Who is in what position? A loan or lien is considered to be in first lien position when it is recorded prior to any other loans or liens. Loan priority is established by chronological order of recording, not by the date of the document. Financial institutions require that their purchase money or refinance loan is in first lien position in order for a transaction to close, since being in first lien position gives them the first right to reclaim the property in the event that the borrower defaults on the loan. But what happens if there is another loan, recorded later, that will not be paid off at closing? Read the rest of this entry »

Must people putting their careers on hold because they are tied down by their "under-water" homes? That's a common misconception. In fact, a new job or promotion that requires a move to another city is a perfectly good reason to ask your lender to accept a short sale. All other things being equal, the bank would be hard pressed to force you to own a home in a place where you no longer live, especially when you rent in the new city. Read the rest of this entry »

While all home buyers and sellers are affected by economic uncertainty, its most debilitating effects are likely with “move-up buyers “who have the need, wherewithal and desire to buy a bigger home. Powerful motivators notwithstanding, these buyers find themselves lacking not only the confidence to make a decision, but, perhaps more importantly, the basic framework for identifying and evaluating the relevant factors. Now you can eliminate the guess work with the Move-Up Evaluator. Read the rest of this entry »

How do mortgage companies set daily pricing for the interest rates available for various loan programs? There's much disinformation on the subject. For starters, there is a common misconception that mortgage rates are somehow tied to the Federal Funds rate, which is completely inaccurate. It is the daily price fluctuations in the forward mortgage-backed security market that cause mortgage companies to change pricing daily. Read the rest of this entry »