A hedge fund, as the name suggests, is a fund that has "hedges"--or preventative measures--in place so that the fund will (theoretically) do well in a bull or bear market. That might mean that hedge fund managers buy stocks for the long haul, while also shorting stocks or buying options in case stock prices go down, for example. They might also make big bets on certain sectors (such as Natural Resources or the mortgage market) that can earn huge returns if they're right--or cause the fund to go bust if they're wrong (as well as shaking up Wall Street in general. So much for the "hedges.")
They played a role in the subprime mortgage crisis because they purchased subprime mortgages (repackaged as bonds) to such a degree that banks, mortgage brokers, etc. lost sight of their primarily responsibility (i.e., loaning money only to people who could afford to buy a house) because the banks didn't have to keep the loans on the books: they essentially sold them to hedge funds and other investors. So, if one side--the hedge funds--is willing to buy risky subprime loans (in the hopes of big profits), the other side--the banks, etc.--are going to be far more willing to make those loans (in the hopes of big profits). Then, when the borrowers (the home buyers) have trouble paying their mortgages, the hedge funds are going to be hit...but only if they haven't already sold those loans-repackaged-as-bonds to some other sucker.
In short, the hedge funds helped create the atmosphere of easy credit for people who couldn't afford home loans. Moreover, since hedge funds also have a way to make money when the market goes down (because they short stocks, etc.), they also can profit by hyping doom and gloom. Thus, even though the subprime mortgage market is a relatively small part of the U.S. economy, you'd never guess it from all the press it's getting now.
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Which of these provides the funds needed for expenses such as property taxes, homeowners insurance, mortgage insurance, etc.?
Anything you want. There are no restrictions on how you use your funds.
No, the money is considered borrowed funds, so no income tax is due on the funds. Liberty-ReverseMortgage.com specializes in Reverse Mortgage Loans. If you are looking for any How Reverse Mortgage works, its pros and cons or guidelines, call (888) 202-4479
A wholesale mortgage is done through a broker who then originates it with the bank that funds the loan. A retail mortgage is originated directly with the bank that will fund the transaction.
Mortgage markets are typically sold between banks and hedge funds. Because they are thus so privatized, there is no formal market.
The funds from the new mortgage are advanced to your solicitor who pays out the current first mortgage.
Which of these provides the funds needed for expenses such as property taxes, homeowners insurance, mortgage insurance, etc.?
Yes. If the beneficiaries want to keep the property then they must pay off the mortgage from their own funds. The executor has no other options.Yes. If the beneficiaries want to keep the property then they must pay off the mortgage from their own funds. The executor has no other options.Yes. If the beneficiaries want to keep the property then they must pay off the mortgage from their own funds. The executor has no other options.Yes. If the beneficiaries want to keep the property then they must pay off the mortgage from their own funds. The executor has no other options.
Anything you want. There are no restrictions on how you use your funds.
No, the money is considered borrowed funds, so no income tax is due on the funds. Liberty-ReverseMortgage.com specializes in Reverse Mortgage Loans. If you are looking for any How Reverse Mortgage works, its pros and cons or guidelines, call (888) 202-4479
A wholesale mortgage is done through a broker who then originates it with the bank that funds the loan. A retail mortgage is originated directly with the bank that will fund the transaction.
Mortgage markets are typically sold between banks and hedge funds. Because they are thus so privatized, there is no formal market.
True, escrow account.
Yes. Your wife will have to sign the Mortgage. She will be on the Deed, the Title and the Mortgage. You however, if you are the only one that is borrowering the funds, will be the only on the Promissary Note.
The winners are the hedge funds managers who shorted the mortgage securities, most notably John Paulson, and losers are American people.
They are responsible for paying it from the estate's funds. They do not have to pay it personally.
A mortgage is the process which is used to purchase the real property to increase the money, to buy the property or by existing property owners to raise the funds for any purpose.