Second Mortgage Toronto – Ontario – Bad Credit Private Lender, private mortgage.#Private #mortgage


Second Mortgages Toronto Ontario

As mortgage brokers, we can help you get the mortgage or loan that you need. We can provide low-interest rate first and second mortgages in Toronto Ontario, private mortgages, home equity loans, stop foreclosures and power of sales in Ontario and across Canada.

At the Mortgage Broker Store, our team of dedicated agents will work to get you what you need, and can save your home and finances.

Mortgage Broker Store has clients in the GTA and throughout Ontario. Wherever you are in Ontario, we can assist you. We have agents in the following locations:

Need Mortgage Advice?

Speak with us directly and we’ll go over the best options for your income, credit score, and property.

What is a Second Mortgage and how do I get a Second Mortgage?

A second mortgage is a loan that is secured by a house or property. A second mortgage falls behind a first mortgage in terms of debt priority. Getting a second mortgage is fairly easy if you have enough equity in your house. Call us or fill out our application to quickly find out if you can get a second mortgage.

How Our First Second Mortgages Work

You can refinance up to 75% of your home value. Use the equity in your home money to do what you always wanted or start your own business.

Canadian’s can use the money from second (2nd) mortgages on their houses to invest in other properties or pay personal debts. Many people have a first mortgage that does not make sense to break due to the penalties. This is when a second mortgage makes sense. A second mortgage can replace high-interest credit card debt with a lower interest second mortgage.

A second mortgage is a loan that is secured by some type of real estate. A second mortgage has the second claim to the property after the first mortgage. Since a second mortgage is not as secured as a first mortgage the interest rate may be higher than a first mortgage. Second mortgages usually come with a 1-year term which can be renewed. You can also have the option to make interest-only payments. Most second mortgages are funded by private lenders.

Second mortgages usually have a maximum loan to value ratio of 85% for major cities across the country. Properties in rural areas have a maximum loan to value ratio of 75%. We provide second mortgages for homes across Canada.

Home Equity Loans

A home equity loan is very similar to a second mortgage with some of the same terms and conditions. If your home has a high level of equity you could qualify for a home equity loan. Most home equity loans have a loan to value ratio below 70%. Home equity loans are a very good option for people on a fixed income or who are self-employed.

Home equity loans are primarily based on the equity in your home. Factors such as a bad credit score or a low income are usually not considered. For example, if you have a house in Toronto, Ontario with no debt worth $300,000 our lenders could provide you with a home equity loan of about $210,000.

Power of Sales and Foreclosures Stopped

Foreclosures and power of sales happen in most cities across the country. If you are trying to stop a power of sale or foreclosure of your home in Canada we may be able to assist you. Each power of sale or foreclosure is unique and our mortgage agents can explain your options. In most cases the best way to stop a power of sale or foreclosure is to pay off the existing mortgage with a private mortgage. Another option to stop a power of sale or foreclosure is to sell the house.

In the case of a foreclosure the lender is taking the property away from the present owner. The owner receives no money from the sale of the house even if there is a large amount of equity. A power of sale happens when a house is put up for sale. The present owner still has title to the property, but no longer controls the house. The lender now controls the house and can sell the house for any amount of money. The original home owner may get some money when the house is sold.

Documents such as a Notice of Default or Statement of Claim should be acted upon quickly. Once the legal process is started it can be very expensive and difficult to stop. Management and legal fees can wipe out any equity in the home. Provinces have different laws, therefore the laws in Ontario maybe quite different to laws in Quebec. The lender may still have the right to sue the home owner for any loss on the property. Here is our recommended lawyer list for real estate transactions..

Bad Credit Second Mortgages and Loans

We can provide loans to people in Ontario and across Canada with bad credit scores. We can even provide loans for people with no credit history in Canada. Home equity loans are not based on your credit score and your credit history will not be a factor.

Private Mortgage Money Lenders Ontario, Canada

Private mortgage lenders are an alternative source of financing. The money is provided by an individual who directly invests in your property. Private mortgage lenders can provide the private money you need when other lenders have turned you down. Private mortgage lenders have a more flexible set of criteria for loans than most lenders.

Our lenders across Ontario base the loan on the amount of equity in your home. Most private loans will have a maximum loan to value ratio of 85%. Private loans are not based on your credit score. You could have low credit score and still qualify for a loan if you have equity in your home.

