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 danielleevans1
Joined: 30 Mar 2008
Posts: 1
1.40 Dollars($)
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 Posted: Sun Mar 30, 2008 7:46 pm Post subject: Mortgage modification |
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| We currently have 2 mortgages which we are having trouble paying. Our lender has suggested we modify the loan because we are in a high interest only mortgage. Are there risks we should look for? Should we seek counsel? Our original loan officer lied on our financial paperwork and we should have never been qualified for this type of loan. We only purchased with an interest only loan to give us time to sell the house we were living in prior to purchasing this home. That house is still on the market and doesn't look like it will sell anytime soon. Any advise will be helpful. |
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sara
Joined: 05 Jul 2006
Posts: 955
Location: New Brunswick, New Jersey
182.56 Dollars($)
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| Posted: Sun Mar 30, 2008 9:55 pm Post subject: RE: loan modification risks |
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Hi danielle,
I guess you took out the interest-only loan just to get access to funds till you could sell the home. I have to say this but this doesn't seem to be a good decision on your part. It is at times quite difficult to manage two loans on the same house until and unless you have the funds required.
There might be risks involved because I've heard loan modification often increases your monthly payments. So you'd have to talk to your lender and then come to a proper solution. may be he can suggest aletrrnatve solutions like another reapyment plan or a refinance. I suggest that you have a stright talk eith your lender and while yuou do so, seek free consultation with the loan consultants in this community.
Take Care |
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larry
Joined: 27 Jun 2007
Posts: 2951
411.26 Dollars($)
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| Posted: Tue Apr 01, 2008 5:13 am Post subject: |
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Hi danielle,
Welcome to the forum.
You can go for loan modification if it decreases your monthly payments and also your interest. It is meaningless to go for loan modification if the monthly payments and the interest rate increase.
Feel free to ask if you have any further questions.
Best of luck,
Larry. |
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Gil
Guest
0.10 Dollars($)
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| Posted: Thu May 08, 2008 7:16 pm Post subject: Reduce Principal Balance |
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| Is there anyway my lender can reduce the principal balance on a residential property. Property is 4 months default payment. I want to keep it if they lower the principal. I received the ANNUAL REVIEW NOTIFICATION asses value base on county is 370,000, Principal balance of 530,000 |
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larry
Joined: 27 Jun 2007
Posts: 2951
411.26 Dollars($)
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| Posted: Thu May 08, 2008 11:21 pm Post subject: |
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Hi Gil,
Have you consulted with your lender and requested him to reduce your loan balance. Although I don't think the lender is going to reduce the principal balance of your mortgage. He may only reduce the interest rate and the monthly payments by modifying your mortgage.
Take some action ASAP otherwise you are going to face foreclosure as you are already 4 months behind on your payments.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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