Second Mortgage Shop

I am planning on applying for a consolidation loan, which will include my credit card debt plus a car loan. I currently have a vehicle loan, but am planning on selling it, paying off that loan and paying off credit card debt with the profit made on the vehicle and then reapplying for a consolidation loan to clear my credit cards. I’m also planning on putting a loan for a less expensive vehicle as part of the consolidation loan.

Just wondering if the contributions I have been making into my pension at work would be considered one of my assets when calculatiing net worth. I know RRSP’s and equity in a house, etc, are, but am unsure about pension contributions.
I live in Canada, so the rules may be a little different.

What country are you in. Your income counts towards a loan because in a pinch you could decrease contributions to a pension or retirement plan to pay down the loan. But here in the states, retirement plans and accounts are protected from creditors, so what is already in such accounts cannot be used as collateral for a loan.

I found some answers here,but…….

http://www.referralsworld.com

It's a credit line, similar to a credit card, that draws on your equity in your home. It's usually a high-limit amount, but you don't have to take it all in one lump sum; you just take it as you need it. It also usually has a significantly lower interest rate than things like credit cards.

They have different terms, or lengths that the credit line is open, but it's usually a matter of years. Usually, you can just pay the interest back in monthly installments, and anything that isn't paid back by a certain point is just re-factored into your home loan.

It's a way to use the equity you have built in your home to borrow money without having to take out a traditional loan.

my wife just handed over mounds of debt (through her gracious efforts of assisting her mom…she has left) ican not pay the monthly payments…I had great credit before. She took out a 2nd mortgage in an attempt to pay off…my mortgage was an adjustable rate that just went up costing me $400/month…creditors are calling and i dont know what to do…I want to make everything right?

Chapter 13 BK may be the best bet to keep the house. Isn't marriage grand?

I read somewhere that banks that hold your second morgage can agree to be of secondary importance so that my primary resonsibility is my first mortgage even to the exclusion of the bank that holds my second mortgage?

In WA, the first mortgagee has priority as a creditor, and would be holding the Certificate of Title deed as security.

Any subsequent mortgages must have the approval and authority from the first mortgagee to register a mortgage on the title deed.

For the 2nd mortgage to be registered, the first mortgagee must produce the Title Deed to Landgate (the govt title office) so that the second mortgagee can lodge the mortgage document for registeration on the title deed. The title deed will be returned to the first mortgagee for security. Never held by the 2nd mortgagee.

Your second mortgagee will have obtained a search-copy of the title deed and will be fully aware there is already a mortgage registered on the property, and second mortgagee cannot insist or demand they be first.

There is a variation on the theme. Anybody who has documented evidence that they have an interest in the property, can register a Caveat on the title, without the authority from first mortgagee or the owner, and without the necessity of having the title deed produced for lodgement/registration of the Caveat. The Caveat document will state that the Caveator has a financial interest by way of mortgage. But a Mortgage document is NOT actually registered on the title.

If you already have two mortgages registered on your title deed, the first mortgagee will NOT give up their right as first, unless you have fully paid out the loan and it is discharged. Then the 2nd mortgagee will become the first.

I have a rental property that I took out a Heloc on and the rate for the Heloc is much lower then the rate I have for the second mortgage on my primary home. If I use the Heloc that is on my rental property to pay off the second mortgage on my primary home can I still write off the interest on my taxes.

Absolutely

It would be considered an expense of the rental property so first if the additional interest creates a loss in your rental be sure you are able to deduct that loss.

Rental losses are considered passive and there are limitations on deducting passive losses.