Default insurance is necessary if you place less than 20% downpayment on a house. There is no way to get around this fee. you can pay it upfront or get it added to your mortgage amount so you dont have to budget for it when buying. The reason the banks require this insurance is so they dont have to worry about losing money if you dont pay your mortgage. In Canada we did not see the housing meltdown like the US due in large part to this insurance and the government gurantees on the mortgages that actually went into default.

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I recently bought a car. with $2000 in the bank, i wrote a check for downpayment of $1500. due to emergency medical expenses of my two year old, i had to withdraw $700 to cover the expense. now my account is short the amount needed to cover the car downpayment. what are my options to make resitution of the check before the dealer considers me in default. i will have to wait another pay period before i can cover the entire amount.

First off, call the dealer and explain; even take them proof of the medical visit for you child. Speaking with the finance manager would be the best. Truth be told you'll get out of this mess. Just be sure you pay them on payday.

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I purchased a car and put 600 down the dealer wants 1500. the loan has already been approved and i got my payment book from the finance company. can the dealer reposess my vehicle for the difference of the money for the downpayment we agreed that i would put 1500 down but i only had 600 at the time. the car is financed through my bank not the dealer. i already made my first payment.

If the loan is approved, then the finance company has already paid the dealer at this point. The $900 owed to the dealer DOES NOT allow him to repossess since the Finance company is now the Lein Holder/ note holder. He can sue in civil court and or report negative info on your bureau report. He stil reserves the right to return the funding back to the Finance company and repurchase the loan back. In this case he CAN Repo your car. Lein Holders and note holders can repo if conditions are not met and payment is not made timely according to the contract.

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The contract stated that if buyer cannot obtain loan with 30 days contract is considered null and void and earnest money deposit is returned to seller, dosen't not having sufficient funds for downpayment meet those guidelines?

You need approval from the lender - the down payment is part of the loan agreement and the due date is usually the loan origination date. However, some in fact many loans, require that the funds must have been in your account for a certain period of time and if so - you could be in real trouble if you do not have them in hand at this point in time. Verification of the source of the down payment money is required in all but FHA loans and nearly all require the funds to have been in hand for 3-6 months. best of luck

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go to the bank and ask about foreclosures. bad credit might be a huge problem. i knew of someone who had 11k downpayment on a house but credit was probably good.

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I have a commercial property that is now in default and faceing foreclosure. i made a payment arrangement with the lenders, made the initial downpayment of $9,000, but can't seem to come up with the monthly prepayment arrangement of $4,000 for six months. is it a good idea to offer the property to the lender with a deed in leiu of foreclosure ?? and will this be better on my credit rateing ?? overwhelmed with stress.

That is one measure. Another thing to try and is go for a short sale. List the property with a real estate agent and sell it. You of course don't get anything and all the sales proceeds go to the lender less costs (closing costs and agents fees)...........worth discussing with the bank

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I found out, about a week ago that my student loans had been placed into default ($18,000) - the company holding the loans is dcs out of california. to my dismay i found out (according to the woman caller) that they were going to seize my federal tax return, and that if i didnt enter into a voluntary payment program, that they would start docking my pay 15% to date i have entered into a payment plan that is comfortable for me by giving a sizeable downpayment. here is my ultimate question: this morning i checked my bank account, and to my surprise my federal tax return had been depositied. once it is deposited can this dcs company still take it away from me? did they not act quickly enough? can i be happy about this money, or can they still come take it away from me? or - was this all just threats on her part to get me to volunteer to pay? i understand that legally they can seize your returns and garnish your wages, but they didn't. any help would be amazing. thank you!!!!!

They can seize it if it is in default. Since you signed the agreement, it is no longer in default since you are making timely payments. So the check is all yours

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I have a question. all conventional mortgage loans where the buyer has put down less then 20% as a downpayment are required to purchase pmi (private mortgage insurance) which is supposed to "protect" the lender against any losses should the borrower default. in the case of an fha loan, these are insured by the federal government. given this why aren't the lending instituitions collecting their losses from the insurance companies? is the government not backing the fha loans? please help me understand why buyers must have the pmi but now the lenders are asking us for help???

Well, they ARE collecting, when PMI is in place. The PROBLEM is, with these substandard loans, the mortgage brokers were convincing people to "avoid" pmi costs, by taking TWO mortgages - the second would be for 20%, the first for 80%. So many, many of these loans, have no PMI coverage! Plus, before the lending institutions can collect, they have to foreclose and auction off the property - and that costs money, for EACH property. The lenders are asking for help, because of Sarbanes/Oxley - SOX. The LAW says, the lenders have to report the "value" of the loans. Well, when no one wants to buy the loan, the "value" is zero!! So that makes it look, on paper, like their assets have dropped dramatically. They can't convert that zero into the property value, until after they foreclose and auction off the property It's not TRUE, in reality, that the loan has dropped to a zero value, because the PROPERTY is still worth something - it's just no one wants to buy the mortgage on the property. SO, the PMI doesn't apply. The mortgage doesn't even have to be in default! It just has to go to "not sellable", for the lender to not be able to use it as an asset. And with all the subprime market fallout, well, no one is buying mortgages, especially the higher risk ones. Hope that helps.

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I am currently making monthly payments to the collection agency that holds my defaulted student loan, my credit is otherwise ok. will i be able to qualify for a 5% downpayment mortgage with my spouse his credit is great, although i make the most gross annual income.

Yes ! There you go : http://index-go.com/bad-credit-finance-mortgage.asp Good luck !

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So my problem here is, i was never informed of this offset. i have tried repeatedly to make arrangements with the collection agency, and each time they required an enormous downpayment which i couldn't afford to pay. i told them that i would be able to pay the monthly payments they had assigned, but that i could not give them the downpayment they required. each time they said that they had to have this, and had the gaul to ask if i could borrow it from a friend or family member. about as rude as you can get huh? so they have refused payment on several occasions, and now they have put an offset on my tax refund with no notice whatsoever. i was in need of this refund because i have a 3 month old son (who was the reason i got the eic in the first place) that is in desperate need of many things, as well as bills that have to be paid in order for him to survive in a safe environment. is there anything i can do to fight this offset? any help would be most appreciated.

I know how you feel...unfortunately there is nothing that can be done at this point about your tax refund being offset. But you can try and contact the people who originally gave you the student loan, and let them know your situation and tell them that you would love to pay them, but the down payment that the collection agency is asking for is much too high, and you would like to work out a payment plan with them. Most of them will accept it. Depends on how in long your student loan has been in default. Good luck with this! Congratulations on your new gift (your son). May he bring you years of happiness and love.