Articles about Mortgage Loans---Guide to Mortgage Trips

Menu

Home

To View a list of all articles about mortgages click here

Guide to Mortgage Trips

The Real Estate you own Is Your Best Investment. One of the facts often forgotten is making extra principal payments on you mortgage. You probably have heard the concept of making extra principal payments to reduce interest and payoff your mortgage much earlier. The concept may be simple, but people overlook this all the time. A typical promissory note amounts to incredible interest over thirty years. For example, on a thirty year $100,000 loan at 9%, you will pay over $189,000 in interest.

If you have a cash flow on your rental properties or other mortgages, consider using it to make extra principle payments. By making extra principle payments, even just a few, you can save lots on interest.

Another example, would be if you paid an extra $60/month the loan described above, you would save $49,000 in interest and pay off the loan much earlier. If you paid an extra $100 per month, you would save over $75,000 in interest and pay off the balance ten years earlier.

Save Money on Late Fees. If you one of those persons that sends payment at the last minute and are in danger of paying your mortgage late, send your payment express overnight mail. The cost of doing so is will probably be much less than your late payment. It will also not look bad on your file. An example of a 5% late penalty on a $2,000 payment is $100. Sending the payment via Federal Express will cost you less than $20.

Tips on Holding a Mortgage in Default. Example, if you sold a property and took back a mortgage, you have an option to your foreclosure procedure . . . sue on the promissory note. Remember that a mortgage is security, and you can always forego the foreclose proceeding and sue the borrower for nonpayment on the note. This may be desirable if the property has little equity and the borrower has other assets to attach. However, if you have to elect one remedy or the other; once you choose to sue on the promissory note, you waive your right to foreclose the property.

Bankruptcy- A borrower in default can file for bankruptcy to stop your foreclosure proceeding. Once the bankruptcy petition is filed, the state court foreclosure proceeding is subject to an automatic "stay" (which means you must stop all of your collection efforts). This might delay your foreclosure. As a secured creditor you will have first dibs at the property over unsecured creditors. You can have go into federal court and ask the judge to have the stay lifted against you. However, if the debtor files for chapter 13, he or she may be able to ask the judge to force you to accept a payout plan. Either way you all of your efforts will get you paid.

Consider a "Deed- If you are in a mortgage state, the borrower can sometimes delay the proceeding for months by simply filing in writing against the complaint, raising the number of defenses. Sometimes on of the best way is to try to work it out with the borrower. But make sure that you're not shortchanging yourself. It may be less hassle and cheaper for you to waive the back payments. That gives you the property back and that is what the objective really is. Remember that it might take time for the process, but in the end it will be well worth it.



About the author:

Copyright Troy Francis. Troy is a writer and real estate broker for Century Mortgages. Please feel free to republish this article. We only ask that you leave the link active. You many see more articles like this by going to: http://www.CenturyMortgages.org

Written by: Troy Francis

Related News:

Other Articles of Interest

Advantages and disadvantages of reverse mortgages You're getting older and you can see all the equity sitting in your home, but you need money now! What are your alternatives? Well, you could sell your home and buy something smaller and spend the difference or you could consider taking out a... ...read more

Federal Reserve Bank - Controlling Mortgage Interest Rates Homeowners often become very interested in the Federal Reserve Bank system. Every time the board of directors meets, mortgage interest rates are at risk. Federal Reserve Bank The Federal Reserve System acts as the central bank of... ...read more

Reverse Annuity Mortgage - Tapping Into Your Equity Reverse annuity mortgages (RAM) were created to allow older Americans to tap into the equity of their paid for or nearly paid for home. Homeowners receive a tax-free payment each month, and the mortgage is paid when the home is sold. Before... ...read more

The Ron Artest Saga: Brawl, Trade Rumor, Suspension, CD Ron Artest, forward of the Indiana Pacers has been known for his wild behavior for several years. However, in the past two NBA seasons it has been worse then ever. We all now the story, last years incident in Detroit, the infamous brawl when a... ...read more

Why Paying Off Home Mortgages Is A Dumb Idea If you're planning to refinance you're home or apply for a home mortgage. This could be one of the most the best tips you'll ever recieve. If you're like majority of the population which applies for home mortgage and chooses to put a large... ...read more