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Old 08-10-2008, 06:16 PM
 
Location: Finally escaped from Philly ;-}
1,182 posts, read 1,303,106 times
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a no document mortgage or loan? Is it legal? Thanks.
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Old 08-10-2008, 07:34 PM
 
Location: NC
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What's a no doc mortgage? It's history, that's what it is
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Old 08-11-2008, 05:43 PM
 
Location: Finally escaped from Philly ;-}
1,182 posts, read 1,303,106 times
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My neighbors are looking into this. I was wondering if this is the way alot of my neighbors are buying their homes for $1 when that's supposed to be illegal in Philly.
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Old 08-11-2008, 05:59 PM
 
Location: Baltimore
1,802 posts, read 7,075,116 times
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Found this definition online:

A type of reduced-documentation-required mortgage program in which income and assets aren't disclosed on the loan application and employment isn't verified. However, a credit check is typically required as lenders are counting on the fact that the borrower has a good credit history. No Doc mortgages usually fall into the Alt-A classification, and will tend to carry a higher interest rate charge, as well as require a higher down-payment compared to a prime mortgage.

In some circumstances, a borrower maybe enticed to use a No Doc mortgage in order to obtain a mortgage which is out of their reach. A borrower should not be persuaded by a lender or mortgage broker to use a No Doc mortgage in order to obtain something that is unaffordable or when a more traditional mortgage is reasonably available at a lower interest rate.
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Old 08-11-2008, 06:05 PM
 
Location: Finally escaped from Philly ;-}
1,182 posts, read 1,303,106 times
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Thanx. That doesn't sound like a way to buy a home for $1. Someone had told me that homes are listed as $1 if the owners borrow more than the house was worth. I don't know if that's true. If it is, alot of my neighbors are deep in hock.
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Old 08-11-2008, 06:19 PM
 
Location: Cary, NC
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A "no doc" loan and buying properties for $1 are different things.... please tell me they aren't getting this "advice" on the late night infomercials, a website or from a book
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Old 08-11-2008, 06:26 PM
 
Location: Cary, NC
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Janetvj- good textbook definition. It misses the part where back in 2006, they were doing them with 0 down with just a 680 score. Another reason for the problems we now face, all you needed was a score and a pulse and you had a home.

These days I can't think of lenders doing true "no doc" loans even with 25-30% down. Hard money and equity lenders do, but they look at equity alone... credit doesn't even matter in most cases.
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Old 08-13-2008, 04:11 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,596,105 times
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yea, the "no doc" really referred to the process it took to do. there was literally no docs to process. it was great. i know i did a dozen of these a few years ago with straight forward re-finances at 65% cash-out deals.
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Old 08-14-2008, 04:42 AM
 
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isn't this scary? is it only called "no docs"? for a reason or it literally has "No docs"?
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Old 08-14-2008, 06:21 AM
 
Location: OK
2,717 posts, read 6,296,229 times
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Quote:
Originally Posted by MoonlightMadness View Post
Thanx. That doesn't sound like a way to buy a home for $1. Someone had told me that homes are listed as $1 if the owners borrow more than the house was worth. I don't know if that's true. If it is, alot of my neighbors are deep in hock.
Can you tell us more about this>
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