Posted on: 28th Dec, 2009 10:11 pm
I have a loan of 200k with 5.75% fixed rate and a line of credit of 250k with 5% from the same bank total 450k and the house value is gone down to 350k. My income is now 2000/month ( $1000 my salary and $1000 from rental income ) I am not late for my payments yet. If I approach them for modificaiton then will they modify my loan to a very low rate ? or i am scared that will they reposses or forclose my house demanding to take away my rental property for difference of mortgage amount and low property value?
Hi Guest,
You can request your lender to modify your loan to help you reduce your mortgage payments. But you may have to show your lender that you are in financial difficulty and desperately need a loan modification to afford the monthly payments. You have mentioned you are not yet late on any of the mortgage payments. But do you fear that you may get behind on your mortgage payments in near future? In case, you can continue making payments on time, your lender will not foreclose your house.
You can request your lender to modify your loan to help you reduce your mortgage payments. But you may have to show your lender that you are in financial difficulty and desperately need a loan modification to afford the monthly payments. You have mentioned you are not yet late on any of the mortgage payments. But do you fear that you may get behind on your mortgage payments in near future? In case, you can continue making payments on time, your lender will not foreclose your house.
I have a loan of 200k with 5.75% fixed rate and a line of credit of 250k with 5% from the same bank total 450k and the house value is gone down to 350k. My income is now 2000/month ( $1000 my salary and $1000 from rental income ) I am not late for my payments yet but i won't be able to pay the mortage after 3 months bec my husband lost his job. If I approach them for modificaiton then will they modify my loan to a very low rate ? or i am scared that will they reposses or forclose my house demanding to take away my rental property for difference of mortgage amount and low property value? meaning if i show them i have rental income will my rental property be in danger ?
Most banks will modify your loan only after you have missed your monthly payments. Until then, they will not modify your loan.
Hi Scary,
it seems that you should apply for loan modification. any delay may result into foreclosure & they will inform to credit forums as well.
apart from it, they may put liens on your other properties as well
it seems that you should apply for loan modification. any delay may result into foreclosure & they will inform to credit forums as well.
apart from it, they may put liens on your other properties as well
I have a first mtg. which is current, however I have fallen behind on my line of credit which is approximately $60k, can that bank foreclose on my home??
The lender can foreclose the property due to the non-payment of your second loan. However, in most cases, the non-paid second loan is charged off and the account is assigned to a collection agency. The collection agency in turn collects the dues from the borrower.