attorney who can provide hard money for 2nd mtg

Can you settle a second mortgage?

Second mortgage settlement is much like credit card settlement. The lender and the borrower will have to come to an agreement that the mortgage holder/lender will accept money less than the outstanding balance of the loan. Experts say this happens when your home is “underwater” or has negative equity.Mar 3, 2017

What happens if you don't pay your 2nd mortgage?

When you don't make payments on a second mortgage, second mortgage lenders can foreclose on your property. But because they're “second” in line to get paid, they could get nothing from the sale. If this happens, depending on state law, these lenders can sue you for repayment.Nov 29, 2021

What happens to a first mortgage when a second mortgage forecloses?

Because the first mortgage loan was first in time, it is also first in right, which means foreclosure on the second mortgage loan will not extinguish the first mortgage.

How do you make an offer with hard money?

Here's how a buyer can make a cash offer using a hard money loan in 3 easy steps:Get pre approved by a hard money lender.Identify the property you want to purchase.Submit your offer to purchase and write on the offer, “cash and hard money.” There is no financing or appraisal deadline.More items...

How do you negotiate a 2nd mortgage settlement?

The longer the loan is unpaid, the greater your negotiating power.Contact the lender to discuss the debt. Begin the settlement process by expressing an interest in paying the debt. ... Make an offer. ... Remind the lender you know your rights. ... Put any agreement in writing.

Does Chapter 13 get rid of second mortgage?

"Lien stripping" in Chapter 13 bankruptcy allows certain homeowners to get rid of a second mortgage or home equity line of credit. ... If your house has gone down in value since you bought it, a Chapter 13 bankruptcy may help you to get rid of your second mortgage.

Are you still liable for mortgage after foreclosure?

Regardless of your state's deficiency laws, if your home will sell at a foreclosure sale for more than what you owe, you will not be obligated to pay anything to your lender after foreclosure. Your lender is obligated to apply the sale price of your home to the mortgage debt.Oct 13, 2021

Can a second lender foreclose?

Yes, a second mortgage holder can foreclose, even if you are current on your first mortgage. Just like any type of loan, if you are behind on your payments, the lender has the legal right to take whatever property was offered as collateral on the loan. ... before any monies can go to paying off mortgages.May 10, 2012

What happens when a junior lien forecloses?

Following a first-mortgage foreclosure, all junior liens (including a second mortgage and any junior judgment liens) are extinguished, and the liens are removed from the property's title. But the second-mortgage debt and creditor's judgment remain, even though they're no longer attached to the foreclosed property.

Is a hard money lender considered cash?

While hard money loans are not cash, they are often considered a cash equivalent because they differ from traditional loans. A bank will provide you with a mortgage based on the market value of the acquired property (i.e., the purchase price).Jul 13, 2021

What is hard money offer?

A hard money loan is a unique type of loan in which funds are secured by real property instead of the borrower's creditworthiness. Similar to a short-term bridge loan, hard money loans are primarily used in real estate transactions when the lender is an individual or company, as banks do not offer them.

What is a hard lender?

A hard-money lender provides short-term loans to individuals purchasing residential or commercial real estate. This financing is also available for land purchases. Investors use hard-money lenders to acquire investment properties relatively quickly.

Can a second charge holder force a sale?

Yes, it's possible. The rights of a second charge holder includes being able to seize a property and force a sale in order to recoup the amount borrowed should the second charge mortgage fall into arrears.Dec 15, 2021

What happens when you take a second mortgage?

A second mortgage is different from a mortgage refinance. When you take out a second mortgage, you add an entirely new mortgage payment to your list of monthly obligations. You must pay your original mortgage as well as another payment to the second lender.Feb 9, 2022

Can a second mortgage foreclose before the first?

Yes, a second mortgage holder can foreclose, even if you are current on your first mortgage. ... After taking care of expenses, the mortgages will be paid off in order of priority; until the first mortgage is fully paid off, the second mortgage holder will not receive any funds.May 10, 2012

Can a second charge repossession?

A second charge is a secured loan but it will have less precedence than a first charge. If the borrower defaults on either the first or second charge, either lender can instigate repossession proceedings. ... In this case, the lender will have to look at other ways to reclaim their outstanding debt.

Can a mortgage company refuse a second charge?

In short, yes. A mortgage lender can and will refuse to allow a second charge to be registered against their security, your property, if they believe that by giving consent it will increase the risk of them making a loss on sale if they repossess the property.Sep 5, 2018

Can you have 2 mortgages on 2 different properties?

Getting a mortgage on each of two separate homes isn't impossible, but it does require meeting all income and debt guidelines. Lenders need to confidently see that you satisfy underwriting requirements to afford both properties. Timing of the two mortgages also plays a factor in lender approval.

