mortgage lenders can’t pursue borrowers for more money once their homes have foreclosed, many borrowers who could still afford their mortgage and other bill payments strategically defaulted on their underwater mortgages because they believed they were cutting the losses from a bad investment.


Adjustable-Rate Mortgage – ARM Definition #current #mortgage #interest #rate


#what is an arm mortgage

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Adjustable-Rate Mortgage – ARM

What is an ‘Adjustable-Rate Mortgage – ARM’

An adjustable-rate mortgage, is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate is fixed for a period of time, after which it resets periodically, often every year or even monthly. The interest rate resets based on a benchmark or index plus an additional spread. called an ARM margin.

BREAKING DOWN ‘Adjustable-Rate Mortgage – ARM’

Also called a variable-rate or floating rate mortgage, ARMs take a number of different forms.

Typically, ARMs are expressed as two numbers. In most cases, the first number indicates the length of time the fixed-rate is applied to the loan, but there is no set formula defining what the second number indicates. For example, a 2/28 ARM and a 3/27 ARM feature a fixed rate for two or three years, respectively, followed by a floating rate for the remaining 28 or 27 years. In contrast, a 5/1 ARM boasts a fixed rate for five years, followed by a variable rate that adjusts every year (indicated by the one). Similarly, a 5/5 ARM starts with a fixed rate for five years and then adjusts every five years. Contrary to that formula, a 5/6 ARM has a fixed rate for five years and then adjusts every six months.

What Are Indexes and Margins

At the close of the fixed-rate period, ARM interest rates increase or decrease based on an index plus a set margin. In most cases, mortgages are tied to one of three indexes: the maturity yield on one-year Treasury bills, the 11th District cost of funds index, or the London Interbank Offered Rate.

Although the index rate can change, the margin stays the same. For example, if the index is 5% and the margin is 2%, the interest rate on the mortgage adjusts to 7%. However, if the index is at only 2% the next time the interest rate adjusts, the rate falls to 4%, based on the loan’s 2% margin.

What Are Rate Caps on ARMs

In many cases, ARMs come with rate caps that limit how high the rate can be or how drastically the payments can change. Periodic rate caps limit how much the interest rate can change from one year to the next, while lifetime rate caps set limits on how much the interest can increase over the life of the loan. Finally, there are payment caps that stipulate how much the monthly mortgage payment can increase. Payment caps detail increases in dollars rather than based on percentage points.


Fixed Interest Rate Definition #reverse #mortgage #disadvantages


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Fixed Interest Rate

What is a ‘Fixed Interest Rate’

A fixed interest rate is an interest rate on a liability, such as a loan or mortgage, that remains the same either for the entire term of the loan or for part of the term. A fixed interest rate is attractive to borrowers who do not want their interest rates to rise over the term of their loans, increasing their interest expenses.

BREAKING DOWN ‘Fixed Interest Rate’

A fixed interest rate avoids the interest rate risk that comes with a floating or variable interest rate. in which the interest rate payable on a debt obligation varies depending on a benchmark interest rate or index.

Homebuyers in particular should be aware of the pros and cons of loans with fixed rates. While shopping for a mortgage or another loan, consumers should compare fixed-rate loans to products with variable or floating interest rates.

Advantages of Fixed Interest Rates

Because the interest rates on fixed-rate loans stay the same, the borrowers’ payments also stay the same. This makes it easier to budget for the future. To illustrate, imagine someone buys a $375,000 home with 20% down, and he takes out a $300,000 mortgage with a 4% fixed interest rate with a 30-year term. Every month for the life of the loan, his payments are $1,432. The homeowner may face varying monthly bills as his property taxes change or his homeowners insurance premiums adjust, but his mortgage payment remains the same.

Disadvantage of Fixed Interest Rates

Loans with adjustable or variable rates usually offer lower introductory rates than fixed-rate loans, making these loans more appealing than fixed-rate loans, especially when interest rates are high. As a result, borrowers are more likely to opt for fixed interest rates during periods of low interest rates; the opportunity cost. if interest rates go lower, is still much less than during periods of high interest rates.

Difference Between Fixed and Variable Interest Rates

While fixed interest rates stay fixed or set, variable interest rates vary or adjust. For example, if a borrower takes out an adjustable rate mortgage (ARM), he typically receives an introductory rate for a set period of time, often for one, three or five years. After that point, the rate adjusts on a periodic basis, as outlined in the mortgage agreement.

To illustrate, imagine the bank gives the borrower a 3.5% introductory rate on a $300,000 30-year mortgage with a 5/1 ARM. During the first five years of the loan his monthly payments are $1,347. However, when the rate adjusts, it increases or decreases based on the interest rate set by the Federal Reserve or another benchmark index. If the rate adjusts to 6%, for example, the borrower’s payments increase to $1,799. In contrast, if the rate falls to 3%, the monthly payments fall to $1,265. Conversely, if the 3.5% rate is fixed, the borrower faces the exact same $1,347 payment every month for 30 years.


