Posted on: 27th Aug, 2009 04:04 pm
Who currently offers 20% Shared Appreciation Mortgages as described on this page?
ref: the-office.com/foreclosure-solution.htm
ref: the-office.com/foreclosure-solution.htm
Hi loomiswebb!
Welcome to forums!
As far as I know, shared appreciation mortgage (SAM) was a mortgage wherein the lender agreed to an interest rate which was lower than the prevailing market rate. In exchange, the lender would receive a share of the appreciated value of the collateral property. This type of mortgage was available in the market between 1996 and 1998. They were quite popular during that time. It was mainly provided by the Barclays and Bank of Scotland. You need to check out with your local lenders whether or not they would offer you such a type of mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, shared appreciation mortgage (SAM) was a mortgage wherein the lender agreed to an interest rate which was lower than the prevailing market rate. In exchange, the lender would receive a share of the appreciated value of the collateral property. This type of mortgage was available in the market between 1996 and 1998. They were quite popular during that time. It was mainly provided by the Barclays and Bank of Scotland. You need to check out with your local lenders whether or not they would offer you such a type of mortgage.
Feel free to ask if you've further queries.
Sussane
Thanks. I'm familiar with the earlier UK version which was absurdly usurious and now subject to lawsuits.
What I'm looking for is the newer version, touted by so many major economists, as being the best solution to the current foreclosure crisis. They are recommending 20% shared appreciation above current appraised value. Surely some lenders are smarter than the average bear and realize what a windfall for mortgage brokers this program would be. (see the page link on my original post)
The Hope For Homeowners program (which seriously needs revamping) tucked a SAM into its program but they're attempting to gobble up between 50 and 100% of future appreciation, which is not only insulting but also infuriating the very people it was supposedly designed to help. Talk about kicking people when they're down.
The current Administration is going to have to pay some serious attention to the foreclosure problem really quickly, or they're going to have demonstrations on the front lawn of the White House. They're giving zillions of dollars to the banks (again) so THIS TIME they can buy all of the foreclosed homes and flip them, while families who owned them are
out on the street.
You might want to go back and read the page link provided on the earlier post. This kind of program will be a gold mine for mortgage brokers. Cap it at a 60% LTV and it's a win/win.
Somebody's got this 20% SAM already implemented or just about ready to roll out. The question is, who?
What I'm looking for is the newer version, touted by so many major economists, as being the best solution to the current foreclosure crisis. They are recommending 20% shared appreciation above current appraised value. Surely some lenders are smarter than the average bear and realize what a windfall for mortgage brokers this program would be. (see the page link on my original post)
The Hope For Homeowners program (which seriously needs revamping) tucked a SAM into its program but they're attempting to gobble up between 50 and 100% of future appreciation, which is not only insulting but also infuriating the very people it was supposedly designed to help. Talk about kicking people when they're down.
The current Administration is going to have to pay some serious attention to the foreclosure problem really quickly, or they're going to have demonstrations on the front lawn of the White House. They're giving zillions of dollars to the banks (again) so THIS TIME they can buy all of the foreclosed homes and flip them, while families who owned them are
out on the street.
You might want to go back and read the page link provided on the earlier post. This kind of program will be a gold mine for mortgage brokers. Cap it at a 60% LTV and it's a win/win.
Somebody's got this 20% SAM already implemented or just about ready to roll out. The question is, who?
Though I don't have a personal experience with the shared appreciation loan, I do not think it would be a good option to tuck in the future appreciation of your property with your mortgage.