Orphan Mortgages Canada
Mortgages are not that simple.They can be lot more complicated depending upon the lenders,the borrowers and the terms.Even though mortgage industry is heavily regulated and guarded to protect the Real Estate Investors and property owners.There are several key components to each mortgage. Most of Real Estate investors have very little knowledge about it. Majority of Real estate investors assume and presume, that is where they fall into cracks and suffer huge losses.
Orphan Mortgages can be red flag for lot of real estate investors.There are mainly three ways how a mortgage can become orphan.
First of all if your current mortgage is through a lender who is no longer in the business. When you mortgage becomes due, they will not renew it. You have to find a new lender upon the maturity of the term.this can be nightmare for lot of Real estate investors.
Second one if the builder arranged your mortgage, upon maturity, the lender may not renew your mortgage.
Third, if you have not heard from your lender sixty to ninety days prior to your mortgage renewal, you are subject for non renewal.
Many Real Estate Investors are being abandoned by a breed of Alternative lenders that have stopped lending to Real Estate Investors, who, because of poor credit scores, lower paying jobs, minimal equity, too many properties in their portfolio where they may not be able to obtain conventional financing from a chartered bank.
There is bright side to this equation. These property owners have to obtain financing from other source or face foreclosure. These property owners become panic sellers due to time frame available to get rid of the property.
World Wealth Builders offers many unique, practical, out of the box real estate investor apprenticeships which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.WorldWealthBuilders.com/live
The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case.
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