Yes, in most cases you do need to pay a penalty. The penalty is different for each bank. The usual scenario is when a ban would charge you 3 month mortgage interest which is about $1000 for every 100,000 borrowed. So if your mortgage is 400,000 you would be paying close to 4000$ in penalty to break the mortgage. If you sold your house and planing to buy another one, you should talk to you bank to see if they will be able to move the mortgage to another property which is called "porting". If the mortgage you require is bigger you can reapply to get a higher mortgage and could have a blend mortgage where your additional amount has a different rate then the original mortgage.

There is a penalty involved in breaking your mortgage before the term ends. The banks use two formulas to collect penalty when it comes to breaking the mortgage, the first formula is the mortgage interest of 3 month payments and the second one is Interest Rate Deferential or (IRD). For example; if the interest rate you have is lower then the available market rate then you will pay the 3 month interest to break the mortgage. If your rate is higher then the available rate on the market then the bank will calculate the penalty based on IRD which is much more expensive.

Only if you have mortgage life insurance. You should inform your insurer about this so they can process the payment of the mortgage with the bank . Do not forget your discharge documents from the bank stating that the property is free from any mortgage. You have to register the discharge to remove the lien on the title. Bank will not do this for you as this is your responsibility. If spouse have mortgage life insurance, you do not get the money, the bank does. If spouse have ordinary life insurance, insurance pays you and you pay the mortgage and other debts. Again, do not forget the discharge documents -> register the discharge.

Powered by

This year i paid off the mortgage on my house. i put the house up for sale, and i decided that after the homeowners insurance would expire, i'd risk going without renewing it, since i never filed even one claim in 15 years. i didn't take the time to cancel the insurance, because i thought that the policy would automatically cancel if i didn't pay it. the house was sold four months after the expiration date of the homeowners insurance, but the insurance company insists that i must pay them for the four months (which comes to $314) because the policy automatically renewed. i refused to pay it, so they have turned me over to collection. do i need to pay it? what happens if i ignore the collection notice?

Well, of COURSE you have to pay. You didn't take the time to cancel the insurance. The policy did NOT automatically cancel, likely because your state insurance department doens't allow it. If there HAD been a fire, and the insurance company would have been required to pay, they are ALLOWED to go after you for the premium. If you don't pay, they will sue you, and win.

Powered by

If i don't get the modification i don't really mind losing the house because the mortgage balance is $120,000 higher than the house could ever sell on a good day, but i just feel it would be irresponsible (even though not my fault losing my job) and am willing to help the lender by keeping/paying the mortgage but the fact of the matter is that it is not a primary residence, so does that automatically disqualify a modification?

No it does not disqualify you for the modification. I had a great modification done for me on my investment property by a company out of New York.

Powered by

Sold a house last year. when i bought, i added my father as well so that he could feel that he owned the house even though i paid all expenses including mortgage. i lived with him and mother. when i sold the house, i found out it's actually owned by father, mother, me and my wife ( i got married after i bought the house but i didn't change the name on the house. however, in texas, i heard from the attorney couples share everything automatically in texas and all had to sign to sell the house). i've been claiming my parents as dependent they don't have any income except for social security and they haven't filed tax return for years as social secrutiy income was not taxable. now that they legally sold a house even though i actually paid all, i guess they need to file a tax return to report the sale of the house? is that right?.....( we owned the house for 8 years and there was $9500 profit after deducting all cost living there). will it be correct that they now have to file to report the sale of the house?..and i guess i can't claim them as dependent this year?..will it be correct? also, i had equity built up on the house as i was paying mortgage. when i sold the house, i used the money to buy a new house which is just owned by me and wife now. legally, is it gift that they need to report? any help is appreciated.

Who lived in the house? If you all did the general rule of thumb is that the first $500k of gain is excluded from tax as long as you lived in the home for 2 of the 5 years prior to the sale. That would be shared between you and your parents, or $250k for each couple. If that test is met, you don't even report the sale of the home. If your parents did not live in the home, then your and your wife's share of the gain is not taxable but your parents' share is as they don't qualify for the exclusion. BTW, your gain is the difference between your adjusted basis in the property and the net sales price. Your costs while living there are not included, except for any improvements or major repairs. What you do with the proceeds from the sale is irrelevant. The old rollover replacement rule has been gone for over a decade.

Powered by

My dad died and left his house to me through a warranty deed - no probate or anything, it's automatically mine. he owed way more than what it can be sold for. i don't want to live there, and renting it out wouldn't cover the expense of keeping it. i don't want to keep it, i can't sell it… i'm way too broke to try to spend the next 30 years paying that and my mortgage on my house. am i stuck with it? do i have to sell it and take a loss? can i just give it back to the bank? what are my options? please help!! thanks! i should mention that two reasons i don't want it are (1) it has toxic black mold which may have contributed to his death and (2) it is in a very bad neighborhood.

