Posted on: 05th Nov, 2010 01:51 pm
Hi there,
I inherited a house a little over a year from my deceased father. The total of the house is worth about $70-80K and he had a 1st mortgage for $75,000 at 6% and later took out a HELOC for $25,000 with the same credit union (not purchased by Fannie Mae or Freddie Mach unfortunately. The house has gone thru probate and my name is on the deed. I want to finance it into my name but no one will do so b/c the appraisal is lower than the loan.
The credit union wont help me at this point with debt forgiveness and I really want to finance it for fair market value. I have good credit and I am employed with a decent income. Any advice on how to proceed? What would happen if I stopped paying the 2nd? Could they just write if off and leave me with the 1st one (which is a fair price). I dont think they can place a lien b/c its upside down.
I inherited a house a little over a year from my deceased father. The total of the house is worth about $70-80K and he had a 1st mortgage for $75,000 at 6% and later took out a HELOC for $25,000 with the same credit union (not purchased by Fannie Mae or Freddie Mach unfortunately. The house has gone thru probate and my name is on the deed. I want to finance it into my name but no one will do so b/c the appraisal is lower than the loan.
The credit union wont help me at this point with debt forgiveness and I really want to finance it for fair market value. I have good credit and I am employed with a decent income. Any advice on how to proceed? What would happen if I stopped paying the 2nd? Could they just write if off and leave me with the 1st one (which is a fair price). I dont think they can place a lien b/c its upside down.
hi casey,
it is true that unless you've equity in your property, the lenders won't refinance it. if you cannot prove your financial hardship, you won't be able to get any help regarding your mortgage payments. in such a situation, there's hardly anything that you can do. if you stop paying the second mortgage, the second lender may foreclose the property.
thanks
it is true that unless you've equity in your property, the lenders won't refinance it. if you cannot prove your financial hardship, you won't be able to get any help regarding your mortgage payments. in such a situation, there's hardly anything that you can do. if you stop paying the second mortgage, the second lender may foreclose the property.
thanks