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In a preforeclosure does the end buyer have to pay off the unpaid balance of the mortgage?
The buyer at a foreclosure sale pays to the bank the amount they bid at the sale. The foreclosure process nullifies the outstanding (or foreclosed) mortgage as it affects the property. However, a buyer at a foreclosure sale should have the title examined by a professional in order to disclose any other liens and encumbrances that affected the property prior to the recording of the mortgage that was foreclosed. A person who plans to bid at a foreclosure sale should always work closely with an attorney.
What else can I help you with?
Does PMI insurance cover the note when someone is in default on a foreclosed home if so up to what percentage?
PMI only covers the Mortgage company or Lender. When PMI pays on a defaulted mortgage note, the buyer then owes the balance of the mortgage to the PMI company. It does not relieve the buyer of the obligation to pay.
If your name is on the deed but not the mortgage who is responsible for the mortgage when the house is sold?
The mortgage will be paid off from the proceeds of the sale. The buyer's attorney will make certain the mortgage is paid off before the buyer takes title.
Which of these describes an assumable mortgage?
It can be transferred from seller to a buyer
After foreclosure on a first mortgage is the next buyer of the property liable for the second mortgage?
In almost every state, the answer is "NO".
How much deposit does a first-time buyer need for a mortgage?
A first-time buyer typically needs a deposit of around 5-20 of the property's purchase price to secure a mortgage.
Does PMI insurance cover the note when someone is in default on a foreclosed home if so up to what percentage?
PMI only covers the Mortgage company or Lender. When PMI pays on a defaulted mortgage note, the buyer then owes the balance of the mortgage to the PMI company. It does not relieve the buyer of the obligation to pay.
Is a mortgage enforceable if not deeded to buyer?
Answer: A mortgage runs with the land until it is paid. The buyer would acquire the property subject to the mortgage.
If your name is on the deed but not the mortgage who is responsible for the mortgage when the house is sold?
The mortgage will be paid off from the proceeds of the sale. The buyer's attorney will make certain the mortgage is paid off before the buyer takes title.
Who holds the deed the seller holding mortgage or buyer?
the seller holding mortgage
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.
What describes assumable mortgage?
It can be transferred from a seller to a buyer.
Which of these describes an assumable mortgage?
It can be transferred from seller to a buyer
After foreclosure on a first mortgage is the next buyer of the property liable for the second mortgage?
In almost every state, the answer is "NO".
How much deposit does a first-time buyer need for a mortgage?
A first-time buyer typically needs a deposit of around 5-20 of the property's purchase price to secure a mortgage.
Who are some companies that are buyers of mortgage notes?
A mortgage note is essentially a promissory note with the property concerned as a security for the loan. Companies that buy mortgage notes include the Texas Note Company, NCR Note Buyer as well as The Mortage Buyer, Inc.
Can a buyer of a second mortgage reinstate the first and make monthly payments even thought the first mortgage is under the name of the previous owners?
The buyer of a second mortgage is buying the rights of the mortgagee (lender) under the second mortgage. A buyer of a mortgage is correctly called a mortgage assignee. Therefore, the buyer of the second mortgage is subject to the first mortgage. The first mortgage needs to be paid, not "reinstated".The property remains subject to the first mortgage until it has been paid off. Even if the property is transferred to a new owner the property is subject to the first mortgage and the second mortgage if there was a second mortgage recorded in the land records. The second mortgage always remains subject to the first mortgage until the first mortgage has been paid.Note that a property subject to a mortgage is subject to all the terms of that mortgage. Mortgages have boilerplate "due on transfer" clauses. That means if there is any transfer in ownership of the property, the lender will demand payment of the mortgage in full, immediately.It sounds like you need to discuss this with an attorney who can review the details of your situation and explain your options.
What is the purpose of a good faith deposit in a mortgage transaction?
A good faith deposit in a mortgage transaction is meant to show the seller that the buyer is serious about purchasing the property. It demonstrates the buyer's commitment and helps secure the deal.
