Thursday, February 3, 2011

Mortgage and Loans - Mortgage Refinance, Home Loans

Mortgage and Loans - Mortgage Refinance, Home Loans

Wrap Around Mortgage

Posted: 03 Feb 2011 05:29 AM PST

What is a Wrap Around Mortgage?

Put simply a wrap around mortgage is a new mortgage that is created on a property that “wraps around” an existing mortgage. Wrap around mortgages, or ‘wraps,’ are typically used when selling a home with owner financing

Here is an example that uses a Wrap Around Mortgage:

Value of Home: $150,000

Original loan amount: $130,000

Original interest rate: 6% (fixed rate mortgage)

Investor’s Offering: $97,500

The owner can sell the home using a wrap around mortgage to a new buyer with the following terms:

Sales price: $155,000

Down Payment: $10,000

New “wrap around mortgage” amount: $145,000 (the balance on the new loan)

New “wrap around mortgage” interest rate: 7.5%

In this example, the home-owner would get to keep the $10,000 down payment, and collects the monthly mortgage payment of $1013, which is used to pay the present mortgage payment of $780 leading to $233 / month in positive money flow. As for taxes and insurance, the seller that creates the wrap around mortgage can pass the present escrow to the new purchaser or they can make a new temporary account to account for these costs.

The major disadvantage to selling a home with a wrap around mortgage that there is always a possibility that the new customer could stop paying. If this occurs the seller in the transacation would need to foreclose on the property, take over possession, mend the home if required, and then sell the property again. This can be a very dear circumstance and by some guesstimates, this occurs in seventy percent of owner financed transactions. There are a few ways that to structure these deals and evaluate your consumer that may make your success rate far higher.

Common Questions About The Wrap Around Mortgage

Can any home be sold with a wrap around mortgage?

For the most part, Yes. Even in cases where there are multiple liens on a property, a new wrap around mortgage could be created and then sold to a buyer. In rare cases, a seller will create a wrap around mortgage for which the monthly payment is less than the underlying mortgage payments, which results in negative cash flow for the seller. Why would a seller do that? In some circumstances this may be the only way to get the home sold.

How long does the wrap around mortgage last and what happens when the buyer sells or refinances?

Most sellers that use a wrap around mortgage will structure the deal so that the buyer is required to refinance the ‘wrap’ after some period of time, 2 to 5 years is pretty common. If the buyer does not refinance in that time period, the seller can structure penalties in the contract such as having the interest rate rise at periotic time incriments. When the buyer does get the home refinanced, or sells the home, the seller’s original loan is paid off and the remaining balance is then paid to the seller. In the example abover, the seller would receive $15,000 when the home is refinanced or sold by the new buyer. This is called “the back end profit”.

Can the lender call the loan if I use a wrap around mortgage?

Technically they could, but they most likely would not. Almost all mortgage documents have a provision stating that whenever a home is sold, the lender has the right to “call the loan due”. This is called the “due on sales clause.” That being said, we have never seen a case in which a lender actually calls a loan in which the loan payments are being made in a timely manner.

What kind of life insurance do we need? and what is a good company to buy from?

Posted: 03 Feb 2011 01:43 AM PST

My husband and I are 28 years old, have three children and plan to have one more child in the near future. We live in Virginia (DC area). His annual earnings are about k; I also work part time earning annually about k. We currently have life insurance through our employers, but we want to get policies on our own. Can anyone recommend a good company to go with and a type of policy that we should get?
Also, should we get life insurance on our children? if so, what kind?
The goal that I want to accomplish with the life insurance is this. If my husband or I was to die, I would want my children to continue the same financial life that they would have had with both parents living. For this I am calculating that we need about a million policy. After our children are grown, I would like for us to have a lower policy; just enough to cover the cost of bills and a little something to help the kids, I am thinking something around 200k.

Mobile Home Loans and Mortgages – A Glance at Mobile Home Mortgage Programs And Alternative Financing Options

Posted: 03 Feb 2011 01:18 AM PST

For anyone who is in the market for a mobile property, you will discover many different home loan programs and also financing choices to make getting the property of your choice affordable and simple. Also people who have a low credit score might possibly attain funding for a mobile property. The mobile home rates will be higher, but could be refinanced afterward if the credit rating increases. There are even Federal housing administration mortgages suitable for mobile houses. The two important sorts of Federal housing administration loans are one for many who own his or her land on which the mobile property might be located, and one for people who will be living in an established mobile house park.

One can find that these Federal housing administration financial products really have specific requirements. For example, you should be able to give a five percent down payment and have an acceptable credit rating. There are maximum loans and maximum terms. As an example, the credit term requirements are 20 years for any mobile house, fifteen years for a lot and twenty five years for a mobile house and lot. There’s lots of mobile house dealers who provide funding for their buyers. Once you are shopping for a mobile home, be sure to ask if the provider offers any sort of mortgage program.

Not all mobile mortgage loans Federal housing administration. Many are made available from private creditors who focus on offering mortgages for mobile houses and/or built houses. As mentioned previously in this posting, mortgage rates on some of these privately funded lending options can be quite high. Even so, home mortgages are often available for refinancing later on. This is why a lot of people who imagine buying a house begin with a mobile house or built house. When you have a bad credit score and want to own a home, you might want to follow this road. Proper your credit has improved and you desire to make the move to a traditional type house, you’ll be better ready to do this.

