The 2 Mortgage Guys: Mortgage Disclosure Improvement Act explained
Filed under: The2MortgageGuys, Mortgages
On today's "Show & Tell with The 2 Mortgage Guys" video, we'll explain the new Mortgage Disclosure Improvement Act and how it effects you if your applying for a mortgage. We'll break down the good, the bad and the possible closing delays!
Ryan Minick & Steve DeLon are The 2 Mortgage Guys. Reach them at www.The2MortgageGuys.com
Ryan Minick & Steve DeLon are The 2 Mortgage Guys. Reach them at www.The2MortgageGuys.com
Reader Comments (Page 1 of 1)
8-04-2009 @ 11:37AM
JoAnn said...
No wonder my job teaching English is so difficult. I can accept that reader comments are often posted in a hurry and full of composition errors, but when the writers are so sloppy that they can't differentiate "your" from "you're" and "effect" from "affect," I guess it's time for me to retire.
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8-04-2009 @ 12:53PM
The 2 Mortgage Guys said...
You're right! I only had two sentences to type and I still messed it up! That's why we're not "The 2 English Guys"! I promise I'll never make a spelling mystake again. I haven't had my wrist slapped by a teacher in years! :)
8-09-2009 @ 10:34AM
sid said...
Question: 2 mortgages on a house, first is 200, 2nd is 190 and is a HELOC. The value of house is now about 225-250. What happens if first is kept current and we don't pay on the 2nd?. It would seem that the 2nd would never buy out the first. They are with different lenders. Can filing bankruptcy get the 2nd one cramed down?
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8-09-2009 @ 10:56AM
The 2 Mortgage Guys said...
Sid, What's the real problem here? Are the current payments too much or is the fact you owe more than the house is worth the issue? At some point in time you borrowed the money and agreed to the terms and payments and obviously the real estate market has decreased since. Are you wanting to sell the home but can't because of your negative equity situation or are you just angry at the thought of owing so much more than your house is worth? If property values were as high as they were when you originally borrowed the money would you still be asking this question?
I ask these direct questions because if you can still afford the payments and don't plan on selling the home at the current market value than don't file bankruptcy. It's not worth trashing your credit and the two mortgage companies you owe money to are just as much of a victim in this market as you are.
If you are really struggling and fear that you may lose your home with your current debts than consult with a good, reputable bankruptcy attorney in your market. They could tell you the likely actions the second mortgage company would take.
You're right, there's not enough equity for them to get anything from the sale of your home in the case of a foreclosure. Keep your head up, seek some additional advice and the best of luck in these difficult times.
8-09-2009 @ 11:11AM
sid said...
The house was bought in 01 with the first. The house was substantially damaged by a hurricane in 05, so we took out a HELOC to cover the large amount not covered by insurance company. Don't ask me how we got a 2nd on a house that had 300k in damage. At the time, the value was close to 600 ( south florida)
We did whatever we could to finish the house, credi cards, credit lines etc. As the economy has soured a bit, our earnings are a bit off from what they used to be.
We are filling bankruptcy (in process of) anyway as it came down to paying visa and Lowes or the mortgage. So, I don't care about the consequences of bankruptcy. We are the poster family for hardship, we had 800 mid scores before the hurricane and now couldn't get a loan playing Monopoly.
We are working with NACA on the first to get rate reduced. We are trying to get rate reduced and not principle. The first is not the issue and I think it will be worked out. I don't want to advertise for anybody but NACA is worth the effort.
Our hope is that the first will get "modified" to use a cliche, and that bankruptcy can attack the second. The 2nd is low rate, but is tied into Libor or prime rate and if prime rate starts going up, we'd be really screwed. I own a business and have submitted all the papaerwork showing that I don't make anywhere near what I once did, but still have steady enough to affored a lower rate. The numbers all are within the Obama thing where it's like 31% (like old underwriting numbers)
I guess my question really came down to what do you think 2nd lien holder would do in this case. Would they be willing to reduce terms (which would include principle) or do they want to see what happend when I file bankruptcy. I've been told 10 answers by ten people.
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8-09-2009 @ 11:35PM
The 2 Mortgage Guys said...
It really sounds like you've done your homework. The Making Home Affordable Modification loan will help you with a 31% debt ratio payment. 10 answers from 10 people doesn't surprise me. Check with a BK attorney. I would say they should have the most experience with your question. Again, good luck moving forward, it will get better!
8-09-2009 @ 11:07PM
RealtyMan said...
Typical botched government effort to "protect" the consumer. Of course Big Brother would never imagine that a consumer might be able to comprehend a subsequent change of terms, therefore be willing to waive an additional three days delay. Just assume that everyone is a moron so the small percentage of morons that are out there can be protected!
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8-10-2009 @ 9:12AM
Tammy said...
hey guys , i just recently diviorced . am diabled . i get allimony. have to get a renter which would help with total incoome.... but my mortgage (PHH) Have been doing some underhanded things to us from the brginning .. right now just need a modification . seem to get bounced around allover the place .. as usual..... it is a FHA i have paid PMI since the loan .. and before everything fell ..(so to speak) we tried to get the PMI off cue to the value to loan ratio. haven;t succeding .. but in may they took it off and then put it back on june ... (confused)
they have no explaination other it was supposed to come off after so many years anyway.. I am on the deed alone since the divorce and partsof the mortgage non principle.
i need help what should i do?
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8-10-2009 @ 9:50AM
The 2 Mortgage Guys said...
Tammy,
Trying to get PMI removed is like pulling teeth! Not sure why they would have taken it off and put it back on again, sounds a bit weird. You need to have had the mortgage for at least 24 months with no late payments in the last 12 before your investor will even consider removing it. Good news, PMI is the equivalent to half a percentage so this shouldn't be a huge part of your mortgage payment.
You also mentioned a modification???? If you are trying to get your loan restructured you will have to work with your current mortgage company otherwise refinancing to another lender may give you a better rate, lower payment, etc.
Hope this helps, we understand this can be very confusing!
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8-17-2009 @ 3:17PM
WENDY N said...
I am a Realtor and talk with people everyday about their loans and property values. It's really hard to convince someone to continue paying on a 170K loan when their property value is under 30K. ( Metro Detroit area ). We all understand that we made a deal but it just doesnt make any financial sense in any way to continue to make those payments.
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