Another news article on that today. Husband and wife came back from a business trip and new owners were in their house. How long was this trip?
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COVID and the housing market
- Thread starter mimico_polak
- Start date
Well that's a different scenario. If we're talking no liens / HELOC / Secured LOC...sure keep the lien.
If you don't have any of those, and just want to have a free and clear house with no HELOC or anything similar...discharge it.
Anyway glad it seems to be moving forward @Jampy00 hopefully everything works out.
Mad Mike
Well-known member
Banks disclose everything, they have rigorous compliance rules with record keeping to support that.
But they do make mistakes, and they don't always make fixing them easy.
Mad Mike
Well-known member
If you have a HELOC, or have a collateral loan against your house the security is in place -- that's why banks don't automatically discharge security -- future lending is easier and cheaper for both the lender and borrower as they don't bear the cost of clearing & registering new security.
It's also why banks often register security amount that is way larger than the mortgage you take -- it's a provision for future lending that saves both the lender and bank from the cost of clearing & registering new security.
Having a security registered against your deed does not itself impact your credit unless you plan to borrow against the property from another lender. It will save you about $800 if you reborrow from the lender who has the security registered, that's why I always leave the security in place till I sell.
True but they are also being abusive aholes. I didn't want 100% security against the house. The total available to me as Heloc+mortgage has never been more than 60% of fmv of house. Bank said 100% or no loan. Sure they disclose but they also have no justification other than trapping consumers. If I sign up for a cap and I want more in the future, go ahead and charge me to increase then. That's not an option now.
Mad Mike
Well-known member
Without getting into pages of explaining, it's to both your and the bank's benefit when the security is at 100% or more of the value of your home. You can't predict the future... banks actually can! They understand the homeowner journey, they know refinancing and converting equity to debt is is more common than not over the first 20 years of mortgage borrowing. There are complex things that happen when a debtor struggles some of those are simplified if there is room in to extend funds against an existing security.
The only situation where having aI can think of against higher security is that arranging second and third mortgages from another lender will be tougher. If you're in a situation where that's a problem -- the amount of your security wont be your biggest financial challenge at that moment.
Banks will let you go 80% LTV without insurance, and up to 95% with mortgage insurance. If they cap LTV, it's because a borrower doesn't have the income to support the lender's TDS requirements, about 42% these days.
ifiddles
Well-known member
so I paid off my mortgage back in January...took a while to receive the statement showing a zero balance...I asked my banker if I had to do anything to remove the lien/mortgage and she told me no...do I need to go to a lawyer and do something?...how can I check to see that it's (the lien) has been removed) (sorry if this was answered as I didn't read all the recent messages as I'm on holidays)
This might be a good place to start: Search land property records
Mad Mike
Well-known member
Your banker is correct, you have nothing to do, but that doesn't mean the security has been removed from your deed. You should ask your banker in writing "Have you remove your security from my deed?". If they answer no " What is your procedure for having it removed?" It's probably a few hundred bucks for the lender to do it, a little more if your lawyer does it.
Whether the security is removed from the deed or not is not all that important. If the bank leaves it there, it's easy for you to refinance a mortgage or HELOC with them, and probably saves you laying out a few hundred bucks now. You will eventually need to remove the security in order for the deed to change hands -- your lawyer will clear it at that time.
Does leaving the security in place make it harder for someone to sell the place out from under you
Sent from the future
Mad Mike
Well-known member
In fact it does as no buyer's lawyer will close with a lien.
Not foolproof, a property thief could pay off the mortgage, then ask the bank to discharge so the deed is clear.
Make me wonder if I should have my lawyer registered a lein on my property in my wife's name as security.
Sent from the future
Sent from the future
Mad Mike
Well-known member
You can do it in my name for free.
Toronto homeowners return from trip to find they'd been impersonated, their house sold
The owners of a Toronto home got the surprise of a lifetime when they discovered their property had been fraudulently listed and sold by two people impersonating them while away on a business trip.
If it's this one they were away for what could be a year. Now what?
That article is from January this year. Do they have their house back?
Who takes the loss, the buyer, the original owner or the middle man that failed to do due diligence?
Who gets the house?
Where did their belongings go?
A small mortgage isn't your friend. I have a HELOC that I can check on line anytime. I don't know if it can be alarmed to advise me if anyone touches it but it's always possible for contact numbers to be altered.
Seems like the original owner gets screwed in these cases not sure why.Toronto homeowners return from trip to find they'd been impersonated, their house sold
The owners of a Toronto home got the surprise of a lifetime when they discovered their property had been fraudulently listed and sold by two people impersonating them while away on a business trip.toronto.ctvnews.ca
If it's this one they were away for what could be a year. Now what?
That article is from January this year. Do they have their house back?
Who takes the loss, the buyer, the original owner or the middle man that failed to do due diligence?
Who gets the house?
Where did their belongings go?
Sent from the future
And how long does it take the legal system to get compensation to the original owners?
It isn't in the best interest of the lawyers and politicians to expedite anything. With millions at stake the ones that would have to forfeit any compensation will spend forever looking for an escape or loophole as the home loser pays their own lawyers. See you in ten years and you get 2023 prices in 2033.
Do they live under a bridge in the mean time?
Can you get theft insurance for a house? Oh wait they'll need ten years to study the claim.
Mad Mike
Well-known member
You can get title insurance. You buy it once, it covers you for as long as you own the house. .
Almost every property sale now does title insurance. It costs something like $600 and avoids more than double that in lawyer time if they have to do due diligence, title searches, etc. Cheaper and some protection for you after the fact.
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