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Priscilla Said:

Got a FHA loan. Q about Taxes and Insurance?

We Answered:

I can answer this question very clearly for you. I have done many FHA loans over the years. You are talking about 2 different insurances. The FHA insurance is insurance that covers the lender in case you default on your loan. It has nothing to do with protection for the home. FHA requires that you have this insurance, the only way around it is if you take a term for less than 15 years and have at least 20% down. The other insurance is homeowners insurance, which covers the home itself. You will have to get this as well or a lender will not give you a loan. The premium for the year is collected prior to closing. Your realtor was right in regards to the good faith estimate. All that is is to check if the home is located in a flood zone, if so, you will need to purchase flood insurance as well. If you need any other clarifications, feel free to email me. I don't know who your mortgage consultant is, but he/she should be explaining this to you!

Marlene Said:

Mortgage legal only for half property?

We Answered:

If you default you lose any equity in the home. I would go to county clerk and get a copy of the deed to make sure the house is held on lien (not always is this done). If the house isn't liened then they only have so long to go after your husbands estate (after the statue of limitatuions runs out for your state) they simply don't have any recourse.

I assume you don't want to lose your equity...As for teh lot issue, you need to resolve that one way or another. Further if the note is in his name then the mortgage would be in his name. I think you mean the deed is only for 1/2 lot, well that's that deed! The deed is what you own (which is probably in your name and his), the note with what he owes (which probably has a lien on your deed). You can chec with the title company. If you've maintained this 1/2 lot next to your home for enough years you can claim homestead thorugh a lawyer and get that deed free (but if theirs a lien on that, hmmm).