Posted on: 03rd Oct, 2006 12:20 pm
Hello all, Just a few questions regarding a FHA loan. First off we are behind on payments but are requesting a forbearance or loan modification from our lender. Our other option would be the FHA partial claim. Once these alternatives are set up, what about your taxes and insurance? Are they still paid out of current escrow? Also because of damage from hail we have a ck from homeowners to complete repairs. The lender would not endorse because we are delinquent. Once we are in forbearance or get our loan modified will the lender then endorse ck for us? We also just recently had the 2nd mtg charged off. Both loans with same lender..Once first if brought current how will this effect title when we decide to sell. Also with the charge off..will that be considered forgiveness of debt and we would then pay taxes on? If we would eventually refi or sell and the lender excepted a short sale or short refi then any remaining would not be considered forgivness of debt? If they except i am assuming maybe title will then be clear even if short sale or refi? We were originally way upside down with our equity situation. Thanks, any information or suggestions would be appreciated!
Hi Debbie,
A partial claim will include the principal, interest, taxes and insurance advances for a maximum of 12 months value required for reinstatement of the loan.
Thanks
Deaver
A partial claim will include the principal, interest, taxes and insurance advances for a maximum of 12 months value required for reinstatement of the loan.
Thanks
Deaver
Hi,
"Also with the charge off..will that be considered forgiveness of debt and we would then pay taxes on?"
If the second mortgage is charged off, that amount will be a discharge of indebtedness income and would be taxed on that amount.
"Also with the charge off..will that be considered forgiveness of debt and we would then pay taxes on?"
If the second mortgage is charged off, that amount will be a discharge of indebtedness income and would be taxed on that amount.
FHA loans are presented openly to the home buyer through any affiliated Mortgage company. If you are a first-time homebuyer you could call for assistance at the FHA loan program from which you can get some benefit.
[Link removed as per forum rules. Thanks.]
[Link removed as per forum rules. Thanks.]
Hi,
"what about your taxes and insurance? Are they still paid out of current escrow?
"
The taxes and insurance should be paid from your current escrow account. The accrued payments in taxes and insurance must not exceed the total of all tax and insurance payments for a year.
Thanks,
Sara.
"what about your taxes and insurance? Are they still paid out of current escrow?
"
The taxes and insurance should be paid from your current escrow account. The accrued payments in taxes and insurance must not exceed the total of all tax and insurance payments for a year.
Thanks,
Sara.
"Once we are in forbearance or get our loan modified will the lender then endorse ck for us?"
Once you are in forbearance, the lender may or may not endorse a check. This entirely depends on the lender.
Once you are in forbearance, the lender may or may not endorse a check. This entirely depends on the lender.
Hi Debbiephelps,
"Once first if brought current how will this effect title when we decide to sell."
Most lenders would not allow a borrower to sell the property until and unless the debt against it is cleared. If at all the lender will allow for the sale, the borrower or the homeowner has to choose a buyer who is willing to assume your loan, that is, to take the responsibility of repaying the loan. So, you should look for a buyer who can assume your loan. But you need to talk to the lender regarding the buyer assuming your loan.
God bless you
Samantha
"Once first if brought current how will this effect title when we decide to sell."
Most lenders would not allow a borrower to sell the property until and unless the debt against it is cleared. If at all the lender will allow for the sale, the borrower or the homeowner has to choose a buyer who is willing to assume your loan, that is, to take the responsibility of repaying the loan. So, you should look for a buyer who can assume your loan. But you need to talk to the lender regarding the buyer assuming your loan.
God bless you
Samantha
Hi,
"Also with the charge off. will that be considered forgiveness of debt and we would then pay taxes on?"
If a debt is charged off, it means that the lender will not collect the payments any more. So, you need not pay off the outstanding balance on the second mortgage. But you still have to pay taxes included in the monthly payments of the FHA loan.
Tony
"Also with the charge off. will that be considered forgiveness of debt and we would then pay taxes on?"
If a debt is charged off, it means that the lender will not collect the payments any more. So, you need not pay off the outstanding balance on the second mortgage. But you still have to pay taxes included in the monthly payments of the FHA loan.
Tony
Hi Debbiephelps,
"If we would eventually refi or sell and the lender excepted a short sale or short refi then any remaining would not be considered forgivness of debt? If they except i am assuming maybe title will then be clear even if short sale or refi?"
A lender agrees to a short sale only if he is willing to write off a portion of the home loan which is higher than the value of a property. So, if you do a short sale, the lender will forgive a part of the debt. A short sale will help you to clear your debt and get clear title.
In case of a short refinance also, the lender will forgive a part of the debt and offer a loan to refinance the remaining balance. When you do a short refinance, you cannot get clear title until and unless you can pay off this loan.
Thanks,
Caron.
"If we would eventually refi or sell and the lender excepted a short sale or short refi then any remaining would not be considered forgivness of debt? If they except i am assuming maybe title will then be clear even if short sale or refi?"
A lender agrees to a short sale only if he is willing to write off a portion of the home loan which is higher than the value of a property. So, if you do a short sale, the lender will forgive a part of the debt. A short sale will help you to clear your debt and get clear title.
In case of a short refinance also, the lender will forgive a part of the debt and offer a loan to refinance the remaining balance. When you do a short refinance, you cannot get clear title until and unless you can pay off this loan.
Thanks,
Caron.