Subordination, Meet Scott Schang, Bad News Mods, Suspicious Sources?….
Happy Friday everyone. I’m back with our weekly update of content from the web’s best consumer mortgage blog: Mortgages Unzipped. Enjoy!
“…when someone refers to a subordination, they are referring to a process involving second mortgage on a property. If you are interested in refinancing your home and you have a second mortgage, you will need to get a subordination agreed to by the lender who holds the second mortgage.”
I enjoyed writing a post introducing our newest contributor, Scott Schang
“His (Scott’s) unique perspective into real estate has been developed from a diverse industry experience that spans positions as a loan processor, loan officer, office manager, owner of a mortgage brokerage, real estate agent and real estate broker.”
“Loan modifications have been fading in and out of favor since the idea was floated that the federal government could pick up a portion of the tab for lenders being willing to grant them. modification is a change to the terms of the mortgage to reduce the principal, forgive some interest, or drop the interest rate. Basically, anything that changes the terms of the original note. Banks have been slow to grant them
“Here’s the rub. Your interest rate will not be determined until after you have been approved for your home loan.
In most cases, those in the market to purchase a home can not secure an interest rate until the offer has been made.”
“I had a client case not too long ago where in every month’s bank statement for the past six months we saw deposits that were not from the borrower’s income source. When we inquired about this we were told various things from “I got a gift from my parents” to “I took a cash advance on a credit card” and even “I made a loan from my 401k account.”
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