And if this extention would allow you to become current and to date. Or can the Bank Institution go ahead to default to get the property knowing the property is worth more than the Load amount. And no other extention have ever been used before. I offered to make a payment and defer one to bring me current.
2007-10-04 09:23:27 · 10 answers · asked by David S 1 in Business & Finance ➔ Personal Finance
It's all in the contract. Nothing matters except wha's in the contract you signed. Unless there is something illegal in the contract or you entered into the contract under duress the loan contract must be followed.
If the financial institution that owns the loan contract makes any 'deal' outside the contract stipulations that benefits the 'payor' then it's because the generally feel that extending a bit more risk to you will cost them less in the long run and/or a less risky option then 'foreclosing now'.
If the property value is much higher than the loan value and they feel the payee is too a high risk then they will 'foreclose' faster. So, while it sounds chicken sheet to do so, this is, in the end, a business decision.
So.. get out your contract and see what you can find. Then contact the loan institution and BE NICE and maybe they will work with you.
Good luck and I hope this helps!
2007-10-04 09:31:04 · answer #1 · answered by wrkey 5 · 0⤊ 0⤋
A bank is not required to defer or extend a loan. However, contrary to popular conception, banks do NOT want to foreclose on property. Foreclosures cost them a lot of money. It is very rare that they get more than the balance of the loan plus foreclosure expenses; and, if they do, they must return it to the homeowner.
Ask to talk to the manager and see what you can negotiate.
2007-10-04 09:36:30 · answer #2 · answered by Terri J 7 · 0⤊ 0⤋
Didnt you leave something out? Private lenders still will make student loans that are not backed by the government, and they still will have contracts to service some federal loans. But the change reflected in the new law represents a significant loss in what has been a $70 billion business for the banking industry.
2016-05-21 00:29:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
In short, no they do not have to help you out. However, especially in todays environment of defaulted loans, banks are usually willing to give a deferment if it can help keep you current. Having a good credit score never hurts in this situation.
The best strategy is to have a plan and be able to fully articulate that to the person to whom you are asking for help. Always ask humbly, respectfully, and gratefully and you should be able to sway them to your side.
2007-10-04 09:30:29 · answer #4 · answered by Anonymous · 1⤊ 0⤋
They do not need to defer or extend payment. However, if you are in default and they foreclose on the property, they can only keep the proceeds from the sale equal to what they are owed and the fees incurred during the process. they do not get the extra money.
2007-10-04 09:27:13 · answer #5 · answered by randomcobweb 3 · 0⤊ 1⤋
No they don't have to; you signed an agreement, and any "slack" is up to them. Not many institutions are going to default based on 2 payments in this current climate and in most states you need to be more than 60 days behind before they can even start an action.
2007-10-04 09:26:41 · answer #6 · answered by wizjp 7 · 0⤊ 1⤋
Saving Freak gave you good advice. Foreclosing is expensive for banks. They'd really rather have the interest you will pay them if they can help you get over your bad patch so most will try and give you some leeway. It certainly doesn't hurt to ask.
2007-10-04 09:32:48 · answer #7 · answered by Anonymous · 0⤊ 0⤋
They can easily put you in default. They do not have to let you defer or extend. It is up to them.
2007-10-04 09:29:13 · answer #8 · answered by G-man 3 · 0⤊ 0⤋
No they can default you
2007-10-04 09:26:18 · answer #9 · answered by Anonymous · 0⤊ 0⤋
..."No"... only if "they" make a corporate decision to do so...
2007-10-04 09:26:54 · answer #10 · answered by Anonymous · 0⤊ 0⤋