Private mortgages can be used to finance home renovations, debt consolidations and many other purposes.Private mortgage loans usually have a higher level of risk associated with them. Private loan lenders will ask for a higher interest rate to offset the risk.

Toronto Real Estate Market

Scarborough, East York, North York, Etobicoke and the former City of Toronto were amalgamated to form the present City of Toronto.

Scarborough

Scarborough is on the eastern side of Toronto, it was made up of smaller towns which include Agincourt, Guildwood, West Hill, The Bluffs , Wexford and Woburn. Scarborough has a number of colleges which include Seneca College, Centennial College and the University of Toronto s Scarborough campus. There are many different shopping locations which include Scarborough Town Centre , Parkway Mall, Bridlewood Mall, Eglinton Square and Malvern Town Centre.

Some of the main north south streets in Scarborough Victoria Park, Warden Avenue, Brichmount Road, Kennedy Road, Brimley Road, McCowan Road, Markham Road, Morningside Road and Port Union Road. The main east west roads are Kingston Road, St. Clair, Eglinton Avenue, Lawerance Avenue, Ellesmere Road, Sheppard Avenue and Finch Road.

East York

East York has a distinct feel to it. The Beach or Beaches area is on the north side of Lake Ontario. This has always been one of the most desirable places to live in Toronto. It has fantastic older homes with a mix of new homes, condos and semi-detached homes. Queen Street East is the main area for restaurants and shopping. Danforth Avenue is home Greek town it has the best Greek restaurants in Toronto. Playter Estates is on the north side of Danforth Ave and has many older Victorian style homes. Riverdale is on the south side of Danforth Avenue has Victorian homes with detached and semi-detached homes. Leslieville is one of the hottest real estate markets in Toronto, it has a mix of detached and semi-detached homes.

The main north south roads are Woodbine Avenue, Coxwell Avenue, Greenwood Avenue, Pape Avenue, Broadview Avenue. The main east west roads are Queen Street, Gerrard Street, Danforth Avenue and O Conner Drive.

North York

North York is a great area to live in with many smaller communities which include, Bayview Village, Willowdale, Don Mills, York Mills, Don Valley, Downsview, Newtonbrook and Wilson Heights. North York is also has the Bridle Path area, this is where some of the largest and most expensive homes in Canada are located.

North York has Yorkdale Shopping Centre, The Shops at Don Mills, and many other smaller shopping locations such as Peanut Plaza and Bayview Village.

The Don Valley Parkway and Highway 401 are the major highways. The main north south streets are Don Mills Road, Leslie Street, Bayview Avenue, Yonge Street, Bathurst Avenue

We have specialized private mortgage brokers in every province including Ontario. They can quickly assist you in getting the money you need. Our private mortgage brokers can tell you within a matter of minutes if you qualify for a loan.


Private Toronto Mortgage Lenders – Second Mortgages, private mortgage.#Private #mortgage


private mortgage

Private mortgage

Recognized as a source of private Ontario mortgage money, Tridac Mortgage specializes in working with borrowers turned down by banks and traditional lending institutions. Our focus is not just to arrange a private mortgage for you but ensure that you are set up to successfully move forward financially with more conventional financing and lower rates.

Here are some of the issues that help our clients with everyday:

  • second mortgages
  • debt consolidation
  • property income tax arrears
  • stopping power of sale
  • mortgage arrears
  • restructure of financing
  • judicial sales / tax sales
  • unique “non-conforming” properties
  • major home renovations construction financing

Why Consider Tridac Mortgage For Your Private Mortgage?

Tridac Mortgage is the exclusive brokerage for a number of private money sources including Hansa Mortgage Investment Corporation. With unique access to our own pool of private mortgage money, each lending decision is based on more than numbers, ratios, credit score, and income. While important, we also take into consideration your capacity, character, ability, and your desire to get your finances on track.

For over 40 years we have encountered almost every conceivable financing situation and understand that the circumstances and situations of individuals are unique.

Private mortgage

Private mortgage lenders with purpose.

Since we are entrusted with our investor s money we are able to tailor a more personalized private mortgage solution to you. This helps us build a strong relationship with you, keeps communication clear and results lower over all costs a fees.