Contact the loan officer, and ask him, most will allow a death foreclosure, but you will have to pay a penalty for this house. But consider it carefully, you may not want it now, but in time you may want it for it's sentimental value that it was your fathers. but also look around and get the house reappraised, it may be worth more than you think. Also if the previous owner died I think you have so many days to just give it back to the bank in leu of paying the loan , unless you have already begain to make payments then that ship has sailed.

Powered by

I live in texas, 15 years ago my dad put small down payment on a house ,and is also a co-signer. i have always paid the mortgage on time and extra money on principal . dad is 85 and would like to be removed from the deed, mainly to simplify things when he passes.i do not intend to sell this house for many years to come. i asked the mortgage company ... they said i would have to file for an assumption(qualified) to remove him and his responsibility as co-signer.. their fees are around 600 dollars for this .. is it not possible to handle this in some other way?? could he state in his will that he wants what ever ownership he had to go to me. does death remove him automatically from deed... if he or i do nothing how will it effect the ownership of my house ...would i have to sell the house to give his "estate" his share cuz he is a co-signer??? he does not want to spend money to resolve this mixed up situation and i am not able and do not want to pay that 600.dollar fee to the mortgage... yikes i am so confused... i appreciate whatever help anyone can provide! cheers more info: i see i have the term co-signer --wrong. co borrower may be word. the main reason to have his name off the deed is due to his age .. i am un-able to come up with the six hundred dollars or so due to ,, i am dis-abled .. so my work and income is very limited. his main concern is ,, how will this effect legal matters after he passes... maybe i have asked the wrong question.... possibly the question needs to be...... dad is on the deed, his will is such that ,, his estate will be divided between his children.. how will this effect my mortgage,, i.e. will my sister and brother then become part owners in this property??? maybe this info will fill in the gaps and help ya'll to understand where i am coming from.... again thanks for your input.

The other poster is wrong...you can't just remove your name from a mortgage anytime you want to....you can't do it without the bank's permission and full refinancing is commonly required. There is no such thing as a co-signer on a mortgage; you MUST have their signature and permission to do so...HOWEVER....it sounds like because of his age, they are willing to do a modification to the note...it STILL REQUIRES his signature. It's not a "mixed up" situation...you couldn't qualify for the loan on your own when you bought or his name would not have been on the house to start with . Either pay $600 or a few thousand in closing costs and attorney fees. What is the problem that YOU don't have the $600 to pay it? Why should your father pay money to have his name removed? Isn't it you that is wanting this done in the first place?

Powered by

Ok here goes. my ex and i parted 3 yrs ago, his name remains on my mortgage as bank said i couldn't afford it on my own and needed someone to chase if i stopped paying it. the house is in negative equity - mortgage is 119k house is worth 110k. interest only mortgage, fixed until 2013 at 648 pounds a month. my ex is remarried and lives in rented, he wants to buy but has no savings. i live with my partner who has just lost his job. we will not be able to afford this mortgage for long, he was sacked (appealing against) so is unlikely to get jsa. i don't want to have to hand the keys in at the bank or get reposessed which will affect my credit and that of my ex for a long time. i work full time but by the time my mortgage and bills are paid i have less than £60 a week for food and fuel - i put £30 a week in my car to go to work! my mum and her husband own their house (my dad bought it in full before he died) and have offered it to us. i get half in their will so would only have to buy the other half from them. they want to move to a different town but want the house to stay in the family. i want her house, it would cost me 60k. my question is this, should i offer my ex and his wife the house i live in, cut my losses and move to my mum's house? if i did this could i "rent to buy" from her - eg no mortgage. also in 2013 what are the implications if my ex moves into "my" house and the mortgage ends, would i automatically be removed from it so his new wife can be put on it? i get on very well with my ex and his wife and to me this seems the perfect idea. - he gets back on the property ladder, my daughter gets to keep her home, me and my partner get another house which we will eventually own for a fraction of the price with no mortgage (obviously any agreements will be done via solicitor). my mum gets to move away (they have plenty of money to do this with without selling the house). am i looking at this through rose tinted specs?? can i have advice on the pro's and cons please. thanks in advance :) thank you, i have an appointment at the bank to talk to my lender this saturday. i haven't talked to my ex yet. my best friends husband is a solicitor, i am going to discuss it with him too. i see the house very much as a mill stone round my neck. if we move to my mums it will take the pressure off my partner having to get a job as quickly and will also allow him to earn less than he was - we barely scraped by when he was earning. my ex would say he "gave" me a house, i always respond with the fact that he gave me a whacking great debt! he can afford it as he and his wife earn around £45k between them, our joint income is currently £18k!

