Upside Down Mortgage

Posts Tagged ‘bankruptcy’

Modify Mortgage Terms

Question: Does a lender have to follow the terms of a mortgage note, previously executed by consumer borrow?

My husband and I have a, stated income loan and the 1st 12 months is interest only, due to the construction period, then our loan adjust according to the terms in the Note. Our lender said we would modify these terms to a lower rate once construction is over, our construction is completed and we are ready to lock in our rate. Lender said they no longer have our previous program and we have to fit into a new program and that if we don't fit into the new program then we would lose our home. No, Im not joking!! We have never been late on our payments and we have made additional principal payments. Our note and truth-n-lending statement indicates a payment change and list the changes until the maturity date. Lender is back peddling once we seemed educated about our loan documents. Any advice would be helpful.

Answer: Hold him to the contract that you both signed. If he doesn't comply talk to a lawyer. And I suggest finding a different lender an honest one.

Will my Lender Modify my Mortgage?

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Mortgage Modification Bankruptcy

Question: Modifying 1st mortgage before bankruptcy auction date-does 2nd home equity stay discharged, or is it activated?

My daughter and son in law have gone through chapter 7 bankruptcy in Oregon. They had a 1st and a 2nd mortgage (which was a home equity loan). There is an auction date set for the sale of their home, but their first mortgage company is giving them the opportunity to 'save' the home through a loan modification before it goes to auction. My son-in-law has had recent employment and there is a slight chance they could stay in their home if the details are worked out. My question is this; can the 2nd mortgage (home equity-different lender) come back and lien the house? Or worse yet, foreclose even though the 2nd was discharged during bankruptcy? My daughter doesn't want to bother with modifying the 1st if there's a big chance of the reviving the 2nd. This is in the state of Oregon, but maybe the laws are the same in all states.

Thanks for the input!

Answer: They should ask the attorney who represented them in the bankruptcy. Usually, once that Chapter 7 is finalized and discharged, the property is liquidated and the mortgage company is not legally allowed to "refinance" the mortgage. Your daughter and her husband no longer own the house or have interest in the property- the sale is mandated through the bankruptcy court. Some states may differ but in general the major rules are the same all over. Have them talk to their attorney before they sign any papers or make any decisions that may hurt them.

Free Mortgage Modification Advice - Mortgage Modification Advice

Bankruptcy Judges Modify Mortgages

Question: Obama or McCain. Your money on fighting foreclosure?

McCain:
· Give homeowners the chance to have their loan modified, provided they meet certain criteria.

· Offer of financial assistance to borrowers contingent upon lending reform.

· Provide more funding for community development groups so they can expand their home rescue efforts.

Obama:
· Allow troubled homeowners to refinance to a loan insured by the Federal Housing Administration.

· Allow subprime borrowers to challenge foreclosure proceedings if they've been subjected to abusive lending practices.

· Create a 10% tax credit for homeowners who do not itemize their taxes.

· Create a $10 billion fund to help victims of predatory loans.

· Create a separate $10 billion fund to help state and local governments maintain critical infrastructure.

· Authorize bankruptcy judges to reduce mortgage principal.

Answer: HE IS ANOTHER BUSH. OBAMA !!!!!!!!!!!!!!!!!!!!!!!!!

The "Cramdown" Mortgage Bill