NLIC.org

Wayne Said:

Where can I look to find a private mortgage lender?

We Answered:

A private lender would work for you for ~10% but *NOT* with no money down + low credit score + recent bankruptcy.

Best thing is to save up some $ first. That's really your only way. Or find some $ to put down from friends/family.

Evelyn Said:

I am going into foreclosure. A private lender has a 2nd mortgage on my property. What will happen to that?

We Answered:

The first mortgage company has to share any available proceeds---after getting their own money-- with the second lien holder.

If the sale is not enough to satisfy the debt, the second lien holder may pursue you for the remainder.

Sergio Said:

mortgage with a private lender under foreclosure?

We Answered:

The process of a foreclosure is the same for a bank or a private beneficiary. 2 months behind is a little quick to start talking about foreclosure.

The link below can get you in touch with free resources that can assist you.

Best of luck

Ramona Said:

parents acting as private mortgage lender?

We Answered:

This is fairly common. It works the same way as you would had you applied for a bank loan. You draw up an agreement/contract with the interest rate, amount to be borrowed, a date the note is due and payable, late fees if any. All parties should sign this agreement.

Take this signed contract to a local licensed escrow agent. There are some states that use attorneys as escrow closers. You will find escrow officers in your local telephone book.

This is the same procedure that a real estate and loan agent would do, called open an escrow for recording and title work.

Once this signed contract has been taken to the escrow closing agent, this agent will then prepare Escrow Instructions based on your contract signed by all parties. Everyone will then be required to sign these Escrow Instructions. The escrow closing officer will then assist you in finding a local licensed title company for the necessary recording of deeds and notes against the property.

The property will be in your and your girlfriends name. You will be required to pay taxes and insurance when required. Your escrow closing agent will be of assistance in this matter as to when each of these things would be required to be paid.

You and your girlfriend should sign some type pf contract as to how to divide the property in the event things don't go the way you expect. This is important as our laws are geared toward married couples as oppose to girl/boyfriends. It is better to do it now before the finger pointing and yelling start.

These two companies will make sure all the proper documents are signed as well as the legal laws of your state are observed for any real estate transaction.

The title company will record a note (Lien) against the property in favor of your parents. They may keep the note until final payment is made, sell the note to someone else that purchase real estate mortgage notes.

You and your girlfriend would be required to pay your parents the monthly principal and interest payment as per the note recorded against the property.

The other thing is that since this note will be recorded against the property and your parents are acting as the lender they, like any other lender with a note against the property may foreclose for non-payment of the monthly mortgage payment.

You may refinance the house anytime you desire, however, the note against the house in favor of your parents must be paid off completely.

On a mortgage loan there are normally transfer fees charged as well as county taxes that are prorated between the buyer and seller. There are no taxes between your parents and yourself, if that is your question, as you are borrowing money from them. This is a different situation.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

Josephine Said:

What should my concerns be engaging in a private mortgage as the lender?

We Answered:

your biggest concern should be not getting repaid. have you done a credit check on the buyer? will you be filing mortgage papers with your local gov't office? your contract/mortgage should be drawn up by an attorney to ensure you are protected as much as you can be.

Stephanie Said:

Who pays the discharge fee, the borrower or lender in a private mortgage?

We Answered:

Whoever is filling out the DM form.