“Still Lots of Issues Refinancing Home Equity Lines”
Many parts of the country have had enough real estate value appreciation to be able to refinance their home equity lines, but I still run into many folks that do not have any equity or own more than the debt.
Danielle has a home worth about $225,000, has a balance of $165,000 on her first mortgage and has a home equity line that has a balance of $100,000. The math just won’t work to do a new mortgage and after this month the lender will no longer accept payments as the loan is now due.
Once the lender stops taking the payments, the credit reporting companies will start reporting the mortgage and the payments in default. So what are folks that are in this situation to do?
I had the clients notify the lender that they want to modify the loan and start amortizing the loan over some time period. I wish there was a way to help Danielle, but the current lender has complete control of the situation and if history has anything to do with the future they will take their good old time to get situations like this resolved.
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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