Sentences with phrase «homeowner defaults on the loan»

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

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.

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.

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.

Therefore, lenders require that applicants purchase an insurance policy that protects the lenders» interests in case the homeowners default on their loans.

Just like a conventional home mortgage loan, if the homeowner defaults on the loan, or doesn't comply with the terms, the borrower may face foreclosure.

FHA insurance also protects the lender by paying the lender if a homeowner defaults on their loan.

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

Not exact matches

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

«Buy and Bail» is a pre-meditated foreclosure event, which means that the homeowner has advanced plans to default on its loan and, last decade, Buy and Bail strategies cost the nation's lenders something huge.

Homeowners pay mortgage insurance to cover risks to Fannie Mae or Freddie Mac in the event that you default on your loan.

It is open to homeowners who have already defaulted on their mortgage loans, as well as those who are at risk of defaulting in the near future.

It starts when a homeowner has fallen behind on home loan payments, thus defaulting on the mortgage loan.

(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.)

A Nevada Association of Realtors (NVAR) Report found that 23 percent of homeowners strategically defaulted on mortgage loans.

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).

Mortgage loans for bad - credit borrowers, no - documentation loans and zero - down - payment loans virtually disappeared once home values began to tumble and thousands of homeowners defaulted on their mortgage loans.

You must continue payments for property taxes, homeowner's insurance, any homeowner's association fees, and the cost for basic maintenances of the home, in order to avoid defaulting on the loan.

Each scenario is different and is priced accordingly to factor in risk - based pricing or the chance that the homeowner will default on the loan.

If the economy goes in the tank again, all those homeowners could default very easily on all my loans.

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.

Homeowners who find themselves in the position of defaulting on a mortgage loan that was previously modified, may be able to negotiate a short sale.

Default Insurance helps make it possible for a homeowner to buy a property with a lower down payment — this indicates they have little value in their home and they will end up paying even more interest on the home loan.

Similar to VA and USDA Loans, FHA Loans are government insured; meaning, lenders are protected against the financial ramifications of homeowners defaulting on their mortgage payments.

If the homeowner continues to default on the loan, the lender will file the necessary paperwork to foreclose on the home.

The most recent mortgage delinquency data suggested that defaults on subprime mortgage loans are occurring at measured pace than in recent months, good credit homeowners are beginning to show more and more delinquencies

The credit risk on such securities is affected by homeowners or borrowers defaulting on their loans.

Also, if the homeowner goes into default on their loan, the lender gets to keep all of the money earned in the home equity loan as well as the money earned from the initial mortgage.

New research found that more than 25 % of mortgage loan defaults are strategic — that is, a quarter of homeowners who default on their mortgages are walking away from their homes even if they can afford to make their payments.

The homeowners must be at least 3 months delinquent on home loan payments on their principal home and have either received a foreclosure notice or be able to self - certify to the likelihood that they will default on their mortgage due to the delinquency.

Should the homeowner - borrower default on the loan or pass away, the insurance benefit is applied to the loan.

Mortgage insurance coverage on low - down - payment loans protects a lender against losses due to homeowner default.

While monthly payments on the loan are not required, you do need to continue to live in your home and pay property taxes and homeowners insurance to avoid defaulting.

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).

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

If the homeowner continues to default on the loan, the lender will file the necessary paperwork to foreclose on the home.

It is open to homeowners who have already defaulted on their mortgage loans, as well as those who are at risk of defaulting in the near future.

The IRS will not count the amount forgiven by the mortgage holder as income to the seller, thus giving distressed borrowers incentive to sell short rather than default; (2) restored the tax deduction for mortgage insurance premiums that expired at the end of 2011; (3) the mortgage interest deduction untouched; and (4) tax relief for mortgage debt forgiveness was extended another year; providing homeowners tax relief on loan modifications, short sales and foreclosures.

If a homeowner has fallen behind in their loan payments, then the lender will file a notice of default, a document advising the owner that they have to catch up on the mortgage by a certain date, which will officially begin the foreclosure process.

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.

When a buyer purchases property «subject to mortgage», the buyer agrees to assume the remaining debt on an existing mortgage, but the original homeowner remains on the loan and, therefore, remains personally liable for the debt should the buyer default on making the monthly payments.

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 loan.

Homeowners who have defaulted on their mortgage loans are getting loans again.

You must continue payments for property taxes, homeowner's insurance, any homeowner's association fees, and the cost for basic maintenances of the home, in order to avoid defaulting on the loan.