Serpenter

You have multiple questions here and multiple issues. This is going to be treated differently depending on whether it's in foreclosure or if it's in bankruptcy. Lot's of people do one or both. I'm not a bankruptcy expert but can provide guidance for a foreclosure.

The first mortgage has seniority and as a result, it is discharged first. Then the others typically in sequence of when the were originated.

You're wrong that the lender can't come after more than the house. The lender has a security interest in the house and as a result can force a sale or take possession of the home. But that does not negate the remainder of the principal amount / accrued interest and fees / attorney costs. My wife cosigned for a coop for her brother in the eighties and it ended up being foreclosed. The bank came after her for the remaining balance and got a judgement for it.

Bankruptcy is different in that you typically have some protection for your primary residence and often are able to keep it but would be able to discharge your other debts.

Posted by: Ozymandius at February 11, 2009 3:29 PM in response to Multiple Mortgages in Bankruptcy

Come on. This place is great!!!

Love that coat closet at the entrance. Oops, sorry that was another listing. But you gotta luv the storage in the front office and primary bedroom. What! I screwed up on that as well... I meant to say that those were great furnishing options that provided all that clothes storage. Luv the armoire.

That long narrow spot under the stairs... Well you can have those specialty mechanical doo dads put in that will swap out stuff in the back with stuff in the front. I know someones gotta have a fancy lazy susan for that space. And the closet in the spacious rear closet... I mean bedroom... well it's to die for. Plenty of space there for a couple and a small child.

No, I've got the ticket... We'll use the lower level storage room as one hell of a walk in closet. I'll walk down there every morning in my underwear to pick out the day's clothing. Hell it might even make for a good porn movie if I can get someone to stand in for me...

Sorry for the rant but it's been a bad morning and this place stinks. What the hell! It's NYC, so we should all be happy with substandard living conditions for the rest of the world. Please beat me again cause it feels so good when u stop!!!!

Posted by: Ozymandius at February 4, 2009 2:22 PM in response to Co-op of the Day: 719 Carroll Street, #1L

I know that pricing is questionable now days. But the thing that really gets me is the rose colored glasses that these realtors use in describing the properties. It so frequently has no basis in reality. I expect them to put lipstick on their pig. But they're claiming Kobe beef instead of fricassee of swine.

Whatever happened to truth in advertising... Is there a way to file complaints on the most egregious ones so the industry starts to clean up their act.

Posted by: Ozymandius at February 2, 2009 2:07 PM in response to Co-op of the Day: 135 Prospect Park West, #44B

I was listening to the news and it seems that those areas of the country that did see a drop in pricing and where the market is picking up again have seen prices stabilize at 2004 levels.

Streeteasy had a sale in Nov 2005 at just over $650/sf. Also I go by my staple which is a 3br/2ba in the yorkville section of the UES in a full service building currently on the market at under $700/sf. ($950K / 1350sf). granted the UES place still needs one of the baths updated. Kitchen and 1 bath already updated.

Gotta believe that this is overpriced by $100 sf or more. At $650/sf, this would sell for $780K. You think there is any chance that the seller would settle for that?

Posted by: Ozymandius at January 27, 2009 1:47 PM in response to Co-op of the Day: 420 12th Street 2BR

Personally, I'm just happy that people are starting to appreciate brownstone living with modern updates. My biggest gripe with the "traditional" brownstone are the horrible floor plans that you find.

Call me crazy but I enjoy open floor plans. No need to stow June Cleaver in the kitchen while the rest of the family participates in familial activities. I probably cook more frequently than my wife and it's nice to be able to interact with the rest of the family while I'm whipping up a veal saltimbocca.

Plus, nothing sucks more than having to fight over who gets to go to the bathroom first who gets to go fewest number of steps to get there. Plus there's never a fan to vent the poo haze.