Our focus is on short term transitional lending where we can improve your situation and move you into conventional and lower interest rate financing.

What is a private mortgage?

A private mortgage is a mortgage contract in which the lender is not a registered financial institution. Instead, the lender may be an individual or group of individuals who provide money in exchange for secured interest on your real estate.

Banks have strict guidelines surrounding their lending practices limiting their ability to lend for certain scenarios or borrower profiles. With borrowers marginalized as a result of these strict lending guidelines, private mortgages are used to meet those unique needs. Situations where a borrower may require a private mortgage include financing for:

  • home renovation and construction projects
  • self-employed borrowers who can t support their income via traditional means
  • debt consolidation to help improve cash-flow and improve credit scores
  • iincome or property tax arrears which block you from being able to arrange more conventional financing
  • mortgage arrears;
  • non-conforming properties

PMI – What Is Private Mortgage Insurance, private mortgage.#Private #mortgage


Private mortgage insurance, or PMI: Just the basics

Private mortgage

If your down payment on a home is less than 20%, you will have to pay for mortgage insurance.

What is PMI?

When you make a down payment of less than 20%, the lender requires private mortgage insurance, or PMI. The policy protects the lender from losing money if you end up in foreclosure. PMI also is required if you refinance the mortgage with less than 20% equity.

Private mortgage insurance fees vary, depending on the size of the down payment and your credit score, from around 0.3% to about 1.5% of the original loan amount per year. Some years, PMI premiums are tax-deductible and some years they’re not, depending upon the whim of Congress.

*Rate varies according to size of down payment, credit score and insurer.

Source: Bankrate.com, Radian mortgage insurance calculator

Most PMI policies require the borrower to pay monthly. Borrowers also have the option of paying for mortgage insurance with a large upfront payment.

PMI can be canceled

Your lender must automatically cancel PMI when your outstanding loan balance drops to 78% of the home’s original value. This probably will take several years.

You can speed up the cancellation of mortgage insurance by keeping track of your payments. Once the loan balance reaches 80% of the home’s original value, you may ask the lender to discontinue the mortgage insurance premiums.

To put it another way: You can request cancellation of mortgage insurance when the loan-to-value ratio drops to 80%. The lender is required to cancel private mortgage insurance when the loan-to-value ratio drops to 78%.

Loan-to-value ratio

The loan-to-value ratio, or LTV, describes mortgage debt as a percentage of how much the home is worth. It is a financial term used by lenders.

Formula: Mortgage amount owed / Appraised value

Example: Alex owes $60,000 on the mortgage. The house is worth $100,000.

$60,000 mortgage balance / $100,000 = 0.60. This means that Alex’s loan-to-value ratio is 60%.

We’re talking PMI, not FHA

Recent FHA-insured loans require payment of mortgage insurance premiums for the life of the loan. FHA mortgage insurance premiums can’t be canceled. Instead, you have to refinance the loan. Read “7 crucial facts about FHA loans.”


Private Student Loans, FinAid, Loans, private mortgage lenders.#Private #mortgage #lenders


Private Student Loans

Private student loan volume grows when federal student loan limits remain stagnant.

Private student loan volume grew much more rapidly than federal student loan volume through mid-2008, in part because aggregate loan limits on the Stafford loan remained unchanged from 1992 to 2008. (The introduction of the Grad PLUS loan on July 1, 2006 and the increases in the annual but not aggregate limits had only a modest impact on the growth of private student loan volume. The subprime mortgage credit crisis of 2007-2010, however, limited lender access to the capital needed to make new loans, reining in growth of the private student loan marketplace.) The annual increase in private student loan volume was about 25% to 35% per year, compared with 8% per year for federal loan volume.

In addition to these lists of private student loan programs, there are several web sites that provide tools for comparing private student loans. These tools can help you identify the loans that match your criteria. These student loan comparison sites include Credible and other student loan comparison sites.

Then the Ensuring Continued Access to Student Loans Act of 2008 increased the annual and aggregate loan limits on the federal Stafford loan starting July 1, 2008. This shifted significant loan volume from private student loan programs to federal. Private student loan volume dropped in half in 2008-09, according to the College Board’s Trends in Student Aid 2009.

