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100% of foreclosures occur with homes that are mortgaged.
I agree with the sentiment, but technically this isn't true. Some homes are foreclosed on due to liens placed on them for reasons other than a mortgage such as taxes or judgements.
I agree with the sentiment, but technically this isn't true. Some homes are foreclosed on due to liens placed on them for reasons other than a mortgage such as taxes or judgements.
That's true, but most foreclosures can be initiated after one failed payment. Tax liens are a bit more cumbersome to execute foreclosures, it's not a fast process and it's far easier to paydown a $3K loan as opposed to a $100K+ mortgage when you have no job - you can pawn items, borrow from family/friends, work part-time, sell old gold, etc.
What are people's thoughts about the 15 year mortgage vs. 30 year mortgage. I feel a 30 year mortgage is the biggest scam in the world. First, you are crippled by the mortgage for 30 years just to have lower payments. At, least in 15 years you could be debt free.
Also, how much should I borrow. I want to borrow no more than $100K. I feel mortgage people are just loan shoarks in disguise. Why should I give someone all my money.
Anyone buy a house with just cash?
Yep, we took a 30 year mortgage. We pay it as a 15 year, but if my wife wants to quit work to stay at home with our kids, we won't have to refinance our 15 year into a 30 to be able to do it.
30 year mortages are just fine, especially if you pretend it's a 15 year
That's true, but most foreclosures can be initiated after one failed payment. Tax liens are a bit more cumbersome to execute foreclosures, it's not a fast process and it's far easier to paydown a $3K loan as opposed to a $100K+ mortgage when you have no job - you can pawn items, borrow from family/friends, work part-time, sell old gold, etc.
Tax liens are just one example, though. Another common one is a $200K lien for an unpaid hospital bill on a $50K house, that's a little harder to swallow. Of course at that point an individual doesn't have much choice but bankruptcy anyway, so it's probably a moot point.
I would disagree that the process is more cumbersome, though. You don have to wait a certain period of time before starting foreclosure proceedings (18 months in Iowa), but after that it's really just a matter of sending a couple of certified letters.
Tax liens are just one example, though. Another common one is a $200K lien for an unpaid hospital bill on a $50K house, that's a little harder to swallow. Of course at that point an individual doesn't have much choice but bankruptcy anyway, so it's probably a moot point.
I would disagree that the process is more cumbersome, though. You don have to wait a certain period of time before starting foreclosure proceedings (18 months in Iowa), but after that it's really just a matter of sending a couple of certified letters.
Try foreclosing in NJ - takes an average of 3 years. Have fun, plus only under limited circumstances can a lien force the sale of the home. You can't pay your bills with a lien.
What are people's thoughts about the 15 year mortgage vs. 30 year mortgage. I feel a 30 year mortgage is the biggest scam in the world. First, you are crippled by the mortgage for 30 years just to have lower payments. At, least in 15 years you could be debt free.
Also, how much should I borrow. I want to borrow no more than $100K. I feel mortgage people are just loan shoarks in disguise. Why should I give someone all my money.
Anyone buy a house with just cash?
I usually go for the 15 year mortgages because they have lower rates. I have also had about three variable rate loans and although they are risky it depends on how long one intends to live there. However with these historic rates I wouldn't do that now under any circumstances.
The advantage of 30 year loans is that you will have lower payments and can simply pay additional principle to reduce the time you will be paying on the loan. You can use "Bankrate" to calculate the savings.
If payments are not important to your budget go for the 15 year rate.
Actually the 30, 15, or 20 year loans are really meaningless anyway. No one (well almost no one) lives in one place that long today. It is basically an amortization method for stretching out the payments. I think the average time one stays in one house used to be seven years. Now I was recently told it was as low as 3-4 years. I'm not sure I believe that but it isn't long anymore.
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