The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: patron_anejo_por_favor who wrote (25528)	11/30/2004 6:22:51 PM
From: daffodil	Read Replies (1) of 306849

I need to learn more about what happens in the mortgage lending process. I apologize for my ignorance, but I'm about 20 years out of date <g>. So if anyone--waving to patron--is willing to help me out, I'll be grateful. Scenario 1: I borrow $600,000 from Countrywide, with a 10% down payment. Does Countrywide keep the mortgage or do they sell it? If so, to whom? How many of their mortgages do they continue to hold? In other words, who holds the bag when I default and my home is worth less than the purchase price minus the down payment? Scenario 2: same fact pattern, but it's 0% down with a 30-year ARM. Are there any changes here as to who is at risk for the mortgage? Scenario 3: I have problem credit. Can I really borrow $600,00 from Spectrum, with ??? down?? What rate(s) am I paying? What happens to this mortgage? Does this one get CFC more government guarantees? Or do they cover the problem credit problem with a requirement for more money down? Who is at risk here? And how much protection against risk does the (presumably, I don't know) wider spread on the interest rate give? Thanks! }=>-------->>>>

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