Land purchase options

[Caustic Burno]

There mortgage company called the out standing balance of the loan. I got the deed less the money the insurance company paid them. I owned what was left outright.
The insurance company pay's the mortgage company first and you have to try and convince them to rebuild. You are buying a house you do not own it and if you have a lien the insurance company pay's the first lien holder first not you. You have to get the mortgage company to agree to rebuild the house and give you the money you paid the premiums on. I didn't make them mad they mad me mad.
My loan was at 6 percent and interest rates where 16 when the house burned.
They wanted that cheap money off the market to resend at the higher rate.
They offered to refi us at 16 percent that is when I told them to stuff it up their ass.

So actually the insurance was not enough to clear the entire mortgage. Makes it a bit more clear. And yes insurance claims payments always include the mortgagee on the check. The mortgage co. was simply doing what is normal and legal. Back in those days we were offering big discounts to borrowers to pay off those low interest rate loans.

No you still don't get it I owed 36,000 dollars on a 70,000 dollar house. We had plenty of insurance coverage replacement cost coverage. The mortage company wanted the low interest money off the market to relend at 16%.
When the house burned it had 48,000 dollars in damage, the mortage company called the note.
The insurance company paid the mortage company 36,000 dollars and me 12,000. We got the deed and the wife and I had to come up with the other 36,000 to rebuild.

 

[TexasBred]

CB what the mtg. co. did with you will always be done when you have a loss that is large enough to liquidate the loan. But you can reverse the situation and put yourself n their place. Wouldn't you rather have a 6% note paid in full and then lend the money at 16%??

 

[Nite Hawk]

In my opinion %16 is the same as loan sharking.
for a $100,000 loan you are looking at paying a fortune per year in INTEREST alone, and not the principle debt. is my calculations correct you would be paying about $16,000 per year??
Lets see if you had a 20 year mortgage at %!6
and the rates stayed the same for the duration lets see 20 X $16,000 = $320,000.
If my math is correct on a $100,000 dollar loan you would pay back at least $420,000 over a 20 year period..
If the interest is compounded it might be more.
If my math is wrong sorry, under the weather today.....

 

[Caustic Burno]

CB what the mtg. co. did with you will always be done when you have a loss that is large enough to liquidate the loan. But you can reverse the situation and put yourself n their place. Wouldn't you rather have a 6% note paid in full and then lend the money at 16%??

I am not that chicken shyt.
I will say this let it happen to you and see how you feel about mortage companies. There is no way in he!! they should be able to rob you of your insurance and leave you up shyt creek.
When you pay the insurance premiums and taxes and your house burn's and the Mtg company takes the insurance off the top and leaves you holding a burnt up piece of property.
If we had not had the money in the bank to rebuild we would have been homeless cause nobody is going to lend you money to rebuild.
They did me a favor in the long run I will never have to walk up to any man or company with my hat in hand asking for money.

 

[TexasBred]

In my opinion %16 is the same as loan sharking.
for a $100,000 loan you are looking at paying a fortune per year in INTEREST alone, and not the principle debt. is my calculations correct you would be paying about $16,000 per year??
Lets see if you had a 20 year mortgage at %!6
and the rates stayed the same for the duration lets see 20 X $16,000 = $320,000.
If my math is correct on a $100,000 dollar loan you would pay back at least $420,000 over a 20 year period..
If the interest is compounded it might be more.
If my math is wrong sorry, under the weather today.....

Nite Hawk, back in the time period we are discussing, 16% or even more was the norm. If you had surplus funds you could get that much or more on your certificates of deposit as well. Vehicle loans and/or personal loans went up to as much as 24%. Most home loans made back in those days were adjustable rate loans, and with a beginning rate of 16% your odds were very good that it would always go down under normal economic conditions.

 

[TexasBred]

CB what the mtg. co. did with you will always be done when you have a loss that is large enough to liquidate the loan. But you can reverse the situation and put yourself n their place. Wouldn't you rather have a 6% note paid in full and then lend the money at 16%??

