Submitted by: Submitted by jeni20
Views: 229
Words: 263
Pages: 2
Category: Other Topics
Date Submitted: 11/09/2011 11:08 AM
A mortgage loan is an interest in property that grants the property to a homeowner in exchange for money. The lender determines the interest rate and amount of time the borrower will have to satisfy this loan and will normally require that a lien, also referred to as a “monetary encumbrance”, be pledged. This lien provides collateral to the lender that if the borrower were not able to satisfy the obligation of paying this loan to him/her, then there can be a suit brought against the borrower for immediate payment. The mortgage lender receives information about what to charge the borrower in interest from the Federal Home Loan Bank Board, which is where Fannie Mae and Freddie Mac are originated, so as to not be in violation of real estate housing laws. A few of the violations that are occurring with these lenders and/or borrowers are misplacing paperwork, bad “good-faith” estimates, and no documentation of income as to obtain the loan. Overall, these violations are also referred to as the start of foreclosures, which means that even though the borrower can pay the loan debt owed, they only have a certain period of time to recover the property. These periods are known as statutory laws and are determined by each state’s government, which varies widely from one another. More borrowers have become smarter about watching out for fraudulent activities by themselves and/or lenders, but the thought remains that “if you aren’t cheating, you’re not playing the game,” with the game being that of real estate.