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Is there any way to get out of a mortgage without foreclosing or selling?
Wiki User
∙ 16y ago
Most refinances are done to "get out" of a mortage and get a better deal. If this is not an option due to lack of equity, or credit; it is now more possible than ever before to actually renegotiate with your current lender. Lenders are currently acquiring many more properties than they want to hold due to foreclosures. This provides a huge incentive to make it possible for their current customers to be able to afford their mortgage payment and not have to sell or face foreclosure. == == Yes, pay the mortgage in full. Another option is to deliver the deed (the rights) to the house "in lieu of" (instead of) foreclosure. The lender would have to agree to this provision. In this instance, the consumer is handling over the property and all his equity in exchange for the debt being cancelled. Obviously, a mortgage lender would only consider such an option if it was in their best interests. Deed in lieu of foreclosure is considered a derogatory credit notation, although not as bad as foreclosure itself, and will remain on a consumers' credit report for 7 years. Just be aware that if a deed-in-lieu is approved, that the lender does report it to the IRS as a 'forgiven debt' so there are tax consequences. I believe that it�s considered income to you, and therefore you have to pay taxes on it. The advantage to the mortgagor of a DIL vs a foreclosure is that it does look somewhat better on your credit report, and you don't have to worry about the lender seeking a deficiency judgment against you in the event that the property resells for less than the mortgage amount. You should be aware that I'm not an attorney, but I did work in mortgage servicing for a numbers of years.
Wiki User
∙ 16y ago
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How can a second mortgage loan be discharged?
Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.
Can you transfer a mortgage to another property if one party is now bankrupt?
No. The lender owns the mortgage. You can't make any changes.No. The lender owns the mortgage. You can't make any changes.No. The lender owns the mortgage. You can't make any changes.No. The lender owns the mortgage. You can't make any changes.
Will the excess amount in foreclosing real estate mortgage given to th mortgage or not?
I'm not sure this question was complete, but the answer is that any excess equity after a property is foreclosed will go to the prior homeowner. In other words, if a home is foreclosed and the home sells at auction for more than was owed to the bank, the excess will go to the homeowner who was foreclosed upon. Keep in mind many fees and charges may be attached to a foreclosure, so the equity may be limited.
How does one apply for a low fixed rate mortgage?
You can go on the internet and look up different websites that give you good offers on your mortgage. You can find the best offers on-line without any effort.
Which companies offer a no money down mortgage loan?
A no money down mortgage loan allows the borrower to purchase a home without giving any money. The company Bankrate is an example that offers these kind of loans.
What steps does the bank take when foreclosing on a house?
When foreclosing on a house, the bank first looks at the person's saving and checking account. Then, the bank has the right to seize any properties before foreclosing on the house.
Can you foreclose a mortgage without the note?
In some states it is going to be hard to foreclose without the original copy of the note because the court will need this to show the chain of title and who has what rights revolving around the debt and the real estate.However, in other states such as Massachusetts, the recorded mortgage allows foreclosure in the case of a default as long as the mortgage and any assignments were recorded and the foreclosing bank is the owner of record.This is an extremely complicated issue and the laws vary from state to state. Also, there are urban legends that have sprung up concerning mortgage notes. You need to consult with an attorney in your jurisdiction who can answer your question under your particular state laws.
What are the benefits of a reverse mortgage?
A good thing about reverse mortgage is that it does not have to have any income to qualify. Like the regular mortgage, it doesn't have any monthly loan payments. When your property gets sold, your mortgage will get paid off without any risk.
Can a reverse mortgage be paid back?
Yes. There are no prepayment penalties on a reverse mortgage, so you can make payments any time you want- defeats the purpose though- or pay it off via selling the home, using savings, or refinancing at any time. There is a bonus. A reverse mortgage is a non recourse loan, so you will never owe more than the value of the home. if the balance increases over the home value you can walk from the property without any recourse to you personally.
Who gets the money from a sheriff's sale?
The creditors. Sometimes directly if they are the one causing the action (like a mortgage company foreclosing), and sometimes through a court or committee of creditors, to be disbursed according to some formula and priority of claim. Any excess of the claims and costs is returned to the owner.
What is a wraparound mortgage?
