Ask MetaFilter questions tagged with lender

Working with lender's real estate owned (REO) department?

BirdD0g — Tue, 25 Mar 2008 12:30:37 -0800

Does anyone have any insight or experience into dealing with lender REO Departments (Real Estate Owned) when it comes to purchasing a foreclosed property? My wife and I are interested in purchasing our next primary residence from the bank prior to any sort of auction. Essentially, I'm wondering if we can put in an "order" of sorts with the bank and have them contact us should something that meets our criteria become available. However, I'm not familiar enough with lender REO procedures to know if this is even a possibility, much less if we really stand to find a great deal in this manner. Are they willing to unload foreclosed property efficiently if they have approved buyers waiting in the wings?

Is the mortgage lender telling the truth about PMI?

amfea — Sat, 16 Feb 2008 11:18:33 -0800

My roommate bought the house we live in four years ago and I'd like to ask a question on her behalf. She did not have enough for the 20% downpayment and has been paying PMI ever since. She'd like to cancel PMI and save that money, but the lender is giving her the runaround. According to the tax assessor, the house has gone up about 20% since she bought it and that doesn't include the interior remodeling her dad has done. She's been overpaying the mortgage since she got the house and the loan-to-value ratio is now down to 79.50%. She requested the lender (CitiMortgage) cancel the PMI, but was told they require her to pay for an appraisal from a company of their choice at a cost of around $400.

She'd like to cancel PMI without any additional wasted expense, so she offered to pay extra to bring the LTV below 78% where Federal Law requires the lender to cancel it. CitiMortgage told her that's based on the original amortization schedule, so any extra payments would not count and there's no way out of PMI without paying for an appraisal. Is that really true? We're having trouble finding anything that gets specific about it.

Monthly vs Every two weeks

poppo — Fri, 17 Aug 2007 12:35:34 -0800

My mortgage lender sent an offer in the mail that I could change from monthly payments to payments every two weeks. This would be good for me, bad for them. Why? Basically it suggests this:

I pay 2000/month right now
I would pay 1000/every two weeks with their offer

Naturally since I would make 26 payments a year instead of 24 I'd end up paying my loan off several years earlier down the road (of course I could do this currently by being disciplined enough to make an extra mortgage payment a year, but I'm not).

I don't even need to refinance to do it. Just sign up for direct deposit, give them my preferred payment dates, and it's done.

So what's the downside for me here? Why would my mortgage lender suggest I pay off my loan faster (thus paying them less total interest over time)? What's their angle?

My skept-o-meter is peaking...

Subprime lender in New York?

torticat — Tue, 24 Jul 2007 13:04:51 -0800

I am looking for a mainstream lender that deals in borderline subprime loans. Any ideas? I need to refinance a large mortgage in NYC, switching from an investment loan on a multi-family building to owner-occupied. Am looking to take cash out, and am borderline qualified for the resulting loan.

I've talked to the current mortgage-holder (Wells Fargo) but am looking for a better deal than they have offered. I'd prefer not to use a mortgage broker because the loan is large and we can't afford the points.

Has anyone here had recent experience with a bank that was willing to work with a borrower like me? Excellent credit, perfect payment record, decent income--but looking for what may be considered a subprime loan because of iffy property values?

Any mefi loan officers in New York who might be interested in talking, email's in profile. Thanks!

SAIC info/Financial Aid for Foreigners

Lieber Frau — Fri, 27 Apr 2007 08:21:32 -0800

I'm a 25 year old American woman from Chicago married to a Canadian woman, and I'll soon have permanent resident status in Toronto. My Canadian was recently accepted to the Visual and Critical Studies Masters program at the School of the Art Institute of Chicago for the upcoming fall term, and I have two questions. One, what can she expect as a grad student at the School of the Art Institute, and two, can anyone offer us some advice on acquiring financial aid for a foreign student? My credit rating is just average, and because she is foreign, she will need me to co-sign. I'm also worried about the prospect of finding work and a place to live in a new country. I know lenders won't allow me to co-sign if I don't get a job first, but the fall term is quickly approaching. This is complicated by the fact that I can't leave the country until my permanent resident status as a Canadian comes through, so going to job interviews in Chicago is an issue. All in all, we've got a lot on our plates, and I would love any advice the community could offer.

Lender Paid PMI - where's the catch?

schwa — Tue, 21 Feb 2006 15:50:14 -0800

I'm about to buy my first house and I'm shopping around for a mortgage. The best deal so far is a mortgage where the lender pays for the mortgage insurance. I'm aware of using 80/XX loans to avoid paying PMI but I've never come across Lender Paid PMI. What exactly is it and what's the catch? The mortgage with the lender paid PMI is about a half point higher than the traditional mortgage. But the PMI-free mortgage is about $30 or so per month cheaper. This seems like a great alternative to the 80/XX loans. But there has to be a catch. Realistically we dont expect to spend the rest of the lives in the new house so there's a good chance we will be moving before we would be able to remove the PMI due to changes in house prices. Anyone know what gives? Has anyone used them in the past? Are there any special questions related to this type of loan I should be asking the lender?