Posted on: 11th Aug, 2009 09:05 pm
What are Credit Related Expenses
Hi judge!
Welcome to forums!
As far as I know, credit related expense is considered to be the foreclosed property expenses along with the provision for losses. To know about this, you can check out the given page:
http://www.mortgagefit.com/credit-related.html
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, credit related expense is considered to be the foreclosed property expenses along with the provision for losses. To know about this, you can check out the given page:
http://www.mortgagefit.com/credit-related.html
Feel free to ask if you've further queries.
Sussane
judge
welcome to mortgagefit...
I will give a small example to elaborate this in current scenario.
Suppose you buy one property where you put your own $ 50,000 and rest $ 3,00,000 is loan from bank.
Now the market value of the home is less than what you owe to the bank i.e. $ 2,00,000. So if the house is foreclosed or short selled at $ 2,00,000 then your credit related expenses are $ 2,00,000 plus property taxes for the ownership period plus interest charged by the lender on the mortgage....
So it is really a big loss to face the foreclosure.It should be the last option on person's agenda....
keep in touch.....
welcome to mortgagefit...
I will give a small example to elaborate this in current scenario.
Suppose you buy one property where you put your own $ 50,000 and rest $ 3,00,000 is loan from bank.
Now the market value of the home is less than what you owe to the bank i.e. $ 2,00,000. So if the house is foreclosed or short selled at $ 2,00,000 then your credit related expenses are $ 2,00,000 plus property taxes for the ownership period plus interest charged by the lender on the mortgage....
So it is really a big loss to face the foreclosure.It should be the last option on person's agenda....
keep in touch.....
off topic much?
