Posted on: 27th Jan, 2009 08:47 am
hi, i am new to the mortgagefit and i have a few questions that i hope someone could shed some light on them for me. i am a single mom and like many people today i am struggling to keep my house. i want to consolidate my debt and keep my house at the same time. i bought a house 4 yrs ago and to avoid having to pay mortgage insurance a 2nd mortgage loan was taken out at the time of closing. this is my first home and no one explained to me that a 2nd mortgage is a considered a lein on my house!
i have been able to keep up with my payments so far, but have had to forgo some of my other financial obligations to make ends meet. i am thinking about getting a home equity loan to consolidate my debt. i want to know if it is possible to acquire a home equity loan even if i have a 2nd mortgage loan. or if this is even a good idea.
also, i was thinking about applying for a loan modification, but people are telling me not to bother unless i have already been late with my payments, is this true? i don't want to default on my loan by not paying just to get the lender's attention, because i am afraid that if it doesn't work i will loose my home. someone please help.
thank you and god bless,
lily
i have been able to keep up with my payments so far, but have had to forgo some of my other financial obligations to make ends meet. i am thinking about getting a home equity loan to consolidate my debt. i want to know if it is possible to acquire a home equity loan even if i have a 2nd mortgage loan. or if this is even a good idea.
also, i was thinking about applying for a loan modification, but people are telling me not to bother unless i have already been late with my payments, is this true? i don't want to default on my loan by not paying just to get the lender's attention, because i am afraid that if it doesn't work i will loose my home. someone please help.
thank you and god bless,
lily
welcome lily,
though you have two loans on the same property, i think you will be able refinance both the loans by the help of a home equity loan. but the lender will check whether there is an equity in your property before approving a loan to you.
as far as loan modification is concerned, the lender will accept this only if you are delinquent on your payments for at least a month. as you are presently able to pay the debts, you should keep on paying them rather than deliberately stopping payments.
though you have two loans on the same property, i think you will be able refinance both the loans by the help of a home equity loan. but the lender will check whether there is an equity in your property before approving a loan to you.
as far as loan modification is concerned, the lender will accept this only if you are delinquent on your payments for at least a month. as you are presently able to pay the debts, you should keep on paying them rather than deliberately stopping payments.
Thank you for your reply. I hope that they would. I bought my house for 176k and supposedly the market value of my house right now is 205k. I don't know if they will consider the market condition and lower its value or not. I owe about 133k on my 1st mortgage and about 25k on the second. How much do you think they will approve me for, if they approve a loan for me at all?
Thank you again for your advice,
Lily
Thank you again for your advice,
Lily
Hi Lily,
It will depend upon the discretion of the lender as to amount of the loan he will approve you. Moreover while refinancing, the lender will also check out your credit score and income.
It will depend upon the discretion of the lender as to amount of the loan he will approve you. Moreover while refinancing, the lender will also check out your credit score and income.