Sentences with phrase «homeowner defaults»

When the local economy is weak, more homeowners default on their mortgages.

Unlike the better - known mortgage insurance, which protects lenders if homeowners default, mortgage protection insurance is, essentially, a type of life insurance.

When the local economy is weak, more homeowners default on their mortgages.

Both circumstances are a legal process designed to provide the Canadian lender an option to sell the property in the event the Canadian homeowner defaults or misses several payments.

For one, states can allow judicial foreclosure, non-judicial foreclosure, or trustee sales when homeowners default on their mortgages.

The FHA does not loan money to borrowers; rather, it provides protection through mortgage insurance (MIP) against losses as the result of homeowners defaulting on their mortgage loans.

But the organization's reserve fund plummeted during the housing crisis, largely due to insurance claims resulting from homeowners defaulting on their loans.

(Many homeowners defaulted on their mortgages over the past few years because they lied about their financial circumstances and / or worked with unscrupulous lenders who overlooked deficiencies in their loan applications in order to generate more business.)

According to the Department of Veterans Affairs, 73,000 veteran homeowners defaulting on their mortgages were able to stay in their homes in 2011 because of the loan program.

As a result, potential homeowners couldn't afford to buy, and many existing homeowners defaulted.

FACTS VERSUS FICTION: According to recent nationwide data, the number one reason homeowners default on their home loans was because their income was cut.

If the future homeowners default or back out of the rent to own agreement, you still receive the initial rent to own option fee, monthly rental income received and the rent premiums during the time frame they lived in the home.

FHA mortgage insurance provides lenders with protection against a loss if a FHA homeowner defaults on a loan.

HUD pays claims to lenders if homeowners default, using money from the FHA insurance fund, which is money pooled from borrower - paid mortgage insurance premiums and payments.

Mortgage insurers pay lenders when homeowners default and foreclosures fail to cover costs.

An agency within the Department of Housing and Urban Development, FHA insures mortgages, reimbursing lenders in the event of homeowner default.

But the organization's reserve fund plummeted during the housing crisis, largely due to insurance claims resulting from homeowners defaulting on their loans.

On a fundamental level, what all of this securitization of the mortgage market meant was that if homeowners defaulted on their mortgage, MBS & CDO holders would be holding a worthless security, and it would be for much more than the face value of the mortgage.

If the homeowner defaults on his or her payments and the lender faces a loss following foreclosure, mortgage insurance covers the difference and turns a high - risk customer into a zero - risk customer.

PRIMARQ says that its clients may protect their investments by buying out a homeowner's equity stake if that homeowner defaults.

There's more money that could be lost if the homeowner defaults.

The government insurance comes into play if the homeowner defaults (i.e., stops making payments on the loan).

The bill is aimed at closing the gap of responsibility when a homeowner defaults.

When homeowners default on their mortgages, Carver metaphorically circles the property like a hungry vulture, waiting for the tenants to use up every last resource before he forces them to vacate on behalf of the bank.

With mortgage insurance, you'll also pay into a pool to help the lender cover losses and costs if a homeowner defaults on their loan.

Foreclosure — When a homeowner defaults by failing to make payments on their mortgage, the lender that holds the mortgage is given legal ownership of the property to allow them to recoup the money that was lent.

While it may seem risky to issue mortgages with low down payments, some housing experts seem to believe that the program's requirements can cut the risk of homeowners defaulting.

So for example, if a home was purchased for $ 200,000 and then 10 years later the homeowner defaults on the loan but has paid $ 40,000 in principal then that leaves an outstanding balance of $ 160,000 owed.

Rising house prices can not compensate for second or even third mortgages to refinance credit card debt or HELOC balances that increase when homeowners default or miss payments due to a sudden financial hardship like a job loss or increase in interest rates.

For one, states can allow judicial foreclosure, non-judicial foreclosure, or trustee sales when homeowners default on their mortgages.

If a homeowner defaults on a mortgage, the bondholders have a claim on the value of the homeowner's property.

Auction / Notice of Foreclosure: If the pre-foreclosure stage lapses and the homeowner defaults, the lender will appoint a third party to auction the seized property.

FHA protects lenders by reimbursing them in the event of homeowner default, making them more willing to lend to people with less - than - perfect credit.

If the homeowner defaults on the mortgage for any reason, the lender will be compensated for losses (as long as they have made the loan in accordance with HUD's guidelines).

Should a homeowner default on the mortgage or go into foreclosure, the FHA pays the lender.

And since Citibank is federally insured at the depositor level, and «too big to fail» at the institutional level, Uncle Sam is now a counterparty that effectively shares the risk in the case that GM or homeowners default.

So, even if a homeowner defaults the bank is more than happy to, you know, they figure they're going to get their money out of the house.

Homeowners defaulted on their loans and hundreds of banks failed.

The problems start when the homeowners default.

In that system, a lender will commence proceedings when the homeowner defaults on their mortgage.

By contrast, a foreclosure (also the prevailing law in the U.S.) is undertaken by a lender when the homeowner defaults on their mortgage, but in this case the borrower is not liable for any loss incurred by the lender.

Therefore, it is not very difficult to portend these cycles of homeowner defaults and continued losses for the mortgage industry generating ripples of shockwaves throughout the economy leading to a major correction.

This insurance protects lenders against financial losses that result when homeowners default and stop making their mortgage payments.

A number of things happen when a homeowner defaults on their mortgage.

The main reason for this is simple; FHA mortgage insurance protects the lender's investment should a homeowner default on the mortgage.

FHA loans require mortgage insurance premiums, which serve as protection for lenders in the event a homeowner defaults on their home loan.

The government insurance comes into play if the homeowner defaults (i.e., stops making payments on the loan).

The reverse mortgage called the Home Equity Conversion Mortgage (HECM) and traditional FHA loans are both federally insured, and require that borrowers pay a mortgage insurance premium in order to decrease risk to lenders if the homeowner defaults on the loan.