agreeing to forgive any shortfall between the sale price and the mortgage balance. This approach avoids a damaging foreclosure entry on your credit report. You still may face a tax liability on the amount of debt forgiven. Consider consulting a financial advisor, accountant, or ...
This is why it’s essential to understand the terms of your mortgage, particularly the pitfalls of “nontraditional” loans. In this article, we'll look at each of the many different types of mortgages, explain all of those confusing terms like escrow and amortization, and break down the ...
Mortgage forbearance is an option that allows borrowers to pause or lower their mortgage payments while dealing with a short-term crisis, such as a job loss, illness or other financial setback. This can help protect struggling borrowers from becoming delinquent with payments, as well asavoid forec...
Your mortgage servicer is the company that you make your payments to. This may or may not be the same as the lender you closed your mortgage loan with. When Do You Need An Escrow Account? Whether you need to have an escrow account can depend on yourtype of mortgage, the amount of eq...
Who caused the subprime mortgage crisis? The blame can be placed on multiple bad actors including predatory lenders (those who offered mortgages to people who could not repay them), credit rating organizations who turned a blind eye and the mortgage-backed security industry at large. Why is subp...
As part of your homebuying plans, you'll want to focus onraising your credit scoreand increasing your savings. A higher credit score helps you qualify for a lower mortgage rate, and with more money you can make a bigger down payment. By paying more upfront you canavoid private mortgage ...
How to Avoid Getting Your Mortgage Denied There are many ways buyers can get their mortgage preapproval or final approval revoked before closing on a home. Here are the most common mistakes borrowers make after being pre-approved that must be avoided at all costs!
Can you avoid escrow? Some lenders will allow you to pay the taxes and insurance on your own, making you responsible for saving the funds and paying on time. Banks generally use the loan-to-value (LTV) ratio to determine if your mortgage loan will require an escrow account, and borrowers...
The real estate transaction could be held in escrow such that the sale wouldn't be completed until the buyer obtains financing or a mortgage from a bank. Also, the buyer could have difficulty securing the necessaryinsuranceand other policies needed to complete the transaction. If the buyer doesn...
A mortgage is a loan used to purchase or maintain real estate including houses and commercial properties. Mortgages help buyers afford real estate they couldn't buy in cash.