Balloon Payment mods.

[briknope]

More and more of this is happening I see. Are these FHA partial claims? I knew something like these balloon payments would happen. Keeps people from walking. BIG question is if one was offered a "balloon payment mod" and refused it...then does that enable them to go after you down the road for the deficiency. They could say, "hey we offered the defendent a solution and he didn't want help"

[IRAKENJI]

I got a permanent mod with a balloon payment of $297K. I called Chase and told them I'm refusing the terms. I also told them I will have to do a short sale and they said "list the house through realtor and submit your offers" so I listed the house last week and now have a few offers on hand to be submitted to Chase.

[briknope]

Originally Posted by IRAKENJI

I got a permanent mod with a balloon payment of $297K. I called Chase and told them I'm refusing the terms. I also told them I will have to do a short sale and they said "list the house through realtor and submit your offers" so I listed the house last week and now have a few offers on hand to be submitted to Chase.

I read the post about the 297k balloon payment. I know Chase does not have to accept any offers and was wondering if this is a way to keep us staying put. Stuck. Saying or stating somewhere down the road that an offer was made and it was refused so pay up the deficiency, either after short sale or foreclosure (if you just walk out)

I have a strong feeling that the same or similiar offer will be made to me at some point. I am upside down also.

[AZOwner]

It's an individual decision ...

I have a balloon payment due in 12 years. I will never be able to refinance, that is why I am walking away now.

What if your home value goes down another 10 - 20%?

I would maintain that the offer on the table is unacceptable and too much risk, for both parties. They need to offer you a 30 year fixed for an agreeable principal balance. Period, and I wouldn't budge.

Food for thought. . .

[Stuart C]

For me, it's based on the money I borrowed. I bought a house that I'm prepared to live in for a long period of time so the idea of deferring interest on part of my principle till I either refi (not very likely as I doubt I'll EVER see better interest rates), sell the house to move (my new payment -after income tax- would be about equal to a nice apartment), or have to pay off the deferred principle when the loan comes due in 40 years (I"ll be 99 years old). These are not things I plan on doing. So what if it's under water (for me by 70k according to cyberhomes.com)? The dollar will inflate and my home will go back up in value. I'll pay the loan back in cheaper dollars some day.

Now if I wanted or needed to move, it would be an entirely different story of course. They'd get the keys back, after I'd saved up as much money as possible and my credit was totally shot.

And since Ill never pay any interest on the deferred principle my payments will never be what it once was plus it's a back door refi after 5 years. That's IF I get the mod, of course!

[exhausted girlfriend]

Stuart,

That is exactly what i had in mind. I think our debt is going to look quite different in the future with inflation and all. Besides, with the way things are going in this country, the mortgage modification deals are getting better by the minute. Who knows what other options will be available later.