Los Angeles California Second Mortgage with Mortgagor's Recertification of Representations, Warranties and Covenants in First Mortgage

• Category: Real Estate - Mortgages and Deeds of Trust
• State: Multi-State
• County: Los Angeles
• Control #: US-0385BG
• Format: Word; Rich Text

Description

A second mortgage is a lien on a property which is subordinate to a more senior mortgage or loan. Called lien holders positioning the second mortgage falls behind the first mortgage. This means second mortgages are riskier for lenders and thus generally come with a higher interest rate than first mortgages. This is because if the loan goes into default, the first mortgage gets paid off first before the second mortgage. Commercial loans can have multiple loans as long as the equity supports it. Los Angeles California Second Mortgage with Mortgagor's Recertification of Representations, Warranties and Covenants in First Mortgage is a legal agreement that allows homeowners in Los Angeles, California to borrow against the equity of their property. This type of second mortgage requires the mortgagor to reaffirm and certify certain representations, warranties, and covenants made in their first mortgage agreement. Keywords: Los Angeles California, second mortgage, mortgagor, recertification, representations, warranties, covenants Types of Los Angeles California Second Mortgage with Mortgagor's Recertification of Representations, Warranties, and Covenants in First Mortgage: 1. Traditional/Home Equity Loan: This type of second mortgage allows homeowners in Los Angeles to borrow a lump sum of money against the equity of their property. The mortgagor must recertify the representations, warranties, and covenants made in their original first mortgage agreement. 2. Home Equity Line of Credit (HELOT): A HELOT is a revolving line of credit that homeowners can access as needed against the equity in their Los Angeles property. The mortgagor will be required to recertify the representations, warranties, and covenants pertaining to their first mortgage. 3. Combination/Combo Loans: Some lenders in Los Angeles offer a combination loan, which combines a traditional mortgage with a home equity loan or HELOT. In such cases, the mortgagor will have to recertify the representations, warranties, and covenants applicable to both the first mortgage and the second mortgage portion. 4. Cash-Out Refinance: A cash-out refinance in Los Angeles allows homeowners to replace their existing mortgage with a new one, while borrowing additional funds against the increased equity of their property. This type of second mortgage requires the mortgagor to recertify the representations, warranties, and covenants in the original first mortgage agreement. 5. Shared Appreciation Mortgages (SAM's): SAM's are a relatively less common type of second mortgage where the lender shares in the future appreciation of the Los Angeles property. Along with recertifying the representations, warranties, and covenants of the first mortgage, the mortgagor may have to enter into additional agreements related to the shared appreciation arrangement. It is important for homeowners in Los Angeles, California to carefully review and understand the terms and conditions of their second mortgage, as well as the recertification requirements for representations, warranties, and covenants from their first mortgage. Seeking advice from legal and financial professionals is recommended to ensure compliance and a clear understanding of contractual obligations.

Los Angeles California Second Mortgage with Mortgagor's Recertification of Representations, Warranties and Covenants in First Mortgage is a legal agreement that allows homeowners in Los Angeles, California to borrow against the equity of their property. This type of second mortgage requires the mortgagor to reaffirm and certify certain representations, warranties, and covenants made in their first mortgage agreement. Keywords: Los Angeles California, second mortgage, mortgagor, recertification, representations, warranties, covenants Types of Los Angeles California Second Mortgage with Mortgagor's Recertification of Representations, Warranties, and Covenants in First Mortgage: 1. Traditional/Home Equity Loan: This type of second mortgage allows homeowners in Los Angeles to borrow a lump sum of money against the equity of their property. The mortgagor must recertify the representations, warranties, and covenants made in their original first mortgage agreement. 2. Home Equity Line of Credit (HELOT): A HELOT is a revolving line of credit that homeowners can access as needed against the equity in their Los Angeles property. The mortgagor will be required to recertify the representations, warranties, and covenants pertaining to their first mortgage. 3. Combination/Combo Loans: Some lenders in Los Angeles offer a combination loan, which combines a traditional mortgage with a home equity loan or HELOT. In such cases, the mortgagor will have to recertify the representations, warranties, and covenants applicable to both the first mortgage and the second mortgage portion. 4. Cash-Out Refinance: A cash-out refinance in Los Angeles allows homeowners to replace their existing mortgage with a new one, while borrowing additional funds against the increased equity of their property. This type of second mortgage requires the mortgagor to recertify the representations, warranties, and covenants in the original first mortgage agreement. 5. Shared Appreciation Mortgages (SAM's): SAM's are a relatively less common type of second mortgage where the lender shares in the future appreciation of the Los Angeles property. Along with recertifying the representations, warranties, and covenants of the first mortgage, the mortgagor may have to enter into additional agreements related to the shared appreciation arrangement. It is important for homeowners in Los Angeles, California to carefully review and understand the terms and conditions of their second mortgage, as well as the recertification requirements for representations, warranties, and covenants from their first mortgage. Seeking advice from legal and financial professionals is recommended to ensure compliance and a clear understanding of contractual obligations.