The Lender with Two Mortgages on the Same Property: Risks and Strategies
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Down Payment and Closing Cost Assistance
STATE HOUSING FINANCE AGENCIES Down Payment and Closing Cost Assistance OVERVIEW STRUCTURE For many low- and moderate-income people, the The structure of down payment assistance programs most significant barrier to homeownership is the down varies by state with some programs offering fully payment and closing costs associated with getting a amortizing, repayable second mortgages, while other mortgage loan. For that reason, most HFAs offer some programs offer deferred payment and/or forgivable form of down payment and closing cost assistance second mortgages, and still other programs offer grant (DPA) to eligible low- and moderate-income home- funds with no repayment requirement. buyers in their states. The vast majority of HFA down payment assistance programs must be used in combi DPA SECOND MORTGAGES (AMORTIZING) nation with a first-lien mortgage product offered by the A second mortgage loan is subordinate to the first HFA. A few states offer stand-alone down payment and mortgage and is used to cover down payment and closing cost assistance that borrowers can combine closing costs. It is repayable over a given term. The with any non-HFA eligible mortgage product. Some interest rates and terms of the loans vary by state. DPA programs are targeted toward specific popula In some programs, the interest rate on the second tions, such as first-time homebuyers, active military mortgage matches that of the first mortgage. Other personnel and veterans, or teachers. Others offer programs offer more deeply subsidized rates on their assistance for any homebuyer who meets the income second mortgage down payment assistance. Some and purchase price limitations of their programs. -
The Real Estate Marketplace Glossary: How to Talk the Talk
Federal Trade Commission ftc.gov The Real Estate Marketplace Glossary: How to Talk the Talk Buying a home can be exciting. It also can be somewhat daunting, even if you’ve done it before. You will deal with mortgage options, credit reports, loan applications, contracts, points, appraisals, change orders, inspections, warranties, walk-throughs, settlement sheets, escrow accounts, recording fees, insurance, taxes...the list goes on. No doubt you will hear and see words and terms you’ve never heard before. Just what do they all mean? The Federal Trade Commission, the agency that promotes competition and protects consumers, has prepared this glossary to help you better understand the terms commonly used in the real estate and mortgage marketplace. A Annual Percentage Rate (APR): The cost of Appraisal: A professional analysis used a loan or other financing as an annual rate. to estimate the value of the property. This The APR includes the interest rate, points, includes examples of sales of similar prop- broker fees and certain other credit charges erties. a borrower is required to pay. Appraiser: A professional who conducts an Annuity: An amount paid yearly or at other analysis of the property, including examples regular intervals, often at a guaranteed of sales of similar properties in order to de- minimum amount. Also, a type of insurance velop an estimate of the value of the prop- policy in which the policy holder makes erty. The analysis is called an “appraisal.” payments for a fixed period or until a stated age, and then receives annuity payments Appreciation: An increase in the market from the insurance company. -
Special Declarant Rights and Obligations Following Mortgage Foreclosure on Condominium Developments
William & Mary Law Review Volume 25 (1983-1984) Issue 3 Article 4 April 1983 Special Declarant Rights and Obligations Following Mortgage Foreclosure on Condominium Developments Carol Jane Brown Follow this and additional works at: https://scholarship.law.wm.edu/wmlr Part of the Property Law and Real Estate Commons Repository Citation Carol Jane Brown, Special Declarant Rights and Obligations Following Mortgage Foreclosure on Condominium Developments, 25 Wm. & Mary L. Rev. 463 (1983), https://scholarship.law.wm.edu/wmlr/vol25/iss3/4 Copyright c 1983 by the authors. This article is brought to you by the William & Mary Law School Scholarship Repository. https://scholarship.law.wm.edu/wmlr NOTES SPECIAL