Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

problem in paying loan

Anonymous
Posted on: 03rd Jun, 2005 08:14 am
I am residing in California and i took a mortgage loan last year. Due to my health problem which drains out a major part of my monthly income i am falling behind every month in paying off my mortgage loan. i want to get out of this situation. Any help!
Hi Guest,

Welcome to the mortgagefit forums.

"I am residing in California and i took a mortgage loan last year. Due to my health problem which drains out a major part of my monthly income i am falling behind every month in paying off my mortgage loan. i want to get out of this situation. Any help!"

The problem which you are facing is extremely painful. I would like to suggest you some ways so that you can lead a peaceful life like before. California mortgage industry has undergone some changes. As per the latest trends going on in the industry if a person falls behind in paying off mortgage loan payments then it will now be possible for them to sell off their house at a price more than the purchase price of the house. This will help to clear off their mortgage debts.

Further industry analysts are also predicting that this rising trend of paying off the mortgage loan with the help of home financing will continue through out 2005. This is because interest rates are a record low this year. Secondly, variety of loan options is available. Thirdly, Permissible loan amount also increased. This will help you to avail more loans without paying higher interest rates.

To know more about the latest trends in the mortgage industry please click on this url http://www.mortgagefit.com/california-mortgage.html

Hope you will find this information useful.

Regards
Jessica
Posted on: 03rd Jun, 2005 10:03 am
5 years ago i took a mortgage of $1,60,000. for the first 3 years I have been making the scheduled payments in time but since the past 2 years I am suffering from illness due to which a lot of income has been drained into my treatment. I have not been able to make the scheduled payments and now my lender asks me to pay off the loan as early as possible since the loan term is about to end. He even insists on conducting a foreclosure if I don't pay off the balance in time. what should i do?
Posted on: 12th Jul, 2005 08:13 pm
hi sarah,

welcome to mortgagefit forum.

it is sad that you have been suffering from illness. but let me assure that you can come out this situation very soon.

the very first thing you should do is to talk to your lender regarding the cause of delay in your repayment. you should request him to increase the loan term so that you can pay off the debt with convenience. in case he doesn't want to continue with the deal, there are two options available. either you take a second mortgage or refinance your existing mortgage.

since a lot of your income is spent on medical expenses and you also need to pay off your debt, therefore i would advise that you consider a cash-out refinance of the original mortgage. this will help you to borrow more than your unpaid loan balance. you can utilize the extra sum for your treatment or for any other purposes.

there is also the option of taking a second mortgage in which the closing occurs faster than refinancing. this will help you acquire the loan quicker than in refinancing. moreover second mortgages require less fees compared to refinancing which usually charges higher points and fees as it provides a lower interest rate.

but in case the interest rate on your present mortgage is less than the rate of the second mortgage then you should consider the later rather than refinancing. this will help you to take advantage of the low rate of your first mortgage. but you should also keep in mind that second mortgages are adjustable, so you will have to pay more when the rates increase. therefore it is advisable that you consult a mortgage expert regarding the future course of action.

hope you will be benefited from this information.

please write back with further queries and let us know about your feedback.

regards
jessica.
Posted on: 12th Jul, 2005 09:09 pm
Hi Jessica,

Your advice was indeed very helpful. Thanks

:)
Posted on: 15th Jul, 2005 04:45 am
There is very helpful imformation giving by our community.
No thanks because here our member give own opinpon, advice,etc.
You have to understand it and use for our problem.
Posted on: 17th Nov, 2009 02:48 am
A cash out refinance would be a good idea if you can do it - though if your income is restricted the max amount you may be able to borrow against the home may also be reduced as your ability to service a higher loan amount, even over a longer repayment term will be likewise reduced.

Then again, interst rates now are much lower than 5 years ago when you took the loan out so you may be able to benefit from that. Certainly look at a refinance if you can, i would have thought that failing that a loan mod might be an option also?
Posted on: 17th Nov, 2009 03:11 pm
Page loaded in 0.113 seconds.