Posted on: 08th Apr, 2011 04:04 pm
Hello, I have a mortgage that (auto company name) purchased from another lender. It is an Interest Only loan that resets after five years (June 2011) to the 6-month LIBOR and adjusts every six months. My original paperwork states the reset with include P&I, but I spoke with the lender and the new payment amounts to continued IO. Have no idea why, but a loan modification company informed me and other online research shows that the lender is leaving the loan at IO for 10 years. It's more that $450K. Not complaining, just trying to figure out how this happened?
Thanks Adonis. I will confirm with lender. Unfortunately deeply underwater due to area short sales.
Hi Justin,
Do keep us posted about what your lender had said in this matter.
Thanks
Do keep us posted about what your lender had said in this matter.
Thanks
The terms of adjustment are stated in the orginal NOTE. You should have gotten a copy at the closing.
The terms should not chanmge if the servicing of the loan is sold from one servicer to another as the NOTE itself never changes.
Some ARMs are interest only for ten years even though the rate starts adjusting earlier.
All you can do is ask the sevicer or read the NOTE.
The terms should not chanmge if the servicing of the loan is sold from one servicer to another as the NOTE itself never changes.
Some ARMs are interest only for ten years even though the rate starts adjusting earlier.
All you can do is ask the sevicer or read the NOTE.
