Quote:
Originally Posted by Lisa in MN  Hi Daniel,
Thank you. I also think it is a good mod offer. However I am meeting with an attorney to review the original loan docs for the inflated appraisal, prior to agreeing to pay for a house in which we are 100,000 underwater, no matter what the payment is. I want them to forgive the 8 missed payments and forgive the late fees, attorney fees, etc....these fees and such put the principal at 318,000. It could force us to stay here forever because we will never get that maybe not for many many years if we wanted to sell the house. Good point Daniel. I will see what happens after meeting with the attorney and keep the board posted .
Thanks for the insight
Lisa
I also was wondering.....we will be paying down mortgage principal during the first 3 years, then when it goes to 5%, why would we still be paying 5% on 318,000 |
Does the modification offer actually say that your principal balance will be unchanged after 3 years? If this loan is fully amortized, then this shouldn't be the case. Based on my quick calculations, by the end of year 3 your principal balance should be down to about $295,000. Check to make sure that that the payments during years 1-3 really are principal + interest, not interest-only.