Posted on: 14th Feb, 2009 07:12 am
I have a private mortgage on my condo. It will baloon nexgt year. I owe $190K and it is now assessed at $140K. I cannot pay the baloon. What are my options?
Angelique
Angelique
Hi angelique
Are you delinquent in your payments? In that case, you may apply for a short sale or a deed in lieu. You will have to write a hardship letter to your lender. If the lender is convinced, then he can accept your request for either a short sale or a deed in lieu. But you should remember that in both these cases, your property will be sold by the lender.
If you want to save your property, you may speak to the lender about loan modification. In this process, the lender will give a new repayment plan by reducing your interest rates and increasing the term of the loan.
Thanks.
Are you delinquent in your payments? In that case, you may apply for a short sale or a deed in lieu. You will have to write a hardship letter to your lender. If the lender is convinced, then he can accept your request for either a short sale or a deed in lieu. But you should remember that in both these cases, your property will be sold by the lender.
If you want to save your property, you may speak to the lender about loan modification. In this process, the lender will give a new repayment plan by reducing your interest rates and increasing the term of the loan.
Thanks.
In this situation, I think the best bet is to ask the lender to extend the balloon period for at least another 5 years. If you are making your payments, this is the smartest thing they can do. Otherwise they will surely lose on the deal.
