Equity In Mortgage

Cody Said:

Can a debt collector physically show up to your home to collect on a home equity mortgage?

We Answered:

No. These guys bluff better than poker players or hustlers in a pool hall. You don't owe anything to the debt collector. You owe the retailer or merchant. The retailer/merchant sold your debt to the collector for pennies and now the debt collector is trying to collect from you so they can make a profit for the buy off the retailer you are dissing.
loveyalaterseeyabye/bdi

Brittany Said:

equity or registered mortgage............?

We Answered:

in equitable mortgage (in olden days known as english mortgage) you just hand over the title documents to the lender. he merely posses the document and the property is in your control only. there is no registeration charges. but in registered mortgages you have to go to the sub registrr office and execute it and the fees for the documents is considerable. and this mortgage will reflect in the villangam certificate or encumberance certificate where as in equitable mortgage this will not be known to any one others .

Jesse Said:

Is home equity mortgage interest deductible for home office expenses?

We Answered:

Be careful with that, its not really worth to pursue it. You can get caught and then have problems with IRS.

The amount you talk about is so small, you shouldn't bother really.

Douglas Said:

What exactly is Mortgage Equity Withdrawal (MEW)?

We Answered:

Basically you're right, the value of your house increases, whilst at the same time the value of your debt (mortgage) decreases over time as you pay it off.

So, for example, you start with a £50000 house and a £50000 loan. After 10 years you have paid off £10000 and the value of your house has risen to £60000. This means that you have an equity gap of £20000 (the difference between the amount of your loan and the value of your house, in this case £60000 - £40000).

Lenders will allow you, in most cases, to borrow against this value, that's where the cold hard cash comes from. Basically the lender accepts that you have a £40000 debt still outstanding but also accepts that you 'own' a £20000 share of your house. They will lend against your share.

When you take a mortgage the bank/company secures the debt by thinking 'right, if the borrower can't pay the loan back, we'll take the house and sell it to get the money back - that's called a repossession).

Because of this, when you still have the first loan (your original mortgage) the bank/company has first dibs on the house, but only to the value of your outstanding debt to them. After that the second company, that you release your equity through, has second dibs and will take the remaining £20000, or however much you borrowed. This is called a 'notice of interest'. The banks/lending institutions sort this out themselves and all notify each other when equity/lending had been made against a home.

Please also be aware that I have not provided you with any advice in this reply, I have simply presented the facts as they stand, as it would be illegal for me to advise you to act in any way

Barry Said:

Sweat Equity Mortgage Loan question?

We Answered:

I would recommend your sister set the contract up where she would pay a 6% seller concession towards the closing costs.

Example:
Home Price: 250K
Seller Contributes a 6% concession: 15K for closing.
Upon transfer of transaction remaining gift from sister of 5K to you.

With the sales price, and the remainder of what she will make off of the house she can give you the remaining as a cash gift;

Generally, you do not need to file a gift tax return unless you give someone, other than your spouse, money or property worth more than the annual exclusion ($11,000 in 2002, 2003, 2004 and 2005; $12,000 beginning in 2006) for that year. Although a return may be required, no actual gift tax will become payable until the cumulative lifetime taxable gifts exceed the applicable exclusion amount. The donor is primarily responsible for the payment of the Gift Tax.

I hope this answered your questions!
Regards,

FinanceYourWay.com

Vera Said:

Pay off home equity mortgage or continue to use the interest for tax deductable reasons?

We Answered:

If your tax deduction is the only reason you have this balance, you are really wasting money. For every dollar in interest you pay, you only get 25 cents back as a tax refund. The math doesn't work. Pay it off and be done with it.

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