You should contact your bank right away and explain your situation and arrange the missing mortgage payments asap . You should not have a problem if you do that. Make sure when ever you miss a payment to keep in touch with the bank and let them know what`s going on.

Yes, if you keep the bank in the loop when ever there is a problem and a payment will be delayed . Usually the bank is ok when you keep then in touch and make the payment at your earliest convenient. If you speak to your creditors you always can have a solutions which will give you some time to resolve the financial situation and to keep your mortgage.

Powered by

I bought a house in a neighborhood where houses run around $100-150k. my 80-year-old house was purchased a few years ago for $109,000 after negotiating with the buyer, whose original listing price was $125,000. the house is small: about 1000 square feet with two small bedrooms and one bath. the kitchen needs remodelled and the appliances are circa 1975. i have been doubling my mortgage payments for the past two years but now i feel like i'm not using that money wisely. i'd put 20% down on the house, plus these double-payments. i'll be spending for a kitchen remodel and for new windows and a furnace. how much would i have to sell my house for to make any sort of profit? am i smart to be paying down my mortgage with these double payments or should that money be spent in home improvement? any advice?

First and foremost you must verify that these "double payments" are being applied to loan principal! Often, unless specifically noted, extra payments get applied to interest instead. I suggest you try to pay down your mortgage ONLY if you plan to stay in your house. As you know a new furnace, new windows, new roof and an updated kitchen can show value in a house. If you are looking to move in the next year, go ahead and spend your money on these updates and enjoy the benefits yourself. You just want to be wary of enjoying the benefits too long. Keep an eye on recent sales and look for good comps compared to your house. Identify why one house sold for more than others and perhaps make a similar improvement to yours.

Powered by

I made a mortgage loan payment after the due date which the bank charged me a $50.00 late fee. that is cool. i expected it. they claimed i skipped a payment because i went past 30 days between payments. they wanted a double payment at which i couldn't swing. the late fee rose up to $150.00 a month and now is up to $254.00 a month. my payment is $500.00 a month. i paid them $1000.00 in july to bring my payment up to date and to meet my monthly mortgage payment requirement for july. however, i did not pay the late fee in full. many banks will tack on the fees to the end of the balance. my bank is not and is charging me $254.00 late fee on top of a late fee. is this legal? are there limits to what they can charge? one late fee has grown to $550.00 for the month which is more than my regular mortgage loan payment. this makes it impossible to catch up. i tried to work with my bank, but the right hand does not know what the left is doing. any suggestions? this is maddening! help!

OK this is a complicated situation. I think that you need to go into the bank that holds your mortgage and get someone to sit down with you and figure this out. Do not leave until this is sorted out in a way that lets you catch up on all these late fees. I have no idea if this is legal or not, but that really doesn't matter at this point. Unless you want to take them to court, go in and get someone to figure this out with you. Usually it is easier to do this in person than over the phone. Call ahead to the bank and find out exactly who you need to speak with to get this fixed.

Powered by

I make a double payment each month on my mortgage which also has an escrow account for taxes and insurance. well, recently on each payment they have deducted an extra $100 for a total of $200 extra per month going towards my morgtgage payment.then i recieved a letter from them stating that due to increased cost in insurance,etc my payments have been increased...can they legally do this...and how can insurance go up and extra $2,400 a year? am i getting taken here? what can i do about this...my taxes have not increased at all by the way....thank you for any and all help...i appreciate all of your comments.....

THIS IS NORMAL AND LEGAL, it goes up so much because they include the increase of insurance and then they need to build up the reserve account, (that is the account where they pay the taxes and ins) because due to the increase probably does not have enough $ to pay the increase now, but since they increased, next year the payment will go down

Powered by

I have a mortgage math problem i need help with? i am thinking if buying a duplex for 280 thousand in a downtown location. i have 80 thousand to put down and will need a 200 thousand mortgage. my interest rate will be 4.25 apr. i think my payment will be around $900 a month but i was thinking of paying an extra 1300 a month towards the principle. how long would a 15 year mortgage get paid off if i paid $2200 a month?

