Your Questions About Mortgage

Donna asks…

How can I get a mortgage on a property bought at auction?

I would like to look into buying a property at auction as I am a first time buyer, unable to get a foot on the housing ladder. After looking into various Goverment schemes, my only other option is shared ownership.

I would like to know the process of raising a mortgage for a property bought at auction.
I know that a 10% deposit is required on the day of the auction.
Is it a case of obtaining a mortgage in principle, purchasing the property and then applying for the mortgage after the sale?

I am assuming that no mortgage lender will lend money without there being a property in place to secure the loan on.

Any information on this would be appreciated

Many thanks

admin answers:

Get a mortgage offer before going to an auction. Make sure the lender is able to complete your application within three weeks of the sale. If you don’t have the moneyin your account in time to pay for the property you could lose your deposit.

Remember you have to complete within 28 days and don’t forget to factor in stamp duty if you purchase over £60,000.

Good luck.

Carol asks…

Can I place the remaining mortgage payment on my existing home towards a mortgage on a new home?

Amidst this struggling economy, I’m looking to sell my townhouse and purchase a single-family home. I know I will not sell the house for more than I originally purchased it for, but will I be able to transfer the remaining balance of the mortgage after I sell the townhouse to the mortgage on the new single-family home? Excuse my limited knowledge on the rules and regs regarding mortgages. Thank you!

admin answers:

No, you can’t transfer anything. When you sell the townhouse, you have to pay off the mortgage on the townhouse. You should talk to your realtor and/or mortgage rep about this.

Good luck.

Maria asks…

My mortgage is about to increase due to an adjustable rate, is there anthing I can do to avoide this?

The problem is that 2yrs ago I made the mistake of getting a loan for my sister who did not have any credit. She wasn’t able to pay the mortgage and now the house is under forclosure. The adjustable rate increase is on a condominium that I am leasing out, not on the house that is under foreclosure I have always kept up with my payments and was unaware of my sisters defult on the mortgage until recently. My question is: Is there anyway that I can stop or atleast postpone this increase eventhough I am in forclosure status on another property? I can’t afford this increase right now, I am only 24yrs old in college and don’t have any savings to help me out thru this dilema. Any advice would be sooooo greatly appreciated.

admin answers:

You can ask the bank to give you another 5 years as interest only. That is what I did. It cost me 600 in fees but at least I keep my house another 5 years untill I figure out what to do

Charles asks…

Can you refinance a 1st mortgage and 2nd mortgage without equity?

I own a single family property in IL. I have a 1st mortgage that was 100% LTV that was used to purchase the home and a 2nd mortgage that is a 120% LTV that was used to consolidate debt. The value of the home is about $40,000 short of what I owe based on both loans. I want to refinance my 1st mortgage which is at a rate of 7.25%. Is this possible?

admin answers:

You would have to create equity by putting up the the differance plus probably a bit down as well, looks like that would be a bit of a hefty sum

Sandy asks…

How does a family mortgage work for their kids?

Is it possible for a parent of a married couple to take a loan or a mortgage from a parent for, lets say $300k or so?
Is this possible? How does the interest rate work? Is it determined by the lender (the parents)?
Would this be a good thing for both the kids and the parents?

Anyone can shed some light will be appreciated!

admin answers:

Yes, what you’re asking for is a private mortgage. The rate is determined by your parents, and you should definitely use an attorney and an accountant. They’ll help you figure out what the amortized payments are. Its not really a good or bad thing. The first part is the parents will need the 300k to lend to you. Also, make sure the taxes are figured into the payments as well. This way you don’t have to worry about the county forcing sale on the house due to delinquent taxes. You’ll need to find an escrow company in order to establish that as well.

Powered by Yahoo! Answers

Leave a Reply