Posted on: 08th Feb, 2010 01:55 am
i bought a house 19 years ago with my now ex husband, when we divorced i refinanced it so i could get his name off of it. i went through a company that was called financial solutions. they did all the foot work on getting the house refinanced. well they had an appraiser come and appraise the house for what they needed to get the refinance done. a bank took on the loan, which was a home equity loan. the interest is 9.13% and there is a balloon payment of almost $70,000 due in 2015. the houses in my area are not selling, and for what i owe, i will not get out of it if i sold it. i have remarried and we have tried a few times since our marriage to refinance the home. to no avail, i am told that it will not appraise for what is owed and they will not do it. what can i do to get out of this house? i know that in less than 5 years i will not have the balloon payment, and the way houses are going, it will not appraise for what is still owed. i don't want to refinance it again and get stuck with another 30 year mortgage. as it stands, after the balloon payment, i would have paid the mortgage company $195,000.00 that is such a rip off, and to just refinance it and give them just that much more, i can't see it.
please help someone, i just don't know what to do!
please help someone, i just don't know what to do!
Hi,
Unless there's enough equity in your home to pay off the existing mortgage, you'll not be able to refinance. Lenders would not want to offer you a refinance loan if your property is so much underwater. The interest rate on your current balloon mortgage is high. If you continue to make payments towards the loan till the time the balloon payment becomes due, you'd be paying a lot of money in interest. If you save that money, you can use it in future for emergencies.
Unless there's enough equity in your home to pay off the existing mortgage, you'll not be able to refinance. Lenders would not want to offer you a refinance loan if your property is so much underwater. The interest rate on your current balloon mortgage is high. If you continue to make payments towards the loan till the time the balloon payment becomes due, you'd be paying a lot of money in interest. If you save that money, you can use it in future for emergencies.
Thanks Saylor70 for you input. I guess I am just struggling with all of this. I never thought it would happen like it has. But it is crazy to keep paying my mortgage when all I am doing is making them richer! Any advise on how to get out of it. I can't see the mortgage company doing a short sale or deed in lieu, but I am going to try and see. At this time I am just a little late on this months payment, but it is in the mail and actually they should have it on their desk somewhere. But this will most likely be the last payment.
This is so much stress that I just don't need. Any advise may help! Thank you
This is so much stress that I just don't need. Any advise may help! Thank you
Hi sandyk!
Welcome to forums!
Did you speak to the mortgage company about a deed in lieu or short sale? If not, then I would suggest you to do the same. Your lender will let you know whether or not he would accept it. Depending upon your financial situation, may be the lender can accept your request for a deed in lieu.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Did you speak to the mortgage company about a deed in lieu or short sale? If not, then I would suggest you to do the same. Your lender will let you know whether or not he would accept it. Depending upon your financial situation, may be the lender can accept your request for a deed in lieu.
Feel free to ask if you've further queries.
Sussane
Thanks Sussane,
At this time I have not talked to them yet. I am planning on going to a lawyer that does Real Estate law and also Bankruptcy. All I know is that I need to get out of this house before the balloon is due. There is no way I will have that kind of money to pay it off. And if I know that, what is the sense in just paying them for the next 4 + years just to save face now, when it is going to happen anyway. To me it looks like a bankruptcy is the easiest, but I don't know what all is involved it that. And I can't understand why a mortgage company wouldn't go for a deed in lieu or short sale of you home when you are telling them that you will not be paying for it any longer. I was under the understanding that those saved them time and money, and foreclosure is drawn out so long and cost them more. Is it cause they would rather try to get a judgement against you for the remainder of what is owed and they can't do that with the deed in lieu?
Thanks
At this time I have not talked to them yet. I am planning on going to a lawyer that does Real Estate law and also Bankruptcy. All I know is that I need to get out of this house before the balloon is due. There is no way I will have that kind of money to pay it off. And if I know that, what is the sense in just paying them for the next 4 + years just to save face now, when it is going to happen anyway. To me it looks like a bankruptcy is the easiest, but I don't know what all is involved it that. And I can't understand why a mortgage company wouldn't go for a deed in lieu or short sale of you home when you are telling them that you will not be paying for it any longer. I was under the understanding that those saved them time and money, and foreclosure is drawn out so long and cost them more. Is it cause they would rather try to get a judgement against you for the remainder of what is owed and they can't do that with the deed in lieu?
Thanks
A foreclosure takes quite a long period of time to complete. On the other hand, a deed in lieu will help you sell off the property and the lender will also be able to recover a part of his dues. Thus, at times, lenders do accept a deed in lieu or a short sale.