DECLARANT RIGHTS AND OBLIGATIONS FOLLOWING MORTGAGE FORECLOSURE ON CONDOMINIUM DEVELOPMENTS Condominium sales have slowed in recent years after experienc- ing sustained growth in the 1960's and early 1970's.1 This decline apparently has caused construction lenders to foreclose more fre- 2 quently on the mortgages of uncompleted condominium projects, raising issues over the nature and extent of special declarant rights and obligations. A declarant is the creator, promoter, marketer, or developer of a condominium project.3 The declarant records a master deed, or declaration, identifying the rights and obligations of the declarant.4 "Declarant" also may include the original declarant's successors in interest,5 who usually must perform the obligations of the original declarant. If the successor in interest is a mortgagee or a secured party, however, the successor may not incur the original declar- ant's obligations unless the successor also has exercised special de- clarant rights.8 The Uniform Condominium Act's definition of special declarant rights "seeks to isolate those [ownership and development] rights reserved for the benefit of a declarant which are unique to the de- clarant and not shared in common with other unit owners."'7 These rights allow the declarant to manage and control the condominium 1. -
Will Mortgage Law Survive ? a Commentary and Critique on Mortgage Law's Birth, Long Life, and Current Proposals for Its Demise
Case Western Reserve Law Review Volume 54 Issue 1 Article 4 2003 Will Mortgage Law Survive ? A Commentary and Critique on Mortgage Law's Birth, Long Life, and Current Proposals for Its Demise Morris G. Shanker Follow this and additional works at: https://scholarlycommons.law.case.edu/caselrev Part of the Law Commons Recommended Citation Morris G. Shanker, Will Mortgage Law Survive ? A Commentary and Critique on Mortgage Law's Birth, Long Life, and Current Proposals for Its Demise, 54 Case W. Rsrv. L. Rev. 69 (2003) Available at: https://scholarlycommons.law.case.edu/caselrev/vol54/iss1/4 This Article is brought to you for free and open access by the Student Journals at Case Western Reserve University School of Law Scholarly Commons. It has been accepted for inclusion in Case Western Reserve Law Review by an authorized administrator of Case Western Reserve University School of Law Scholarly Commons. WILL MORTGAGE LAW SURVIVE? A COMMENTARY AND CRITIQUE ON MORTGAGE LAW'S BIRTH, LONG LIFE, AND CURRENT PROPOSALS FOR ITS DEMISE Morris G. Shankert PROLOGUE Recent reports that mortgage law may soon die are not exag- gerated! 1 Present day mortgage law has been with us for four centuries. It originated in the seventeenth century when equity took it over from the common law courts. Equity applied to mortgages its ar- senal of equitable principles, particularly those limiting forfeitures of property. It then built upon these principles to develop a set that was unique to mortgages. The foundational principle prohib- ited the clogging of the debtor's (mortgagor's) equity of redemp- tion.2 Essentially, this prohibited the mortgagee from retaining any interest in the mortgagor's property once the underlying debt had been paid. -
Mortgage Note
NOTE Date City State Property Address 1. BORROWER’S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ (this amount is called “Principal”), plus interest, to the order of the Lender. The Lender is . I will make all payments under this Note in the form of cash, check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the “Note Holder.” 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the day of each month beginning on . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on , 20 , I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the “Maturity Date.” I will make my monthly payments at or at a different place if required by the Note Holder. -
INTERNAL REVENUE CODE SECTION 170(H): NATIONAL PERPETUITY STANDARDS for FEDERALLY SUBSIDIZED CONSERVATION EASEMENTS PART 1: the STANDARDS
