Real Estate

Second mortgage - urgent help needed

  • Last Updated:
  • Aug 6th, 2018 9:52 pm
Deal Fanatic
Jan 15, 2017
5749 posts
6121 upvotes
Ottawa
dolfan1980 wrote: I'd be curious to understand the situation of existing debt that warrants the second mortgage. Given that the related and feees quoted are under consideration it seems that it may be credit card debt or something at a high interest rate. I wonder if some kind of unsecured consolidation loan is an option. I'm not an expert, but not sure we have enough information.
Unsecured consolidation loans are normally not an option for people seeking private mortgages. Private mortgages are very high risk lending. There are large financial institutions that deal with subprime lending and second mortgages and people seeking private mortgages have usually been denied by these lenders. So, once you have been denied for any type of borrowing by the bank and any finance company type place, and also denied by intuitions that specialize in sub prime lending, then you start to run out of options.
Sr. Member
Apr 17, 2017
802 posts
590 upvotes
daivey wrote: oh LIcenced... @eonibm proved your reading/writing comprehension a flop a looong time ago, and multiple times at that. yet you kept coming back to take your licks.. no one outed me about my incorrect knowledge. I've been dropping knowledge bombs on here for a loong time about mortgages, and my information for the most part has been 100% accurate - on all topics that I post about. I've only been truly 100% wrong in one or two scenarios, and none of them have been about lending, nor has it ever been in the finance section. But thanks for trying.

That being said, the context in which you wrote, can be read as you're calling the whole thing a bad deal.. not just the lawyer fees.... but I think your writing ability, and your writing style is the problem.. that's why so many people here have a problem with how you write and what you say.... and for an astute professional - that boasts about their intricate knowledge both in finance and real estate, we expect to hold you to a higher regard.

You see licenced, when you say this:
"'m thinking you're going to be using these funds toward other debt which is not your current mortgage, if that's true, I'm with the others who say you're doing yourself no favours - it might be best to sell the property and hope to at least come out square."
You implied that you agreed with other posts about it "being a rip off" and a "bad deal" because that's what other posters said. This is the context that you are writing in. If this is NOT the context you are writing in, then you shouldn't say "I'm with others"...... you see how context of what you write, has everything to do with what you say?


Whoa dude, you're so cool to know a few people.... $1900 for private deal is pretty standard across the board, yet you are calling it high way robbery? "I know a lawyer that will do it for less"... cool story bro. You sound like any John Doe that "knows a guy" and giving anecdotal evidence.... So what, the guy you know will do it for what??? $1400, but will only do it if you use his "friend" that is a mortgage broker?? No competent lawyer is going to do mortgage docs/lien registration for under $1,200 for someone that is "desperate"..... desperate people PAY for mortgages.. That's how it works.... news flash, that's why they pay 10% for the mortgage.. BECAUSE THEY ARE DESPERATE. They don't have a choice...

Lastly, u never "outed" me on anything. you've been wrong on so many levels, so many times, yet you keep talking about an industry you don't even know about. You should stick to selling houses.... Even on that end, Eonibm destroyed you at every opportunity you opened your mouth about Realtors, over and over and over again. Every now and then, you post some OK information.

I jab at you because I expect better content from people that come on here claiming to be professionals... then posting bad advice. That's why. here let me deconstruct a bit more for you:
"$1,900 in legal fees to set up a mortgage is highway robbery."
Wrong. IT's not highway robbery. It's a fee to deal with this broker. Likely he can't do the deal through this guy if he doesn't do it this way.

"It's worth noting his language to you about hiring your own lawyer for independent legal advice, that's because the buyer's attorney is the one who handles the mortgage documents on behalf of the lender and why the $1,900 is charged back to you. Independent legal advice will be limited to just that - advice. "
I don't even get what you're saying here, other than parroting what the OP wrote, and trying to make it sound smart????? The OP said exactly what you just said.

"I'm thinking you're going to be using these funds toward other debt which is not your current mortgage,"
thanks for obvious opinion.
if that's true, I'm with the others who say you're doing yourself no favours - it might be best to sell the property and hope to at least come out square.
bad advice should be called out for bad advice.
For all you know the guy has $50,000 in credit card debt at 20%.. so this deal is a STEAL for him. There are so many unknowns.... Telling someone to sell house... sure, maybe you know a Realtor that can help him?
(the op does not indicate what this money is for - buying out another sister? or paying down debt.. and we would assume since the OP wanted to keep the house from the on-set, that there is some value to him/her to keep it and not just sell it because of a few thousand in interest costs.).

ps, don't take it so seriously. your feelings get hurt to fast.





ok, go post on kijiji?

let me ask you.. if you've never done a private mortgage deal before, would you just call up Licenced on RFD and ask for a private mortgage? And then go to Jimmy the Greek lender, and get the mortgage deal done??
just curious.




good question.
Holy moly this is an essay
Deal Expert
User avatar
Jan 27, 2004
52935 posts
18144 upvotes
ONTARIO
Hmmm... i see a lot of argueing here :-0

Urbanpoet is going to give his opinion on the matter taking into account the reality of the situation, as well as a famous dissection of other more human aspects. Lets try to read between the lines!

