Loans

With an interest only mortgage, the borrower pays only the interest due on the money that is borrowed. There is no money allotted in the payment amount that is reducing the principle. Interest only mortgages therefore have much lower payments but can result in negative amortization. 30-year fixed rate mortgages have money (albeit a very small amount to begin with) figured into the payment which is paying off the principle from the very first payment. Making additional payments toward the principle not only reduces the total amount of the loan, but also the amount of the total interest that will be paid to the lender. The amount of the payment may be much higher, but the result is equity (ownership). An interest only loan never leads to equity other than appreciation.

In most states yes it can. This can only be done after due process according to state laws where the debtor lives has been followed. Meaning a lawsuit filed and won, a writ of judgment granted and the judgment executed as a lien. There can be a few exceptions, pertaining mainly to married couples and whether it is a joint debt.

Although making a loan payment will have a positive effect on your credit score it may take time to show. You will need to have approximatly 6 months of on time full payments of any debt before a good rating is received and this does not stop a bad rating from showing up from the same creditor

Basic thing to remember one late payment (30 days or more) can show on your credit score....to show a positive note it must be 6 months of good payments.

This happened with my sister in law who put my wife down as a reference There is no legal action that can be taken since she listed us without our permission. We asked them to not call again and they complied.

If they are calling your household and are not listed on the application but live in the same dwelling I am not sure of the ruling on that one

Most likely you will get your wages garnished. They cannot send you to jail.They will only take 25% of your net disposable income. You can fight it if you chose.

The loan would have to be paid off. Finance companies don't let signers off the hook for anything less than fraud or death. If there is a second signer you can enourage them to refinance to pay off the original loan and get a new loan for the vehicle in their own name, or to trade in for another vehicle that they alone sign for. If either of those isn't an option and there is no fraud and hopefully no one dies - all signers are in for the long haul.

In all states the way the vehicle title is worded determines the ownership. Even when someone pays off a loan, unless their name is on the title they do not own the vehicle. The person who the vehicle is titled to has the legal right to recover it from whomever may have possession. The party who paid the loan would have to file a lawsuit to recover their expenditure if the vehicle owner would not voluntarily submit repayment.

Yes, the cosigner/co-borrower has the same legal responsibility to repay the debt/loan as does the primary borrower. If the primary defaults the creditor can attempt to collect from the co-borrower before the primary borrower.

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.

The difference is pretty simple, a 2nd mortgage is just that it's a mortgage that is in 2nd lien position. Basically if god forbid say a forclosure took place, that mortgage doesn't get paid off until the first lien mortgage is cleared. A home equity line of credit or HELOC can also be a 2nd mortgage since it is a lien on the property but it can also be a 1st lien mortgage if your home is completely paid off. A HELOC works like a credit card basically except in this case the house is collateral. A HELOC is basically a revolving line of credit on your home and you use it like a credit card, you make monthly payments which are interest only, you only pay interest on the money you are using at the time. If you take out say a 20,000 heloc and are only using 10,000 of it then you pay interest only on the 10,000, you have a minimum payment like a credit card and you can put money towards the principle to pay it down. Money that is paid off can be used again and this can go on for a 10 year period after which the heloc turns into a 20 year loan and you begin paying it like a normal mortgage, if there is a balance remaining. The rate is usually prime plus a certain percentage which is based on the amount of money being financed, you credit, and the loan to value percentage. It's a great alternative to doing a cash out refinance if you have a good interest rate on your first mortgage, I do many helocs and in most cases I do them with no closing costs at all.

Sure you can. Nothing stopping you.

The loans on some of the dealers are outrageous, however (just telling it like it is), so shop with caution.

A chapter 13 can be converted to a chapter 7. The house would be included in the 7. Even if the homestead exemption protected it, it is apparent the lender does not want to reaffirm the loan. So trying to file a 13 again would be pointless. Bankruptcy will only protect a house if the payments are kept up as agreed. Lenders will often try to work out a plan for the borrower to catch up on missed payments while keeping scheduled payments current. There is however no law that requires them to so, a house is a secured debt, the lender can foreclose when the contract is defaulted on, if they so choose.

You don't. A second mortgage is a secured loan, just as the first morgage. The difference is the first mortgage holder has priority if it involves a lien against the property or foreclosure rights. The only option is to try to negotiate with the lender for reaffirmation of the loan

You send them a certified letter demanding return of the car within 3 days. If no response, report it stolen.

The interest is based on the amount owed, therefore as payments are made the balance drops as does the interest amount (not the rate). So the interest is higher at the begining, because more money is owed at the begining.

you can't anymore. after October 2008 you can only get it with a creditworthy US co-signer. sorry.

Yes you may, as long as it does not exceed the value of the property. You can not obviously finance 200% of the value of your property with 2 separate loans but you can apply for a first lien mortage and a second lien mortgage, it's done very frequently with purchases to avoid PMI by splitting a 100% LTV loan into an 80% 1st loan and a 20% second mortgage.

The max loan to value amount based on your credit score would be 100% financing. As far as loan amount that would be based off your income and monthly obligations, credit score dictates how much of a percentage you may borrow and your interest rate, it doesn't dictate how much money you can borrow. There are also alternative means of documentation and mortgage programs if you do need to qualify for more money.

PAY the judgement.

An interest only mortgage is exactly what it sounds like. It's a mortgage like any other except your monthly payment is an interest only payment, meaning that all the money you send in every month all goes towards the interest on the loan. You are not paying down the principle amount of the loan at all. The reason for this type of loan varies, some people do it because it's a lower monthly payment because you are only paying interest. Some people take an interest only so they can qualify for a more expensive home. Others simply because they are not going to live in the property for a long period of time.

When you took out the loan for the car the banking institution worked out how many months and for what amount the payment would be each month. If you have lost a job or are between jobs, were ill, were in an accident, then if you are honest you can talk to the bank manager and they will usually be quite willing to adjust your loan payments. The smaller the loan payment the longer it will take you to pay it off because of the interest applied on the outstanding loan. So, you could spend an extra couple of years paying this off. Banks don't want the vehicle, they want their money. Good luck Marcy

No. As long as it's paid in time. It's OK.

If you have no job, no credit and no home, why would you want to burden yourself with debt that cannot possibly repay? Think about your situation!