A wraparound mortgage arrangement is being used in certain areas to make selling a home easier. The seller doesn't pay off their mortgage as part of the transaction. They keep paying it. The buyer takes the property subject to the mortgage. The seller takes back a mortgage from the buyer based on the difference between the selling price and the balance owed on the first mortgage. That type of transaction is not legal in every state and most mortgages have a "due on transfer" clause by which the lender can demand full payment in the case of any transfer of title.There is also serious risk for the buyer because if the former owner doesn't pay the mortgage the lender will take possession of the property by foreclosure and the buyer will lose their interest in the property including any downpayment or cost of improvements, if any.A wraparound mortgage arrangement is being used in certain areas to make selling a home easier. The seller doesn't pay off their mortgage as part of the transaction. They keep paying it. The buyer takes the property subject to the mortgage. The seller takes back a mortgage from the buyer based on the difference between the selling price and the balance owed on the first mortgage. That type of transaction is not legal in every state and most mortgages have a "due on transfer" clause by which the lender can demand full payment in the case of any transfer of title.There is also serious risk for the buyer because if the former owner doesn't pay the mortgage the lender will take possession of the property by foreclosure and the buyer will lose their interest in the property including any downpayment or cost of improvements, if any.A wraparound mortgage arrangement is being used in certain areas to make selling a home easier. The seller doesn't pay off their mortgage as part of the transaction. They keep paying it. The buyer takes the property subject to the mortgage. The seller takes back a mortgage from the buyer based on the difference between the selling price and the balance owed on the first mortgage. That type of transaction is not legal in every state and most mortgages have a "due on transfer" clause by which the lender can demand full payment in the case of any transfer of title.There is also serious risk for the buyer because if the former owner doesn't pay the mortgage the lender will take possession of the property by foreclosure and the buyer will lose their interest in the property including any downpayment or cost of improvements, if any.A wraparound mortgage arrangement is being used in certain areas to make selling a home easier. The seller doesn't pay off their mortgage as part of the transaction. They keep paying it. The buyer takes the property subject to the mortgage. The seller takes back a mortgage from the buyer based on the difference between the selling price and the balance owed on the first mortgage. That type of transaction is not legal in every state and most mortgages have a "due on transfer" clause by which the lender can demand full payment in the case of any transfer of title.There is also serious risk for the buyer because if the former owner doesn't pay the mortgage the lender will take possession of the property by foreclosure and the buyer will lose their interest in the property including any downpayment or cost of improvements, if any.
You are on the deed but not the mortgage. Can you pay the mortgage without being on the mortgage if you want to keep the house?
You can make mortgage payments if you're not on the mortgage. However, you would be a volunteer and paying the mortgage in and of itself wouldn't give you any interest in the property. You would be paying for someone else's property.However, if your name was added to the property after the mortgage was granted you would be protecting your interest in the property by making certain the mortgage is paid on time.
Can you get a mortgage loan without any actual real estate transaction involved?
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan by a forced sale.
Are liens extinguished after a mortgage foreclosure?
No. They are liens on the property. Typically what happens is the property will be foreclosed and sold. The liens, including the mortgage, will be paid off in the order of being placed. Once all liens are paid off, if there is any money left over, there might be some money for the owner.A Different PerspectiveLien priority is important in a foreclosure procedure. That's why a lender who loans a considerable amount of money on a home secured by a mortgage seeks to be in first place and will often require other lenders to subordinate their liens. Lien priority depends on the time of recording except for property tax liens which take priority over every other type of lien, even a first mortgage. The foreclosing lender takes the property subject to any lien recorded prior to the mortgage being foreclosed. The foreclosing lender must pay off those senior liens. Any lien recorded after the mortgage is a junior creditor and that lien gets wiped out as of record and will not affect the title to the real estate for any future owner. One exception is IRS liens which do not get wiped out and must be paid to clear the title to the property.Junior creditors can go after the debtor personally but they will have no interest in the real estate.You can read a good example at the link provided below.
How can a second mortgage loan be discharged?
Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.
Can you transfer a mortgage to another property if one party is now bankrupt?
No. The lender owns the mortgage. You can't make any changes.No. The lender owns the mortgage. You can't make any changes.No. The lender owns the mortgage. You can't make any changes.No. The lender owns the mortgage. You can't make any changes.
Your mother is a life estate tenant can you refinance without her signing any papers?
No. Your mother would need to consent to the mortgage by signing it. The lender will discover her interest when it has the title checked and will insist that she signs the mortgage.
