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If there is a mortgage on property and the mortgagor failed to pay the amount loaned at a given time what shall be do?
Wiki User
∙ 16y ago
just as in any mortgage situation, the holder of the mortgage, once a default has ocurred, has the legal right to commence a foreclosure action in county court. an action to foreclose a mortgage generally begins with the filing of the summons/ complaint and the lis pendens. the lis pendens is a document that is filed so as to attach real property to the proceeding, and puts the world on notice that a foreclosure is ongoing and directly affects title to the property
Wiki User
∙ 16y ago
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What is Equity Redemption?
The right of a mortgagor, that is, a borrower who obtains a loan secured by a pledge of his or her real property, to prevent foreclosureproceedings by paying the amount due on the loan, a mortgage, plus interest and other expenses after having failed to pay within the time and according to the terms specified therein.This right is based upon the equitable principle that it is only fair that a borrower have a final opportunity to keep his or her property even if he or she has failed to make payments on the mortgage, since the property is to be sold in foreclosure proceedings.
Why would spouse want to be on title and not the mortgage in New Jersey?
Maybe you should ask them? Actually it would be surprising that the potential mortgagor would grant the mortgage unless your spouse (IF you are, in fact, legally married) failed to co-sign the documents.
Can you have two people on a mortgage and only one of them on the deed to a house?
Yes. A person who doesn't own the property can agree to be responsible for paying the mortgage. However, they would be a volunteer and signing the mortgage and note would give no ownership interest in the property. If the primary borrower failed to pay the volunteer would be held fully responsible for paying the mortgage.
How does a foreclosure work if you have negative equity?
A foreclosure really has nothing to do with the amount of equity in a property. Banks foreclose on properties because the borrower has failed to pay on the mortgage note for 90 days or more. Most properties that are foreclosed on today usually have negative equity in them due to decreased property values.
What happens if you go for a mortgage and don't tell them you already have a mortgage?
The lender will have the title to the property examined to disclose any outstanding encumbrances. It does not rely on your honesty on the loan application. They will then contact you to say, "Mr. Jones, you have a mortgage on your property that you failed to note on your application. Your application is denied since you have much less equity in your home than first claimed and you lied on your application."
I have a buyer for a home advertised on the multiple listing service. After entering escrow with the seller we find that there was a a third mortgage that the title company failed to record.?
The 3rd mortgage should be promptly recorded so that it can be properly discharged of record for closing. The 3rd mortgage should have no bearing on the sale, since the Seller was aware of all the mortgages they have against the property and should have set the price of the property high enough to pay off all 3 mortgages against the property. You just need to make sure that the mortgage is properly recorded and properly discharged of record at closing.
How do you transfer a deed on a mortgage?
Your question is not exactly clear. I will interprete it as how do you transfer property that is encumbered by a mortgage. You should seek legal advice before transferring your interest in any property that is subject to a mortgage. Generally, the boilerplate language in any mortgage document states that the full balance will become due upon any transfer of the property. You would be responsible for payment and if the mortgage is not paid the bank will take possession of the property. Also, even if the bank didn't know of the transfer immediately, if the new owner failed to pay the mortgage the full consequences would fall on you. The bank approved you for the loan and you don't have the power to assign your approval to someone else. You should speak with a bank representative to see if the mortgage can be assumed by a new owner. At one time lenders allowed a subsequent buyer to execute an assumption agreement.
Can you take your name off the deed but still be on the mortgage?
You could quitclaim your interest in the property to the co-owner, but you are obligated to pay the mortgage. In that case you would no longer have any ownership interest in the property but you would be fully responsible for paying the mortgage until it is paid off. If the co-borrower failed to pay the lender would seek payment from you. You should consult with an attorney who can review the situation and explain your options, responsibilities and the consequences of executing a quitclaim deed. See related question.
Can a mortgage company take your home if a insurance refuses to insure property?
The Mortgage company can foreclose on your home if you fail to meet the requirements you agreed to in your finance contract. Hazard Insurance on a home is almost always required by the lender under the terms of the contract. Failure to obtain and maintain the required coverage is a default on your loan, much the same as if we miss mortgage payments. The mortgage company would not foreclose because your home is un-insurable. They would foreclose because you failed to purchase the required property insurance. It is up to the homeowner to maintain the home in a condition that it can be insured.
What do you think about a reverse mortgage?
