Had first hand experience looking at a toxic loan that a teachers assistant got into.
Bought a house 8 years ago with the help of a mortgage broker for 220K. Current Loan balance after a couple of refinances is 398K with a 7.65% Interest rate. Servicing agent on the loan is Wachovia and it looks as though it is one of those pay option ARMS refinanced last in March of 2007. Home may be worth 250 K.
She has been faithfully making payments but feels she is stretch and the balance of the loan is increasing because all she can afford is the negative payment schedule.
My thought is that she would be an excellent candidate for the 30% principle balance reduction currently being talked about and trying to do a mod that would help her get that interest rate down to a level that if the combination of the principal balance reduction and lower interest rate get her back to a fixed payment of 1600 to 1700.
That is a great question. First the balance was growing every month as she chose the lowest “pick a pay” option. There were also 2 refinances in the course of the 8 years so I am certain there were additional fees in that scenario that added to the outstanding principle balance. Then there were some home repairs that were done.
Can’t itemize out how all that money was spent, and not trying to make excuses for people. I am certain if her mortgage broker didn’t do the loan she would have found another one that would.
That is a great question. First the balance was growing every month as she chose the lowest “pick a pay” option. There were also 2 refinances in the course of the 8 years so I am certain there were additional fees in that scenario that added to the outstanding principle balance. Then there were some home repairs that were done.
Can’t itemize out how all that money was spent, and not trying to make excuses for people. I am certain if her mortgage broker didn’t do the loan she would have found another one that would.
That is a great question. First the balance was growing every month as she chose the lowest “pick a pay” option. There were also 2 refinances in the course of the 8 years so I am certain there were additional fees in that scenario that added to the outstanding principle balance. Then there were some home repairs that were done.
Can’t itemize out how all that money was spent, and not trying to make excuses for people. I am certain if her mortgage broker didn’t do the loan she would have found another one that would.
That is a great question. First the balance was growing every month as she chose the lowest “pick a pay” option. There were also 2 refinances in the course of the 8 years so I am certain there were additional fees in that scenario that added to the outstanding principle balance. Then there were some home repairs that were done.
Can’t itemize out how all that money was spent, and not trying to make excuses for people. I am certain if her mortgage broker didn’t do the loan she would have found another one that would.
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