7 yrs. ago my husband and I bought our 1st home thru a mortgage broker. We refinanced to get our payments lowered 4 yrs. later. We were uninformed at the time and the shady mortgage broker we went thru appraised our house for more than what it was actually worth then on top of that we got an adjustable rate loan. Now to the present, our interest rate is 12.9%, we our in a house that is not worth what we owe, and it was supposed to be a stepping stone not our dream home, which it is NOT at all. My husbands grandfather is giving us his house and property when he is gone. He has decided that we can move in now with no strings. My husbands name is already on the property. We are thinking we should just let this house forclose but we don't know what happens to people when they do this. Do you end up having to pay huge amounts of money to the lender? If they sue you what can they get? What is the worst case senerio?
2007-12-10 14:52:25 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
They can and i`m sure will sue you for the difference from what the home is sold for. Send a letter to the bank and ask tham to lower your interest rate or they can have the house back. I bet they will lower it to 6.5% let me know how it goes..best of luck
2007-12-10 15:01:57 · answer #1 · answered by Big Deal Maker 7 · 0⤊ 0⤋
The bank might help you lower the rate to a much lower one, you just have to call them and ask. If you foreclose, they usually will put a judgment on the current owners name for the difference (money the bank lost). This judgment will follow you until you pay it and it will attach to any property that you own, called a secured judgment.
2007-12-11 00:09:03 · answer #2 · answered by Anonymous · 0⤊ 0⤋