Posted by Moishe Alexander:
A mortgage provides an interest in land as security for a loan or other obligation. It is the most common method of financing real estate transactions. The mortgagor is the party transferring the interest in land. The mortgagee, usually a financial institution, is the provider of the loan or other interest given in exchange for the security interest.
Mortgages can be quite complex. Be sure that you fully understand all of the conditions prior to signing any documents. Contact a Real Estate Lawyer for a complete mortgage law overview.
Normally, a mortgage is paid in installments that include both interest and a payment on the principle amount that was borrowed. Failure to make payments results in the foreclosure of the mortgage. Foreclosure allows the mortgagee to declare that the entire mortgage debt is due and must be paid immediately. This is accomplished through an acceleration clause in the mortgage. Failure to pay the mortgage debt once foreclosure of the land occurs leads to seizure of the security interest and it's sale to pay for any remaining mortgage debt. The list below are topics pertaining to mortgages and foreclosure:
* The foreclosure process depends on state law and the terms of the mortgage. The most common processes are court proceedings (judicial foreclosure) or grants of power to the mortgagee to sell the property (power of sale foreclosure). Many states regulate acceleration clauses and allow late payments to avoid foreclosure.
* Three theories exist regarding who has legal title to a mortgaged property. Under the title theory title to the security interest rests with the mortgagee. Most states, however, follow the lien theory under which the legal title remains with the mortgagor unless there is foreclosure.
* The mortgagor and the mortgagee generally have the right to transfer their interest in the mortgage. Some states hold that even when the purchaser of a property subject to a mortgage does not explicitly take over the mortgage the transfer is assumed. Mortgagees employ due-on-sale and due-on-encumbrance clauses to prevent the transfer of mortgages. Read more HERE
Monday, June 22, 2009
Thursday, June 18, 2009
Private Mortgage Insurance (PMI) New Law Requires Lenders to Cancel PMI
What Is PMI?
PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.
Benefits of PMI
PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to homeownership. With this type of insurance, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.
New PMI Requirements
A new federal law, The Homeowner's Protection Act (HPA) of 1998, requires lenders or servicers to provide certain disclosures concerning PMI for loans secured by the consumer's primary residence obtained on or after July 29, 1999. The HPA also contains disclosure provisions for mortgage loans that closed before July 29, 1999. In addition, the HPA includes provisions for borrower-requested cancellation and automatic termination of PMI.
Why a Change in PMI Requirements?
In the past, most lenders honored consumers' requests to drop PMI coverage if their loan balance was paid down to 80 percent of the property value and they had a good payment history. However, consumers were responsible for requesting cancellation and many consumers were not aware of this possibility. Consumers had to keep track of their loan balance to know if they had enough equity and they had to request that the lender discontinue requiring PMI coverage. In many cases, people failed to make this request even after they became eligible, and they paid unnecessary premiums ranging from $250 to $1,200 per year for several years. With the new law, both consumers and lenders share responsibility for how long PMI coverage is required. Read more HERE from Marty Lapedus
PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.
Benefits of PMI
PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to homeownership. With this type of insurance, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.
New PMI Requirements
A new federal law, The Homeowner's Protection Act (HPA) of 1998, requires lenders or servicers to provide certain disclosures concerning PMI for loans secured by the consumer's primary residence obtained on or after July 29, 1999. The HPA also contains disclosure provisions for mortgage loans that closed before July 29, 1999. In addition, the HPA includes provisions for borrower-requested cancellation and automatic termination of PMI.
Why a Change in PMI Requirements?
In the past, most lenders honored consumers' requests to drop PMI coverage if their loan balance was paid down to 80 percent of the property value and they had a good payment history. However, consumers were responsible for requesting cancellation and many consumers were not aware of this possibility. Consumers had to keep track of their loan balance to know if they had enough equity and they had to request that the lender discontinue requiring PMI coverage. In many cases, people failed to make this request even after they became eligible, and they paid unnecessary premiums ranging from $250 to $1,200 per year for several years. With the new law, both consumers and lenders share responsibility for how long PMI coverage is required. Read more HERE from Marty Lapedus
Wednesday, June 17, 2009
Mortgage Applications:Demand for Refinancing Shrinks, MBA Says
Posted by Marty Lapedus
Demand for mortgages plummeted last week, pushing the index tracking mortgage applications down to a seven month low, even as average rates for a 30-year fixed mortgage moderated, a weekly report said Wednesday.
Loan applications decreased 15.8% in the week ending June 12, according to the Mortgage Bankers Association, who have been conducting the survey since 1990. Meantime, the Purchase Index fell 3.5%.
The average contract rate for a 30-year fixed-rate mortgage decreased from 5.57% in the prior week to 5.50%. This is only the third straight week that mortgage rates have been above 5%; as recently as May 15, the average rate was 4.69%.
Over the past four weeks, the index tracking loan applications has fallen by an average of 13.5%, even as the four week moving average for purchases has edged up 0.7%.
Read more HERE
Demand for mortgages plummeted last week, pushing the index tracking mortgage applications down to a seven month low, even as average rates for a 30-year fixed mortgage moderated, a weekly report said Wednesday.