Posted by: Ozymandius at January 22, 2009 12:18 PM in response to Ultra Modern Reno on South Portland Avenue

Num Yummy!!! Exactly what I want for my next abode. Now if only my wife let's me sell the old money pit and get a new one.

Posted by: Ozymandius at January 22, 2009 11:13 AM in response to Ultra Modern Reno on South Portland Avenue

I don't see the 3800 sf that they claim. Does anyone see how they come up with that number. Property shark has the building at 20x42 and the lot at 20.83x75.

Garden level : 20x75=1500
Parlor and 3rd : 2x20x42=1680
Total: 3180

This is counting garages as livable space. Not what I grew up counting as square footage but I don't know the convention here. Even so they are picking up 620 sf from the basement.

Posted by: Ozymandius at January 21, 2009 2:22 PM in response to House of the Day: 150 Bond Street Revisited

Your payments will not go down if you reduce your principal through these methods. If you have any questions about the stability of your income sources or the amount of money you have set aside in a rainy day fund (at least 8 mths of expenses), don't make extra payments. Instead put it in a rainy day fund. You'll have the peace of mind that you can get through the next year of two. You can always start making extra principal payments once the crisis is over.

Posted by: Ozymandius at January 21, 2009 11:56 AM in response to biweekly mortgage payment

CAVEAT EMPTOR

This is a money making opportunity for your bank. You are able to make additional principal payments on your own in most cases.

You should also check to see if the payment is applied to your account on a biweekly basis or if they are applied on the original due date. Those that apply the payment on the due date are collecting a fee plus they are receiving a float on the use of your funds.

For those of you who have a mortgage where the payment is applied when made have a huge advantage because the timing of the payment has an enormous impact on the total interest that accrues on the loan. However this is becoming less and less common.

There are multiple methods for calculating interest on your loan that are permissible from a regulatory standpoint. Not all of them are to your best interest. Some methods will actually accelerate the interest payments into the early portion of the the loan with principal payments being a larger component later in the life of the loan. This creates a disadvantage to people who like to prepay their principal.

Please look over the documentation of how the funds are applied and to see if you can do the same yourself without a fee.

Posted by: Ozymandius at January 21, 2009 11:49 AM in response to biweekly mortgage payment

GFI got a steal when they bought for $ 8MM. Especially since the decision by BSA comes almost immediately after the REO sale. You would almost think that GFI was divinely inspired. They had a nice vision and it said, "If you buy it, they will let you build." Anyone know of any ties between GFI and BSA?

Posted by: Ozymandius at January 21, 2009 11:23 AM in response to New Lease on Life for Finger Building

Only way this is a good deal ....

Get it for free. Poke a few holes in the roof and have the place be condemned. Build a new house. (I know. Thems fighting words on this site but this place really really scares me. I bought a dump and eight years later, I'm still finding more things that have to be done. It really would have been less money and less heartache and a lot more comfort to have started from scratch)

Posted by: Ozymandius at January 15, 2009 2:20 PM in response to House of the Day: 403 East 19th Street

OMG --

Roof in bad shape, gutters missing or falling off. Landscaping from a jungle movie (meaning that it is way overgrown). Windows need to be replaced. And all before you go inside.

Holes in the ceilings. Plastic covering the inside of windows. Bet that is the best looking bath in the whole place. No kitchen pics. My guess is all new mechanicals, new electrical, all kinds of water damage, new baths, new kithen(s).

Buy it and you can make this a showcase. It'll take 2 years of carrying costs and a ton of loot to pay for the renovations. It's just too much of a battle unless you really fall in love with the place. Frankly the outside just doesn't have enough charm to make me want to go to war to restore this place. That's assuming I have the spare change to park til it's ready to move in.

Posted by: Ozymandius at January 15, 2009 2:14 PM in response to House of the Day: 403 East 19th Street

I struggle with the maintenance of not just this coop, but so many of the BH ones featured recently. There just does not seem to be the level of amenities to support the cost. I've seen so many UES coop with this kind of maintenance per square foot that featured more. I would expect to at least have a fitness center available and possibly more.