Private student loan volume is expected to return to the 25% annual growth rate unless there is another increase in federal loan limits or an expansion of the availability of federal student loans. For example, the proposal for expanding Perkins loan funding from $1 billion a year to $8.5 billion a year will cause a significant decline in private student loan volume. But so long as federal loan limits do not increase every year, private student loan volume will continue to grow at double-digit rates.

If current trends continue, annual private education loan volume will surpass federal student loan volume by around 2030. Accordingly, it is important that students have tools they can use to compare different private student loans.

As a general rule, students should only consider obtaining a private education loan if they have maxed out the Federal Stafford Loan. They should also file the Free Application for Federal Student Aid (FAFSA), which may qualify them for grants, work-study and other forms of student aid. Undergraduate students should also compare costs with the Federal PLUS Loan, as the PLUS loan is usually much less expensive and has better repayment terms.

The fees charged by some lenders can significantly increase the cost of the loan. A loan with a relatively low interest rate but high fees can ultimately cost more than a loan with a somewhat higher interest rate and no fees. (The lenders that do not charge fees often roll the difference into the interest rate.) A good rule of thumb is that 3% to 4% in fees is about the same as a 1% higher interest rate.

Be wary of comparing loans with different repayment terms according to APR, as a longer loan term reduces the APR despite increasing the total amount of interest paid. FinAid’s Loan Analyzer Calculator may be used to generate an apples-to-apples comparison of different loan programs.

The best private student loans will have interest rates of LIBOR + 2.0% or PRIME – 0.50% with no fees. Such loans will be competitive with the Federal PLUS Loan. Unfortunately, these rates often will be available only to borrowers with great credit who also have a creditworthy cosigner. It is unclear how many borrowers qualify for the best rates, although the top credit tier typically encompasses about 20% of borrowers.

Generally, borrowers should prefer loans that are pegged to the LIBOR index over loans that are pegged to the Prime Lending Rate, all else being equal, as the spread between the Prime Lending Rate and LIBOR has been increasing over time. Over the long term a loan with interest rates based on LIBOR will be less expensive than a loan based on the Prime Lending Rate. About half of lenders peg their private student loans to the LIBOR index and about 2/5 to the Prime lending rate.

Some lenders use the LIBOR rate because it reflects their cost of capital. Other lenders use the Prime Lending Rate because PRIME + 0.0% sounds better to consumers than LIBOR + 2.80% even when the rates are the same.

It is not uncommon for lenders to advertise a lower rate for the in-school and grace period, with a higher rate in effect when the loan enters repayment.

Federal student loans are not available for expenses incurred by law, medical and dental students after they graduate, such as expenses associated with study for the bar or finding a residency. There are two types of private student loans for these expenses:

  • A Bar Study Loan helps finance bar exam costs such as bar review course fees, bar exam fees, as well as living expenses while you are studying for the bar.
  • A Residency and Relocation Loan helps medical and dental students with the expenses associated with finding a residency, including interview travel expenses and relocation costs, as well as board exam expenses.

Comparing Private Student Loans

Key information to understand student loans includes being aware of the annual and cumulative loan limits, interest rates, fees, and loan term for the most popular private student loan programs. Often the interest rates, fees and loan limits depend on the credit history of the borrower and co-signer, if any, and on loan options chosen by the borrower such as in-school deferment and repayment schedule. Loan term often depends on the total amount of debt.

Most lenders that require school certification (approval) will cap the annual loan amount at cost of education less aid received (COA-Aid). They may also have an annual dollar limit as well.

Lenders rarely give complete details of the terms of the private student loan until after the student submits an application, in part because this helps prevent comparisons based on cost. For example, many lenders will only advertise the lowest interest rate they charge (for good credit borrowers). Borrowers with bad credit can expect interest rates that are as much as 6% higher, loan fees that are as much as 9% higher, and loan limits that are two-thirds lower than the advertised figures.

The APRs for variable rate loans, if listed, are only the current APRs and are likely to change over the term of the loan. Borrowers should be careful about comparing loans based on the APR, as the APR may be calculated under different assumptions, such as a different number of years in repayment. All else being equal, a longer repayment term will have a lower APR even though the borrower will pay more in interest.

The information presented below is based on lender provided information. Actual rates and fees may differ.