I am not that chicken shyt.
I will say this let it happen to you and see how you feel about mortage companies. There is no way in he!! they should be able to rob you of your insurance and leave you up shyt creek.
When you pay the insurance premiums and taxes and your house burn's and the Mtg company takes the insurance off the top and leaves you holding a burnt up piece of property.
If we had not had the money in the bank to rebuild we would have been homeless cause nobody is going to lend you money to rebuild.
They did me a favor in the long run I will never have to walk up to any man or company with my hat in hand asking for money.

Like it or not that IS the reason the loss payable is always to the mortgage company. It's legal it has always been that way and it's still done that way and your attorney confirmed for five grand what your lender had already told you free of charge.

 

[Caustic Burno]

I didn't say it wasn't legal, said it is not right. I have never borrowed on a house again and I have owned five since then. If the insurance company is going to pay anyone it is going to be the SOB paying the premium.
I understand that the Mtg company has to be protected.
I have no problem with the contractor having to draft from the mtg. company to rebuild.
To keep some one from taking the insurance money and running.
They should not be able to leave you homeless when you have paid the note and paid the insurance.
Now I will say this the Mtg company manger was smart enough not to meet with me eyeball to eyeball.
If he had I would have went to prison.

I have no use for a banker of any kind.
If I don't have the cash I don't need it.

 

[TexasBred]

ONly involved with a few fire claims but in most it seems the Insurance company paid for the homeowner to live in a motel or apt. until the home ws refinished. I'll bet you this....bet you were 100% satisfied with the mtg. company until this happened. ;-) It's always that way.

 

[Nite Hawk]

If my memory serves me correctly the interest at one point went to %18, ( seems like it went up to %21 but can't be for sure) and yes it stayed there for quite a while and a close family member lost their home during that time.
Don't care what anybody says, its cut-throat rates..

 

[TexasBred]

If my memory serves me correctly the interest at one point went to %18, ( seems like it went up to %21 but can't be for sure) and yes it stayed there for quite a while and a close family member lost their home during that time.
Don't care what anybody says, its cut-throat rates..

I agree with you...the rate is unheard of...but, when the S&L or bank was paying your dad 16% on his CD they had to lend it out at that to make any money and meet gov't regs. As a banker, in the back of your mind you always wondered who and why would someone sign a note with such an interest rate. But as I said, most were ARM's and went down considerably eventually.

 

[Caustic Burno]

ONly involved with a few fire claims but in most it seems the Insurance company paid for the homeowner to live in a motel or apt. until the home ws refinished. I'll bet you this....bet you were 100% satisfied with the mtg. company until this happened. ;-) It's always that way.

They had no reason to be unhappy or I until the fire. We paid 18,000 dollars down on a 70,000 dollar house and 16,000 dollars in principal and they collected 36,000 in insurance.
I will bet you this the insurance company paid for a rent house till they called the note, as soon as the mtg. company called the note they said screw you. That was a major company you see advertiseing everyday.

I would rather have a rattlesnake on my property before a lawyer,banker, and insurance adjuster.

 

[TexasBred]

The mortgage company only wanted their money per terms of the "signed" deed of trust...the insurance company paid off your claim "per policy terms". The only one that made off like a bandit was the lawyer and you hired him.

 

[Caustic Burno]

The mortgage company only wanted their money per terms of the "signed" deed of trust...the insurance company paid off your claim "per policy terms". The only one that made off like a bandit was the lawyer and you hired him.

That is not entirely how it went down they held my family up for three months decideing whether they were going to allow us to rebuild or call the note. All the time I had to make the payment on the note until they decided. Forgot to add that they held thousand's we had put in escrow for month's after that to add insult to injury. I loathe a banker.
I had replacement cost insurance this is where I got the red ass real bad.
I paid for insurance to have my house rebuilt as it was and as the policy was sold to me by the snake oil salesman.
I didn't care if they paid off the Mtg company as long as they rebuilt the house. Now TB I don't know what you did for a living but had you had your attitude and I had mine at the time, and you standing on my property telling me just to lay there and enjoy the rape one of us would of took an ass whuppin.