Posted by: Ozymandius at January 15, 2009 1:36 PM in response to Co-ops of the Day: 135 Willow Street Triple-Shot

I hope whoever buys this has a wife with less stuff than mine. You can put a king size bed in the master bath but not enough room for the wife's shoes...

Posted by: Ozymandius at December 22, 2008 5:04 PM in response to House of the Day: 53 South Elliott Street

I just saw a very nice apt on the Upper East Side in a full service building for the same price and it's nicely updated already. Slightly higher maintenance but not much.

This coop is a nice location but the price has to come down.

Posted by: Ozymandius at December 22, 2008 2:16 PM in response to Co-op of the Day: 209 Lincoln Place, #9D

I don't know if there is an atty who can opine but I did hear that having a HELOC or 2nd mortgage does invalidate some of the protection that a primary residence has in bankruptcy. Has anyone heard similar info.

Posted by: Ozymandius at December 18, 2008 3:31 PM in response to Question For Adam on refinancing

I have a big drafty old house. I can run $1500 a month for heating on a bad month and I keep my thermostat at 63.

Posted by: Ozymandius at December 18, 2008 2:05 PM in response to Yikes..Could this Heating Bill be Right?

Not clear what your friend is consolidating the debt into.

I generally think it's a bad idea if he's consolidating into a Home Equity Line of Credit (HELOC) or some other mortgage related product. That will just put the home at risk in case something unanticipated does happen. Granted that the HELOC rates can be low. My HELOC just dropped to 2.49%. It's only worth it if he's is very comfortable with his income and job prospects and will be disciplined enough to pay of the HELOC as quickly as possible.

Another thing if he's considering consolidating into another credit card with a balance transfer. I'll use the fees that BofA normally charges. Modify for your particular offer. Typically there is a balance transfer fee. Generally, the offer is a low interest rate (0%) for a short period of time (6 months) for a balance transfer fee of 3% or till paid off for a higher fee of 6%. You just want to compare how much you pay in interest and fees if you take the offer vs not taking the offer.

In your friends case, it's probably worth it if it will take some time to pay off the balance. I particularly like the 0% till paid off if it will take much more than 6 months to pay off.

Posted by: Ozymandius at December 18, 2008 1:58 PM in response to Debt consolidation

THL the photo on the bottom left shows a drain through the slate on the top level and the photo on the bottom right shows a drain in the stairwell leading to the garden level entrance. They're not real obvious but if you look for them, you'll see them. Looks like the just used the existing drainage that was in place but I may be mistaken.

Posted by: Ozymandius at December 11, 2008 11:22 AM in response to Garden of the Day: King of Dirt in Bburg

I do business in the midwest in WI and in Chicago. Try this house in some of the downtown areas of Madison, Milwaukee, or Chicago where older historic homes are found and it will run you at least 700K. Even more in some of the desirable n'hoods. Then you have to update...

How do I know? I just got through looking for something and that was the going price. I also couldn't get over the 1/4 bath under the stair thing either. That's where they put just a toilet because so many of these homes don't have a powder room on the first floor. I guess you do your business and then walk to the kitchen to wash your hands.

Posted by: Ozymandius at December 11, 2008 11:01 AM in response to A Sale for Victorian Flatbush

Lovely home and nicely updated. Glad it did well.

Posted by: Ozymandius at December 11, 2008 10:31 AM in response to A Sale for Victorian Flatbush

They're reacting to the lowballers. Raise the asking price. Then the lowballer comes in with a 25% chop against the new asking price. At least they can start negotiations a little closer to what they're willing to sell for.

Posted by: Ozymandius at December 9, 2008 11:33 AM in response to Price Hikes at the Sydney

brownstone half wit -

Love the jibe with oxymoron. You should keep that in your backpocket for the next time I insult you. It was good.