Are second mortgages a good idea?

To many home buyers the idea of taking out two mortgages on the same house sounds frightening. However, a second mortgage—also known as a second trust junior lien—makes good sense in the right circumstances and can actually save you money. ... Second loans require fees and closing costs, just like first mortgages.Oct 29, 2015

How much can I borrow if I already have a mortgage?

How much can I borrow if I already have a mortgage? Most mortgage lenders will let you borrow up to 4.5 times your salary, but the size of the second mortgage you qualify for is also determined by the amount of equity you have, along with your credit history.Oct 28, 2021

How do you negotiate a 2nd mortgage settlement?

The longer the loan is unpaid, the greater your negotiating power.Contact the lender to discuss the debt. Begin the settlement process by expressing an interest in paying the debt. ... Make an offer. ... Remind the lender you know your rights. ... Put any agreement in writing.

Can you make a settlement on a second mortgage?

Second mortgage settlement operates much like a credit card debt settlement. Mortgage settlement is a process by which the lender agrees to accept an amount less than the total due on the loan in order to resolve the debt. Second mortgage lenders are typically averse to foreclosing on a home.

How do I settle a 2nd mortgage charge off?

You can contact the lender or collection agency and make arrangements for new payments and start paying it off. It might be possible to offer a settlement amount that the collector will accept and agree to not pursue the balance once you pay that amount.

What is a 2nd mortgage?

A consumer purpose 2nd mortgage is used to pay off high interest debt: credit cards, personal loans, medical bills, tax liens, judgements, and foreclosure bailout. Conversely, a business purpose 2nd mortgage can be utilized for purchasing / improving an investment property. It can also be used for business growth purposes: operating capital, ...

How long does it take to close a HELOC?

HELOC’s usually take 30-45 days to close, while a 2nd hard money mortgage usually takes 10 days for consumer purpose and 7 days for business purpose. If you urgently need the funds, a 2nd mortgage might be better.

Do private loans appear on credit reports?

Hard/private money loans do not appear on credit report. If your goal is to improve your credit score by paying off debt such as credit cards, it will be difficult to do so with a HELOC.

What is a bridge loan?

The legal definition of a residential bridge loan is an equity loan made against one property listed for sale or under contract for sale for the express purpose of a down payment or payment in full of a replacement residential property that has been identified and an offer to purchase pending or made.

What is a 2nd mortgage?

2nd mortgages are secured by a Note and Deed of Trust against the subject collateral (these are not personal or unsecured loans) Consumer Purpose 2nd loans require verification of income to qualify per the Dodd-Frank Financial Reform Act and Federal Ability To Repay Laws effective January 10, 2014.

What is owner occupied hard money?

An owner-occupied hard money loan offers borrowers many finance options. While traditional lenders can provide these types of loans, the requirements are often too strict and unforgiving. Many borrowers have unique situations and need unique opportunities to give them the funding they seek.

Why are consumer-purpose hard money loans so rare in California?

Why are consumer-purpose hard money loans so rare in California? This is a result of the 2008 recession and the Dodd-Frank Wall Street Reform Act, signed in 2010. The purpose of this act was to protect taxpayers and consumers from investment risks taken by banks.

What is hard money loan?

What is a Hard Money Loan? Hard money loans are funded by private investors rather than banks. Typically, they offer borrowers short-term funds for time-sensitive projects such as real estate investments or house flipping. But hard money lenders such as Marquee Funding Group take loans to a higher level.

What is marquee funding?

Marquee Funding Group offers owner-occupied second mortgage hard money loans for business or consumer purposes. This is done by using the equity in a borrower’s current home. Consumer-purpose can be used to pay off high-interest debt or for legal settlements, and business-purpose can be used for business growth opportunities.

Can you qualify for a hard money loan with marquee funding group?

With Marquee Funding Group, qualifying for an owner-occupied hard money loan is simple. The team will want to see a short submission story and the property address. Beyond that, deals are examined on a case-by-case basis, so requested documentation can vary but remains uncomplicated.

Frank Wei-Hong Chen

When you say you obtained an 80/20 loan from the same lender at the same time to purchase the property, was this in essence 100% financing, or did you use the 20% for some purpose other than to purchase the home?#N#If this was 100% financing by the same lender, then the second should be...

Arash Shirdel

I agree with my colleagues. However, one thing that was not covered is whether the second loan is a HELOC (home equity line of credit). Even if the loan was used for the purchase of the property, a HELOC has a personal guarantee that your lender may attempt to enforce...

Alan D. Walton

Any secured lender has a choice - foreclose or sue to collect the cash. The first mortgage foreclosure eliminated the foreclose choice for the second, so all that is left is the right to collect the cash you agreed to pay. Bankruptcy will eliminate the problem.