Land purchase options

[TexasBred]

Laws vary from area to area, and I am sorry but in this area they CAN call up the note and demand full payment in 6 months, unless things have changed recently. I have read the clause on the paper myself.. its in there.
I also know the businesses that were involved.
That is why I have no trust or respect for some of the banks. Maybe Credit unions or lending companies are different. Don't know, and maybe your laws are different down there, but they are allowed to do that here, although it doesn't happen often as not alot of people have that kind of $$$$ to buy out loans....

Must be a Canadian thing. Buying loans is nothing new but the new owner of the note has no new advantages or tools to "take your property" than the original lender. Same note, deed of trust and conditions apply. Maintain the property and make payments per schedule and you'll never see your lender again.

 

[Caustic Burno]

I would check out this "homestead act" might be something there that might benefit you.
Had a relative that had a mortage at high interest rates years ago, ended up paying like $10,000 grand a year on the interest and $2-3000 grand on the principle, and yes they lost it.. would have been better off renting at that rate.
Remember Proverbs warning about "surety" in the Old Testament.
Most lenders don't give a hoot about you and your situation, all they care about is their bottom line.
There is also a clause with some banks, that a 3rd party can buy out and call up the loan.
Meaning someone who wants your place can go to the bank and say--I want to buy that mortgage. They slap down the money, and now they hold your ownership and you have to pay them. They can then request FULL payment, which is due usually in 6 months, and if you cannot pay, they forclose and you are out the door, and there is NOTHING you can do about it. I know of cases where that has happened. One was a sawmill worth $8,000,000, and the owner had a mortgage of I think it was about $1,000,000 so he could make improvements. He had it figured out that is could be re-paid on time, but someone big bought the mortgage and called up the full debt, and the guy lost his mill because he couldn't find $1,000,000 in 6 months time.
Very wicked, but some rich dude didn't care a bit about the guy who lost his business.
I have heard of other cases too so
Be careful.....

Somebody's yanking your chain. To make it short" as long as you pay according to the terms of the note they cannot touch your property" !!! Even if they sell the note, that lien holder cannot demand payment in full for NO reason. Mortgage companies really do care about you. When they loan you that money they hope they never see you again....ever....that means they never had to go collecting payments or refinancing and wiaving payments. Lenders do have state and federal regulatory agencies they have to answer to as well as state laws for the particular state involved. The last thing they want is to own a bunch of unoccupied real estate out in the middle of nowhere especially when the amount owed is double what the property is worth.

Now if someone goes out here and makes some sort of deal with an individual or unlicensed little back office lending operation there is no telling what might happen. But you usually get what you deserve when you deal with these people AND when you don't make mortgage payments to even the most reputable of lenders. d

Don't believe the mortgage company recalled mine after the house burned down. I owned a piece of Burt up property with 12,000 dollars left over. Try borrowing money to rebuild burnt up property. Loan was at six percent they recalled it to loan it at sixteen percent. Wife and pulled every dime we had of savings and-rebuilt the house cash. The loan company out of the goodness of three heart offered to refinance the house. I politely told them to put it where the sun dont shine. I thought they couldnt do to us either,after my lawyer went through the pile of paper's we signed at closing said they could. Told me that was standard in Texas. Don't tell me they can't I lived that nightmare starting June 13,1981 until May 1982.

 

[heath]

Was it not insured for the replacement cost of the house? I know our mortgage as a clause that the house has to be carrying enough insurance to replace it in case of a total loss

 

[snake67]

cross_7

I learned the hard way but I did learn!

He who owns at least ONE piece of land free and clear - be it large or small - with water and power and shelter of some kind - will never want for food or a place to lay their heads.

He who owns nothing and owes a financial corporation - can be left with NOTHING when and if the fit hits the shan.

Having been quite wealthy twice in my life and having lost it both times through the actions of others, I will tell you that it matters not what you do as long as you have ONE safe haven.

Think on that a bit before you make your move.

Best to all

Bez

 

[Caustic Burno]

Was it not insured for the replacement cost of the house? I know our mortgage as a clause that the house has to be carrying enough insurance to replace it in case of a total loss

It was insured for more than the mortgage, the , the insurance company paid off the mortgage company as they had recalled the loan. They cut us a check for 12,000 plus contents.
There was plenty of insurance to rebuild it had they not called the loan. After getting a lawyer I was promptly informed the mortgage companies had the right to hold up payment for two years as well in Texas until the dispute could be settled. After 5,000 dollars in lawyer fee's they still won. That is when I found out a row boat can't fight a battleship.