The mortgage does not end in 2013. The interest rate fixed deal ends then, but the mortgage continues until it is paid off, as does your liabilty for it. Actually, its likely that your fixed rate is much higher than the rate you will switch to in 2013 (my guess is you are on a rate of 6 or 7%, and it might drop to 3 or 4%), so if you can hang on until then things might look a lot better. The only way you will get off the mortgage is to pay it off, which means someone buying the house from you. This might be your ex getting a new mortgage in his name, or it might be a third party. But you have a problem as you are in negative equity. This means that you will need to find the extra money once the house is sold - although as its a joint mortgage this is a joint problem with your ex. Your ex will also have a problem if he wants to buy you out, because any new mortgage is unlikely to cover more than about 80% of the property value. Meaning that he will need over £20,000 in cash (as well as money to make up the negative equity) which you say he does not have. For you to buy your mum's house would still require you to get a mortgage. Even assuming you can get out of the current loan, its unlikely that you could borrow £60,000 on a joint income of only £18,000, although this is not totally out of the question. If your mum is prepared to work on a "rent to buy" basis then great because you won't need a commercial mortgage, but you will need to get proper legal documents drawn up to make sure everyone knows where they stand. Alternatively she could just rent it to you in the normal way, but make provision in her will that you get the whole house when she dies (or half the house plus extra money to repay the rent, or something similar). Or she could just let you live in it rent free for a time, until you can get your finances sorted out a bit. Another possibility would be for your mum to literally give you the whole house, but for there to be a trust document meaning that she is still entitled to half the money if you sell up. One advantage of this is that you could take out a small mortgage in your own name, to use to repay the negative equity owing on your current house. But your mum needs to make sure that the first house / mortgage is sorted before she signs over her house, to make sure it does not get caught up in any financial problems that might arise.

Powered by

Hi, i am leaving my partner (she wants me to go !). my name is on the deeds, as is hers. we have 2 children. she has always paid the mortgage ( i give her money every month). if i leave, would i automatically get 50% of the value of the house if it were sold in the future ? she is saying that the house is more hers than mine because she has paid more towards it (she does earn a lot more than me). should i get anything in writing before i leave ? thanks for any help. i am in the uk

No. She's probably going to contest it, and considering that you have 2 children, and if she can afford it I guess she can keep it, but I think it would be fair if she gave you part of the equity, not 50% of it, because like you said, she's the one that paid the mortgage. So you're either doing this to be spiteful, which doesn't help the kids, or you just want something out of it. What makes you think she'll give you something in writing? lol ok I had to laugh, you're already having a dispute over the house and you haven't fully broken up yet, the chances of her giving you anything in writing are slim. Remember you'll have to pay child support, and you want this to be as amicable as possible for the kids. Try to work it out calmly, you know you haven't paid half of anything in the house, don't demand half. Try to get some of the equity, and that's it.

Powered by

My husband and i live in my mother-in law's home and we pay the full mortgage. she would like to sell the house to us, but finacially we cannot afford it at the moment. is there a way that we can add our names to the deed so that if she dies the house automatically goes to us?

yes you need to do a grant deed go online and research what a grant deed is then either find a local legal aid or someone who knows have to draft one and its that simple just remember the mother in law need to grant over to you and the husband including the mother in law as as joint tenants.if there is other siblings this is still contestable in court unless a will specifically declares you both but you need more proper legal advice than i give here. but its good thinking for and ever one tho remember without the home either willed or survived through vested interest the home goes to probate. great question

Powered by

I have been renting a house from a lady since february. this lady was buying the house i'm in and the rent money i was paying her was supposed to be going to pay her mortgage on the house. yesterday i got a letter in the mail addressed to occupant stating that the house was sold in a foreclosure sale june 3rd. i called her and she called the company that bought the house and they told her that her ex husband called the place that had her mortgage to let them know she was renting the house which i guess was a breach of contract (she told me today she wasn't supposed to have rented out the house according to the contract) so it automatically foreclosed...i just payed rent to her 2 days ago...the company that has the house now says we have 30 days to move...my question is...what can i do legally since i did have a lease with her on this house for a year. she won't give me back the rent i just payed saying she already sent it in for the mortgage...help sorry everyone....i'm in texas

At least in Texas when your house is foreclosed all leases are terminated. The landlord could be accused of fraud so she might go to jail. She also would have been notified so this was not really a surprise to her. I would call the mortgage company that foreclosed on it. They might help you out in some fashion. I am sure they don't want to be a landlord but they also don't want to have another house to sell. At worse they may offer you a cash payment to get out. ************** I went to website mentioned above and it was a dead end. I looked at the main page of it and clicked on Texas and on page 34 of the tenants rights handbook it said what I just said. Maybe in your state it is different- you can look at that website and see.