Chattel Mortgage Definition #mortgage #net #branch


#chattel mortgage

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Chattel Mortgage

What is a ‘Chattel Mortgage’

Chattel mortgage is a legal term used to describe a loan arrangement in which an item of movable personal property is used as security for the loan. The movable property, or chattel. guarantees the loan in this type of mortgage. This differs from a conventional mortgage in which the loan is secured by a lien on real property.

BREAKING DOWN ‘Chattel Mortgage’

In a traditional mortgage, the lender may take possession of the property that serves as security if the loan is in default. With a chattel mortgage, the legal relationship is reversed and the lender does not hold a lien against the movable property (the chattel). The lender instead has had ownership of the chattel conditionally transferred to him until the loan has been satisfied, at which point the borrower resumes full control and ownership of the chattel.

The expressions “personal property security,” “lien on personal property” or even “movable hypothec” are all synonyms of “chattel mortgage” and are used in different jurisdictions around the world. Also, in many jurisdictions, chattel mortgages must be registered in a public registry so that third parties can be aware of them before entering into financing agreements with potential borrowers seeking to put up personal property as security for a loan.

Chattel Mortgages for Mobile Homes

Chattel mortgages are frequently used to help with the financing of a mobile home that is on leased land. Since the land does not belong to the owner of the mobile home, a traditional mortgage cannot be used. Instead, the mobile home is considered “personal movable property” and can be the subject of a chattel mortgage, and can serve as security for the loan. Even if the mobile home is moved to a different location, the financing arrangement can remain valid.

Chattel Mortgages for Businesses

Businesses frequently use chattel mortgages to purchase new equipment that can serve as security for the lender. For example, heavy machinery has a long lifespan and its purchase can be financed over a period of time by the seller, who will want to keep a security interest in the machinery in case of default. A chattel mortgage can be put in place, allowing the buyer to use the equipment, while maintaining a safe position for the seller. In the event of default by the buyer, the seller can recover the equipment and sell it to recover losses from the loan balance.

Vehicles, airplanes and boats are also good examples of assets that are often financed using chattel mortgages.


Equity Definition #mortgage #rates #houston


#equity mortgage

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Equity

BREAKING DOWN ‘Equity ‘

Generally speaking, the definition of equity can be represented with the accounting equation :

Equity = Assets – Liabilities

Yet, because of the variety of types of assets that exist, this simple definition can have somewhat different meanings when referring to different kinds of assets. The following are more specific definitions for the various forms of equity:

1. A stock or any other security representing an ownership interest. This may be in a private company (not publicly traded), in which case it is called private equity .

2. On a company’s balance sheet. the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as shareholders’ equity .

3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage .

4. In the context of real estate. the difference between the current fair market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage. Also referred to as “real property value.”

5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds ) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor’s portfolio .

6. When a business goes bankrupt and has to liquidate. the amount of money remaining (if any) after the business repays its creditors. This is most often called “ownership equity” but is also referred to as risk capital or “liable capital.”

The term’s meaning depends very much on the context. In finance in general, you can think of equity as one’s ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered entirely the owner’s equity because he or she can readily sell the item for cash, with no debt standing between the owner and the sale. Stocks are equity because they represent ownership in a company, though ownership of shares in a publicly traded company generally does not come with accompanying liabilities.

Yet, in spite of what seems like substantial differences, these variants of equity all share the common thread that equity is the value of an asset after deducting the value of liabilities. One could determine the equity of a business by determining its value (factoring in any owned land. buildings, capital goods. inventory and earnings ) and deducting liabilities (including debts and overhead ).

Example of Deriving Equity

For example, suppose that Jeff owns and operates a factory that manufactures car parts and that he wants to determine the equity of his business. He estimates that the value of the property itself is $4 million, the total value of his factory equipment is $2 million, the current value of his inventory and supplies (processed and unprocessed) is $1 million and the value of his accounts receivable is $1 million. He also knows that he owes $1 million for loans he took out to finance the factory, that he owes his workers $500,000 in wages and that he owes his parts supplier $500,000 for parts he has already received. To calculate his business’s equity, Jeff would subtract his total liabilities from the total value of his business in the following way:

Total value – total liability = ($4M + $2M + $1M + $1M) – ($1M + $0.5M + $0.5M) = $8M – $2M = $6 million

Jeff’s manufacturing company, then, is worth $6 million. It is also possible for equity to be negative. which occurs when the value of an asset is less than the value of liabilities on that asset. The book value of a company’s equity may often change, and for a variety of reasons. Causes of change in equity include a shift in the value of assets relative to the value of liabilities, depreciation and share repurchasing .