A reverse mortgage is an arrangement whereby an elderly homeowner can borrow money against the value of their home if the home is free of any other liens. The mortgagor is not required to make any payments, the home is owned by the bank upon the death of the mortgagor and the transaction is structured so that the loan amount will not exceed the value of the home at that time. That feature should raise a red flag. That means the homeowner isn't given the fair market value of the property initially because the bank must figure in the interest over the possible life of the loan.Good credit is not relevant because the home provides the security for the loan. In some cases the heirs have the option to pay off the mortgage when the owner dies but the cost can be extremely high. This type of mortgage has higher up front costs than conventional mortgages and those costs become part of the original mortgage which accrues interest at a rapid rate. Especially troublesome is the fact that many reverse mortgage lenders will send a loan officer to the senior's home to sign the loan documents and the senior has no benefit of having another pair of eyes and ears present at the transaction. That makes seniors vulnerable to predators.Another negative aspect of reverse mortgages is quickly becoming a problem. Seniors who have heeded the misleading advertising have granted reverse mortgages only to discover a couple of years later that they cannot afford the taxes and upkeep even with the reverse mortgage payments. They are losing their homes.I think that they should be avoided unless they are absolutely necessary. Reverse mortgages can be quite expensive in up front fees (as high as $15,000) and a rapidly growing balance as the mortgage matures. I was recently made aware of a reverse mortgage that was inadvertently granted to a senior with only a life estate. She was given $60,000 and less than five years later, when the mortgage was discovered on record by the owner of the property, the amount owed was $105,000. She answered one of those "let your home pay you" ads and a loan officer visited with all the documents ready for signing. Unfortunately for the bank she had conveyed the property to her son some five or six years earlier and he had no idea she needed money or he would have gladly given it to his mother. An overzealous mortgage officer failed to have the title examined and hopefully, the mortgage cannot be enforced. The rate of growth of the amount owed was exorbitant.If a senior has no other source of income except their real estate and has no adult children who may want to buy the property and grant a life estate, a reverse mortgage may help provide a living income. However, the senior should shop around for the best rate and lowest up front costs. Other traditional types of mortgages should be explored and the senior should ask someone to accompany them when they speak with lenders.See related links for informative discussions about Reverse Mortgages.A reverse mortgage is an arrangement whereby an elderly homeowner can borrow money against the value of their home if the home is free of any other liens. The mortgagor is not required to make any payments, the home is owned by the bank upon the death of the mortgagor and the transaction is structured so that the loan amount will not exceed the value of the home at that time. That feature should raise a red flag. That means the homeowner isn't given the fair market value of the property initially because the bank must figure in the interest over the possible life of the loan.Good credit is not relevant because the home provides the security for the loan. In some cases the heirs have the option to pay off the mortgage when the owner dies but the cost can be extremely high. This type of mortgage has higher up front costs than conventional mortgages and those costs become part of the original mortgage which accrues interest at a rapid rate. Especially troublesome is the fact that many reverse mortgage lenders will send a loan officer to the senior's home to sign the loan documents and the senior has no benefit of having another pair of eyes and ears present at the transaction. That makes seniors vulnerable to predators.Another negative aspect of reverse mortgages is quickly becoming a problem. Seniors who have heeded the misleading advertising have granted reverse mortgages only to discover a couple of years later that they cannot afford the taxes and upkeep even with the reverse mortgage payments. They are losing their homes.I think that they should be avoided unless they are absolutely necessary. Reverse mortgages can be quite expensive in up front fees (as high as $15,000) and a rapidly growing balance as the mortgage matures. I was recently made aware of a reverse mortgage that was inadvertently granted to a senior with only a life estate. She was given $60,000 and less than five years later, when the mortgage was discovered on record by the owner of the property, the amount owed was $105,000. She answered one of those "let your home pay you" ads and a loan officer visited with all the documents ready for signing. Unfortunately for the bank she had conveyed the property to her son some five or six years earlier and he had no idea she needed money or he would have gladly given it to his mother. An overzealous mortgage officer failed to have the title examined and hopefully, the mortgage cannot be enforced. The rate of growth of the amount owed was exorbitant.If a senior has no other source of income except their real estate and has no adult children who may want to buy the property and grant a life estate, a reverse mortgage may help provide a living income. However, the senior should shop around for the best rate and lowest up front costs. Other traditional types of mortgages should be explored and the senior should ask someone to accompany them when they speak with lenders.See related links for informative discussions about Reverse Mortgages.A reverse mortgage is an arrangement whereby an elderly homeowner can borrow money against the value of their home if the home is free of any other liens. The mortgagor is not required to make any payments, the home is owned by the bank upon the death of the mortgagor and the transaction is structured so that the loan amount will not exceed the value of the home at that time. That feature should raise a red flag. That means the homeowner isn't given the fair market value of the property initially because the bank