INTERNAL REVENUE CODE SECTION 170(h): NATIONAL PERPETUITY STANDARDS FOR FEDERALLY SUBSIDIZED CONSERVATION EASEMENTS PART 1: THE STANDARDS Nancy A. McLaughlin Editors Synopsis: This Article is the first of two companion articles that (i) analyze the requirements in Internal Revenue Code section 170(h) that a deductible conservation easement be granted in perpetuity and its conservation purpose be protected in perpetuity and (ii) compare those requirements to state law provisions addressing the transfer, modification, or termination of conservation easements. This Article discusses the historical development of the federal charitable income tax deduction for conservation easement donations, the legislative history of section 170(h), and the Treasury Regulations interpreting that section. It explains that section 170(h) and the Treasury Regulations contain a complex web of requirements intended to ensure that a federal subsidy is provided only with respect to conservation easements that permanently protect unique or otherwise significant properties. Such requirements are also intended to ensure that, in the unlikely event changed conditions make continued use of the subject property for conservation or historic preservation purposes impossible or impractical and the easement is extinguished in a state court proceeding, the holder will receive proceeds and use those proceeds to replace the lost conservation or historic values on behalf of the public. The companion article, which will be published in the Winter 2010 edition of this journal, surveys the over one hundred statutes extant in the fifty states and the District of Columbia that authorize the creation or acquisition of conservation easements. That article explains that such statutes contain widely divergent transfer, modification, and termination provisions that were not, for the most part, crafted with an eye toward complying with federal tax law perpetuity requirements. -
Mortgage-Backed Securities & Collateralized Mortgage Obligations
Mortgage-backed Securities & Collateralized Mortgage Obligations: Prudent CRA INVESTMENT Opportunities by Andrew Kelman,Director, National Business Development M Securities Sales and Trading Group, Freddie Mac Mortgage-backed securities (MBS) have Here is how MBSs work. Lenders because of their stronger guarantees, become a popular vehicle for finan- originate mortgages and provide better liquidity and more favorable cial institutions looking for investment groups of similar mortgage loans to capital treatment. Accordingly, this opportunities in their communities. organizations like Freddie Mac and article will focus on agency MBSs. CRA officers and bank investment of- Fannie Mae, which then securitize The agency MBS issuer or servicer ficers appreciate the return and safety them. Originators use the cash they collects monthly payments from that MBSs provide and they are widely receive to provide additional mort- homeowners and “passes through” the available compared to other qualified gages in their communities. The re- principal and interest to investors. investments. sulting MBSs carry a guarantee of Thus, these pools are known as mort- Mortgage securities play a crucial timely payment of principal and inter- gage pass-throughs or participation role in housing finance in the U.S., est to the investor and are further certificates (PCs). Most MBSs are making financing available to home backed by the mortgaged properties backed by 30-year fixed-rate mort- buyers at lower costs and ensuring that themselves. Ginnie Mae securities are gages, but they can also be backed by funds are available throughout the backed by the full faith and credit of shorter-term fixed-rate mortgages or country. The MBS market is enormous the U.S. -
Installment Land Contracts: Developing Law in Virginia
Washington and Lee Law Review Volume 37 | Issue 4 Article 8 Fall 9-1-1980 Installment Land Contracts: Developing Law in Virginia Follow this and additional works at: https://scholarlycommons.law.wlu.edu/wlulr Part of the Property Law and Real Estate Commons, and the Secured Transactions Commons Recommended Citation Installment Land Contracts: Developing Law in Virginia, 37 Wash. & Lee L. Rev. 1161 (1980), https://scholarlycommons.law.wlu.edu/wlulr/vol37/iss4/8 This Note is brought to you for free and open access by the Washington and Lee Law Review at Washington & Lee University School of Law Scholarly Commons. It has been accepted for inclusion in Washington and Lee Law Review by an authorized editor of Washington & Lee University School of Law Scholarly Commons. For more information, please contact [email protected]. Notes INSTALLMENT LAND CONTRACTS: DEVELOPING LAW IN VIRGINIA An installment land sale contract1 is a method of seller financing for land sales. The land contract, sometimes referred to as a "contract for deed" or "longterm contract," functions as a substitute for a mortgage or deed of trust.2 Generally, in a mortgage, the seller conveys title to the property, and the buyer obtains financing by pledging the property as security for the purchase price of the land.3 The mortgagee has a lien on the buyer's title.4 In a deed of trust transaction, the buyer conveys title to the property to a third party to hold as trustee during the period of in- debtedness. 