Private Toronto Mortgage Lenders – Second Mortgages, private mortgage lenders.#Private #mortgage #lenders


private mortgage lenders

Private mortgage lenders

Recognized as a source of private Ontario mortgage money, Tridac Mortgage specializes in working with borrowers turned down by banks and traditional lending institutions. Our focus is not just to arrange a private mortgage for you but ensure that you are set up to successfully move forward financially with more conventional financing and lower rates.

Here are some of the issues that help our clients with everyday:

  • second mortgages
  • debt consolidation
  • property income tax arrears
  • stopping power of sale
  • mortgage arrears
  • restructure of financing
  • judicial sales / tax sales
  • unique “non-conforming” properties
  • major home renovations construction financing

Why Consider Tridac Mortgage For Your Private Mortgage?

Tridac Mortgage is the exclusive brokerage for a number of private money sources including Hansa Mortgage Investment Corporation. With unique access to our own pool of private mortgage money, each lending decision is based on more than numbers, ratios, credit score, and income. While important, we also take into consideration your capacity, character, ability, and your desire to get your finances on track.

For over 40 years we have encountered almost every conceivable financing situation and understand that the circumstances and situations of individuals are unique.

Private mortgage lenders

Private mortgage lenders with purpose.

Since we are entrusted with our investor s money we are able to tailor a more personalized private mortgage solution to you. This helps us build a strong relationship with you, keeps communication clear and results lower over all costs a fees.

Our focus is on short term transitional lending where we can improve your situation and move you into conventional and lower interest rate financing.

What is a private mortgage?

A private mortgage is a mortgage contract in which the lender is not a registered financial institution. Instead, the lender may be an individual or group of individuals who provide money in exchange for secured interest on your real estate.

Banks have strict guidelines surrounding their lending practices limiting their ability to lend for certain scenarios or borrower profiles. With borrowers marginalized as a result of these strict lending guidelines, private mortgages are used to meet those unique needs. Situations where a borrower may require a private mortgage include financing for:

  • home renovation and construction projects
  • self-employed borrowers who can t support their income via traditional means
  • debt consolidation to help improve cash-flow and improve credit scores
  • iincome or property tax arrears which block you from being able to arrange more conventional financing
  • mortgage arrears;
  • non-conforming properties

How to Calculate Mortgage Insurance (PMI): 9 Steps (with Pictures), private mortgage insurance.#Private #mortgage #insurance


How to Calculate Mortgage Insurance (PMI)

Private mortgage insurance (PMI) is insurance that protects a lender in the event that a borrower defaults on a conventional home loan. Mortgage insurance is usually required when the down payment on a home is less than 20 percent of the loan amount. Monthly mortgage insurance payments are usually added into the buyer’s monthly payments.

Steps Edit

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Calculating Mortgage Insurance Edit

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Method Two of Two:

Navigating Other Factors Edit

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Mortgage Note Buyers, private mortgage.#Private #mortgage


Mortgage Note Buyers Nationwide Note Buyer

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Mortgage Note Buyers

Get top dollar for your mortgage note with the leading Note Buyer

You will get the highest possible price for your mortgage note or deed of trust and a quick hassle-free closing.

We are the Internet’s preferred Mortgage Note Buyer and Deed of Trust Buyer. Our goal is to offer creative solutions to meet our clients’ cashflow needs and to ensure that they receive top dollar for their income stream.

WE PAY TOP DOLLARS FOR:

We buy Mortgage Notes and Real Estate Notes

lf you have sold your home or investment property using owner carry back financing or seller financing and are looking to sell your private mortgage note, deed of trust or contract, we are standing by to give you an evaluation on your note and to give you the highest possible price. We are the Internet’s Top Private Note Buyers.

Quite often circumstances change, and small monthly payments are no longer as attractive as receiving a lump sum now to be used for other purposes. Whether your note is a 1st position or 2nd position lien, residential, commercial, or bare land, we can cash you out in as little as 2-3 weeks hassle free!

Sometimes difficult situations arise between the Noteholder and the Payer because the Payer is late making the monthly mortgage payments or misses payments altogether. The note then becomes a non-performing note. We actively purchase and pay competitive prices for non-performing notes.

