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Is it possible to get a mortgage on a second home that includes enough money to pay off the mortgage on the first house?
You could take out a mortgage on a second home to payoff the mortgage on your primary residence if you have sufficient equity. I guess the question would be, why would you want to do that? Generally, you are going to get better terms on a mortgage for an owner occupied residence vs. a 2nd home all else being equal.
What does a primary mortgage lender do?
The primary mortgage lender holds the first mortgage. If his mortgage is not paid, he sells the property. He gets paid. You may have a second mortgage. If the second mortgage lender is not paid, he can sell the property. If he sells the property, the primary mortgage lender gets paid first, then the secondary lender gets paid.
Why are interest rates on a 2nd mortgage higher than on a primary mortgage?
A second mortgage is generally riskier for a lender because the second mortgage is subordinate to the primary loan. This means that if the loan defaults, the first mortgage is paid off first and the lender risks losing the money put up for the second mortgage. To cover the extra risk, there is a higher interest rate placed on the second mortage.
Can mortgage interest on second home be deducted on tax returns?
You may deduct your interest on your principle residence plus one other qualified residence.
Is it possible to withdraw funds from a tax deferred 401k to pay off a second mortgage?
If you are over 59 1/2 you can withdraw money from your 401k for any reason. If you are under 59 1/2 you can take a loan on the 401k in most cases. Ask your 401k administrator about this. Also, if you were thinking about taking a hardship withdraw to pay off your second mortgage, that isn't allowed. In terms of your house, hardship withdraws are only available to purchase a primary residence or to prevent eviction or foreclosure on your primary residence.
Is it possible to get a mortgage on a second home that includes enough money to pay off the mortgage on the first house?
You could take out a mortgage on a second home to payoff the mortgage on your primary residence if you have sufficient equity. I guess the question would be, why would you want to do that? Generally, you are going to get better terms on a mortgage for an owner occupied residence vs. a 2nd home all else being equal.
What does a primary mortgage lender do?
The primary mortgage lender holds the first mortgage. If his mortgage is not paid, he sells the property. He gets paid. You may have a second mortgage. If the second mortgage lender is not paid, he can sell the property. If he sells the property, the primary mortgage lender gets paid first, then the secondary lender gets paid.
When one considers a second home mortgage usually what type of home is classified as the second home?
A second home is the one that a person does not live in for the majority of the time. This may be adjusted for tax reasons but is almost always a person's primary residence.
What is a second trust deed taken back by owner mean?
That means the owner-seller has agreed to take a second mortgage that will be a junior lien to the primary purchase money mortgage.That means the owner-seller has agreed to take a second mortgage that will be a junior lien to the primary purchase money mortgage.That means the owner-seller has agreed to take a second mortgage that will be a junior lien to the primary purchase money mortgage.That means the owner-seller has agreed to take a second mortgage that will be a junior lien to the primary purchase money mortgage.
Why are interest rates on a 2nd mortgage higher than on a primary mortgage?
A second mortgage is generally riskier for a lender because the second mortgage is subordinate to the primary loan. This means that if the loan defaults, the first mortgage is paid off first and the lender risks losing the money put up for the second mortgage. To cover the extra risk, there is a higher interest rate placed on the second mortage.
Can mortgage interest on second home be deducted on tax returns?
You may deduct your interest on your principle residence plus one other qualified residence.
Why does the second mortgage holder have to approve of the first mortgage refinance?
The second mortgage holder typically needs to approve the first mortgage refinance because they hold a subordinate position to the first mortgage. Refinancing the first mortgage could impact the second mortgage holder's position, so their consent is often required to make changes to the primary loan.
Is it possible to withdraw funds from a tax deferred 401k to pay off a second mortgage?
If you are over 59 1/2 you can withdraw money from your 401k for any reason. If you are under 59 1/2 you can take a loan on the 401k in most cases. Ask your 401k administrator about this. Also, if you were thinking about taking a hardship withdraw to pay off your second mortgage, that isn't allowed. In terms of your house, hardship withdraws are only available to purchase a primary residence or to prevent eviction or foreclosure on your primary residence.
What is a pond motion?
A Pond motion is a motion made in a chapter 13 Bankruptcy case where the debtor:1. owns and lives (as his or her primary residence) in a residence which2. has a second mortgage AND3. the value of the house is less than the amount owed on the first mortgage as of the date the debtor files his or her bankruptcy petitionIf the motion (named after an actual case, In rePond, 252 F.3d 122) succeeds, it removes the second mortgage from "secured" status. This means that the amount owed to the second mortgage company gets treated like any other unsecured debt, like a credit card. Once the debtor obtains his or her discharge the remainder of the second mortgage debt is no longer owed.-Michelle Nobile, Esq.
Can a second mortgage be crammed down in a Chapter 13 bankruptcy proceeding if the mortgaged property is in a revocable trust and the mortgagor is technically the trust itself?
No, because the property would be considered to be property of the trustor and not the "trust itself". Moreover, while in certain situations a 2nd mortgage can be stripped (in a process caleed lien-stripping), there is no cramdown on primary residence real property. While a cram-down on non-primary residence real property is POSSIBLE, it is IMPRACTICAL.
If you have one owner occupied mortgage are you entitled to have another mortgage?
You can have as many mortgages as the banks allow. However, you can only have one primary residence mortgage and one second home which usually needs to be a fair distance away from your primary home and usually located in a vacation type area otherwise it would be considered investment property which carrys a higher rate due to risk. You can obtain another primary residence after 1 year and keep you existing home as rental property. The problem is, is that you must prove to the bank that your new home will truly be your primary residence and you must either qualify for two homes by your income or your income plus a lease. Always state your intentions up front with your mortgage lender so that you can be placed into the correct loan in order to avoid serious problems down the road.
What happens when the second home is placed in bankruptcy by mistake and is not your primary residence?
what happens when you file bankruptcy and your second home you own as an investment is placed in the bankruptcy by mistake the house getsfor closed on and sold but no title search is done to see that there are actually two mortgages on the house who is responsible for the second mortgage