Say what you mean and we'll all understand your reasonable point.

Posted by: Ozymandius at December 8, 2008 12:19 PM in response to Open House Picks

***Bid half off twice the peak comps you can afford***

So take the peak comp and double the amount. Then take half of that. In other words, bid the same as the peak comp around there.... Another upward spiral in prices...

Prices are too high but you're an idiot Brownstone Half Off.

Posted by: Ozymandius at December 7, 2008 4:10 PM in response to Open House Picks

Muffala -

The rate for the HELOC is realistic. I currently have mine at prime - 1.01% or 2.99% with BofA. The rate was so good that I paid off the mortgage with the HELOC but I'm protected from downside risk. I had paid off most of the mortgage before it was about to reset and I can afford the pay off the balance if rates spike (I don't believe rates will spike since the nat'l banks for most countries are currently lowering rates).

As for your situation, I would not take out the HELOC. Your payback is 6 years on the loan with a tenant but you believe that if you do the work yourself, you can have it finished in two years anyway. You save $40K by doing the work yourself. Payback on the $20K you do spend will be a lot less than the remaining 4 years. Economically, you're better off with the sweat equity.

From a peace of mind perspective, you're better off with sweat equity. No debt, fewer worries.

Given that you have a number of foreclosures in your area driving down valuations, it makes a lot of sense not to increase the investment in your home with another loan.

Best of luck

Posted by: Ozymandius at December 7, 2008 4:00 PM in response to Low Interest Rates Are Teasing Me

Money will be cheaper in the future so long as you refi into something that Freddy and Fannie will buy, i.e., conforming or jumbo conforming....

If you fall outside their LTV or you need more than $729,750 then pray a lot.... It's going to take a while for the rest of the market to open up. There is no secondary market for mortgage backed securities except for the govt sponsored ones.. If these guys can't sell the mortgage, they have to hold it on their balance sheets which aint happening.

Posted by: Ozymandius at December 3, 2008 11:17 AM in response to Refi Wave on the Way?

Yada yada yada ....

Nice historical detail.. sucky space planning with weird layouts for the bathrooms. How do you get to the shower on the garden floor. What's with the creepy way the walls meet down there. Why are there laundry hookups on the 4th floor but not a single effing closet. I guess people in Brooklyn don't have cloths. I'm so bored with these places.. Just shoot me!!!!

Posted by: Ozymandius at December 1, 2008 1:50 PM in response to House of the Day: 170 South Oxford Street

Just took another look at the photo of the staircase. Closet isn't going to fit under it.

Posted by: Ozymandius at November 24, 2008 8:02 PM in response to House of the Day: 566 1st Street

Put the closet directly under the stairs and accessed from the hallway. Put the powder room where the closet currently is and have it take up the space used by the dumbwaiter.

Don't need a dumbwaiter if you put a laundry upstairs. Don't really need it even with the laundry in the basement.

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Posted by: Ozymandius at November 24, 2008 7:59 PM in response to House of the Day: 566 1st Street

I would want both a powder room and a closet!!! If you're doing a renovation of that scale, you should be able to fit in both. It's all in the space planning....

Posted by: Ozymandius at November 24, 2008 7:24 PM in response to House of the Day: 566 1st Street

I'm kinda shocked at how people are salivating over this house. There are beautiful details and impeccable finishes in this HOTD but it is hardly original. Seems like there are a lot of people who have previously turned up their noses at gut renos that don't maintain "brownstoner" standards.

Stone tiles in the parlor hallway, sleek modern kitchens, contemporary bathrooms and their ilk seem contrary to the professed aesthetic of this crowd. Granted the mahogany wainscoting throughout the house and the library are an acknowledgment to the original style but other than that and what appears to be original staircase and mantles, this place has been stripped.

