Category: Mortgage Lending

Many properties, whether residential or commercial, are being lost by their owners due to foreclosure. The best way to avoid this from happening to you is to understand documents pertaining to mortgage loan and foreclosure including the mortgage, promissory note and a deed of trust.

What are Mortgages?

The term mortgage, or mortgage loan as it is normally called, is associated with foreclosure. In a sense, when a loans maturity date is reached without payment of both the principal amount and interest, then foreclosure is imminent for the said property or business.

A mortgage is using a property, whether real estate or commercial, to be used as security for payment of a debt, or a mortgage loan. Normally, a mortgage loan is used to refinance a business or to be used as a basis for home improvement. When done, a contract, or a mortgage, will then be made by the lender containing the information of the said property, the amount loaned, and the interest rate incurred on the principal amount, and the maturity date.

When the borrower fails to pay the exact amount as stated in the mortgage, then they may issue a promissory note requesting the lender to extend the maturity date.

Promissory Note and what’s in it?

The National Association of Home Builders (NAHB) makes rosy projections for the 2008 housing market that keeps it up with the National Association of Realtors (NAR) optimistic forecasts. If only wishing would make it so elephants would be flying about.

I suppose both of these organizations have enough money left to pay for the type of forecasts that they like. Good luck to them.

The following is from the NAHB newsletter. 2008 looks to me to be shaping up as a year of disaster but, hey, I could always be wrong. And so could the NAHB and the NAR as they peek through their rose colored glasses.

=============== NAHB newsletter ==============

A plan announced last week by President Bush to limit foreclosures by working with key mortgage lenders and investment firms to freeze interest rates for five years on certain subprime mortgages will help set the stage for the industry recovery that is expected to materialize next year.

“The Administration’s plan to help struggling borrowers stay in their homes is one of several steps that can help stabilize the housing market and reassure consumers and investors in the mortgage market,” said NAHB President Brian Catalde, a home builder from El Segundo, Calif. “We applaud this action and urge Congress to follow up quickly on pending legislation that would provide additional help in easing the credit crunch and restoring confidence in the marketplace.”

Specifically, Catalde called on Congress to:

You can still find a mortgage at good rates. Just compare your mortgage to what is available in the market place and see.

A good place to start and probably finish in your search for a home mortgage at good rates and terms is LendingTree Mortgage Loans

Don’t be discouraged about what you may read about the housing market. Everyone must live somewhere. For those who have decent credit now is a good time to find a home at a good price as well as a great mortgage. You can compare a mortgage to that offered by several lenders very easily at the same time to insure that you get the best mortgage deal.

Find a mortgage and compare that mortgage to other offers before you lock in. It’s a smart way to go.