There are some rather complicated areas involving who is in front of whom in terms of real estate transactions, and you need to know these, especially if your mortgage payments are in arrears. Most of us have at least a first mortgage, and many of you have second mortgages, as well. If those are the only encumbrance on your home, it is reasonably simple to keep track of where you stand on these security instruments. The first mortgage comes first; the second mortgage has equity only if the principal balance of the first mortgage is less than the outstanding balance on the first mortgage.<\/p>\n
These days, many first mortgages are “under water”. That means that the value of the dwelling is less than the principal balance of the mortgage note. It has been estimated that as many as one in four homes in America is in this position. I bring this up because some homeowners are trying to get a “short sale” approved to sell their home, move into a rental facility, and stop the noise of dunning calls from their mortgage Lender. The fact that there are so many homes “under water” and there is a high presence of second mortgages clouding resolution of the difficulties facing the home owner is a fact of our times. Many times the first mortgage lender will say “yes” to a diminished mortgage payoff, but the second mortgage lender will say no. The second mortgage lender, with no equity, has little to lose. Therefore, it is often the second mortgage lender who will prove the greatest obstacle in getting a short sale approved.<\/p>\n
There are a few other “wrinkles” which you may wish to know about. The first is real estate taxes. Real estate taxes take priority over mortgages. Without this framework, few cities and towns would be able to survive. Many of you may be aware of the situation in Milton where a homeowner has accrued several hundred thousand dollars in back taxes, and faces a tax sale which will obliterate much of the equity which a mortgage lender has in the property. This is a unique situation, and, perhaps, one which could have been avoided by a more aggressive course of action by the Town. Normally, if a Town or other municipality brings a serious real estate tax deficiency to the attention of the mortgage Lender, the mortgage Lender pays the taxes to maintain its secured position. I am not familiar with all of the facts in the current delinquency. All I can say is if you are a person behind in mortgage payment and taxes, it may be in your interest to have your mortgage Lender pay the taxes, rather than be left in the situation which appears to currently obtain. The interest rate on delinquent taxes is Fourteen (14%)per cent per annum.<\/p>\n
The last area which may be of interest is common area delinquencies for condominiums. A recent statute has made these items prioritized and Condominium Trustees can hold auction sales which knock out the secured position of Lenders. Again, if you are falling behind in this area, I urge you to contact your Lender, who may be willing to make these payments, too, to protect the Lender’s equity in your Unit.<\/p>\n","protected":false},"excerpt":{"rendered":"
There are some rather complicated areas involving who is in front of whom in terms of real estate transactions, and you need to know these, especially if your mortgage payments are in arrears.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[40,144,29,3,1],"tags":[],"class_list":["post-887","post","type-post","status-publish","format-standard","hentry","category-closing","category-condominium","category-mortgages","category-real-estate-law","category-uncategorized"],"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":886,"url":"https:\/\/blog.topbev.com\/?p=886","url_meta":{"origin":887,"position":0},"title":"Reverse Mortgages Revisited","date":"February 29, 2012","format":false,"excerpt":"There is probably more misinformation in existence about Reverse Mortgages than any other mortgage product in history..","rel":"","context":"In "closing"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":897,"url":"https:\/\/blog.topbev.com\/?p=897","url_meta":{"origin":887,"position":1},"title":"White House Lowers Refinancing Fees for FHA-Backed Mortgages","date":"March 8, 2012","format":false,"excerpt":"The second method of the Administration's recent acts to alleviate the down-trodden U.S. housing market applies to borrowers with FHA-backed mortgages. These borrowers will inflatable tent be able to refinance their mortgages to secure lower interest rates while paying a lesser up-front charge for the mortgage insurance premium. The White\u2026","rel":"","context":"In "closing"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":904,"url":"https:\/\/blog.topbev.com\/?p=904","url_meta":{"origin":887,"position":2},"title":"FHA Fee Increase Effective April 1","date":"March 13, 2012","format":false,"excerpt":"F.H.A. will more than double its upfront mortgage premium. This premium will rise from 0.75 percent to 1.75 percent. Although this is a substantial increase, in effect borrowers will roll this increase into the mortgage and avoid actually paying for this increase as a lump sum, out-of-pocket cost of borrowing.","rel":"","context":"In "closing"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":280,"url":"https:\/\/blog.topbev.com\/?p=280","url_meta":{"origin":887,"position":3},"title":"Refinancing Your Present Mortgage–Make sure that the Lenders, and Closing Agents, are Financially Able to Perform","date":"July 2, 2010","format":false,"excerpt":"In today's edition of the Boston HERALD, there is an article about a Borrower in Illinois, who recently refinanced his mortgage with a mortgage lender. The check which the refinancing Mortgage Lender sent to the person's then mortgage lender \"bounced\", and the former mortgage lender is now foreclosing on the\u2026","rel":"","context":"In "Mortgages"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3993,"url":"https:\/\/blog.topbev.com\/?p=3993","url_meta":{"origin":887,"position":4},"title":"First-time homebuyers given more options to buy a home by FannieMae and FreddieMac:","date":"December 10, 2014","format":false,"excerpt":"The lower down-payment requirement will allow more first-time homebuyers the opportunity to buy a home. Often the greatest hurdle for the first-time homebuyer is saving enough for a down payment. Many first-timers would try to save 20% of the purchase price that many lenders required. It can take a significant\u2026","rel":"","context":"In "closing"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":907,"url":"https:\/\/blog.topbev.com\/?p=907","url_meta":{"origin":887,"position":5},"title":"Bank of America\u2019s Exclusive “Deed in Lieu” Pilot Program","date":"March 27, 2012","format":false,"excerpt":"Bank of America launched an invitation-only \"deed-in-lieu\" pilot program. 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