Personally, I like sleek finishes and would love to find a brownstone in need of a gut renovation so I don't feel guilty about stripping it of its period detail. The architects did a very nice job of putting in great finishes but not having it become cold and uninviting by using nice warm woods and the beautiful wainscoting.

I do agree with BRG and others that the space planning is a little off. For $4 MM, I expect a powder room on the parlor floor. Especially with the amount of floorspace that this place offers. Also I've had a dumbwaiter. Previous homeowner had it put it with their last renovation. It was a real pain in the butt and my wife and I much prefer doing the stairs instead. Eventually we ripped it out to get more space in the bathrooms.

Posted by: Ozymandius at November 24, 2008 4:16 PM in response to House of the Day: 566 1st Street

Yes the news is bad and people are scared. But some of the idiots on here don't seem to have a brain. Until recently, everyone wanted to be a polly anna and now everyone wants to be a chicken little.

Clearly the developer is in trouble and is going through a sequence of price cuts. But for people to suggest that this is not an attractive purchase at any price is ludicrous.

1.4MM price gives much more than a 7% return. Especially when you factor in the tax treatment for depreciation. We're well into double digits and this is after discounting the rent rolls by 10%.

Get a life folks. Look at the return that you're getting on your saving accounts or in the market right now. There are a lot of damn good buys out there is you have liquidity. Those that do will make a shit load of money and the rest of us will sit on the sidelines and cry about it.

Posted by: Ozymandius at November 21, 2008 2:07 PM in response to Another Developer in Distress

Chicken - I'm more bearish than the average bear. In fact I used the word depression a while ago but $1.4 MM for a brand new six family building is a little low. Granted, the developer is desperate but you're asking him to take a pretty large loss given his purchase, construction and carrying costs.

Posted by: Ozymandius at November 21, 2008 12:15 PM in response to Another Developer in Distress

Be nice people. It's rare for a broker to post with transparency instead of anonymously.

Julie/Christine -- Would you disclose what the rents are for each of the apts so we can validate the potential rent roll. This is an attractive building in a good location but clearly the tenant situation causes some of us a little concern.

Thanks.

Posted by: Ozymandius at November 17, 2008 2:23 PM in response to HOTD: 306 Washington Avenue, Two Price Cuts Later

Brooklyn Fire Alarm Guy

Why is structured cable outdated. I'm thinking of using it for a gut renovation and was thinking about running the cable while the walls were open. Thanks for the input.

Posted by: Ozymandius at November 17, 2008 1:16 PM in response to Home Theater Edition

Can't be certain but it looks like a twin bed in the master. In any case, tight fit.

Also what does "smart amount of closet space" mean. If you're smart, don't own any clothing cause you ain't gonna be able to hang it here ...

Posted by: Ozymandius at November 17, 2008 12:57 PM in response to Condo of the Day: The Ansonia, Apt. 4D

It's a three family so will require extensive mods to convert into a one family with or without a garden rental. Also not a fan of the F train.

Handsome building but a tough sell right now.

Posted by: Ozymandius at November 13, 2008 1:56 PM in response to House of the Day: 356 President Street

Boerum Hill --

I agree that HOTD will sell for a lot more than my assessment of its value. Too many people have gotten used to the high price tags lately and psychologically are primed to pounce on this once the price comes down. They'll think that it's a bargain and that the prices will recover once the economy straightens up.

And they will be right about that. Prices will come back to levels of a year ago. It may take 5 years but they will. I just prefer not to make emotional purchases.

Posted by: Ozymandius at November 6, 2008 10:50 AM in response to House of the Day: 291 State Street

Just for ha ha's, I compared one of the 14townhouse properties to this one. I picked one at random and didn't consider FAR since I don't have premium Property Shark.

269 State St - $2,625,000 - 3836 sqft - $684.31/sqft
291 State St - $2,250,000 - 3024 sqft - $744.05/sqft

Whether modern is your preferred aesthetic or not, 269 has exceptional finishes and amenities. It is a superlative property if it matches personal aesthetic. It also sold at the heyday of the market (June 2007).