Equity is important because it represents the real value of one’s stake in an investment. Investors who hold stock in a company are usually interested in their own personal equity in the company, represented by their shares. Yet, this kind of personal equity is a function of the total equity of the company itself, so a shareholder concerned for their own earnings will necessarily be concerned for the company itself. Owning stock in a company over time will ideally yield capital gains for the shareholder. and potentially dividends as well. It also often bestows upon the shareholder the right to vote in Board of Directors elections, and all of these benefits further promote a shareholder’s concern for the company, both through continued involvement and through personal gain.

Home equity is also very important, although for different reasons. Equity on a property or home stems from payments made against a mortgage (including a down payment ) and from increases in the value of the property. The reason home equity is a concern for many is that it is often an individual’s greatest source of collateral. and thus can be used in financing for a home-equity loan (often called a “second mortgage”) or a home equity line of credit .

When attempting to determine the value of assets in calculating equity, particularly for larger corporations. it is important to note that these assets may include both tangible assets like property, as well as intangible assets. like the company’s reputation and brand identity. Through years of advertising and development of a customer base. a company’s brand itself can come to bear an inherent value. This concept is often referred to as “brand equity ,” which measures the value of a brand relative to a generic or store brand version of a product. For example, many people will reach for a Coca-Cola (KO ) or Pepsi (PEP ) before buying a store brand cola because they are more familiar with the flavor or prefer it. If a 2-liter bottle of store brand cola costs $1 and a 2-liter bottle of Coca-Cola costs $2, then in this case coke has a brand equity of $1. Just as equity can be negative, so can brand equity, if people are willing to pay more for a generic or store brand product than for a particular brand. Negative brand equity is rare, and generally only occurs because of bad publicity, such as in the event of a product recall or disaster.


Private Mortgage Insurance – PMI Definition #home #equity #loans


#pmi mortgage insurance

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Private Mortgage Insurance – PMI

What is a ‘Private Mortgage Insurance – PMI’

A risk-management product that protects lenders against loss if a borrower defaults. Most lenders require private mortgage insurance (PMI) for loans with loan-to-value (LTV) percentages in excess of 80% (the buyer put down less than 20% of the home’s value upon purchase). This allows borrowers to make a smaller down payment of 3% to 19.99%, instead of 20%, allowing them to obtain a mortgage sooner since they don’t have to save up as much money. Borrowers pay their PMI monthly until they have accumulated enough equity in the home that the lender no longer considers them high risk.

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BREAKING DOWN ‘Private Mortgage Insurance – PMI’

PMI only applies to conventional loans. Federal Housing Administration loans have their own mortgage insurance with different requirements, while Veterans Administration loans don’t require any mortgage insurance despite allowing 0% down payments.

PMI costs about 0.25% to 2% of your loan balance per year, depending on your down payment, loan term and credit score. The greater your risk factors, the higher the rate you pay. Also, because PMI is a percentage of the loan amount, the more you borrow, the more PMI you’ll pay. There are six major PMI companies in the United States. They charge similar rates, which are adjusted annually.

Keep track of your payments on the mortgage’s principal. When you reach 20% equity, you can notify the lender in writing that it is time to discontinue the PMI premiums. Lenders are required give the buyer a written statement at closing notifying them how many years and months it will take for them to pay 20% of the principal. You can also request PMI cancelation if your equity grows to 20% due to home-price appreciation or because you’ve made additional principal payments. The lender should comply as long as your home’s value hasn’t dropped, you have a history of on-time payments and you don’t have a second mortgage .

Once your down payment, plus the principal you’ve paid off, equals 22% of the home’s purchase price. the lender must automatically cancel PMI as required by the federal Homeowners Protection Act. even if your home’s market value has gone down (as long as you’re current on your mortgage).


Mortgage financial definition of mortgage #mortgage #clculator


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mortgage

Mortgage

A loan secured by the collateral of some specified real estate property which obliges the borrower to make a predetermined series of payments.

Mortgage

A loan used to buy real estate. A mortgage is secured by the property it is used to purchase. One must make monthly payments on a mortgage, and there is a set term before full payment is due, often 15, 20, or 30 years. Some mortgages have fixed interest rates. while others have variable interest rates. If one defaults on a mortgage, the bank making it may take possession of the real estate and sell it to recover its investment. Some banks, notably savings and loans. specialize in making mortgage loans. See also: Mortgage-backed security .

mortgage

Mortgage.

A mortgage, or more precisely a mortgage loan, is a long-term loan used to finance the purchase of real estate.

As the borrower, or mortgager, you repay the lender, or mortgagee, the loan principal plus interest, gradually building your equity in the property.

The interest may be calculated at either a fixed or variable rate, and the term of the loan is typically between 10 and 30 years.