The Mortgage Assignment Program

Posted: 02 Feb 2011 09:22 PM PST

In just a few weeks I am releasing a program that teaches investors how I have created a hugely profitable mortgage assignment business and how they can do it too. I’m going to tell you all of the secrets to my success and give you all the tools, the scripts, the whole enchilada; this is by far the best mortgage assignment program out there, period.

Who am I? I’m not one to toot my own horn so here’s a professional bio that was written about me:

“Phill Grove has been called the most successful residential real estate investor in post-bubble America by dozens of today’s top guru’s. He has conducted approximately $200M in real estate transactions – using non-traditional investing methods such as mortgage assignment, short sales, equity partnering, auction-options, wraps, swaps, and other methods – many of which he invented and/or pioneered for the industry. Phill teaches how to zig when others zag, and believes the biggest opportunities for wealth exist for those that solve the biggest problems during the biggest times of need, and has never seen a bigger opportunity than now to grow rich while helping others.”

For many years my main focus as a property investor was short sales. Over the last year or two the short sale business has increased but the number of short sales that banks are approving has steadily declined. There were still a ton of homeowners looking at repossession that required my assistance, but there weren’t any assurances that the bank would cooperate if we started a short sale. To facilitate these deals and to make the type of money I got used to making my focus transitioned to mortgage assignments. I had so much success with this new strategy that I determined to create a mortgage assignment program for other financiers to share in the wealth ( I know this appears a little unusual, I should keep my killer strategies to myself, but truly there are loads more mortgage assignment deals out there than me and a thousand clones of myself could handle ).

The Mortgage Assignment Program
So what is it? My mortgage assignment program will show investors how to do something that no one else is teaching. It’s a basic premise: I will show you how to sell ‘unsellable’ houses to ‘unloanable’ buyers.

The mortgage assignment programme will give you tons of content. I’ll go over the way to get the properties, the correct way to market to both consumers and sellers, the tools I use in my business, the correct way to process the leads, and how to plan and structure your business. You’ll also get a ton of material to use like my contracts, disclosures, prospect questionnaires, and legal forms. In the next few weeks I will be releasing a series of videos that may teach you about the mortgage assignment program and all of it’s offerings.

Quicken Loans Relocation – Dana Staniec Mortgage Banker

Posted: 02 Feb 2011 06:12 PM PST

Quicken Loans client, Jerry, from Indiana discusses he and his wife’s relocation experience with Quicken Loans and mortgage banker, Dana Staniec. As soon as Jerry began the relocation process from Indiana to Ohio, Dana Staniec called him. Jerry and his wife, who is disabled, had concerns about new doctors, drugstores and all the other changes that come along with relocating, but the one thing they didn’t have to worry about was finding a place to live. Dana helped them get the house they wanted, even when it appraised higher than they were willing to pay. This was Jerry’s “Best home buying experience that he’s ever had in his life.”

Receiving a Student Car Credit Loan for Your First Automobile

Posted: 02 Feb 2011 04:34 PM PST

A schoolmate of mine came to school one day grouchy about the public commute. He groused about the day by day jostle during rush hour, plus the long queues, particularly during inclement weather. Because of his folks’ limited economic resources, he can only fantasize about having an automobile, til somebody recommended he could get one by utilizing a student automobile loan.

He hesitated to purchase cars because either he has bad credit record or he had none at all. He didn’t know that reports could improve just as long as the scheduled payment is steady and on time. Loans for cars are in point of fact one of the best ways to improve your credit.

There are economic companies which service student-loans for cars because they are secured form of loans. Not only they make money on interest premiums but also they consider the automobile as an asset they can get once a borrower defaults.

Student automobile loans may vary according to one’s credit profile. Finance companies may give low interest premiums to people who have a good credit standing while it might require a co-signer with a little higher rates of interest to people who have nonexistent or bad credit history.

Students can get cars directly from certified dealers and they are willing to arrange premiums which are easy and light on the borrower. They would take into account the student’s wages and allowances so that the borrower will not be on pins and needles when payment is due.

A lot of financers know this and are very willing to take a risk on pupils working very hard to improve themselves and their education. Finance companies are also willing to lessen their standard approval requirements, making it quite a bit easier and convenient for pupils to obtain necessary loans. Some are even ready enough to support applicants who might seem to take risks in order to prove themselves worthy.

Now don’t hesitate to get a student automobile loan simply because you do not have a credit standing. Being employed can also assist with increasing your credibility in receiving loans. Always keep in mind that there are economic institutions who are ready to help you. You simply have to make sure to that you know how to control your personal finances so that you will not end up without a vehicle.

Mortgage market and interest rate commentary for Thursday July 16, 2009

Posted: 02 Feb 2011 01:58 PM PST

Mortgage market and interest rate commentary from Bruce Brown, CMPS with Pulaski Bank Home Lending and radio host of Dollars and Homes on KCMO Talk Radio 710 in Kansas City.

[Dopefish + Greg (and Nooya)] Saint’s Row 2 Co-op – Part 1 – Helicopter Race and Insurance Fraud

Posted: 02 Feb 2011 08:38 AM PST

Dopefish and Greg playing Saint’s Row 2 on Co-op, with Nooya on TS. In this part: Video games inside video games, helicopter races and insurance fraud. Audio might be a bit loud, be warned. Watch the full recording at: dopelives.com

Posted by Blogku at 7:18 AM

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