If our HOTD sells at the same price per square foot, it should go for $2,069,343.07

Knock of 15% for market timing you get $1,758,941.61

Knock of $150,000 per floor to bring the finishes and systems up to date and you get $1,158,941.61

That's my estimate of its real value. Don't think the owner is going to sell for that. Do you really think that your personal aesthetic for historical detail is really worth over a million dollars. I say no!!

Posted by: Ozymandius at November 5, 2008 2:38 PM in response to House of the Day: 291 State Street

"Demand for historic Brooklyn houses have only gotten higher and the typical buyer more wealthy since 2004."

Completely irrelevant... The relevant question is "Can the typical borrower finance the purchase?" And the answer is no!

The limit on a conventional jumbo is the lesser of $729,750 or 125% of an area’s median home sales price. Mortgage lenders don't want to issue loans outside of Freddie and Fanny's guidelines because will have to hold it on their own balance sheet.

Doesn't matter how much you want to buy a property for and how much you think it's really worth if you can't finance it. If you pay $1.425 million for Dean St, be prepared to put down about $700K as a down payment.

FYI -

I have a country house for sale in Westport CT 4BR/3BA. Easy access to town/train/I95/Merrit Pky/Post Rd.
Price: $1.2 million. Will owner finance.

Posted by: Ozymandius at November 2, 2008 1:42 PM in response to Open House Picks

Pretty small footprint. Neither wide nor deep.

Two rental units don't support that price so it has to be converted to a single family with or without a garden rental. Not even close to worth the price.

Floorplan is actually pretty good for a conversion if the mechanicals are decent.

Parlor Floor: Convert the half bath/wet bar/closet into a kitchen. Possibly add a half bath next to stairs depending on plumbing.

Third Floor: Kitchen on third floor into a bath. Add closets.

Fourth Floor: No changes.

Garden floor: On the cheap - Knock down some walls and make into a large studio with the refrigerator repositioned. Done right, move kitchen to middle and place a bedroom where the kitchen currently is.

Posted by: Ozymandius at October 30, 2008 1:43 PM in response to House of the Day: 400 Dean Street

more like 4 rentals ... and it's just being called a two family for other reasons.

Posted by: Ozymandius at October 29, 2008 2:23 PM in response to House of the Day: 46 Cambridge Place

Chill out folks. Reality of the situation is that buyers are lowballing the hell out of these realtors. You jack up the asking price so when the low ball offers come in, they're a little bit better.

Posted by: Ozymandius at October 29, 2008 12:47 PM in response to Price Hikes in Greenpoint? Say What?

If I were a rich man ...

http://www.marykayg.com/html/0530.html

drool! drool! drool!

Posted by: Ozymandius at October 1, 2008 9:22 PM in response to House of the Day: 352 Argyle Road

The home equity was available because you had a lot of cash on hand. You didn't need the credit.

If you didn't have the cash on hand and you needed the credit, it would have been a different thing.

Your cash on deposit acts as reserves for multiple loans. Chase would much rather give you a loan and retain the cash deposits rather than have you withdraw it.

Posted by: Ozymandius at October 1, 2008 3:13 PM in response to On the Other Hand: Chase Pushing FHA Loans

Fugly kitchen but it's in good enough shape that you wouldn't have to update it right away. Anyone know what the bathrooms look like?

Also how much are rentals in the area? Thx.

Posted by: Ozymandius at October 1, 2008 3:06 PM in response to House of the Day: 352 Argyle Road

Pottedmum

Is your name Bette Cunningham? You've had no activity prior to this house of the day

Look, I just walked into Bank of America and their mortgage rate was 7.125% and the APR even higher with no points. I didn't check into the pricing but I don't think that was for a jumbo conventional or a nonconventional jumbo. Plain and simple, it's freaking hard to get a mortgage now. So supply and demand rules... How many people are sitting on a ton of cash and who feel like buying a house?

