Question: The term on my interest only loan will end soon and my home is under water. At the end, I will end up owing $100,000 more than what my home appraises to with 20 years left to pay off. Given the above, I do not qualify for refinancing nor any government programs. Also, my new mortgage payments will be more than double of what I have been paying so far, and I will not be able to afford them when they start to kick in. What can I do?
Response: The first step for you is to find out if your lender participates in the government's Making Home Affordable program (most major banks do). If you have sufficient income and have not yet defaulted on your mortgage, you may be able to refinance through Home Affordable Refinance Program (HARP). Another option is loan modification but beware that even though it is not required by law, most banks require that you default on your payments before you are considered for loan modification. Start off with calling your bank and inquiring as to what programs does the bank participate in. If they tell you to default on your mortgage payment, then a whole new can of worms opens up (i.e. ruined credit; potential foreclosure if the modification is not resolved) and I would recommend looking into other options first. The bottom line is--the bank does not want your home, and even more so if your mortgage is no longer secured by equity in your home.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