5 In a land contract, the seller finances the land sale retaining legal title to the property until the buyer makes the final installment payment.e Land contracts are used most often in states in which- mortgage law heavily favors the mortgagor.7 Pro-mortgagor law restricts the mortga- gee's right to enforce the lien on the property by prescribing lengthy pro- cedures for mortgage foreclosure.8 Sellers often prefer land contracts be- ' G. -
United States District Court Southern District of Florida
Case 9:18-cv-80110-RLR Document 92 Entered on FLSD Docket 02/21/2019 Page 1 of 7 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 9:18-CV-80110-ROSENBERG/REINHART WEBSTER HUGHES, Plaintiff, v. PRIDEROCK CAPITAL PARTNERS, LLC, Defendant. ______________________________________/ ORDER DENYING DEFENDANT’S RENEWED MOTION TO STRIKE JURY DEMAND [DE 84] THIS MATTER is before the Court on Defendant, Priderock Capital Partners’ (“Defendant”) Renewed Motion to Strike Jury Demand (“the Motion”), DE 84. I. Background & Procedural History In brief, Defendant seeks to strike Plaintiff Webster Hughes’ (“Plaintiff”) demand for a jury trial, because only one count, Count III, for Breach of Contract-Implied-in-Law/Quasi Contract, remains at issue in this case. See id; DE 73; DE 66. After summary judgment was granted in favor of Defendant as to Counts I and II, see DE 65, Defendant moved to strike Plaintiff’s jury demand at DE 66. That request was denied without prejudice in order for Defendant to consider and address additional case law cited by the Court, see DE 68, DE 69, DE 71. Defendant renewed its request at DE 73. Plaintiff responded at DE 74, and Defendant replied at DE 77. The Court denied Defendant’s second motion to strike the jury demand without prejudice: Defendant argues its Motion assuming that liability as to Count III has been conceded. See, e.g., DE 73, 2. However, liability has not been formally admitted, through an amended pleading, stipulation, or the like. See DE 10, 12. Accordingly, Defendant is ordered to either seek leave of the Court to amend its pleadings or to file a Second Amended Motion that does not presume that liability has been determined by no later than 2/21/19. -
Jurisdiction of a Tribunal - Extinguishment
Jurisdiction of a tribunal - extinguishment De Lacey v Juunyjuwarra People [2004] QCA 297 Davies JA, Mackenzie and Mullins JJ, 13 August 2004 Issue The main issue before the court was whether the Land and Resources Tribunal (LRT) established under the Mineral Resources Act 1989 (Qld) (the Act) had jurisdiction to determine whether the Starcke Pastoral Holdings Acquisition Act 1994 (Qld) extinguished native title in relation to an area the subject of a claimant application. Background In December 2003, Ralph De Lacey, an applicant for a ‘high impact’ exploration permit, applied to the LRT for a determination as to whether or not it had jurisdiction to decide that native title has been extinguished by the Act. On 27 February 2004, the LRT decided that it did have jurisdiction to determine that question and that it would be determined as a preliminary issue. An appeal against that decision was filed in the Supreme Court of Queensland by the State of Queensland. Decision Davies JA (with MacKenzie and Mullins JJ agreeing) held that: • there was no provision in the Act that contemplated an application to the LRT as was made in December 2003 or any decision by the LRT of the question stated in that application; • the LRT plainly saw that its jurisdiction to make the decision which it did make, was found in, or implied by, s. 669 of the Act, which governed the making of a ‘native title issues decision’ by the LRT. Where, in a proceeding otherwise properly instituted in a tribunal, there remains a condition upon the fulfilment or existence of which the jurisdiction of the tribunal exists (here, non-extinguishment of native title), the fulfilment or existence of that condition remains an outstanding question until it has been decided by a court competent to decide it: Parisienne Basket Shoes Pty Ltd v Whyte (1938) 59 CLR 359 at 391. -
