Hello Lemuel. If you are selling and buying porting your mortgage is one of your options. Porting is the process of moving your mortgage from one property to another. There are 3 different types of ports that can happen when you sell a home and buy another. Each one different. Your mortgage can be either a straight port, port-increase, or port-decrease. The simplest is the straight port where you are moving your mortgage from one property to another with the same amount of mortgage. The rate, remaining term, and amount stay the same, no penalties involved and the process is straightforward as there is no new money involved. The second option is a port increase where you need extra funds for the new home, (this is usually the case if you are buying a more expensive home and have less down payment) In this case the remaining mortgage term is moved to the new property, the mortgage amount is increased and finally the interest rate is blended with today`s available rates. If the rates available today are lower than your interest rate then your rate will be blended and reduced, if the rates are higher today your rate will be blended and increased. I can do a rough calculation for you if you like, see my contact info at the bottom of the reply. The final port is the port-decrease. In this case you need less mortgage than the remaining mortgage amount you currently have. Your mortgage term, and rate get moved to the new property only the mortgage amount is reduced. There may be a penalty involved in this reduction of mortgage. If you are reducing your mortgage amount by greater than the allowable yearly prepayment options that you have signed for on your mortgage documents you may be charged a penalty for the extra reduction. There is one more option that one can consider, if your bank is not going to offer you a good rate on your port (they already got you so they often don`t) then you can always consider a new mortgage at another lender at full discount. It may save you more than your penalty to break, the calculations often tell the tale if it is worth it. I can do these calculations for you if you like and get you information on the lowest rates available today. I hope this information has helped you Lemuel. I can go into more detail if you like, explain further, and do some rough calculations, no obligation if you like. Please don`t hesitate to contact me:Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

If you have a commitment from the lender, then they cannot just change their mind unless they found something wrong with your application (i.e. undisclosed credits, wrong information on income source, different source of down payment as what was presented initially) . If you do not have a written commitment from the lender and you only have a verbal commitment, it may be difficult to bring them to court. The way we do pre-approval is like getting a real mortgage - submit all relevant documents up front and get the lender give us a mortgage commitment good for x-days. This assumes that your financial condition would be the same or better when the mortgage application with a property is submitted.

This is what you call bridge financing to allow for the purchase of the new house. Unless your old house is selling or closing at a specific date, they will not fund the new house. In the meantime you would have 2 mortgages, 1 for the new property - with interest only payments (bridge) and one for the old - full P I. It is always prudent to sell first before buying as this creates additional cost. You can also rent one of the properties if you plan to keep it longer.

Powered by

Hi, i wonder what will happen if i have to sell my house due to change of job location and such, but i am still paying the mortgage? what will happen between me and the bank? thank you!!

When you sell your house the bank that gives a loan to the people who buy your house will pay off your loan with the that money. Anything over the amount you owe on your house will come to you in the form of a check at the closing. You won't have to do the paperwork that's what your Realtor does. She also gets a commission for selling your house. The commission is usually six percent of the sale. But that may be different depending on where you live. Hope that helps.

Powered by

2 years back i have bought house with 100% loan in ca. i never thought i get a situation that i need to leave this house. due to my family situation i need to change the residence. and now housing bubble if i try to sell this house i will loose more than half of the price i bought. if i rent i have to pay from my pocket which i cannot as i will be earning less than that in the other place. what are my options.

You may need to do a short-sale with the cooperation of your lender. That's what happens when you owe more than the value of the home. It can be a much better option than letting the property go into foreclosure (which can ruin your credit rating for 7 or more years). You need to get a Realtor involved who understands short sales and will be willing to discuss the situation with your lender (and you will need to grant permission for the lender to talk with the Realtor). One thing to keep in mind when doing this, though, is that you may be required to pay taxes on the amount of the loan that is forgiven by your lender. I just completed a short sale about 3 weeks ago ... my seller was in the hole by $30,000 and the lender agreed to the terms. The sale was brought about by a divorce and buying His share of the property. She is now straightening our her situation and will be ready to buy something more manageable in a year or so. It is definitely a means to an end!! Talk with someone who knows! Good Luck!

Powered by

Into a condo, it's a manufactured home and i refinanced 3 years ago would it be best to buy a condo or try to refinance my int is 9% i am really confused i am 65 yrs old everyone told me condo fees are horrible and can change anytime i owe a 79,000.00 mortgage.please help

You need to provide more information. I assume with the information that you've already given that your mortgage payment does include T&I. $1284 seems about right for that style of home (depending on where you are located). To answer your question about whether or not you should move, in my opinion you should seek options. Since you're 65 already, your income will probably decrease once you retire and start living on savings and social security etc... So my first line of advice would be see if you can refinance again and get a lower interest rate (today's rates are lower than 5%). That alone could decrease your payments by $150+ a month. If the payment would still be to expensive then you should look into selling. Concerning purchasing a condo, you probably don't wanna buy a condo either. Association fees are pricey and usually bylaws allow them to be changed frequently if necessary. I wouldn't personally pursue this route unless I was sure that I could get a great building for a great price and it was within my budget. If you can sell, your best bet may be renting for the next 3 years or so until you've saved a substansial down payment and can purchase a home that have payments around $900 or so.