While the mortgage is in force, you have the use of the property, but not the title to it. When the loan is repaid in full, the property is yours. But if you default, or fail to repay the loan, the mortgagee may exercise its lien on the property and take possession of it.

mortgage

the advance of a LOAN to a person or business (the borrower/mortgagor) by other persons or businesses, in particular financial institutions such as BUILDING SOCIETIES and COMMERCIAL BANKS (the lender/mortgagee) which is used to acquire some asset, most notably a property such as a house, office or factory. A mortgage is a form of CREDIT which is extended for a specified period of time either on fixed INTEREST terms, or more usually, given the long duration of most mortgages, on variable interest terms. See SECOND MORTGAGE.

mortgage

the advance of a LOAN to a person or business (the borrower/mortgagor) by other persons or businesses, in particular financial institutions such as BUILDING SOCIETIES and COMMERCIAL BANKS (the lender/mortgagee) that is used to acquire some asset, most notably a property such as a house, office or factory. A mortgage is a form of CREDIT that is extended for a specified period of time, either on fixed INTEREST terms or, more usually, given the long duration of most mortgages, on variable interest terms.

The asset is conveyed by the borrower to the lender as security for the loan. The deeds giving entitlement to ownership of the property remain with the building society or bank as collateral security (against default on the loan) until it is repaid in full, when they are transferred to the mortgagor who then becomes the legal owner of the property.

mortgage

A written document that provides a lender with rights in real property as collateral for a loan.The loan itself is evidenced by a promissory note, which is a written promise to repay money on certain terms and conditions. In common language, people refer to the whole relationship with the real estate lender as a mortgage, and you will see references in writing to “mortgage interest rates.”Technically, though, the reference should be to “mortgage loan interest rates.”

• In some states, the security instrument is called a deed of trust. The property owner actually deeds the property to a third party, who holds the naked legal title in trust for the owner and will reconvey (retransfer) it when the debt has been paid in full. If there is a default and foreclosure, the trustee will convey the property to the successful bidder. Such states usually allow nonjudicial foreclosures.

• In other states, the instrument called a mortgage creates only a lien on real property. The borrower is called the mortgagor, and the lender is called the mortgagee. In order to fore- close, the lender usually has to obtain court permission to conduct a sale. These are called judicial foreclosures.

• In a very few states, called hybrid states, the instrument called a mortgage transfers legal title to the lender itself. The title is extinguished when the debt has been paid in full. The lender may take advantage of nonjudicial foreclosure.

• If foreclosure nets less money than is owed on the note with all interest and costs of collection, then the lender can usually sue the borrower in state court for the balance, called a deficiency. Exceptions occur if the note provided that it was nonrecourse, meaning without any personal liability by the borrower, or if state laws prohibit deficiency judgments for first mortgages on a consumer’s principal residence.

• In some states, a debtor has a grace period after foreclosure within which to buy the prop- erty back for the amount of the winning bid price plus interest at the legal rate for that state. These rights of redemption may also be extended to junior lienholders and even unsecured creditors, who may wish to invest the money necessary for redemption because they believe they can sell at a profit and recoup their losses.

Mortgage

A written document evidencing the lien on a property taken by a lender as security for the repayment of a loan.

The term “mortgage” or “mortgage loan” is used loosely to refer both to the lien and to the loan. In most cases, they are defined in two separate documents: a mortgage and a note.

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Mortgage guaranty insurance, however, doesn’t cover losses from hazards, such as floods, storms, earthquakes, fire or hurricanes, Zimmerman said.

Fannie Mae and Freddie Mac, by far the largest secondary market purchasers of residential mortgage loans, are required by their charters to have mortgage guaranty insurance on all loans they acquire with a loan-to-value ratio of 80% or more.

When Lori Allen of Reeders, Pennsylvania, refinanced her home mortgage in January, it helped solve a number of cash flow problems.

Allen refinanced the original $154,000 30-year, fixed-rate mortgage at 10.

In this article we revisit the issue of who bears the credit risk associated with mortgage lending using 1995 data and refined estimates of the amount of mortgage credit risk borne by market participants.

Institutions’ expected dollar losses are determined primarily by the distribution of loan-to-value ratios within their mortgage portfolios: Higher ratios are associated with higher mortgage default probabilities and loss severity rates.

Appendix B: FASB Current Text, Mortgage Banking Activities/49

65, Accounting for Certain Mortgage Banking Activities, required separate capitalization of the cost of the rights to service mortgage loans for others when those rights were acquired through a purchase transaction but prohibited separate capitalization when those rights were acquired through loan origination activities.

CRM has a long history as a mortgage provider in South Carolina’s Upstate, Midlands, and Low Country.

1 million first mortgage and a $500,000 line of credit for a co-op on 116th St.

Many of those who believe it is see parallels between recent developments in the insurance industry and the history of another financial-services industry, mortgage banking.

The credit risk associated with a mortgage is accommodated through a variety of financial arrangements and institutions.