Sentences with phrase «because if the buyer defaults»
That's because if the buyer defaults on the first lien, you would be responsible for making up all back payments on both mortgages, plus all future payments until the primary mortgage holder forecloses.
http://articles.chicagotribune.com/ Not exact matches
Mortgage insurance (MI) is almost always required by lenders when the down payment is less than 20 % because a loan with a low down payment is riskier and the insurance protects the lender if the home buyer defaults.
They impose these rates because they are lending to folks who have a bad record of paying off debts and this cuts their losses if a buyer defaults.
Rick: It's almost a joke at this point because a lot of attorneys will represent both buyers and sellers and when I deal... I usually represent buyers when I'm representing someone and I'll call the seller's attorney and they've already made changes to half of the paragraph because they... For example, if the buyer defaults then the only recourse the seller usually has is to retain the deposit.