NLIC.org

Gladys Said:

Why would a mortgage lender (bank) decide not to foreclose and charge-off a property instead?

We Answered:

She signed a deed in lieu of foreclosure. It's better for her in the long-run.

Richard Said:

Can a mortgage lender,ask your bank for details of your earnings ?

We Answered:

They cannot ask without your written permission. Whether they accept your word or not is entirely up to them.

Virginia Said:

What happens to your mortgage if the lender/bank goes bust?

We Answered:

It get's sold on to another lending institution. It doesn't go away. Unfortunately!

Deanna Said:

Is it better to use a bank or mortgage lender when applying for a home loan?

We Answered:

A bank or better yet a credit union. A credit union is not predatory like a mortgage lender or even some banks can be.

Claudia Said:

Mortgage from Mortgage lender or Bank?

We Answered:

Private lenders (ie, private money) typically get higher interest rates than a bank. Prime + whatever does not apply.

Generally people use private money for 3 reasons:
1) Money is quicker to get then from a bank.

2) Better mortgage brokers qualify borrowers re credit checks, loan to value, ability to carry, and registering the lien with the city, (all these things a bank also does). But a broker may not follow the loan formula banks use for lending, ie, your monthly loan payment should be no more than roughly 1/5 of your monthly income.

3) Brokers may not require as much asset/liablity info most banks require (ie, dragged over the coals).

This might sound risky to a private lender, but private money also uses a simple first trust/max 65% loan to value formula that - even in a depressed economy - the lender would not loose money if they had to take over the property and sell for the note. A lawyer also drafts and closes the mortgage.

btw, I loan money for private mortgages - anywhere from $50K to $1mil.
I use the above 65% formula, get 12% on my money, and sleep ok.

Joe Said:

Anyone here work for a bank or mortgage lender?

We Answered:

Mortgage companies look at your current situation. In their eyes there is currently the possibility that you won't have a job in a fee months time. At the moment lenders are more risk aware and as such it will likely cause problems with you getting a mortgage deal.

However, if you can get a letter from your employer to confirm that the job will be permanent in a few months the lender may look more favourably at your application.