Part I: Introduction To Private Mortgage Lending.7 What is Private Mortgage Lending?. 8 What are the most important documents in the mortgage loan transaction?. 8 How Does One Enter The Private Mortgage Lending Industry?. 9 The two main ways to participate in private mortgage lending are:9 Will You Need A Mortgage Broker To Make Mortgage Loans?. 10 Why Does Someone Borrow Money From A Private Mortgage Lender?. 11 What are the Cash Requirements to Make a Private Mortgage Loan?. 12 How Do You Diversify Your Loan Portfolio?. 13 Will You Have Competition With Other Private Mortgage Lenders?. 15 Why Do Private Individuals Lend Their Money Through A Mortgage Transaction?. 15 A Secured Investment With A Good Return.15 The Three Basic Questions.16 What Is The Maximum Amount Of Money You Should Lend On Any Particular Property?. 18 Part II: Considerations In Deciding To Fund A Mortgage.20 Your Mortgage Broker Calls You With A Deal.21 The Initial Documentation Presented To You By The Mortgage Broker.22 What Is The Minimum Information Shown On The Application?. 22 Other Helpful Information that may be found on the application:24 Disclosures With The Application.25 Mortgage Processing Software.28 Understanding A Low Loan-To-Value Ratio.29 Setting The Right Loan-To-Value or LTV?. 32 The Lower The LTV The Lower The Risk.33 Determining the Value of the Real Estate Used for the Security of the Mortgage Loan.34 Repair Issues With The Subject Property.43 What About Termite Damage?. 46 Escrow Accounts For Repairs.46 Getting A Professional Appraisal.48 Other Considerations in Deciding to Fund a Mortgage.50 Mortgages To Refinance Or To Purchase Property.50 Meeting The Borrowers.51 Location Of The Real Estate.53 The Borrowers Credit And Income.54 Pricing The Mortgage.54 The Borrowers Debt Ratio.56 Who Are The Parties In A Private Mortgage Transaction?. 58 You And The Broker.58 The Borrower.60 Title Companies and Closing Attorneys.60 The Homeowners (Hazard) Insurance Company.63 Other Parties That May Be Necessary In The Mortgage Transaction.66 Your Attorney. 67 The Surveyor.68 The Appraiser.78 County Officials.79 Home Improvement Contractor.79 The Speed Of The Private Mortgage Lender.80 Part III: The Mortgage Closing.83 Important Documents For The Closing.84 The Promissory Note.85 The Mortgage.87 The Title Commitment.92 The Homeowners Hazard Insurance Policy.99 The HUD Closing Statement.99 The Final Federal Truth-In-Lending Statement.101 The Right Of Rescission Form.103 The Closing Table.105 Important Loan Terms Disclosed At The Closing.106 The End Of The Closing.107 Part IV: Post Closing Considerations And Payments.109 Your Loan Records.110 Your File.110 Record Keeping.112 Calculating Interest.113 Collecting Payments.119 Delinquent Accounts.122 Considerations in Collecting Seriously Delinquent Accounts.122 The Decision To Foreclosure.127 Judicial Foreclosure.128 Nonjudicial Foreclosure.128 Time Frame and Cost of Foreclosure.129 Selling Your Foreclosed Property.130 Figuring Payoffs.132 Figuring The Prepayment Penalty.133 Your Payoff Letter.135 Selling Your Mortgage.137 Buying A Mortgage.140 Part V: Mortgage Lending Laws.143 Federal Mortgage Lending Laws.144 State Mortgage Lending Laws.157 Local Governmental Mortgage Laws or Regulations.159 Stay Informed About The Various Mortgage Lending Laws.160 Conclusion.160 Appendix A.. 162 Mortgage Forms. 162 Appendix B.. 187 State Mortgage Broker Associations. 187 Glossary Of Important Mortgage Terms. 194 INDEX.. 223
