This appears to be a euphemism for "sub prime" or "credit risk".
I seached Google with "non-conforming real estate mortgage loans"
and got this:
Understanding the Mortgage Loan Market - Real Estate Real Estate ...
... regular monthly expenses (including mortgage payments, property
... Non-conforming loans
are also known as ?sub-prime ... Secrets of a Millionaire Real Estate Investor ...
LINK:http://www.totalrealestatesolutions.com/articles/disp.cfm?aid=226&typeid=1&winpop=0&nav=1
Sub prime lending is profitable for lenders because they charge
higher-than-normal interest and they find a way to secure their money
that is often cruel and predatory. It is considered predatory when
they do not truly expect the loan to be paid off. They bet that you
will have a divorce/job loss/medical emergency/arrest/DUI or some
other "unexpected" expense to disrupt your ability to handle the
payment and foreclose eagerly when you get a week behind. |
Request for Answer Clarification by
shoaib-ga
on
22 Oct 2004 20:21 PDT
Chris2002micrometer-ga researcher please provide more detail of
the non-conforming real estate mortgage loans so that I shall
be able to know more details about that non-conforming real
estate mortgage loan ?? Thanks for that from Shoaib.
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Clarification of Answer by
chris2002micrometer-ga
on
23 Oct 2004 15:38 PDT
What does "border on criminal" is predatory lending practices. I
briefly worked for a company that held "mortgages" but had to call
them something else. Make sure you never accept a loan based on the
"Rule of 78" which front-loads most of the financing charges. Worse
yet are the "interest-only" deals that guarantee that you will "rent"
the place for the rest of your life. There is a lot of hype and misuse
of terms in this industry and there can often be more than one
interpretation of a term such as "non-conforming".
There is another definition, from the link suggested by rbt-ga.
http://www.bankrate.com/brm/news/mtg/20001221a.asp?print=on
One of the most important events for consumers is the annual
adjustment of Fannie Mae and
Freddie Mac loan limits. The two agencies purchase loans from lenders.
But by law, they
can't buy mortgages that exceed a certain dollar amount. Loans that
fit under the cap are
called "conventional" or "conforming" mortgages, while those that
don't are called "jumbo"
loans.
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Request for Answer Clarification by
shoaib-ga
on
24 Oct 2004 18:44 PDT
Chris2002micrometer-ga researcher please note that in the
above mentioned website it is written that non-conforming real
estate mortgage loans have "no set guidelines" and vary from
lender to lender so therefore
I want to know that those financial organizations or
institutions which provide "non-conforming real estate mortgage
loans and non-conforming equity loans OR non-conforming
collateral based loans" can pay for the following "closing
costs and for any other costs" which are related directly or
indirectly with the purchase of the property:
Closing Costs
Various fees and expenses related at the time of a real estate
closing, (also termed transaction costs). Includes brokerage
commissions, lender fees, title insurance, recording fees, prepayment
penalty, inspection and appraisal fees, and attorney fees and the
cost of tax(es), notary fees and "all" other costs directly
or indirectly related with the purchase of the property so
as to totally complete the property purchase process.
Please provide "clarification" of that statement and many
thanks for that help. After receiving your answer I shall
give ***** rating to your answer.
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Clarification of Answer by
chris2002micrometer-ga
on
24 Oct 2004 20:30 PDT
Dear shoaib-ga
Searching "pay Closing Costs" brings up:
don't pay closing costs up front (pay only the application fee, if required
http://www.stretcher.com/stories/00/000828c.cfm
and:
It has become common to ask the seller to pay some or all of the
closing costs when you purchase a home. Essentially, this is financing
your closing costs since you will probably pay a little bit more more
for the property than you would if you were paying your own costs.
http://www.realestateabc.com/loanguide/closingcosts8.htm
There is a boatload of fees, points, commissions, etc. in a real
estate transaction that can be bargained down as well as the official
asking price. Every financier is different and there are a lot of
scumbags out there. I bought our first property the "normal" way and
paid a lot of extra fees. If I could do it over, I would look for a
distressed property (hurricane/fire/layoff) or a tax delinquency. I
have since bought tax delinquencies for nickels on the dollar. Be sure
to see them first, however! Go to your courthouse and ask about
tax-delinquent properties. There are many because people die, go
crazy, get arrested, divorce, lose jobs etc. Watch the paper for
stupid folks who beat children, dogs, etc. Write down the address and
check with the court next year. Don't rush into anything. As a
potential buyer, you have the upper hand. Once you sign, you're stuck
with your choice.
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