Open Question: If the house is sold to pay off the remaining mortgage..........?

Another first-time home-buying question... from me!

While looking around at mortgage products I've been noting the closing costs. My own bank, which I'd like to use, has absurd closing costs that include a FULL YEAR prepaid hazard insurance and property tax!!!! What kind of bull is that??! I thought escrow only MAYBE asked for the first 2-3 months up front... I can't believe they would try to shaft someone out of so much money when they are already spending ****so**** much! I was worried enough about saving for a down-payment, now I have to save more than double that just to pay the stupid bank some ridiculous amount of money to cover a whole year? That seems entirely unreasonable.

I can understand spending $3,500 on fees. Really, I can. But closing at $8,000? I'm not even putting that much down!!!

Any ideas? Thoughts? Experience? Additional info (if it helps):

The max purchase price I'm going for on the home is $140,000. I planned to put down $7,000 regardless if I pay the full price or get a house for less. With the amount of these costs, I'm not sure I can do that now. If I plan to close around May or June, does that mean I only have to pay an escrow reserve covering the time from June-December of the year? I'm so confused by all the costs.

Open Question: wht happens to the home mortgage if the home owner dies?

will the house be used to pay any debts left by the home owner?
more...

Open Question: If the house is sold to pay off the remaining mortgage..........?

will there be any money given to the home owners?
more...



Technorati Tags: mortgage, Open, Question, the, house, sold, pay, off, the, remaining, mortgage