{"id":602,"date":"2006-11-04T17:12:09","date_gmt":"2006-11-05T00:12:09","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=602"},"modified":"2006-11-05T15:11:11","modified_gmt":"2006-11-05T22:11:11","slug":"ask-the-broker-who-is-responsible-for-the-mortgage","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/602\/ask-the-broker-who-is-responsible-for-the-mortgage\/","title":{"rendered":"Ask the Broker: Who is responsible for the mortgage . . . ?"},"content":{"rendered":"

Holy smokes! I get questions for appraisers, for inspectors, for real estate attorneys, for everyone involved in a real estate transaction except the ding-dong Realtor. Here comes a question for mortgage lenders, who are entreated to chime in with better answers:<\/p>\n

Generally speaking, are homeowners personally liable for their mortgage? If yes, is it possible to structure a home loan that doesn’t require a personal guarantee?<\/p><\/blockquote>\n

Generally speaking, yes, a mortgage is secured both by the real property and by the borrower’s personal promise to repay the note. If the down payment is 10% or 20%, the personal promise may not be as significant, but if the down payment is very low or if real estate is declining in value (as it is right now in many markets), the lender will depend on the borrower to bring any short-fall to the closing table, should the home sell for less money than is owed on it.<\/p>\n

But: There are many types of loans that are not secured by the borrower’s personal promise to repay. The loan will be secured by the real property borrowed against or by other assets, but a foreclosure won’t affect the borrower’s personal credit rating.<\/p>\n

Here is an example that can be used for residential loans: The Non-Recourse Loan. The loan is secured by the real property only, with no “recourse” to the borrower on default. Obviously, the lender is going to make sure the amount lent is substantially less than the value of the property, that the property produces income sufficient to pay its own expenses, etc.<\/p>\n

This is an investment product, but the interesting thing about non-recourse loan is that they can be used by self-directed retirement accounts, to permit them to own real estate. Your self-directed IRA, as an example, would have to make a hefty down payment on a piece of real property, and there are rules about what your IRA can own and to whose benefit. But by means of the non-recourse loan, your IRA can own (and leverage) real estate to build your retirement nest egg tax free<\/i>…
\n<\/p>\n

Technorati Tags: real estate marketing<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Holy smokes! I get questions for appraisers, for inspectors, for real estate attorneys, for everyone involved in a real estate transaction except the ding-dong Realtor. Here comes a question for mortgage lenders, who are entreated to chime in with better answers: Generally speaking, are homeowners personally liable for their mortgage? If yes, is it possible […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,8,6,5],"tags":[],"class_list":{"0":"post-602","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ask-the-broker","7":"category-investment","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":645,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/645\/home-buyer-always-liable-for-mortgage\/","url_meta":{"origin":602,"position":0},"title":"Home buyer always liable for mortgage . . .","author":"Greg Swann","date":"November 17, 2006","format":false,"excerpt":"This is my column from today's Arizona Republic (permanent link). No fireworks, today, just real estate. Home buyer always liable for mortgage I got a great question by e-mail. It's really a lender question, but it introduces a number of interesting topics. \"Are homeowners personally liable for their mortgages? If\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1260,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1260\/ask-the-broker-asks-the-audience-how-best-to-invest-an-unexpected-windfall\/","url_meta":{"origin":602,"position":1},"title":"Ask the Broker asks the audience: How best to invest an unexpected windfall","author":"Greg Swann","date":"April 3, 2007","format":false,"excerpt":"Another question requiring expertise far beyond a broker's license. Fortunately we have two great investment writers, three off-the-charts lenders and a readership of very prosperous people. Here's the problem:I have come into a situation, and was wondering if you could give me your opinion. I have recently come into an\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1550,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1550\/real-estate-relationships-do-what-you-say-you-will-do\/","url_meta":{"origin":602,"position":2},"title":"Real Estate Relationships: Do What you Say you Will Do","author":"Cooksquared","date":"June 18, 2007","format":false,"excerpt":"The long absence is finally over. After a grueling finals week and graduation, a two week vacation, a move to New York City, and a failed real estate deal, I am back with the pack. Based on the great content that I have seen coming from the site, I can\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16276,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16276\/there-is-no-real-estate-inventory-problem-in-oceanside-ca\/","url_meta":{"origin":602,"position":3},"title":"There is no real estate inventory problem in Oceanside, CA","author":"Brian Brady","date":"January 11, 2013","format":false,"excerpt":"How often had you heard real estate agents complain about \"the inventory problem\" this past year?\u00a0 I used to think their complaints were farcical until these past 3-4 months.\u00a0 I have about a dozen pre-approved buyers out looking for homes.\u00a0 Interest rates are low and the foreclosures are getting snapped\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1318,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1318\/ask-the-mortgage-broker-how-do-i-become-a-hard-money-loan-broker\/","url_meta":{"origin":602,"position":4},"title":"Ask the Mortgage Broker: How Do I Become A Hard Money Loan Broker","author":"Brian Brady","date":"April 18, 2007","format":false,"excerpt":"Brian Brady of World Wide Credit Corporation will be offering a free conference call and presentation: \"How to be a Hard Money Loan Broker \" Tuesday, April 24, 2007 4:00PM Pacific Daylight Time (7:00 PM EDT) SIGN UP IN THE COMMENTS SECTION (8 spots available) . Make sure that your\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1528,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1528\/ask-the-mortgage-broker-on-title-but-not-on-the-loan\/","url_meta":{"origin":602,"position":5},"title":"Ask the Mortgage Broker: On Title But Not On the Loan?","author":"Brian Brady","date":"June 12, 2007","format":false,"excerpt":"This came in today: My Mortgage Broker told us; because of my low credit score (Low 600) and my husband's higher score (High 600) -- he wants to not include me on the mortgage, but put me on the title as a owner. This would mean the mortgage will not\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=602"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/602\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}