Notes may also be grouped into portfolios. We offer top payouts for portfolios of performing (paying) and non-performing notes (slow or non-paying notes). Institutional portfolios are welcomed. Size is not an issue as we have unlimited funds. We buy mortgage notes of almost any kind.

Flexible Purchase Options

If you are considering selling all of your future mortgage payments and would like a lump sum now, we would do a Full Purchase.

You may be looking to sell only some payments now and to receive the remainder of your payments sometime in the future. In this situation we would likely do a Partial Purchase.

To learn more about our flexible purchase options and for a walk-through on the process of selling your note, please click here.

If you are a Real Estate Owner, Investor, or Realtor looking to sell your property quickly, we have an amazing technique that could help you sell lightening fast for top dollar and with less hassle. Basically, the Seller would create a mortgage note and we would buy this note simultaneously at or right after closing, a Simultaneous Closing.

The Seller gets the down payment from the Buyer plus a lump sum for the mortgage note from us, freeing up these funds to be used for another investment, or for other purposes. This program helps sell properties quickly because it widens the base of potential buyers for your property to include buyers who would not be able to get traditional financing through banks and lending institutions. To learn more in detail about how this technique works and how it can benefit you, please click here.

If you have further questions about selling your note and about receiving your money, click on FAQ.

We Offer Bridge Loans

You can now get the quick cash to purchase your next investment property, make renovations or improvements and have enough time to put it on the market.

Visit our Bridge Loans page or call us at 1-856-751-8254 to get more information or apply for a Bridge Loan.


Private Toronto Mortgage Lenders – Second Mortgages, private mortgage.#Private #mortgage


private mortgage

Private mortgage

Recognized as a source of private Ontario mortgage money, Tridac Mortgage specializes in working with borrowers turned down by banks and traditional lending institutions. Our focus is not just to arrange a private mortgage for you but ensure that you are set up to successfully move forward financially with more conventional financing and lower rates.

Here are some of the issues that help our clients with everyday:

  • second mortgages
  • debt consolidation
  • property income tax arrears
  • stopping power of sale
  • mortgage arrears
  • restructure of financing
  • judicial sales / tax sales
  • unique “non-conforming” properties
  • major home renovations construction financing

Why Consider Tridac Mortgage For Your Private Mortgage?

Tridac Mortgage is the exclusive brokerage for a number of private money sources including Hansa Mortgage Investment Corporation. With unique access to our own pool of private mortgage money, each lending decision is based on more than numbers, ratios, credit score, and income. While important, we also take into consideration your capacity, character, ability, and your desire to get your finances on track.

For over 40 years we have encountered almost every conceivable financing situation and understand that the circumstances and situations of individuals are unique.

Private mortgage

Private mortgage lenders with purpose.

Since we are entrusted with our investor s money we are able to tailor a more personalized private mortgage solution to you. This helps us build a strong relationship with you, keeps communication clear and results lower over all costs a fees.

Our focus is on short term transitional lending where we can improve your situation and move you into conventional and lower interest rate financing.

What is a private mortgage?

A private mortgage is a mortgage contract in which the lender is not a registered financial institution. Instead, the lender may be an individual or group of individuals who provide money in exchange for secured interest on your real estate.

Banks have strict guidelines surrounding their lending practices limiting their ability to lend for certain scenarios or borrower profiles. With borrowers marginalized as a result of these strict lending guidelines, private mortgages are used to meet those unique needs. Situations where a borrower may require a private mortgage include financing for:

  • home renovation and construction projects
  • self-employed borrowers who can t support their income via traditional means
  • debt consolidation to help improve cash-flow and improve credit scores
  • iincome or property tax arrears which block you from being able to arrange more conventional financing
  • mortgage arrears;
  • non-conforming properties

With a Private Mortgage, Everybody Wins (Ideally), private mortgage lenders.#Private #mortgage #lenders


How to Use a Private Mortgage

Private mortgage lenders

Private mortgage lenders

A private mortgage is a loan made by an individual or a business that is not a traditional mortgage lender. Whether you’re thinking of borrowing for a home or of lending money, private loans can be beneficial for everybody if they’re done correctly. However, things can also go badly — for your relationship and your finances.

As you evaluate the decision to use (or offer) a private mortgage, keep the big picture in mind.

Typically, the goal is to create a win-win solution where everybody gains financially without taking too much risk.