After I got over being mad they actually did me a favor.
I made up my mind to never to put my family in that situation again.
I rebuilt and I have owned more than one home since debt free.
I have not walked into a bank since 1983.

 

[TexasBred]

Don't get all po'd again CB. I can see the picture right now. One wants to get rolling (you)and the other wants to make sure everything is all prim and proper before doing anything (The loan company). You wanted 6% money in a market that currently demanded 16% and they said the 6% house was gone so the insurance proceeds go on the note. Oh, and you wanted to keep your cash surplus earning 15 or 16% ...End of story. At least you admitted that you did get mad. ;-)

Hate that you now dislike all bankers. There are some really good folks in banking that have helped millions of people. Most all businesses operate on a "working capital" note and have done quite well over the years. As I said previously, I've never had a negative experience with a banker. Hopefully others have been just as fortunate as me.

 

[Caustic Burno]

Don't get all po'd again CB. I can see the picture right now. One wants to get rolling (you)and the other wants to make sure everything is all prim and proper before doing anything (The loan company). You wanted 6% money in a market that currently demanded 16% and they said the 6% house was gone so the insurance proceeds go on the note. Oh, and you wanted to keep your cash surplus earning 15 or 16% ...End of story. At least you admitted that you did get mad. ;-)

Hate that you now dislike all bankers. There are some really good folks in banking that have helped millions of people. Most all businesses operate on a "working capital" note and have done quite well over the years. As I said previously, I've never had a negative experience with a banker. Hopefully others have been just as fortunate as me.

Actually the 6% house wasn't gone it was damaged. It had no stuctural damage it was all smoke and water. Sheetrock had to be taken off down to the studs to reinspect all wiring. Clean up is the big cost. I came to the conclusion if my house evr caught fire again I would fight the fire dept off as you are better off with it burning to the ground. I couldn't give you the value off the top of my head without going through my tax records but in 1981 I would imagine it was worth 100,000 +. It was a 2200 sq ft story and a half 4 bdr 3 bath 2 car garage . House values were jumping like crazy in the years after I bought the house. Had the house burned to the ground or damaged beyond repair I could see the Mtg companies side.

 

[TexasBred]

CB never forget the 1st loan application I ever took for $50,000.00.....all qualifications were done, man qualified easily, property appraised for what it was selling for...when all was in order I presented it to the loan committee....the president of the S&L looked at me just as serious as a heart attack and said "Anybody that wants to live in a $50,000 house should pay cash for it". This was in the late 70's. My have times have changed. BTW, we did make the loan. ;-) Of course back then our average loan was probably less than $25,000.

 

[Caustic Burno]

CB never forget the 1st loan application I ever took for $50,000.00.....all qualifications were done, man qualified easily, property appraised for what it was selling for...when all was in order I presented it to the loan committee....the president of the S&L looked at me just as serious as a heart attack and said "Anybody that wants to live in a $50,000 house should pay cash for it". This was in the late 70's. My have times have changed. BTW, we did make the loan. ;-) Of course back then our average loan was probably less than $25,000.

I would say the average house was selling in my area in the mid 70's from 35 to 40,000.
Different economic's per region. I would hate to know what the house that burned would cost in today's dollar's.
The last house I built in 2004 a 2400 sq ft 2 bedroom with sleeping loft was in excess of a whole lot of money.
I spent nearly 70,000 on engineering and having the steel custom made for it. I don't really know that it is not under insured, but I purchased replacement insurance and it was paid for cash. So if that time ever hit's again I guess i will find out how red my ass can get.
I had trouble insureing it as the agent had to come and take pictures as the company didn't believe there could be a 250,000 dollar two bedroom house out in these wood's I guess. I built this one all stuctural steel ran all the electrical in conduit. The only wood in this house is the interior.
This it under constuction.

 

[TexasBred]

Looks good. Should come in handy when those whirley winds come out of the caribbean. ;-)