0
Does the bank have to refinance you if you file a value of collateral in a chapter 7 for what the house is worth?
Wiki User
∙ 11y ago
No, it does not. But there may be a change in the law allowing a "cram down" of mortgages, as there used to be in bankruptcy.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
When property value is the same as you owe on mortgage can you refinance with two loans include Equity?
When you finance (or refinance) using your house as collateral (aka security) the lender is using the available value of your house to get back the loan(s) if you default. If this happens it will cost the lender money (thousands or even tens of thousands) for the process of getting it back. For this reason a prudent lender will only lend you a percentage of the current sale value of the house. If you already have a mortgage, the difference between your property's value and what you owe on it is your equity in the property, and that is the value on which they will lend. You said in your question that the value and the amount owed are the same; this means that your equity is zero, so you would not expect to get an equity line as well as rewriting the original loan.
What if you have bad credit to inherit a house as an heir?
credit has no part in inheriting a house but to refinance or to get a mortgage it does. You will have to get collateral normally be something of value if you default on your refinanced mortgage or your mortgage. Also death tax will be processed on your Inheritances home that was given to you.If you rent the home out to avoid penalties think again. Credit scores in buying a house has a effect on your ability to own a house but not if the home is given to you all you will have to do is take the house over with a trustee of wills that gives you the OK to take the house and you can either live in it or sell it as you wish but remember this the government does tax and they will want their monies!
What something of value pledged as security for a loan?
Collateral
How do you calculate loan to value?
Outstanding balance of all monies owed against collateral divided by the collateral's value. ($80 divided by $100 is .80 or 80%LTV)
How much money will I save if I refinance?
You may not save anything. It depends on what you're refinancing from and to, whether the value of your house has fallen since you bought it, and your current credit situation.
If your chapter 7 bankruptcy was discharged six weeks ago what are your options for a refinance?
You can quite possibly refinance up to 80 percent of the value of your home and get some cashout with a decent rate.
When property value is the same as you owe on mortgage can you refinance with two loans include Equity?
When you finance (or refinance) using your house as collateral (aka security) the lender is using the available value of your house to get back the loan(s) if you default. If this happens it will cost the lender money (thousands or even tens of thousands) for the process of getting it back. For this reason a prudent lender will only lend you a percentage of the current sale value of the house. If you already have a mortgage, the difference between your property's value and what you owe on it is your equity in the property, and that is the value on which they will lend. You said in your question that the value and the amount owed are the same; this means that your equity is zero, so you would not expect to get an equity line as well as rewriting the original loan.
Can your refinance if you don't have the equity in the house?
It may be possible to refinance your home if you do not have equity. I have done many of these loans. There are currently programs for both Freddie Mac and Fannie Mae that will allow you to refinance even if there is not equity. There are Loan to Value limits, but they are well over 100%.
What is Collateral?
Collateral has two meanings: 1) Secondary or associated but not the primary objective or intent. In war civilians may be killed unintentionally in combat. This is called collateral damage. 2) Something of value that is offered as assurance borrowed money will be paid back or a promised action will be carried out is called collateral. People getting a loan to buy a house put the house up as collateral so the lender can be assured he will get his money, either by payment from the borrower or by selling the house if the borrower fails to pay as agreed.
What is the purpose of mortgage loans?
A mortgage loan is obtained when one is purchasing a house. In return for using the value of the house as collateral, a mortgage company will provide a loan for the remaining balance.
Is the total value of your assets is called your collateral?
No.
What if you have bad credit to inherit a house as an heir?
credit has no part in inheriting a house but to refinance or to get a mortgage it does. You will have to get collateral normally be something of value if you default on your refinanced mortgage or your mortgage. Also death tax will be processed on your Inheritances home that was given to you.If you rent the home out to avoid penalties think again. Credit scores in buying a house has a effect on your ability to own a house but not if the home is given to you all you will have to do is take the house over with a trustee of wills that gives you the OK to take the house and you can either live in it or sell it as you wish but remember this the government does tax and they will want their monies!
How does collateral on a contract work?
Collateral on a contract can work as follows: The collateral will serve the same as actual payment if payment is not rendered at the end of the contract. Depending on the contractual agreement, the collateral may be held until the debt is satisfied or seized altogether. Check your state laws in reference to Collateral Contracts. Collateral can be offered as 'cash' for a contract. Be careful of this however, if the collateral is appraised at a higher value than that of the contract, you may be liable to surrender the balance of value. If it is appraised to be lower than the contract value, then you will take a loss.
What something of value pledged as security for a loan?
Collateral
How do you calculate loan to value?
Outstanding balance of all monies owed against collateral divided by the collateral's value. ($80 divided by $100 is .80 or 80%LTV)
How much money will I save if I refinance?
You may not save anything. It depends on what you're refinancing from and to, whether the value of your house has fallen since you bought it, and your current credit situation.
Do you need an appraisal for a fifty-percent loan to value ratio refinance?
No, you do not need to have a fifty-percent loan to value ratio to refinance. There are many many loan programs that will allow you other ratios and consider an overall financial picture of the situation so that you can refinance.