Private mortgage or hard money? This page focuses on mortgage loans with somebody you know. If you re looking to borrow from private lenders (that you don t know personally), read about hard money loans. Hard money lenders are useful for investors and others who have a hard time getting approved by traditional lenders. They are often more expensive than other mortgages and require low LTV ratios.

Why Go Private?

The world is full of lenders, including big banks, local credit unions, and online lenders. So why not just fill out an application and borrow from one of them?

Qualifying: For starters, borrowers might not be able to qualify for a loan from a traditional lender. Banks require a lot of documentation, and sometimes your finances won t look the way the bank wants. Even if you re more than able to repay the loan, mainstream lenders are required to verify that you have the ability to repay, and they have specific criteria to complete that verification.

For example, self-employed individuals don t always have the W2 forms and steady work history that lenders like, and young adults might not have good credit scores (yet).

Keep it in the family: A loan among family members can make good financial sense.

  • Borrowers can save money by paying a relatively low interest rate to family members (instead of paying bank interest rates). Just be sure to follow IRS rules if you plan to keep rates low.
  • Lenders with extra cash on hand can earn more by lending than they’d get from bank deposits like CDs and savings accounts.

Understand the Risks

Life is full of surprises, and any loan can go bad. Of course, everybody has good intentions, and these deals often seem like a great idea when they first come to mind. But pause long enough to consider the following issues before you get too deep into something that will be difficult to unwind.

Relationships: Existing relationships between the borrower and seller may change. Especially if things get difficult for the borrower, borrowers may feel extra stress and guilt. Lenders also face complications — they may need to decide whether to sternly enforce agreements or take a loss.

Lender risk tolerance: The idea may be to make a loan (with the expectation of getting repaid), but surprises happen. Evaluate the lender’s ability to take risk (becoming unable to retire, risk of bankruptcy, etc.) before moving forward. This is especially important if others are dependent on the lender (dependent children or spouses, for example).

Property value: Real estate is expensive. Fluctuations in value can amount to tens (or hundreds) of thousands of dollars. Lenders need to be comfortable with the property condition and location — especially with all of those eggs in one basket.

Maintenance: It takes time, money, and attention to maintain property. Even with a good inspector, issues come up. Lenders need to be sure that the resident or owner will address problems before they get out of hand and be able to pay for maintenance.

Title issues and order of payments: The lender should insist on securing the loan with a lien (see below). In case the borrower adds any additional mortgages (or somebody puts a lien on the house), you’ll want to be sure that the lender gets paid first. However, you’ll also want to check for any issues before buying the property. Traditional mortgage lenders insist on a title search, and the borrower or lender should ensure that the property has a clear title. Title insurance provides extra protection, and would be a wise purchase.

Tax complications: Tax laws are tricky, and moving large sums of money around can create problems.

Before you do anything, speak with a local tax advisor so that you’re not caught by surprise.

Private Mortgage Agreements

Any loan should be well-documented. A good loan agreement puts everything in writing so that everybody’s expectations are clear and there are fewer possible surprises. After several years, you (or the other person) may forget what you discussed and what you had in mind, but a written document has a much better memory.

Documentation does more than just keep your relationship intact — it protects both parties to a private mortgage. Again, you don t know what you don t know about the future, and it s best to avoid any legal loose ends from the get-go. What’s more, a written agreement might make the deal work better from a tax perspective.

As you review your agreement, make sure every conceivable detail is spelled out, starting with:

  • When are payments due? Monthly, quarterly, on the first of the month, etc.
  • What if payments aren’t received? Can the lender charge a fee, and is there a grace period?
  • How/where should payments be made? Electronic payments are best.
  • Can the borrower prepay, and is there any penalty for doing so?
  • Is the loan secured with anycollateral? It better be.
  • What can the lender do if the borrower misses payments? Can the lender charge fees, report to credit reporting agencies, or foreclose on the home?

Secure the Loan

It’s wise to secure the lender’s interest — even if the lender and borrower are close friends or family members. A secured loan allows the lender to take the property (through foreclosure) and get their money back in a worst-case-scenario.

Is that really necessary? Again, you don t know what you don t know about the future.

