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Fred Said:

I have an 80/20 mortgage with two different linders and both are facing foreclosure how does that work?

We Answered:

If your getting foreclosed upon by both lenders, the property will be sold by the first, any extra that they receive from the sale will go to the second mortgage co. If the 2nd company does not receive the full amount of their loan depending on your state they may be able to go directly to you and sue you for the extra amount.

Geraldine Said:

Has anyone gotten themselves in over their heads with an 80/20 mortgage?

We Answered:

So you are tired of paying rent to your landlord? Ready to FINALLY own a home? Congratulations

Many people never own their own home because of fear. Maybe you have fear that you'll have to reveal credit problems to the lender and then get turned down. Maybe it's because you've rented for so long, you feel like there is no way out. Or that the housing market is going to crash.

It's time to put your fear aside. Learn why it is easier and cheaper to obtain home financing than at any time in history! You'll learn how you can get approved and FINALLY stop wasting thousands dollars every year on rent.

Here are the main reasons why you most likely have never attempted to become an owner:

1.) You might think that you need 20% down before a mortgage lender will even talk to you
2.) You might think that a couple of past credit mistakes will bar you from getting approved

Well, as you are about to discover, you're wrong on both counts. Let's examine some secrets that most renters don't know:

Renter-Turned-Owner Secret #1

You don't need a 20% down payment in most cases. - There are many federal, state and local programs that are specifically designed to help low-income families with little or no down payment to get into a home. If you are a first-time home buyer, you may qualify for special loan programs that will assist you in getting approved, even if you don't have the standard 20% down payment.

Renter-Turned-Owner Secret #2

Even people with credit problems can get approved. - Your credit rating isn't the only factor lenders take into consideration when loaning you money. They look at your down payment amount, debt-to-income ratio, and other factors. Especially if you can come up with more than the minimum down payment or provide some form of equity to borrow against, the lender can seriously consider loaning you the money to purchase a home.

Renter-Turned-Owner Secret #3

Some sellers are willing to finance you to purchase their home. - Some sellers may offer to finance you so that you can purchase their home, by using a seller take-back to secure a second mortgage loan.

Renter-Turned-Owner Secret #4

In some cases, the lender will offer to loan you the down payment too! If you have decent credit, and some other asset to borrow against (such as a car), your lender might be able to not only loan you the money to purchase the home, but your down payment also.

As for piggyback loans, given the current Fed Fund Rate at 5.25 it just no longer makes sense. There are plenty of product out that will allow you a single loan without having to pay Mortgage Insurance.

May I be the first to congratulate you on empowering yourself.

Best Regards,
Darren

Lloyd Said:

My mom bought a home with the mortgage 80/20 with 2 different banks. She lost her job and she're planning

We Answered:

She should try to sell the house if at all possible before the foreclosure happens.

Whatever money she owes for the house is still due to the banks no matter if she sells or is foreclosed on. Yes, the banks will come after her for what they are owed if they are not paid in full when the house is sold.

Good luck.

Laurie Said:

What interest rate can I expect on a 80/20 mortgage loan?

We Answered:

Probably in the low 7's

Lori Said:

What determines if the mortgage company will come after you if you walk away from a 80/20 mortgage?

We Answered:

It depends if you live in a recourse state or a non-recourse state. Recourse means that they can sue you in civil court. 2nd mortgages are pretty much ALWAYS recourse loans...even in non-recourse states. Even if you live in a non-recourse state, the amount of money that you stiffed the bank for is considered income and the bank will issue you a 1099 for that. Some people are hundreds of thousands of dollars underwater. How would you like to pay the taxes on that? Next time, buy a house you can actually afford. Rates are at all time lows and you STILL cannot afford your house payments.

Barry Said:

I have an 80/20 mortgage with low intrest rates will I receive a larger refund?

We Answered:

having a low interest rate on your mortgage means having less mortgage interest to write off on your taxes. Therefore, you will most likely get less of a refund than if you had a higher interest rate. However, the lower monthly payment that the low rate offers should more than offset the loss in tax refund. Hope this helps...