must figure in the interest over the possible life of the loan.Good credit is not relevant because the home provides the security for the loan. In some cases the heirs have the option to pay off the mortgage when the owner dies but the cost can be extremely high. This type of mortgage has higher up front costs than conventional mortgages and those costs become part of the original mortgage which accrues interest at a rapid rate. Especially troublesome is the fact that many reverse mortgage lenders will send a loan officer to the senior's home to sign the loan documents and the senior has no benefit of having another pair of eyes and ears present at the transaction. That makes seniors vulnerable to predators.Another negative aspect of reverse mortgages is quickly becoming a problem. Seniors who have heeded the misleading advertising have granted reverse mortgages only to discover a couple of years later that they cannot afford the taxes and upkeep even with the reverse mortgage payments. They are losing their homes.I think that they should be avoided unless they are absolutely necessary. Reverse mortgages can be quite expensive in up front fees (as high as $15,000) and a rapidly growing balance as the mortgage matures. I was recently made aware of a reverse mortgage that was inadvertently granted to a senior with only a life estate. She was given $60,000 and less than five years later, when the mortgage was discovered on record by the owner of the property, the amount owed was $105,000. She answered one of those "let your home pay you" ads and a loan officer visited with all the documents ready for signing. Unfortunately for the bank she had conveyed the property to her son some five or six years earlier and he had no idea she needed money or he would have gladly given it to his mother. An overzealous mortgage officer failed to have the title examined and hopefully, the mortgage cannot be enforced. The rate of growth of the amount owed was exorbitant.If a senior has no other source of income except their real estate and has no adult children who may want to buy the property and grant a life estate, a reverse mortgage may help provide a living income. However, the senior should shop around for the best rate and lowest up front costs. Other traditional types of mortgages should be explored and the senior should ask someone to accompany them when they speak with lenders.See related links for informative discussions about Reverse Mortgages.A reverse mortgage is an arrangement whereby an elderly homeowner can borrow money against the value of their home if the home is free of any other liens. The mortgagor is not required to make any payments, the home is owned by the bank upon the death of the mortgagor and the transaction is structured so that the loan amount will not exceed the value of the home at that time. That feature should raise a red flag. That means the homeowner isn't given the fair market value of the property initially because the bank must figure in the interest over the possible life of the loan.Good credit is not relevant because the home provides the security for the loan. In some cases the heirs have the option to pay off the mortgage when the owner dies but the cost can be extremely high. This type of mortgage has higher up front costs than conventional mortgages and those costs become part of the original mortgage which accrues interest at a rapid rate. Especially troublesome is the fact that many reverse mortgage lenders will send a loan officer to the senior's home to sign the loan documents and the senior has no benefit of having another pair of eyes and ears present at the transaction. That makes seniors vulnerable to predators.Another negative aspect of reverse mortgages is quickly becoming a problem. Seniors who have heeded the misleading advertising have granted reverse mortgages only to discover a couple of years later that they cannot afford the taxes and upkeep even with the reverse mortgage payments. They are losing their homes.I think that they should be avoided unless they are absolutely necessary. Reverse mortgages can be quite expensive in up front fees (as high as $15,000) and a rapidly growing balance as the mortgage matures. I was recently made aware of a reverse mortgage that was inadvertently granted to a senior with only a life estate. She was given $60,000 and less than five years later, when the mortgage was discovered on record by the owner of the property, the amount owed was $105,000. She answered one of those "let your home pay you" ads and a loan officer visited with all the documents ready for signing. Unfortunately for the bank she had conveyed the property to her son some five or six years earlier and he had no idea she needed money or he would have gladly given it to his mother. An overzealous mortgage officer failed to have the title examined and hopefully, the mortgage cannot be enforced. The rate of growth of the amount owed was exorbitant.If a senior has no other source of income except their real estate and has no adult children who may want to buy the property and grant a life estate, a reverse mortgage may help provide a living income. However, the senior should shop around for the best rate and lowest up front costs. Other traditional types of mortgages should be explored and the senior should ask someone to accompany them when they speak with lenders.See related links for informative discussions about Reverse Mortgages.
How did wall street become bankrupt?
investing in high risk securities and they failed. subprime mortgage crisis
Who is responsible for the real estate mortgage if the lien holder did not file against the estate before it was closed by probate?
Get personal, professional help now. The mortgage is a lien and is against the property and is filed. The estate could NOT do what it has to...clear the deceaseds financial affairs, without clearing the mortgage. Obviously, they cannot sell the property to someone, because the mortgage lien would prevent them from giving a good title. Probabate is NOT bankruptcy...I don't believe any special actions need to be taken by creditors, like filing a proof of claim form within a certain time, to perfect a claim. The one handling the estate needs to resolve the business affairs of the deceased and transfer his property per the will or laws of the State. It isn't adversarial or competitive. If you were the administrator and you failed to do so. you could be subject to real legal issues.