Powered by

I think i got scammed----no lawyer, didn't read the papers. several years ago i bought a house, changed my mind, and sold it quickly to a company that made a verbal pledge to sell the house for me. i sold it thinking they would take the house, sell it, and pay off the mortgage. now, i find out---someone else has been paying my mortgage for several years and its still on my credit report. i find out this mortgage has a due on sales clause. but i did not read the papers when i sold the property. bank is calling now because of late mortgage payments, and this has affected by credit. what do i do? can the bank foreclose on a house i no longer own? i did not proft at all from the sale of the house. i just want to get out from under this bad mortgage problem and resolve this gross mistake. i admit its a case of bad judgment on my part since i know very little about real estate. i've always been very conservative and don't like to take risks. good credit up to now. now i'm lost. help

yes it has been going around all over the place it was even on dateline ppl just like you still have mortgages i would call your local DA. and go from there DA.. district attorney ppl have tried to get out of it but it seems there are alot of loop holes for the schemers and those poor ppl still have to pay the mortgage and still have bad credit sry i hope this helped

Powered by

The house is in my name only and we plan to leave it that way. my last name has been legally changed through social security, etc. do i need to revise all the mortgage documents? will it matter when i sell the house?

Nope. What happens when you sell the house is that you will sign the deed as Mary Doe f/k/a Mary Fawn; and in your affidavit of title you will list your marital history, i.e. Mary Fawn married Jim Doe on 12/321/08 in _____ County, etc.

Powered by

I've been in my house for about a year now and may have a career change. i was told some lenders may impose a penalty for selling your house too soon. if so, what is the typical penalty? i still need to go over my mortgage papers to find this out. it's also a thirty year loan, not sure if this matters.

In most cases there is no penalty in sales you home or paying the mortgage off early. But you need to read YOUR mortgage to be sure.

Powered by

I am about to buy my first house and was told that in most cases, my lending bank will sell my mortgage to another company after i sign the paperwork. is this a common practice? do i have any risks as the borrower? does the new owner of the mortgage have the right to change my fixed interest rate or the terms of my initial contract?

Yes it is very common and is called servicing. The percentage of loans serviced by that lender is on the servicing disclosure in your paperwork. It is illegal for your payments, interest, payoff, or terms to change even if the loan is sold or serviced.

Powered by

We are moving back with our parents and we dont really want to sell our house. can we rent it out without changing the mortgage (i know we would have to let the mortgage provider know) as we are in a fixed rate and would have to pay a big fee. thanks

You should let the mortgage provider know and they may then convert you to a commerical mortgage. But hey - what they don't know they can't do anything about. If you get caught though it'll cost you a bomb.

Powered by

We voluntarily gave it up to rams, as we had been trying to sell it for 9 months. they have tried auctioning it and is now on the market again. they have changed the locks so we cant access it, so surely we shouldnt have to pay council rates and water rates on it? we are in australia.

In the US, once it is repossessed, it is no longer your responsibility. I would assume the same is true for you.

Powered by

A few months ago i bought a condo, a move i have regretted ever since. now it turns out my family is going to have an unexpected addition and there is simply no room. i want to sell this place and get somewhere else, but with the way things in my area have been going i'm afraid i'll have to sell it at a loss...something i can hardly afford at the moment. what is the best way to buy up? i've heard about buying forclosures at a fraction of the price...how do you do that? i have found websites but they all require memberships. also, what about my mortgage? if i sell this place and manage to buy another for less, can i keep the same mortgage and just change the address, or do i have to go through that whole process again? thanks in advance. we already have an eight month old baby and are already cramped. the way things are going with the condo association, i am afraid the longer i wait, the less and less it will be worth...everything just keeps going downhill. i have no idea where to start in any of this, but know that not doing anything simply isnt an option.

Hon, we just did this. Go to a Realtor and ask if they know of anyone who does foreclosure properties. Or, find a HUD website. We lucked into ours cause our best friends live across the street and knew that the house was a HUD foreclosure. Yes, you do have to go through the whole process again and you may have to fix up the new house. It will be worth it though. Our $80,000 (appraised value before we fixed it up) cost us $35,000. You have to go through a bidding process with the HUD and government, but it is well worth it.