Sentences with phrase «home if the buyer defaults»

Remember, the appraiser is usually working for a lender who must resell the home if the buyer defaults.

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.

With FHA reserves well below the required level of 2 % of its insured loans, FHA could be in a precarious position if low - to - moderate - income home buyers use FHA - insured mortgages to buy homes and end up in default.

If you acquire a FHA Loan to purchase a home, the FHA is not actually lending money to you, the buyer; the FHA simply guarantees the lender in case you, the borrower, default on your mortgage payments.

8) Mortgage Default Insurance If you've qualified for a high - ratio mortgage, (this is normally the case for home buyers with less than a 20 % downpayment), chances are good that you'll require mortgage default insurance from your Default Insurance If you've qualified for a high - ratio mortgage, (this is normally the case for home buyers with less than a 20 % downpayment), chances are good that you'll require mortgage default insurance from your default insurance from your lender.

Default and foreclosure are often preventable if the buyer takes action early; in some cases a simple bit of additional information is the only thing a borrower needs to take action that can save the home.