equity loan: Mortgage Forgiveness
- 05/18/20 09:04 AM
During the mortgage meltdown that caused the Great Recession a decade ago, some homeowners lost their homes to foreclosure or constructed a short sale to get out from under the debt. In most of the cases, the lenders forgave all or part of the debt owed them. Similarly, in the early 90's after the failure of the Savings & Loans in the U.S., thousands of homeowners lost their homes in the same way but back then, the policy of the IRS was to consider the forgiven debt as income. Today, it is still considered income which means that a homeowner could lose … (0 comments)
equity loan: One More Reason to Refinance
- 04/30/20 04:27 PM
Taking cash out of the equity of your home could be a legitimate way to fund a temporary cash crisis now or to have it on-hand if the need arises. Most homeowners can pull out the difference in 80% of the fair market value of their home and what they currently owe. The most frequently cited reasons for refinancing are to lower the payment, eliminate the private mortgage insurance, combine mortgages, consolidate debt, convert an ARM to a fixed rate mortgage, remove a person from the loan or to take cash out for another reason. The option of using your … (0 comments)
equity loan: Increase Your Marketability
- 06/13/16 01:56 PM
The seller has three tools available to affect the marketability of their home: price, condition and terms. Price is the easiest to adjust for the competing properties, amount of inventory or market conditions. However, lowering the price is not necessarily the best decision when trying to maximize the proceeds of sale. If a home is in poor or outdated condition, updating can be done to make it show favorably with other homes that are currently on the market. Sometimes, sellers rationalize not doing the work by saying they believe the buyers would rather make their own choices. The truth is that most … (1 comments)
equity loan: Your Home May Be Worth More Than You Think
- 05/15/16 08:22 AM
Real estate lost a lot of value during the recession but most areas have rebounded considerably. In some cases, the homes are worth more than they were before the housing bubble burst. The dynamics are classic for this type of market: inventories are low, mortgage rates are low and demand is high. All price ranges are on the rise with some at an even higher rate because the short supply is causing competition among buyers. Another reason many homeowners' may have more equity is simply not staying current with what is going on in the market. In a recent FNMA … (2 comments)
The more equity in your home, the more options you have. Since equity is determined by the difference between value and what is owed on a property, when homes lost value during the Great Recession, homeowners’ equity decreased. Negative equity occurs when the value is less than the mortgage owed. According to CoreLogic, 91% of all mortgaged properties have equity and only 4.4 million properties remain in negative equity at the end of the second quarter in 2015. A homeowner, who qualifies, can release part of their equity by refinancing the existing loan and taking out additional cash or by getting a … (1 comments)
equity loan: The Difference Between A 2nd Mortgage and Refinancing
- 07/19/11 06:17 PM
The Difference Between A Second Mortgage And Refinancing When it comes to credit and loans, there are so many terms and such a wide variety of options that might leave you dazed and confused. You may ask what the difference is between a second mortgage and refinancing in on an existing mortgage. Basically a second mortgage is taking out a new loan on your house while re-financing is just reassigning the terms of your current mortgage for any number of reasons. With a second mortgage, you will have to make two separate mortgage payments every month. With a re-financed mortgage, you … (2 comments)
During the mortgage meltdown that caused the Great Recession a decade ago, some homeowners lost their homes to foreclosure or constructed a short sale to get out from under the debt. In most of the cases, the lenders forgave all or part of the debt owed them.
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