What if a potential buyer is interested in acquiring a part
of your property, and you’re willing to sell?
If you’re a land owner with full rights in a piece of
property, you may legally sell any part of it — unless bound by an agreement to
the contrary. If a parcel is mortgaged, an owner may not subdivide parts to
sell, thereby shrinking the loan collateral, without the lender’s approval. A
homeowner who attempts to sell mortgaged property without the lender’s
permission invites the risk of triggering the loan’s “due
on sale” clause and having to pay off the full mortgage.
Thus, to transfer title to a part of a property, the owner must
first receive a partial release of mortgage. This instrument allows the
sale of a section of a property, free and clear, yet keeps the mortgage on the
How does the partial release process play out? In this
article, we boil it down to a few key elements. We also offer some contextual
questions to consider. By examining the context of a potential sale, a
potential seller can avoid serious losses in value.
Especially for first-time buyers, getting to know who’s who
in the loan process can be complicated — even surprising! First you meet the mortgage
broker. Soon, other actors emerge. As your broker interacts with them, the
A credit score is part of each home buyer’s whole debt and
income picture. Lenders consider it a key factor when deciding to approve a
loan application. To put the score in context, a lender’s top questions are:
Whether the borrower can repay the loan,
Whether past credit history suggests that the
borrower will repay the loan.
The FICO® Score, which is the best known of several credit
scoring tools, comes from the Fair Isaac Corp. As we’ll see, mortgage
lenders can take other scores into account, too, and even tweak the factors in
the scores to come up with unique tests for loan approvals. The good news?
While mortgage lenders use their secret sauces to determine creditworthiness,
we, the applicants, give them the ingredients.
Here, we take a look at how credit scoring actually works,
and how to optimize your score.
Throughout the years of your mortgage, you’ll likely ask the
question more than once: Is now the right time to refinance? First, note
that refinancing may be no easier than getting that existing loan. Moreover, from
2020 on, expect lenders to have stringent
requirements for mortgage approvals.
The answer will depend, too, on varied factors specific to
your own situation.
Here are a few reasons refinancing could make a lot of sense
— or not.
Difficulties arise in life, sometimes out of the blue.
Mortgage obligations that suited us just fine at first can become unmanageable when
circumstances swerve out of control. At that point, a homeowner might approach
the mortgage lender and ask for a few months of forbearance. Or perhaps it’s
possible to work out a repayment plan, or get a loan modification. Sometimes,
the homeowner’s financial stress is too serious for any of those options to
Consider that the homeowner must resolve two obligations on
the mortgage loan: the lien, and the promissory note, which is the promise of
repayment. If an owner cannot keep that promise, the lender is allowed to recover
and sell the house.
can span decades. Naturally, not all homeowners outlive these
long-term loans. Here, we discuss what happens when a homeowner
passes away with a loan still on the home. This can be a tough topic to
confront, but reviewing the potential scenarios will help you prepare for the
hope to buy homes, but struggle to qualify for loans. And this
means millions of first-time buyers are deferring their dreams of
homeownership until they are in a stronger position to qualify for a mortgage
Today’s renters are renting longer—often not by choice. Half of renters now in their mid 50s and older don’t anticipate buying a home any time soon, according to a survey carried out by Freddie Mac, and 15% don’t think they’ll ever be able to afford one. About a third of renters aged 40-54 don’t anticipate buying soon, with 12% predicting they, too, will never have the financial resources to buy.
least part of the problem be that the mortgage industry has not
adjusted to the way millions of renters work?
In May 2019, effective October 1, 2019, Nevada passed Senate Bill 382 amending the law pertaining to deeds of trust, foreclosure sales, and homeowners’ associations.
things, this is a change to Nevada Revised Statute § 40.050, whose
language states that a mortgage of real property is not deemed a
conveyance. If a mortgage does not constitute a conveyance, the mortgage
lender may take possession on the home upon the inhabitant’s default, bypassing
a judicial foreclosure sale.
a deed of trust
between the home buyer and the lender. A deed of trust places the legal ownership of a home
with a designated trustee until the buyer—who holds equitable ownership—pays
off the loan.
some buyers do experience financial challenges and find themselves unable to
pay their mortgages.
briefly explore the ramifications, as seen through a case that shook
mortgage lenders’ expectations in homes they held legally through deeds of