Cite As: 18 Ny3d 753, 967 N
967 N.E.2d 1170 Page 1 18 N.Y.3d 753, 967 N.E.2d 1170, 944 N.Y.S.2d 725, 2012 N.Y. Slip Op. 02249 (Cite as: 18 N.Y.3d 753, 967 N.E.2d 1170, 944 N.Y.S.2d 725) on such renewal, where lessee did not pay any ser- vice termination fees and did not pay for services he did not receive. McKinney's General Obligations Law §§ 5–901, 5–903. Court of Appeals of New York. Bruce OVITZ, on Behalf of Himself and All Others Similarly Situated, Appellant, [2] Antitrust and Trade Regulation 29T 134 v. BLOOMBERG L.P. et al., Respondents. 29T Antitrust and Trade Regulation 29TIII Statutory Unfair Trade Practices and Con- March 27, 2012. sumer Protection 29TIII(A) In General 29Tk133 Nature and Elements Background: Lessee of financial information ser- 29Tk134 k. In general. Most Cited vices and equipment brought action against lessor Cases following automatic renewal of parties' subscription agreement. The Supreme Court, New York County, Judith J. Gische, J., denied lessor's motion to dismiss, A prima facie showing under the deceptive trade and it appealed. The Supreme Court, Appellate Divi- practices statute requires allegations that a defendant sion, 77 A.D.3d 515, 909 N.Y.S.2d 710, reversed, is engaging in an act or practice that is deceptive or and leave to appeal was granted. misleading in a material way and that plaintiff has been injured by reason thereof. McKinney's General Business Law § 349(a). Holdings: The Court of Appeals, Jones, J., held that: (1) even assuming that General Obligations Law's lease renewal provisions supported implied private [3] Antitrust and Trade Regulation 29T 179 right of action, lessee did not suffer harm, so as to support claim based on lease renewal; 29T Antitrust and Trade Regulation (2) lessee failed to state claim against lessor under the 29TIII Statutory Unfair Trade Practices and Con- deceptive trade practices statute; and sumer Protection (3) action did not present justiciable controversy 29TIII(B) Particular Practices upon which a declaratory judgment could be rendered 29Tk179 k. -
“Cash for Keys” Agreements James Smith, Reporter May 17, 2012
MEMORANDUM “Cash for Keys” Agreements James Smith, Reporter May 17, 2012 “Cash for keys” agreements are used in two sectors in the context of residential mortgage foreclosures. First, lenders have offered cash-for-keys agreements to homeowners who have defaulted on their home mortgage loans and are in the midst of foreclosure proceedings or are headed towards foreclosure. In this context of owner- occupied housing, cash for keys is considered by some to be one of the types of “graceful exits,” which results in the homeowner leaving without the need for completion of a foreclosure proceeding. Second, lenders have also used cash-for-keys agreements when foreclosing upon rental properties. Lenders pay tenants to vacate their premises when the landlord-mortgagor is facing or has suffered a foreclosure. In both settings – owner-occupied housing and rental housing – the lender’s objective is the same: to remove occupants from dwelling units at a lower cost than that associated with the normal foreclosure process. Projected cost savings have both a temporal component and a regulatory component. The process of foreclosure and eviction is lengthy and costly when conducted in accordance with applicable laws. In most jurisdictions it takes a substantial amount of time to evict defaulting mortgagors from their homes. Generally recovering possession from a mortgagor cannot be accomplished, due to legal or practical restraints, until after completion of a foreclosure sale. In some states, eviction is delayed further due to an owner’s statutory right of redemption, which lasts for a time period after the foreclosure sale. Similarly, it is time consuming to evict tenants from dwelling units in most jurisdictions, even when there is proof that the lease has terminated due to the tenant’s default, has expired in accordance with its terms, or has ended as a consequence of the completion of foreclosure.