 

[Workinonit Farm]

He who owns at least ONE piece of land free and clear - be it large or small - with water and power and shelter of some kind - will never want for food or a place to lay their heads.

He who owns nothing and owes a financial corporation - can be left with NOTHING when and if the fit hits the shan.

Think on that a bit before you make your move.

Bez

:nod: :nod: Absolutely.

Katherine

 

[TexasBred]

Was it not insured for the replacement cost of the house? I know our mortgage as a clause that the house has to be carrying enough insurance to replace it in case of a total loss

It was insured for more than the mortgage, the , the insurance company paid off the mortgage company as they had recalled the loan. They cut us a check for 12,000 plus contents.
There was plenty of insurance to rebuild it had they not called the loan. After getting a lawyer I was promptly informed the mortgage companies had the right to hold up payment for two years as well in Texas until the dispute could be settled. After 5,000 dollars in lawyer fee's they still won. That is when I found out a row boat can't fight a battleship.

Still don't understand how a mtg. co. can "call" a loan that has been paid in full....if the insurance company paid off the amount of your coverage you should have received the remainder after having paid off the loan. That is SOP. Never seen a clause in a Deed of Trust allowing any mtg. co. to hold up pmt. of YOUR money for two years. Maybe you made them mad CB ??

 

[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.

 

[Jogeephus]

Most bank notes have a clause where they can call the note due and you have to ante up. This is the thing that concerns me about these super low interest rates. What's going to happen when interest jumps to those during the Carter years. Do you think a bank is going to stay true to the original agreement or do you think they might call the note but offer to refinance it for you at 18%. Just something to think about.

 

[Caustic Burno]

Most bank notes have a clause where they can call the note due and you have to ante up. This is the thing that concerns me about these super low interest rates. What's going to happen when interest jumps to those during the Carter years. Do you think a bank is going to stay true to the original agreement or do you think they might call the note but offer to refinance it for you at 18%. Just something to think about.

That is exactly what they did to us.

 

[Jogeephus]

Most bank notes have a clause where they can call the note due and you have to ante up. This is the thing that concerns me about these super low interest rates. What's going to happen when interest jumps to those during the Carter years. Do you think a bank is going to stay true to the original agreement or do you think they might call the note but offer to refinance it for you at 18%. Just something to think about.

That is exactly what they did to us.

And who would have thought a banker would do such a thing when they are there to help you with your best interests at heart. People forget history. There is a pile of land down this way that people spent their lives clearing and improving only to have it snagged out from under them when notes were called. You gotta start with a loan to buy anything but the key is to get that one thing paid for like Bez said then take larger steps later. Too many people want it to fast rather than taking small planned steps toward the goal. Just think about all these young families that finance a dishwasher for 30 years and what that ends up costing them in the end. Its ridiculus when its all so simple if they just sit back and think about what they are doing but too many just make their decision on whether or not they can make the payments and then the accountants say its good because the interest is deductible. To me, that's money that I could pocket. Afterall, if you aren't paying taxes you aren't making money.

 

[Nite Hawk]

Texas bred,
Remember laws differ in different areas, and with differnt banks, and Yes in B.C. at least unless it has changed, banks can call a loan or sell a loan, and you are "hooped" if you can't come up with the full amount in 6 months .
I know there are good banks and bankers, but in general I don't trust them.
In general they don't give a hoot if someone is homeless, not their problem if someone get sick or looses their job and can't make payments they figure.
If you don't believe me look at the homeless rate in the USA right now, where according to the news they are bulldozing decent homes that people could use, but no, rather have people living in the streets than give them a chance to get back on their feet and catch up on their payments...
sorry I am cynical..

 

[TexasBred]

Texas bred,
Remember laws differ in different areas, and with differnt banks, and Yes in B.C. at least unless it has changed, banks can call a loan or sell a loan, and you are "hooped" if you can't come up with the full amount in 6 months .
I know there are good banks and bankers, but in general I don't trust them.
In general they don't give a hoot if someone is homeless, not their problem if someone get sick or looses their job and can't make payments they figure.
If you don't believe me look at the homeless rate in the USA right now, where according to the news they are bulldozing decent homes that people could use, but no, rather have people living in the streets than give them a chance to get back on their feet and catch up on their payments...
sorry I am cynical..

