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I don't know all the details (need to find paperwork), but two years ago my boyfriend took out a loan to mortgage the house that we currently live in. It was a balloon (I think it was called), and recently the time came where we had to refinance it. An envelope came back from the bank saying no to the refinance (behind on bill payments made for low credit scores), but all that legal crap isn't very clear.

Do we still have a mortgage at the same rate it was before the refinance, or are we basically homeless? My boyfriend went out to talk to another bank about a new loan, but I want to make sure that we need to be doing that. This is our first home and we're fairly young, so we're not very knowledgeable about this kind of thing and I'm really getting scared.

Niicss · Posted: Tue Nov 10, 2009 4:06 am Post subject:

If you are unable to refinance the loan, you will have to make the balloon payment in order to save the property. Your boyfriend did the right thing by trying to refinance with some other lender. However, if you have a low credit score, then it would be difficult for you to refinance the mortgage.

greg · Posted: Tue Nov 10, 2009 9:08 am Post subject: Do we still have a mortgage?

Takiena, the good news is you still have a mortgage. Bad news is you still have a mortgage at a high rate and you're closer to your balloon payment.
Hopefully you've been able to improve your credit since the last refinance application. If not, I would start talking to my lender about a loan modification. Lender's aren't very anxious to get another house through foreclosure which is what will happen if you can't pay off the existing balloon note.

gmakerley · Posted: Tue Nov 10, 2009 11:51 am Post subject:

lenders that offer balloon payments may not be the ones to consider when it comes time to refinance. seek out another lender - preferably one who can and will work with you if need be to straighten out anything.

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Refinance failed, do we still have a mortgage?