Not many....

Unfortunately I have to sell my house because of a relo. The damn thing was worth 1.2 million last year. I would be happy to walk away with 900K right now..

Posted by: Ozymandius at October 1, 2008 2:55 PM in response to House of the Day: 208 Midwood Street

Comment about bonuses is just to point out that the size of the pool of people who will qualify for a loan is shrinking. No disrespect meant to non-bonus guys. You're the ones who are best positioned now to buy.

Posted by: Ozymandius at September 30, 2008 7:34 PM in response to House of the Day: 208 Midwood Street

Sit tight unless you're forced to buy. Lenders are asking for 20 -25% down today and that isn't going to change for the next few years. Plus closing costs and cash on hand for after the sale.

The pool of people that are sitting on 300K is going down every day and so will the prices. Bonus money isn't going to be counted as income so people will have to qualify on base pay.

Hang on for the ride, boys and girls. It ain't gonna be fun unless you have cash. In which case, there are going to be a lot of attractive transactions.

Good luck! Hope everyone makes it through ok.

Posted by: Ozymandius at September 30, 2008 4:09 PM in response to House of the Day: 208 Midwood Street

Nice job of space planning. Finally someone who got professional help instead of kludging it themselves. It's well thought out with decent traffic flows and a minimum of wasted space. Nice roof deck for the top duplex to balance garden access for the bottom one.

Posted by: Ozymandius at September 25, 2008 1:45 PM in response to House of the Day: 186 Washington Avenue

Thanks Ozymandius.

It was a general curiosity question, fwiw.

But: one thing about co-signing is that it isn't the co-signers primary home. In other recent configurations (god I'm getting sick of looking for a house) we were discussing buying a four unit place with my parents. They'd own one unit outright, per a tenancy in common agreement, they'd pay us a fee to manage that unit for them. They'd have a little bit of income and a place they could maybe come live in for a year if we ever get around to breeding.

A thing that came up in those conversations was similar to your wife's situation: my parents were marginally concerned that if they were on our mortgage, they'd be vulnerable to exactly what happened to your wife. That if we're alone on the mortgage the bank can't come after more that the house (assuming it is the initial mortgage and we haven't re-financed and pocketed some equity), but that if they are also on the mortgage the bank could come after them for any remaining balance after the foreclosure sale.

(As it turned out the sellers were in their own financial mess and were going to make us sue them to force the sale. We cut our losses after six months in contract.)

Posted by: serpentor at February 13, 2009 3:39 PM in response to Multiple Mortgages in Bankruptcy

The only thing I would add, is that I think you have to be a month ahead and THEN pay the bi-weekly amounts. You cannot start off paying bi-weekly, unless you are set up through the bank itself who did your mortgage. (The fee kind I believe)

You can do this without paying the fee, by doing it the way I mentioned. You are choosing yourself to pay bi-weekly and could change if you needed to, versus being required to.

For Example..easiest if you have a new loan..

Today is March 13. Your first loan payment is Due April 1st.

If you get paid bi-weekly and have the money to pay an extra payment before starting your loan..

Pay today the Full April Payment :: Let's say it's 2000.00.

On your next payday: let's say March 15th. Pay half. 1000.00
Next payday March 30th. Pay the other half. 1000.00

You have now paid your April Payment early, and have started the bi-weekly.
This way the bank SHOULD be applying your half payments when made because you are considered Current on your loan.

IF you paid 1/2 on March 15, and 1/2 on March 30th and it was the APRIL Payment...
I don't believe the first 1/2 payment will be applied UNTIL you pay the 2nd Half of the payment on the 30th.

I THINK it only works if you are already paid first.

I hope that makes sense.

OF COURSE , PLEASE check with your Own Mortgage company to verify first.

Posted by: nhmom at March 13, 2009 11:37 AM in response to biweekly mortgage payment