1. People in OP situation unfortunately have to pay high rates... she most likely can only qualify for a private 2nd mortgage. Due to it being in second position, the high risk, the rates will be high. In this case... theres only a “good deal” relative to the situation. So a 10% loan with a few thousand dollars in fees isnt all that far fetch and very normal for this situation. And yes they are terrible “robbery rates”. Really the only people who get these types of loans are people who are about to lose their house...

2. What is better for OP? This depends on OP’s value system. What she values and cherishes.
OP can say eff it. Sell the house. Rent a room in a flop house of a basement apartment and live out her days slaving and saving...
But what if she values the house?
In this case... she has to take the deal. 10% 2nd mortgage with a few grand in fees is penuts compared to the handful of 20% credit cards the OP is trying to balance out.

3. Bottom line!
She got into this mess because she didnt adapt to the fact that it went from a 3 person operation, to a 1 person operation.
If the house is that important to her... she has some life style decisions to make! That high interest 2nd mtg can work if she makes life style changes. Or maybe sacrifice some privacy & get a roommate. Or rent out the basement. Thats easy casb flow @ the expense of privacy. That way you can still have avacado toast (but only on weekends...).
Deal Expert
Oct 7, 2010
15536 posts
5790 upvotes
nx6288 wrote: sorry OP but this is financial suicide. You're better off selling the property and living your life without this financial burden.
Unless the OP has 3x income since it was originally 3 people qualifying. I really doubt he has the income in keep the house. Selling it it's his best bet.

Unbelievable what he is posting on here.
Deal Fanatic
Jan 15, 2017
5749 posts
6121 upvotes
Ottawa
This was the OP's first post and haven't returned to the post. Me thinks a troll.
Deal Addict
Jun 7, 2017
1043 posts
836 upvotes
BC
UrbanPoet wrote: 1. People in OP situation unfortunately have to pay high rates
No they don't. Fail at item #1.
Deal Addict
Jun 7, 2017
1043 posts
836 upvotes
BC
UrbanPoet wrote: How so explain?
If you have limited equity, low credit score, high utilization of current credit facilities... what do you think you can get?
Let me guess.
“Just go get a heloc @ your local bank @ prime + 1”
Nobody needs a mortgage. Granted, many want one or more.
Deal Expert
User avatar
Jan 27, 2004
52935 posts
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Furcorn wrote: Nobody needs a mortgage. Granted, many want one or more.
So this is just you imposing youre values on others.

If someone wants to keep their home and somehow fix their debt mess without big bank options (or even small lender options) available... high interest 2nd mortgage is the way to go.

Of course... the rfd way is “sell the house. Live in a room in a flop house. Eat rice and canned tuna every day”.

But the reality is ... if someone is inclined and stubborn to stay in their home... and they have a bunch of maxed out credit cards... they gotta get a 2nd mortgage to improve their cash flow and stay.
Deal Addict
Jun 7, 2017
1043 posts
836 upvotes
BC
UrbanPoet wrote: So this is just you imposing youre values on others.

If someone wants to keep their home and somehow fix their debt mess without big bank options (or even small lender options) available... high interest 2nd mortgage is the way to go.

Of course... the rfd way is “sell the house. Live in a room in a flop house. Eat rice and canned tuna every day”.

But the reality is ... if someone is inclined and stubborn to stay in their home... and they have a bunch of maxed out credit cards... they gotta get a 2nd mortgage to improve their cash flow and stay.
Hahaha, that's a want. 38k posts. Fails high school. Back to ESL remedial.
Please just read the post, that's all you gotta do.
Deal Expert
User avatar
Jan 27, 2004
52935 posts
18144 upvotes
ONTARIO
Furcorn wrote: Hahaha, that's a want. 38k posts. Fails high school. Back to ESL remedial.
Please just read the post, that's all you gotta do.
Ok its a wantt.
In the case of this want, those are the options avilable.

But i automatically win this one because you had to resoort to personal attaks.

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