Loan applications decreased 15.8% in the week ending June 12, according to the Mortgage Bankers Association, who have been conducting the survey since 1990. Meantime, the Purchase Index fell 3.5%.
The average contract rate for a 30-year fixed-rate mortgage decreased from 5.57% in the prior week to 5.50%. This is only the third straight week that mortgage rates have been above 5%; as recently as May 15, the average rate was 4.69%.
Over the past four weeks, the index tracking loan applications has fallen by an average of 13.5%, even as the four week moving average for purchases has edged up 0.7%.
Read more HERE
ELEMENTS OF THE LAW TO ASSIST BORROWERS CURRENTLY FACING FORECLOSURE: Pre-foreclosure Notice
This provision of the law requires lenders to send a notice to borrowers of high-cost home loans, subprime home loans and non traditional home loans at least 90 days before the lender may commence legal action against the borrower. The notice must advise borrowers that they are at risk of losing their home, and that, if they are experiencing financial difficulty, they should consider contacting a housing counselor to help reach a resolution with their lender. The lender will be required to list in the notice the names and telephone numbers of at least five HUD-approved housing counselors or other housing counseling agencies designated by the Division of Housing and Community Renewal (DHCR) serving the region where the borrower resides.
More from Marty Lapedus here
More from Marty Lapedus here
What are anti-deficiency laws?
Some states have anti-deficiency laws which protect purchasers of residential real property used for his/her primary residence pursuant to a purchase money mortgage. In the event that the purchaser fails to make the mortgage payment and the property is foreclosed (title taken by the lender through a legal procedure) and sold to pay the mortgage, a deficiency between the sale price and the outstanding balance of the mortgage could occur.
Under anti-deficiency laws, if the mortgage is a purchase money mortgage for the purchase of a dwelling occupied by the purchaser, the purchaser will not be held responsible for any deficiency the lender can only recover the property and the proceeds of a subsequent sale, the purchaser does not pay any deficit between the sale proceeds and the outstanding loan balance.
Marty Lapedus is an expert in law read more here
Tuesday, May 19, 2009
A short Bio
Martin “Marty” Lapedus is a vastly knowledgeable financial advisor in Toronto, Canada with over 40 years of experience. He is the owner and head of his Toronto-based financial consulting firm Martin Lapedus. Mr. Lapedus’ diverse industry experience includes hedging with financial futures, risk management, negotiating debt and equity offerings, financial statements, corporate finances, personal returns, and budget and investment counsel.
Launching his personal consulting business in 1967, Martin Lapedus has since built an esteemed reputation in the financial community for repeatedly delivering outstanding consulting services to his clients. With such complex problems facing financial systems today, Martin Lapedus’ extensive background in interacting with senior financial managers and corporate officers and undoubted commitment to customer service make him uniquely qualified to handle every situation with immense care and concern.
Martin Lapedus began his successful career after attending the Institute of Chartered Accountants of Ontario, the qualifying and regulatory body of Ontario’s 33,000 Chartered Accountants and 5,000 Canadian students. Marty Lapedus earned his license as a Chartered Accountant from the Institute in 1967.
Both a professional and a philanthropist, Martin Lapedus is highly dedicated to the betterment of his local and global community, frequently donating to the Canadian Cancer Society, The War Amps, the United Jewish Appeal, and Chabad Flamingo. Martin also strongly supports various tree planting initiatives worldwide.
Although much of his time and energy is spent helping his clients achieve financial success, Marty Lapedus still devotes his free time to enjoying the theatre, watching films, and reading. Lapedus stays active by playing many of his favorite sports like golf, squash, and racquetball.
Marty Lapedus is a resident of Thornhill, Ontario, Canada.
Launching his personal consulting business in 1967, Martin Lapedus has since built an esteemed reputation in the financial community for repeatedly delivering outstanding consulting services to his clients. With such complex problems facing financial systems today, Martin Lapedus’ extensive background in interacting with senior financial managers and corporate officers and undoubted commitment to customer service make him uniquely qualified to handle every situation with immense care and concern.
Martin Lapedus began his successful career after attending the Institute of Chartered Accountants of Ontario, the qualifying and regulatory body of Ontario’s 33,000 Chartered Accountants and 5,000 Canadian students. Marty Lapedus earned his license as a Chartered Accountant from the Institute in 1967.
Both a professional and a philanthropist, Martin Lapedus is highly dedicated to the betterment of his local and global community, frequently donating to the Canadian Cancer Society, The War Amps, the United Jewish Appeal, and Chabad Flamingo. Martin also strongly supports various tree planting initiatives worldwide.
Although much of his time and energy is spent helping his clients achieve financial success, Marty Lapedus still devotes his free time to enjoying the theatre, watching films, and reading. Lapedus stays active by playing many of his favorite sports like golf, squash, and racquetball.
Marty Lapedus is a resident of Thornhill, Ontario, Canada.
Monday, November 10, 2008
Martin Lapedus Provides Financial Consultation for Various Deals with Canadian Funding Corporation
Financial Consulting: Marty Lapedus
Mortgage Broker: Bryce Coates
Property Inspections and Evaluations: Jan LuistermansFunding by: Moishe Alexander / Canadian Funding Corporation
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