I think it was me that said banking law could vary from state to state and most certainly from country to country. Guess I have the benefit of having worked for a "homeowned" bank in a small town where your word meant something and the last thing that ever crossed your mind was any attempt to mistreat or screw someone. And I'm sure things have changed in 25 years as well. As for "homeless" and "empty houses", sometimes you cut your losses by bulldozing rather than renting. Even slum lords will tell you that. I still stand by my comment that as long as you make one payment per month according to contract and maintain the property you have nothing to fear. For those who feel they ahve been wronged in the past, perhaps there was something you were doing or not doing to make the lienholder feel his collateral was in jeopardy. Not to offend anyone but I've seen much of this too. It's always that crooked banker's fault for expecting someone to "perform". I've borrowed and paid back a lot of money in my lifetime and used many different banks, savings and loans, and mortgage companies and have NEVER had a negative experience.

 

[TexasBred]

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.

 

[Jogeephus]

Nitehawk, I'm not a big fan of bankers but I don't think this is a fair analogy since it is the federal government that controls the majority of the money the banks loan. Banks are in the business to make money but when the federal government controls the majority of the money they loan the banks must abide by their rules and if sound banking policies are tossed out the window so everyone can be a winner and qualify for a loan its not right to lay the blame solely on the bank.

People need to take responsiblility for their own finances and borrowing more money than you could realistically pay back is silly. This is what happened. If you look back a few years in some of the CT posts you will see some heartless people like Caustic warning of the impending train wreck and you will also see a few liberals knocking him and others for their fair warning calling them all sorts of names. Why one of these heartless souls haven't stood up and said "I told you so" is puzzling.

As for the blame, the blame should be put on the borrower and those who felt everyone should be given a blank check for their wants because these are the true heartless and noncaring ones and just because they tell you what you want to hear doesn't make them your friend or a good person.

 

[snake67]

Why one of these heartless souls haven't stood up and said "I told you so" is puzzling.

LOL - because it is a waste of time. Those people are still in the Liberal zone with their hands out waiting for government money while we are doing our dammdest through hard work to ensure we can keep what we built.

As for the blame, the blame should be put on the borrower and those who felt everyone should be given a blank check for their wants because these are the true heartless and noncaring ones and just because they tell you what you want to hear doesn't make them your friend or a good person.

Shame on you for demanding personal responsibility!

Best to all

Bez

 

[TexasBred]

"Personal Resonsibility"...man that's a word you don't hear much anymore. Good to hear it again.

 

[Nite Hawk]

I agree personal resposibility is uncommon nowdays, and I would say that possibly alot of the reason people crash on their debt is they really don't realize how much they are going to pay in interest on a loan, or take into account the possibility of getting sick or losing a job. They haven't done their math simple and plain and go over their heads.

However, I DO know of several cases where the loan was sold to someone else and called up and the person who was holding the inital mortgage lost everything as they couldn't cough up the total debt in 6 months.
And I have read the clause where the loan could be sold and called up, and it existed not that long ago, as a guy lost his large ranch,up north to that scheme not too long ago.
Don't know why that happened whether the bank manager where the loan was held owed someone big a favor or what. As far as I am concerned that is plain wicked!!
I have not dealt with banks for around 16 years prefering to deal with Credit unions where one is treated as a human and not as a number and a dollar sign.
Used to be to even talk to a teller at a local branch of a very large bank, one had to swipe their bank card and money was taken out of their account. If one forgot something and returned 10 minutes later, before you could talk to the teller again, you had to swipe your card again and more money was taken out of your account. There was a name for the fee, can't remember what it was called. Got sick and tired of the treatment and left for a credit union. Some of the banks have been called to task by the government for their fee structure, so don't know if they still do that or not.
If you get a loan you better go in with your eyes open and read all the fine print before you sign with your name..

 

[chippie]

Buy what you can outright, then if you need more finance it. It is a great feeling knowing that your home place is yours and no one is holding the note to it.

 

[Jogeephus]

I agree NiteHawk. You need to be conservative and add plenty of padding. Sharp pencils will get you in trouble.