NLIC.org

Virginia Said:

is it really so sinful not to have a mortgage?

We Answered:

Does it really matter what everyone else thinks? There is no law saying that you should have a mortgage by 27 and if your friends are judging you on your lifestyle then you have to ask yourself why...are they just jealous? At the end of the day, as long as you are happy with your situation then that is all that should matter. And just because 'everyone' does things one way doesn't mean that that is the right way for you. It is your life so only do what you feel comfortable in doing because it is you that will have to live with the concequences!
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Alex Said:

Would a short sale be an option? Can I use the private mortgage insurance?

We Answered:

You must have your lender approve the short sale. If you tried to sell it for less than you owe, the title search will turn up the lender, who will be notified of the sale during escrow. They will then reject the amount of money necessary to clear the title and the deal will fall through. The only way you could do this is to come up with the $8000 (or whatever the outstanding payoff would be after all escrow fees, real estate agent commissions, etc.) and submit that into escrow prior to closing, as directed by the escrow instructions.

With a short sale, you must have a hardship that prevents you from continuing to pay for the property. And, forced relocation may be a valid hardship. You would have to check with your lender. But, "I owe more on the house than what it's worth" is not a valid hardship.

If approved, the bank will then set a minimum sales price for the home and direct you to list it for sale at that price. If you do get offers, the acceptance of the offer is contingent on whether the bank says it's okay. They may even instruct you to relist the house at a higher price if they think the current price is too low to accept.

Also, be prepared to have to go into default in order for them to approve the short sale. Many lenders do this so that, if the property sits in short sale limbo too long without any offers, they just foreclose on the property and get it over with.

Contact your lender to inquire about a short sale hardship package (what you have to submit for short sale approval). If the bank rejects the short sale, you have two options: rent the place out (hire a property manager), or walk away and let the bank foreclose.

Pamela Said:

Home buying time-table...?

We Answered:

The time is now! I started on October 4th hopping by December 4th When my lease is up i was already out. Well Today is November 20th and I still haven't found my home, the good thing is my loan is already approved, the only thing missing is the house and the long wait between negotiations and appressal.

My advise is, get pre-approved or approved FIRST, then start house hunting. The most important thing is to get approved for the best loan before the hunt, which is the easiest part.

My third application took 30-minutes over the phone with my bank and within 4-business days I was sort of pre-approved. My original loan amount was for $300,000 which got decline by the underwritter, so I had to talk to him and settle for a $260,000 loan., But a week later, it was finally approved.


Since my original loan amount was decline, I had to look for homes withing that price range in another part of the state. Where I currently live, Homes start at $300,000 and they tend to be small, and needing a lot of work.

My bank was my third and last lender, after trying with Credit Suisse which gave me 100% financing at 5.375% then change the terms to 7. 850% for 3-years fixed and 27-years variable without notifying me.

The second attend was with Quicken Loans, which was a complete waste of time. BTW, if you valued your sanity, AVOID Quicken Loans!

A fixed interest mortgage is the best to go, you don't want to go for one of those "Interest Only" you hear so much about. Thouse will lead you to a foreclosure within 3-year.

For a 100% financing loan your mortage payments will start the first day of the month 2-months later, mine is set for February 1st. 2007. The monthly payments will include Principal, Interest, Taxes and Insurance.

Jared Said:

Mortgage Company Complaints?

We Answered:

You were supposed to hire an insurance agent and buy an insurance policy when you bought your home. You could have chosen anyone. If you picked a local State Farm office, they would have already written you a check. But the lender is named as Loss Payee on the policy so the money is somewhat under their control. So you don't leave town and leave them with a burnt wreck. The frustrating thing is that you are still expected to make your mortgage payments while you wait. Go back to your agent and find out how much money was sent and where and ask them to call for you.
The only other thing i can think of is that the mortgage company offered you a "great deal" if you used their own insurance company and now you wish you hadn't .
An attorney will charge you $240 for an hour. That same attorney will offer you a "new client" offer and write you a letter (very short) for $25 threatening legal action if you don't get your money. Look for someone just out of law school. They would be thrilled to see you.

Kelly Said:

Mortgage PMI Insurance?

We Answered:

You need to check the terms of the loan agreement which you signed. Some lenders require that you use their PMI provider, and others will accept one of your choice, subject to their approval.