Sentences with phrase «paid if the borrower defaults»

A provision which requires that the remaining balance due be paid if the borrower defaults on the loan or transfers title to another party.

Not exact matches

FHA loans are guaranteed by the government, so that the lender is paid back with federal funds if the borrower defaults.

Private mortgage insurance (PMI) is a special type of insurance policy that is paid by the borrower and protects lenders against loss if a borrower defaults.

In most cases, loans are considered in default when borrowers have not made a payment for 270 days if they pay monthly or 330 days if they pay less than once a month.

Maybe commissions should be paid out over the life of the mortgage, so if the borrowers default, the commisson evaporates as well.

You, the borrower, pay mortgage insurance premiums, which cover the lender's losses if you default on your mortgage.

If you're considering cosigning a loan, it's essential that you understand the key risk involved: if the borrower defaults on the loan, then you are responsible for paying it bacIf you're considering cosigning a loan, it's essential that you understand the key risk involved: if the borrower defaults on the loan, then you are responsible for paying it bacif the borrower defaults on the loan, then you are responsible for paying it back.

Under the Ontario Mortgage Act, the private lender will sell property in default to recoup if a borrower was unable to pay agreed mortgage fees.

In case of default, the lender goes after the buyer who assumed the loan and — if that buyer can not pay off the debt — the lender then goes after the original borrower.

Congress mandates that the insurance premiums the agency collects must be kept in a reserve fund that the FHA uses to pay lenders if a borrower defaults on an FHA - insured loan.

Additionally, government insurance programs like FHA ensure that lenders get paid, even if a borrower defaults on the loan down the road.

FHA insurance provides an incentive for lenders to loan money to individuals without requiring additional cash for a bigger down payment or significant personal cash reserves because the agency's insurance will pay the lenders if the borrowers default.

If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount.

The mortgage company can only foreclose if there is a default in payments, a failure to pay property taxes, a failure to maintain insurance, or if the borrower / debtor is damaging the property intentionally or recklessly.

If the value of the property can not be sufficient to pay off the mortgage in case of default on the part of the borrower, then the purpose of using the property as collateral is defeated.

The U.S. government sponsors these loans and will pay these loans back to the mortgage institution if the borrower defaults under certain conditions.

In most cases, loans are considered in default when borrowers have not made a payment for 270 days if they pay monthly or 330 days if they pay less than once a month.

You, the borrower, pay mortgage insurance premiums, which cover the lender's losses if you default on your mortgage.

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.

If a property is sold as the result of a mortgage default, but the sale does not generate enough money to pay the outstanding balance and all associated costs, fees and interest, the insurer will pay the shortfall to the bank and will then have the right to enforce against each borrower personally for the deficiency.

The result can be disastrous because lenders fully expect the co-signer to pay the full balance on the loan if the primary borrower defaults.

+ read full definition in the property to pay investors back if the borrower defaults and the property needs to be resold.

If a borrower defaults on a mortgage, the investors still get paid by the GSE.

FFELP lenders encourage borrowers to pursue deferments and forbearances as an alternative to default in part because the accrued but unpaid interest in paid as part of a default claim if the borrower ultimately defaults.

The mortgage act allows private lenders to sell the property if a borrower defaults but they can only regain their investment if mortgages that came before are fully paid off.

A CDS is a form of insurance in which the issuer (AIG) guarantees that a bond will be paid off even if the borrower defaults.

Annaly and American Capital Agency, for instance, invest in agency mortgage - backed securities, which come with an implicit guarantee against default — meaning if the borrowers stop paying, they are reimbursed for the difference.

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.

This pledge dies (is terminated) when the mortgage is either paid off in full or the property is repossessed (foreclosed) by the bank if not paid as agreed (borrower defaults).

1 - The lender does care about who is paying the loan and it can affect her credit if they know that the primary borrower has defaulted.

Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.

Borrowers who use an FHA mortgage must pay for mortgage insurance as this protects the lender if you default.

While the borrower pays the premium — which can add thousands of dollars to the cost of buying a home — the insurance actually protects the lender if the borrower defaults on the loan.

In other words, if a borrower defaults on the mortgage, Fannie or Freddie will pay the investor (the ultimate owner of the mortgage debt) instead of the borrower.

Payment shock threshold is based on the idea that a borrower who is already paying significant housing payments every month can handle a larger payment, while a borrower who has very small housing payments currently may be a victim of payment shock and default on the loan if the payments are significantly higher than the monthly payments they are currently making.

If the borrower goes into default, and you can't pay, not only will your credit rating be negatively affected, your become vulnerable to being sued by the creditor.

If a borrower defaults on their FHA loan, the FHA pays the bank back what it lost.

This means the credit provider can sell your house to pay the debt if the borrower defaults on their loan.

Loan modifications will also be a leading contributor to continuing price declines because 70 % or more of the Mods will either never happen or if they do the borrowers will default due to the fact that not paying your mortgage has become tottaly ethical and endorsed by almost every polition across both party lines.In the last debate between Obama and McCain, Obama suggested that there be no more foreclosures until 09 ′.

If the primary borrower on the mortgage defaults, the lender will come looking for you to pay.

Indeed, if you fund Kiva loans with a US Bank Flexperks Travel Rewards card, all you have to pay for your revenue tickets is the time value of your money and the risk of your Kiva loans defaulting (which can be substantially mitigated against by carefully choosing your loans and diversifying your loans across borrowers and countries).

If a good portion of the loan was paid off prior to default, the borrower you cosigned for may be able to obtain a refinance on their own.

This clause outlines how the lender can foreclose on the property if the borrower stops paying the mortgage, also known as defaulting on a home loan.

Additionally, government insurance programs like FHA ensure that lenders get paid, even if a borrower defaults on the loan down the road.

The report, which indicated FHA's Mutual Mortgage Insurance Fund (MMIF)-- responsible for paying lenders if a borrower defaults — is on steady ground, is another positive development for housing, says Bill Brown, NAR president.