This topic contains 16 replies, has 9 voices, and was last updated by Anonymous 7 years, 7 months ago.
- February 13, 2011 at 3:36 pm #412133
Depending on where you live, the legality may or may not come into play. The bigger issue is one of — is this a good idea? If you cannot make your first mortgage payment, in all likelihood, you should not be buying the house anyway. Some would question the ethics of an agent who would agree to this plan. Your agent should work in your best interest, and it sounds to me like using this scheme to buy is not in anyone’s best interest!
Agent in Ohio
- February 13, 2011 at 3:48 pm #412134
I only know California real estate law, so my answer is based on that only. Yes, it is legal. Yes it is ethical (barely). However, I would re-evaluate who you are using as an agent.
- February 13, 2011 at 4:18 pm #412135
If you have any doubts (which it sounds like you do) you should first, consult an attorney; second, call the Real Estate commission of your state and question them. They have strict guidelines that brokers and agents must adhere to or their license may be suspended/revoked.
When I purchased my first home, my agent lent me money to pay off a bad debt so I could qualify for my mortgage. I signed a promissory note and made my monthly payments.
I am real estate broker, these days, and would NEVER think of loaning any of my clients money when they are in over their heads, let alone asking them to put my name as the beneficiary of the deed of trust (he/she can foreclose on you without going to court). This sounds ‘fishy’ to me.
Like I said, consult an attorney IMMEDIATELY.
- February 13, 2011 at 5:18 pm #412136
Based on how you described the situation there is nothing illegal.
You refinanced the property. Later (after the refinance) you ran out of money and secured another loan that is junior to the 1st. That loan is from an agent. The purpose of the loan was to give you the cash to keep up with the payments.
Why would you think this is illegal? What laws are you thinking have been broken?
I suspect there is more to the story. Given what you said there is nothing illegal at this point.
You sound like you have an alligator property and it is eating you alive. You need to get it sold or find a way to generate more income.
- February 13, 2011 at 5:46 pm #412137
It isn’t illegal, and you signed your name to the terms. I am not quite sure why when you couldn’t afford the payments on the first you thought it would be a good idea to take on another monthly liability/payment. The terms of the hard money loans usually come with a high interest rate and a short time frame to pay the money back in full. You would have been better off doing a regular refinance, and maybe consolitating some of your other monthly debt to offset the new payment, and if you have any equity left in the property it is something you should consider, as that balloon payment is looming if not upon you yet. Your agent will own some of your home if you don’t pay that money back. If you need help you can email me at thenderson@acgmoney, and maybe I can find a way to help you. Good Luck.
- February 13, 2011 at 6:21 pm #412138
a hard money lender is for people that have poor credit and can not get a good loan from a regular lender…….they charge you a very high interest rate, maybe 12% compared to a regular mortgage rate of maybe 7%
if you have good credit and not to much debt you should qualify for a regular loan, if you live in PA and you want to buy something in this state send me an email and I can help you.
- February 13, 2011 at 6:56 pm #412139
people without good credit may be offered hard loans whereas people with great credit will recieve the “soft loan” 🙂
- April 16, 2011 at 5:16 am #198974
instead of a consumer credit economy? To me it seems obvious that if you consume more than you produce every year that you can NEVER get out of debt.
- April 16, 2011 at 5:29 am #256515
Whoever controls the debt has the control.
- April 16, 2011 at 5:34 am #256641
good question. every policy aimed at sending all production abroad, turning america into a bunch of low paid service employees running up debt they can’t repay. we need to slap on some tariffs and rebuild the american working class.
- April 16, 2011 at 5:35 am #256668
because Washington DC is so out of touch from the general public that they haven’t a clue as to what is happening in the real world, nor what it takes to work and be productive
- April 16, 2011 at 6:13 am #256928
Slaves are easy to control.
- April 16, 2011 at 6:13 am #256941
But I don’t wanna be a farmer
- April 16, 2011 at 12:10 pm #257173
and this only occurs to you now? it’s been that way since 78.
- April 16, 2011 at 12:12 pm #257227
Cap and trade would complete the transition, until the money was completely gone. You can’t be a consumer credit economy without access to money.
- April 16, 2011 at 12:16 pm #257370
we have been in a severe trade deficit with the far east for decades!
it is one of the problems with our economy.
we NEED to produce and export to get money from other countries to come INTO the US.
every time we send money to another country we are selling off a little bit of America’s value in the world
(what a depressing thought to have before I go to bed)
- May 23, 2011 at 7:20 am #412140
i want to buy a home at diva, but its illegal property. bank not give me a loan for this property. pls. suggest me how can i get the loan for such property. pls. guide me
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