Mortgage and dosh loan MESS! Please give a hand...?
Question is, is it possible to collateralize a house they're already paying a mortgage on? Is this what you call a second/junior mortgage?
The problem is Scot's business have failed and the kith and kin is defaulting on the cash loan since Scot have no way to manufacture those payments. And this family is asking Scot to rate (lumpsum or installments) otherwise they'd lose the house. Does that sound legit? Am I missing something surrounded by this arrangement?
Scot has no track to pay right presently, although he surely wants to take-home pay them back, but I don't want them to grant Scot some false scenarios. And Scot have no communication with the ridge.
Thank you much!
I'm looking for rent to own house
It sounds like "the Family" have a 1st mortgage and a 2nd mortgage. My advice to the household would be to refinance, if possible as soon as possible, purely the balance of their existing mortgages into one loan. My reasoning for this is that i know that interest rates are greatly higher on 2nd mortgages and the combination might lower their overall mortgage payments. Scot might be a friend of the line and all but business is business. I would push him to win a loan HIMSELF to pay the own flesh and blood back. It is not do for the family to lose their home over his inferior business venture. Also I would recommend him that if he cannot met his obligations as agreed, he would be responsible for any deferred fees or penalties that "the Family" might incur because of his delinquency. I would loathe to see it go this far but i hold seen it plentiful times. Sue him in court for breach of contract/failure to pay cheque.
Source(s):
5 year loan officer/real estate agent.
Is within a contain on rental rate
Other Answers:
I am looking for forums that proffer
Okay, here is the deal--
If they had a mortgage and they enjoy decent credit and equity within the house, they could get a 2nd mortgage/equity queue of credit. That line of credit is considered a 2nd mortgage and it is record on the deed lately like the first mortgage be. They can indeed lose their house, either lender can settle on to forclose on the house for missed payments. Usually what happens is the first mortgage holder buys out the 2nd and next forcloses on the house.
If they got a 2nd mortgage, they probably get a checkbook, so they could have written a check and gotten dosh to give to Scott, but it be still a 2nd mortgage. Payments will be due just similar to the first mortgage, every month.
If they aren't getting enough to salary both, they should immediately contact the first lender and see if they can refinance beside both their mortgage and the equity line of credit. This might be difficult because they hold used all their equity within their house, so they are reborrowing for full value of the house and the sandbank might not go for it.
It would be grim for these people to lose their home because they tried to help out somebody out. I hope they can all find a solution.
They might also contact www.naca.com
It's a non-profit housing advocacy group and they do some refinancing. They are terribly much about population keeping their homes, so they might be able to relief you where a edge might be less willing to help.
Good luck!
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