Foreclosures, seniors and interest rates ...
Answers to real estate questions as appearing
in the Houston Chronicle
By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD
Dear George: In a foreclosure, why does the lender require an appraisal? Shouldn't the outstanding balance on the loan be the selling price?
Answer: The lender has to know if there's any equity in the property before foreclosure in order to determine a price for which it could sell. The lender doesn't have to bid at the loan amount. If the lender receives less than the outstanding loan, it can pursue a deficiency. Alternatively, there is nothing preventing a lender from obtaining a sale price that is equal to the market value of a property.
Dear George: Do senior citizens get better rates on loans?
Answer: I'm not aware of senior citizens being offered lower interest rates on mortgage loans than other borrowers. However, there are several programs that assist all Texans with downpayments and closing costs when purchasing a home. Check out the article "Downpayment assistance: There's lots of help for buyers," which outlines many of the programs available to Texas buyers.
E-mail your question to "Ask George & Chuck" or fax it to 281/596-7591. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
George Stephens, CRB, is the broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas and a real estate broker in Texas, Georgia, and Massachusetts.
Charles J. Jacobus, JD, is board certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate and Houston Community College, and is an adjunct professor at the University of Houston Law Center.
George and Chuck are co-authors of Texas
Real Estate Brokerage and Law of Agency published by Thomson Publishing.
