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What is mortgage default swap?

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2008-10-11 17:16:23
2008-10-11 17:16:23

I think what you are referring to is basically a credit default swap. This is a kind of insurance that the lender of the loan or the mortgage can purchase in order to ensure that the re-payment on the loan will be made in the event that the borrower defaults on the payment. This protects the back and spreads the risk.

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Related Questions


Yes, if the mortgage is in default.Yes, if the mortgage is in default.Yes, if the mortgage is in default.Yes, if the mortgage is in default.


Mortgage lenders foreclose when there is a default on a mortgage.


No. Not unless there is a default in the mortgage and the mortgagee reserved the power of sale in the mortgage document.No. Not unless there is a default in the mortgage and the mortgagee reserved the power of sale in the mortgage document.No. Not unless there is a default in the mortgage and the mortgagee reserved the power of sale in the mortgage document.No. Not unless there is a default in the mortgage and the mortgagee reserved the power of sale in the mortgage document.


If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.


Yes, Maine is considered to be a non-recourse state for mortgage default. A non- recourse means that if you default on paying your mortgage, the government can take your home from you.


Yes. Your second mortgage is secured by your home, so if you default on payments, the lender has the right to foreclose.


No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.


Yes, it could. Any lien holder can initiate the foreclosure process - so if your 2nd mortgage goes into default, the mortgage company could choose to start foreclosure proceedings based on the default.


The agreement for a credit default swap is a document that states the buyer will reimburse the holder in the event of a loan default or other credit event. This is essentially insurance against someone not paying you what you are owed.


If you mean that there was a mortgage recorded prior to the home equity mortgage and the first mortgage is foreclosed then the equity mortgage would be wiped out by the foreclosure. If you default on a home equity mortgage then the bank will foreclose and take possession of your home.


if you acquired your interest be deed after the mortgage was granted:You are not responsible for the payment of the mortgage and default will not affect your credit record. However, if the mortgagor defaults on the mortgage the bank can take possession of the property by foreclosure and you will lose your interest as well.If you acquired your interest before the mortgage was granted but didn't sign the mortgage:You are not responsible for the payment of the mortgage and default will not affect your credit record. In the case of a default the bank can only foreclose on the half interest of the co-owner who signed the mortgage.


All the owners of the real estate must sign the mortgage so that the lender can foreclose in the case of a default.All the owners of the real estate must sign the mortgage so that the lender can foreclose in the case of a default.All the owners of the real estate must sign the mortgage so that the lender can foreclose in the case of a default.All the owners of the real estate must sign the mortgage so that the lender can foreclose in the case of a default.


It will depend on the lender and the risk of default.


If both are on the deed then both must sign the mortgage so that in the case of a default the lender can take possession of the property by foreclosure.If both are on the deed then both must sign the mortgage so that in the case of a default the lender can take possession of the property by foreclosure.If both are on the deed then both must sign the mortgage so that in the case of a default the lender can take possession of the property by foreclosure.If both are on the deed then both must sign the mortgage so that in the case of a default the lender can take possession of the property by foreclosure.


Al the owners must sign the mortgage or the bank will not be able to foreclose on the property in case of a default. If there is another owner you cannot grant a mortgage on their interest in the property.Al the owners must sign the mortgage or the bank will not be able to foreclose on the property in case of a default. If there is another owner you cannot grant a mortgage on their interest in the property.Al the owners must sign the mortgage or the bank will not be able to foreclose on the property in case of a default. If there is another owner you cannot grant a mortgage on their interest in the property.Al the owners must sign the mortgage or the bank will not be able to foreclose on the property in case of a default. If there is another owner you cannot grant a mortgage on their interest in the property.


Yes, although mortgage companies are more likely to modify a loan in default.


the main risk is that the first mortgage will not be paid. if the first mortgage is not paid, goes into default, and is foreclosed, the second mortgage will be determined in the foreclosure sale.


If the second mortgage is in default the second mortgagee can foreclose and take possession of the property subject to the first mortgage.


A mortgage bond is a bond secured by a mortgage on one or more assets and are typically backed by real estate holdings. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default. However, the value of the property may decline.


A Notice of Rescission of Declaration of Default is a mortgage loan that was once in default, and a notice of default would mean that the loans are still currently foreclosed in a way.


You should pay off your default loan before because you may not qualify for a mortgage loan because you already owe money.


There is no "minimum amount" required for a party to enter into a credit default swap. The market for CDS products varies and terms are set by both parties agreeing to enter into the transaction.


First, you need to enable the shoulder swap in the options. The default has shoulder swap disabled (which is ridiculous). Then, you do it the same way you did in Uncharted 2: by pressing R3.


You would be in default of the mortgage and the bank will take possession of the property by foreclosure. You would lose your home.


No. All the owners of the property must sign the mortgage so the lender can take possession of the property in the case of a default.No. All the owners of the property must sign the mortgage so the lender can take possession of the property in the case of a default.No. All the owners of the property must sign the mortgage so the lender can take possession of the property in the case of a default.No. All the owners of the property must sign the mortgage so the lender can take possession of the property in the case of a default.



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