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lfryburg · Joined: 05 Apr 2011 Posts: 1 1.30 Dollars($)

Are negative amoritized loans
legal and what can be done if we have one to get rid of it.

adonis · Posted: Tue Apr 05, 2011 9:14 pm Post subject:

Welcome lfryburg,

Negative amortized loans are high risk loans for the inexperienced investors. Such loans are normally safer in a falling rate market and riskier in a rising rate market. It is difficult to get rid of a negative amortized loans. You may have to sell off the property and pay off the loan.

Posted: Wed Apr 06, 2011 5:31 am Post subject: negative amoritized loans

Thank you for your reply- Selling the property is not a option at this time
because we now owe more on the property than it is worth (upside down)
due to housing crisis here in Florida, The bubble burst

jameshogg · Posted: Wed Apr 06, 2011 7:13 pm Post subject:

Hi Guest,

I can understand the situation. However, if you want to get rid of the property and the mortgage, then you can even apply for a deed in lieu of foreclosure with your lender. If the lender accepts your request, then you'll be able to get rid of the property and won't be liable for paying off any deficient balance to the lender.

Thanks

gmakerley · Posted: Thu Apr 07, 2011 10:07 am Post subject:

Negative amortization loans are going the way of the dinosaur. They're not good for consumers, they're not good for lenders, they're not good for the overall economy, and they were only useful as a "tool" to allow people to buy homes for which they didn't qualify otherwise. Case in point, it appears.

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