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 hkakkad
Joined: 30 Aug 2007
Posts: 2
2.75 Dollars($)
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 Posted: Wed Apr 30, 2008 11:48 am Post subject: Missed Payment |
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I have missed 3 payments as there were some medical bills need to be paid. I have 2 loans and the house value is nearly 15-20% lower than when i bought. Today i got call from home services that if i do not make 1 payment by today it will be in breach. I can make 1 payment however i want to keep the house only
a) if i can refinance my house for current value
b) 30 year fixed.
My loans are interest only will reset next year. How do i get 30 year fixed on reduced principal (current value). what happens after breach? |
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larry
Joined: 27 Jun 2007
Posts: 2951
411.26 Dollars($)
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| Posted: Wed Apr 30, 2008 10:25 pm Post subject: |
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Hi hkakkad,
Welcome to the forum.
If you violate the contract or defaults then the lender can foreclose the mortgage and it will have a huge negative effect on your credit. So talk to the lender ASAP and try to avoid foreclosure.
There are so many options by which you can avoid foreclosure. Check out the article "17 ways to protect yourself from the foreclosure trap" so that you can know how can you avoid foreclosure.
You can try to refinance the mortgage but as you have made three late payments recently it may be a bit difficult for you now. And if you refinance the rates may be a bit higher.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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Niicss
Joined: 03 Oct 2005
Posts: 807
118.37 Dollars($)
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| Posted: Thu May 01, 2008 3:38 am Post subject: |
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Welcome hkakkad,
Agreed. Contact the bank and inform then your problem why have you missed the payments. Otherwise you may even face foreclosure.
you can consider refinance but as larry pointed out three late payments may cause you the problem.
_________________
Good is the Enemy of Great. |
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jbarto65
Joined: 04 Nov 2007
Posts: 592
5.03 Dollars($)
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| Posted: Thu May 01, 2008 5:45 pm Post subject: |
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| Call your mortgage company and let them know that you will be making the payment soon and catching it up, they will probably work with you if they feel that you are able to do it and that you are sincere in your efforts. |
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RParker
Guest
0.10 Dollars($)
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| Posted: Fri May 02, 2008 2:30 pm Post subject: Jobless mortgage people |
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| It seems there are only jobless mortgage people. Only advise they know is keep paying the lender. Did you guys read the whole question?? He is asking if he can get 30 year fixed on reduced principal |
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larry
Joined: 27 Jun 2007
Posts: 2951
411.26 Dollars($)
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| Posted: Sat May 03, 2008 4:45 am Post subject: |
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Hi RParker,
You are most welcomed in this community.
Have you seen that he has made three late payments? I think if anyone makes late payments in the last 12 months then it has a huge negative effect on the credit. So do you think he can refinance with better rates and terms?
If he refinances the mortgage now then he may not get very good rates and terms. Moreover he will have to pay the prepayment penalty for refinancing the mortgage. Again there are closing costs and other fees to pay. So do you think someone who could not pay the monthly payments can affords all these payments?
I thought the most important thing in his situation was to protect him from the foreclosure trap and then he needs to improve his credit so that he can refinance later but for the time being refinance is not a very good idea at all.
BTW he can always shop around for lenders and check out if he can get approved for a better rates and terms with "reduced principal".
Best of luck,
Larry |
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