Easy Home Equity Loan

I bought my home 14 months ago, it was a foreclosure, and we got a heck of a deal. It appraises at about 0,000 or 5,000 right now, and we paid 2,000 for it.

Since it has only been 14 months, the principal is still at about 0,300. BUT…we are paying like 3 a month for PMI (Property Mortgage Insurance) since we don’t have enough equity in the home at this point. We are also paying an interest rate of 6.75%. I really don’t know how that compares to other people…but I didn’t think it was all that great.

So…..I was just calling around to a few different mortgage companies, and not hearing anything real intriguing until last Friday. I talked to a guy who said he could lower my mortgage payment by a month, lower the interest rate to 6.35%, pay off 00 worth of my student loans (which equates to about a monthly savings), and we would get to skip 2 mortgage payments. Skipping those 2 mortgage payments would then allow me to pay off a laptop lease I have, which would save approximatley per month. I would then have about 00-2000 cash left (from skipping the 2nd month of mortage payment, and getting the remaining balance of my current escrow account), and I could save that, or pay another small student loan off. So…in the end, we could likely knock out close to 0 of monthly expenses, and have 3-4 less bills to send off every month. I really like that idea.

He told me all of this, and I was pretty excited……UNTIL I saw that our new loan amount would be 2,000…. It’s still under what the home appraises for, but I just kinda hate seeing it jump to over 0,000…

I’m not sure how long we will be in this home, but I would guess at the VERY minimum, 5 more years, but who knows, we could be there for another 25. We haven’t really put much thought into it.

Can anyone lend some advice on this? I would appreciate hearing another opinion.

ps- It would be refinancing a 30 year fixed, to another 30 year fixed. And I am 25 years old. Just throwing that out there.

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I owe them 15k and they said foreclosure does not release me of the equity loan with them and are demanding monthly payments.

Is this true? What if I just stop paying them?

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If i default on the Home equity loan will I have to pay it off or will the equity in the house I lose to foreclosure cover it? I think I can get a 40,000 HEL. I’ll use that money to make a down payment on a new house in my new location. Am I obligated to pay off the HEL or will giving up my old house take care of it. thank you
I can’t afford to keep on paying on my present home, so I’ll lose it to the bank, i guess.

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I am currently under short sale proceedings in CA. My first has agreed to the terms but my second, which is a non-purchase money loan, is requiring me to sign a promissory note at a reduced balance. The second has agreed to reduce my balance by 65% and payable interest free over 20 years. Should I sign? I believe the alternative to not signing is a foreclosure initiated by the first. Need help fast. Thanks for reading.

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We are currently in the foreclosure process. We have a second mortgage with USAA that was just assumed by their insurance company. What will happen with that, will they hand it over to a collection agency? It was for 1,000. I’ve been told that it’s easier to negotiate with the collection agency to lower the payoff amount.

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Our new loan is in my Husband’s name because he had better scores then me. Our interest rate started out at 10% and now it is going to 14% next month. Our Lender says that they can not refinance at a lower rate becasue we don’t have enough equity in our home. Our payments are going to 00 a month on a Home that is not worth that amount. We had our home on the market for
5 months and it did not sell because it was priced to high so we could pay off the loan. Our lender will not agree to take less to payoff the loan so we are going to be forced to go to foreclosure. If the loan is in my husband ‘s name will I be able to get a loan in my name?

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I unfortunatley lost my house in foreclosure, I had an 80/20 loan. The house sold for a lot less than purchased, it wasn’t enough to cover the first, but I got a 1099 from them, the second mortgage is still calling me trying to collect I honestly don’t have any extra funds to pay. What happens now? Will they also send me a 1099? or what can I do please help!!??

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I thought a home equity or a heloc as sometimes referred to can only take action if the first mortgage institution forecloses on the property. Can a second position initiate foreclosure?

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