First, the P&I on that mortgage on a 15-year mortgage is $1504. Add another $350 in for property taxes and homeowners insurance, so you mortgage in no say $1850....adding the extra $350 per month saves you $18,000 in interest and pays it off about 4 years early (2022 instead of 2026)

Powered by

I'm a homeowner for almost 9 years now, and my monthly mortgage keeps on rising, hence i was compelled to keep on refinancing so i can payoff the current loans, then look for a lower interest, until i got trapped into the 1 percent loan scheme..now i could hardly pay on time as my monthly mortgage is rising..worst, i received notice from my lender that in 8 months, my new mortgage is double my current monthly payment. anyone can help me find the new government law recently signed by the president designed to assist borrowers like me?

It is not signed yet. It is still in the House. After they sign it the president does. My understanding is that it will force the mortgage companies to refinance at a fixed rate regardless of you being upside down. Sadly the president thinks people are moral and they will not defraud the government, but I think this "crisis" proves that there are lots of people willing to steal every dime they can. Hopefully someone has a link to the actual bill, I have not found it. I am going on what other people have said, not having read the thing myself.

Powered by

This is total crap. i had a 1 year interest only loan that originated in august of 2005. my interest rate adjusted to a crazy number a year later ( when my plans to move again changed) almost doubling my mortgage payment. so what did i do? i sucked it up and paid the payments until i could refinance to a level that was affordable. now this bail out comes out and i am still out of the money that i had to use to refinance with no assistance in sight becaseu i chose to help myself.. why are we bailing out people who do not take initiative and leaving out people who stepped up and scraped together a solution? i am still on a tight budget after having to use most of my savings to refinance. i just don't think that it is fair. agree?

amen, you are 100% correct. Go after fraud and leave everything else alone.

Powered by

Hi, i have a 99k mortgage........ evey year i have payed a additional 12k down onto the principal amount at the end of the year, a what they call a mortgage anveristy payment(a free payment of up to 15 percent of your mortgage) as of right now my mortgage is about 42 k left i have about 10 k right now saved , instead of putting the 12k down should i try to put like 20k down this year pay a little bit of a fee on top of that or should i go double payments, i dont no what to do i just want out of this mortgage fastest way i can. should i want till 2011 than i have to re do my mortgage rate, and i can go for a 5 year please help high rate its 5.25 its not that bad

I'm not from the UK so I do not entirely understand your question. The part I do think I understand is whether you should make double payments or a lump sum applied only to the principle. If I am correct, you will be much better off applying a lump sum to the principal. The less the principle, the less interest is charged. If you make double payments you could pay off your mortgage sooner but you will not be saving one dime in interest; I hope I answered at least a portion of your question.

Powered by

The title company was closed due to fraudulent transactions. what happened was the title company did not payoff the old mortgage. so, my friend now has 2 outstanding mortgages instead of one. the insurer of the title company said they have limited access to the title company's files thus delaying the process. meanwhile, my friend has submitted all the closing documents to the insurer of the title company but still they did not honor that and they did not pay yet the old mortgage company. my friend now is paying 2 mortgages. instead of expecting a lower monthly payments, he is now paying double the amount of his original mortgage monthly payments. any help please?

First, the short answer to your question is CALL THE POLICE. This is a crime. Second, this is not just your friend's problem. The mortgage company (who represents the investor or owner of the mortgage) also has an interest in resolving this fraud. The mortgage company (I assume) is the one who engaged the title company in the first place. If the title company screwed up, they should pay. If the title company doesn't exist anymore, then the mortgage company would be at least partially responsible for not doing a better due diligence on the title companies they use. I also assume that the previous owner of the property is the one whose name is on the previous mortgage. If your friend paid the money to the previous owner, then what happened to that money if it didn't go toward paying off the original mortgage? Finally, your friend has no legal obligation to pay the old mortgage since his name is not on the loan. If the previous owner does not pay the old mortgage, then this will reflect on his credit report. I understand that your friend wants to pay to avoid foreclosure. However, this is as much the investor/mortgage company's problem as it is your friend's. I'm sure that you received the loan based on a primary lien (first lien) position on the property. If your mortgage is in the second lien position, then that is a problem for the investor/mortgage company. THEY need to do something about that; they can't just leave it to your friend as the borrower. Another thing to check on is whether this is an error with the county recorder's office. When a property is sold, the old loan is paid off, the lien for that loan is "released" from the property in the county recorder's office and a new mortgage is put into place (and a new lien recorded in the county recorder's office). Your friend should have plenty of help from BOTH mortgage companies and BOTH investors involved. Good luck!