A borrower (who has the ability and every intention to repay) may die or get sued unexpectedly. If the property is held in the borrower’s name only — without a properly filed lien — creditors can go after their home or pressure the borrower to use the home’s value to satisfy a debt. A secured mortgage helps protect the lender’s interest, assuming everything is structured correctly. In fact, the term mortgage technically means security — not loan.

Securing a loan with property may also help with taxes. For example, the borrower might be able to deduct interest costs on the loan, but only if the loan is properly secured. Talk with a local tax preparer or CPA for more details and ideas.

How to Do a Private Mortgage Correctly

If you’re considering a private mortgage, think like a “traditional” lender (although you can still offer better rates and a more consumer-friendly product). Imagine what could go wrong, and structure the deal so that you are not dependent on good luck, good memories, or good intentions.

For documentation (loan agreements and filing liens, for example), work with qualified experts. Talk to local attorneys, your tax preparer, and others who can help guide you through the process. If you re working with large sums of money, this isn t a DIY project. Several online services can handle everything for you, and local service providers can also do the job. Ask exactly which services are provided, including:

  • Will you get written mortgage agreements?
  • Can payments be handled by somebody else (and automated)?
  • Will documents be filed with local governments (to secure the loan, for example)?
  • Will payments be reported to credit bureaus (which helps borrowers build credit)?

Ditech Financial LLC: Private Company Information #mortgage #rate #charts


#greentree mortgage company

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Company Overview of Ditech Financial LLC

Company Overview

Ditech Financial LLC, a mortgage company, lends and services residential mortgages. It offers a range of purchase loan options, including fixed rate, adjustable rate, jumbo, FHA, and VA loans. The company also partners with financial institutions nationwide providing capital market expertise. It offers residential mortgage products through a team of home loan specialists. Ditech Financial LLC was formerly known as Green Tree Servicing LLC and changed its name to Ditech Financial LLC in August 2015. The company was founded in 1975 and is based in Fort Washington, Pennsylvania with locations across the United States. Ditech Financial LLC operates as a subsidiary of Walter Investment Management.

Ditech Financial LLC, a mortgage company, lends and services residential mortgages. It offers a range of purchase loan options, including fixed rate, adjustable rate, jumbo, FHA, and VA loans. The company also partners with financial institutions nationwide providing capital market expertise. It offers residential mortgage products through a team of home loan specialists. Ditech Financial LLC was formerly known as Green Tree Servicing LLC and changed its name to Ditech Financial LLC in August 2015. The company was founded in 1975 and is based in Fort Washington, Pennsylvania with locations across the United States. Ditech Financial LLC operates as a subsidiary of Walter Investment Management Corp.

1100 Virginia Drive

Fort Washington, PA 19034

Key Executives for Ditech Financial LLC

President of Green Tree

President of Servicing and Originations

Executive Vice President

Executive Vice President

Executive Vice President and Director

Compensation as of Fiscal Year 2016.

Ditech Financial LLC Key Developments

Freddie Mac Seeks Loan Auction

Federal Home Loan Mortgage Corporation (OTCPK:FMCC) announced a $1.1 billion non-performing loan transaction, an auction of seasoned non-performing residential whole loans. The non performing loans are currently serviced by Wells Fargo Bank, National Association or Ditech Financial LLC. Bids are due from qualified bidders on September 29, 2016. The sales are expected to settle in December 2016. The non-performing loans are offered as one pool. Advisors to Freddie Mac on the transaction are Wells Fargo Securities, LLC and First Financial Network, Inc.

Ditech Financial LLC to Lay Off 65 Employees at Regional Office in Greensboro

Ditech Financial LLC to lay off 65 employees at its regional office in Greensboro. The reason of the layoff is the closure of its 7031 Albert Pick Road office in a WARN (worker adjustment and retraining notification) filing.

Ditech Financial LLC Hires Brad Goedken as Chief Information Officer for Originations, Capital Markets and Corporate Systems

Ditech Financial LLC has hired Brad Goedken as Chief Information Officer for Originations, Capital Markets and Corporate Systems responsible for overseeing the company’s aggressive technology agenda and planned upgrades. Goedken has significant experience in mortgage technology and most recently served as Chief Technology Officer for Sun Trust Mortgage where he worked to transform the originations platforms while achieving TRID compliance and established a digital mobile mortgage experience for Sun Trust clients.

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