NLIC.org

Patsy Said:

Will the bank let me borrow money off my house?

We Answered:

There is no rule that you can't refinance a home that has already been refinanced. If you currently have a $20K mortgage then you can most likely do a cash-out refinancing (assuming property values haven't dropped too much). Check with your local bank or broker to see if you qualify to refinance your current mortgage into a 60-65K mortgage.

Two additional points I would make: (i) getting a HELOC or second mortgage in this economic environment is probably going to be very tough and even if you could do it, very expensive; (ii) its easier to do a refinancing on a primary residence than it is on a second home. Once you move out of your home and try to refinance it, the difficulty level goes up exponentially.

Yvonne Said:

Mortgage Foreclosure: Paid reinstatement amount 2 days late?

We Answered:

you where 3 months behind
You made a commitment that it would be paid by said date
You missed that date
You are being fined for missing that date
They have been good in that they gave you terms that you agreed to but did not live up to those terms whether that be a day or 2 days.
You did not abide by the contract now live with it
( I myself cannot see how someone cannot make one payment over 3 months)

Katherine Said:

Seniors: You get a lot of free things because you have reached your Golden Years. What do you like best?

We Answered:

discounts at the grocery store are my favorite.

Eleanor Said:

Reverse mortgae lien?

We Answered:

I am presuming the tax liens are junior to the reverse mortgage. If not, some ones head is going to roll at the title insurance company.

Was the house separate property of your late father in law or did he and your mother in law own it? And how? Joint tenants, entireties, community property? (These are subtle but important differences.)

If your late father in law is the only taxpayer on the lien, your mother in law is not personally liable except for "her" years.
If your father in law AND mother in law owned the house a joint tenants, your father in laws interest evaporated when he died and the survivor is entitled to any sale proceeds after payment of the years she is on the lien. If it was his separate property, then IRS would get the money.

You might consider consulting with attorney about the potential for turning the property into a rental. If the mortgage can't be called until the property is sold or your mother in law dies, you may have an income source.

Sandra Said:

Reversed mortgaged home....to a trust.?

We Answered:

A reverse mortgage will no longer belong to your Grandmother upon her death - unless so specified under the terms of her reverse mortgage. Normally reverse mortgages only pay until the death of the lien holder - or until a specified time transpires prior to the death of the lien holder. At that time, the lender takes ownership of the home.
Take the contract for the mortgage to a CPA, or a Real Estate Attorney to help you sort through the terms of the loan.

Oscar Said:

What is reverse or negative equity and where is the middlepoint?

We Answered:

You miss one important fact: EQUITY IN ITSELF IS NOT MONEY. The value of a house can fluctuate (as many people are painfully finding out), and the equity does so.

The problem is that with low down-payments, a person who wants to "flip" a house, hoping it will have increasing equity is much like a margin buyer of stocks. The margin percentage is a leverage factor. For example, I buy the $200,000 house for $ 10,000 down and a $ 190,000 mortgage. If the house increases to $ 250,000 in value, your equity has increased by 60000, but the profit on the investment (assuming there are not many payments between purchase and sale) is $50,000 on a $ 10,000 investment.

Financially, what you said may be true. The process works in reverse. If the "flipper" above house fell to $ 150,000, he has a loss of $ 40,000 on his investment, since the sales would be applied to the mortgage.

But if you live in a house, you may want to think twice. You lose your equity, but what are you going to buy the next house with? I hope you have good looks. Also, your credit report is about as attractive to a mortgage investor as a dead skunk in his refrigerator. Third, at least you do have a house. If you compare the cost of the mortgage to the fair market value of renting the house, you are probably "saving" money. Lastly, unless we all go to the dogs, unless there is something wrong with the house or its location, value should be going up; although it may take a while.