What is a Deed of Reconveyance?

In a Deed of Trust, the owner/borrower transfers title to a “Trustee” in order to secure the debt owed to the Beneficiary. Once the loan is paid, the Beneficiary should instruct the Trustee to issue a “Deed of Reconveyance”. Once recorded, the Deed of Reconveyance transfers title to the borrower or current owner. This services …

Continue reading ‘What is a Deed of Reconveyance?’ »

New short-sale program offers relief for underwater homeowners

One of the federal government’s most-important financial relief efforts for underwater homeowners started operating Nov. 1.  Traditionally short sales, where the lender agrees to accept less than the full amount owed and the house is sold to a new purchaser at a discounted price, are associated with extended periods of delinquency by the original owner. …

Continue reading ‘New short-sale program offers relief for underwater homeowners’ »

How Much Should You Borrow for a Home Loan?

According to a 2011 report issued by CoreLogic, roughly 23.1 percent of mortgaged homes were underwater – worth less than the amount mortgaged – in the fourth quarter of 2010. If you are one of the lucky 75 percent of homeowners with some equity, then you might be considering taking out a loan in order …

Continue reading ‘How Much Should You Borrow for a Home Loan?’ »

Risk of Strategic Default Rising in Low-Risk Areas

Negative equity remains one of the biggest challenges for the housing market. For some borrowers it can become their rationale to stop making mortgage payments and intentionally default on the loan. The risk of such strategic default is rising among loans that have “always performed,” according to the credit analysts at Moody’s Analytics. They say …

Continue reading ‘Risk of Strategic Default Rising in Low-Risk Areas’ »