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Juanita Said:

DOES ANYONE KNOW ABOUT A CONTINGENCY RESERVE FOR A HUD HOME?

We Answered:

Usually it means the lender wants to see that you have enough money in the bank to take care of any repairs that would make the home uninhabitable. Typically this is used when HUD homes are in major disrepair. They want to make sure you can actually live in the home, and that you haven't tapped out every last dime you have to buy the house.

Sometimes they are held in an escrow account with your lender. Othertimes, they just want verification that you have a bank account with at least $x amount of money in it. The $x amount varies depending on the price of the house and cost of needed repairs.

Ashley Said:

What type of lawyer do I get to Sue a mortgage comapny?

We Answered:

Any real estate attorney. A contracts attorney would be fine as well. Keep in mind though, the going rate for a lawyer these days is $250 and hour. So that could make it expensive quickly.

I would suggest you contact the state attorney generals office. They handle these cases often, and they do it for free.

Ethel Said:

Can I drop my HUD insurance on an FHA loan after a certian period of time?

We Answered:

You have to pay down 20% from beginning balance or have that much equity built up over the period of time you've owned it.