My 2006 home loan loan ENDS in 2058!!

[InOverHead]

Not sure if is this is the right section let alone forum anymore for housing situation - posting it here becuause it was iib.

When i originally got the loan in Dec 2006 it was 7 years i/o. In march 09 i did an in-house mod that lowered paymenst for 3 years years but made taxes and insurance part of monthly whereas before i paid at end of year.
Anyway, i requested a ammortiztaion table and it shows payment # 1 beginning next month, im paying interest for about 30 years before any principle. The last last payment is scheduled for 2058!!

At work we just negotiated a payback of a 95k loan over 4 years = 2500 monthly at 5.5%

Part of the MOD was lowering interest rate on my home loan. it went from appx 6.75 to 3.75

I NEVER signed anything about spending the rest of my LIFE paying off the fraekin house!!

I am sick to my stomach over this. Either im a complete idiot, these guys are criminals, or some sad combination.

But something is not right! I can't get another loan due to credit and negative equity so only option now seems to walk. Then i'll have a BK and Foreclosure...

Trying to find a positive, i have to realize the 60k ive spent there will never count towards anything, so even if i did get a normal loan, right off the bat i'll be paying p/i so the only break with staying is the lower payment (at this point it's now a couple hundred more than renting an equal size/neighborhood) so just started process to get 2nd lien strip, market is appreciating. Say i stay there 5 years and and that costs about 65k, well in that time a hopeful estimate is maybe selling for 190. It costs money to sell, right. So maybe i walk with like 10k.

Such as crazy situation. Any thoughts?

[HHM]

Hmmmm, more info would be needed...

My initial thought is this. An amortization schedule is just that, amortization of payments only. What you probably actually have is a balloon. The bank (and you) can amortize payments however they want, but the loan will mature at a certain point and I have NEVER heard of a home loan that matures past 40 years, and as we all know, 30 years is most common (but who knows, some modifications are weird). So, what you need to do is look at your original note and the modification agreement. You seem to imply that the modification did not extend or discuss the "term" of the loan, so what you really have is, essentially, a negatively amortized payment schedule. So, I am guessing that the original maturity date of your note was either 2036 or 2046 and the note says something to the effect of, on this date (xx/xx/2036) any remaining balance must be paid.

Basically, you should have walked away from the house in '09.

So, if I had to vote,
-You idiot
-Bank criminals, or
-both

If I am generous, I say both, but really, my guess is a careful reading of the modification letter/agreement and the original note would have identified this at the start.

[tobee43]

under stress we do things we think may be fine for us at the time and just turn out to be not what we expected.

i'll have to agree with the "little" of both as well. however, as hmm points out, most likely this note was close to 2046...i would say what is another dozen years? this is what has happened to many who do loan mods, they don't realize that the modification difference is tacked on the back end of the loan. by then, as you now see, it's too late.

our mortgage is iib and has never been foreclosed on, we walked. when chase finally decides, if ever, to actually foreclose AFTER the bk, if it does ever show up on our credit report we will fight it, although, that's not usually where they are likely to show up, it is usually during a title search....like when you are trying to get a new mortgage.

if you decide to walk (although if you signed another agreement with the bank that loan is NOT IIB)....then you are correct, eventually you will also have the foreclosure on your credit.

[InOverHead]

Yea thanks i know i deserve it.

It was my loan...well, i did get a car loan before so knew a little. Bottom line is i know what it was i initailly signed. And i know the rationale at the time was avoiding payment shock i was was going from being a $600 monthly renter to a $1400 mortgage. The market was hot the time and i thought i couple years turn it around and make $$.

The MOD was a 3 year ONLY deal.

The bank transferred a few times so that got me thininmg maybe they have no note and are starting this ammortization table from what they have - a current monthly payment. It is not a Balloon. The 2nd was. What i have here is a ammortization table, unfortunately. However, it is NOT what i signed for. Furthermore, it's a variable with acap of 2% yearly so the payment into 2050 or so change to 18% by then for all i know

[tobee43]

don't beat yourself up over it, i am just wondering what ways if any you can get out of it.

now, so you signed the loan mod AFTER the discharge and the mortgage was iib...right? do you have those "closing" papers???

[InOverHead]

Hey Tobee! Good to see you thanks for posting. My Bk attny did not list either 1st or 2nd on the final filing papers. I did not reaffirm.

Yea it was stupid but there are always many factors and stresses can impact decisions as well - thanks for pointing that out.

[InOverHead]

thanks tobee, you are so nice. it's just how i am programmed...got a lot of self loathing and this just adds to it.
It was prior to all the bk stuff. Fact is i dont have the money to even make the payment this month, sure i can put off other things and come up with it if necessary. I need to at least be able to stay for awhile and tuck away some $$ as moving costs money. I posted in another section asking whatthe process is when asking for a copy of the note to see if the lender has it. Yes i have all the documents ive ever been given - par of the problem with moving - nothing really gets tossed of. I have so much paper work in just a few years this 3/2 house is packed. Im one step from hoarder lol.

Anyways, maybe just maybe the messed up and don't have the note

[tobee43]

good to cu 2!

i know this is a hard one to swallow, especially, if there is no way out other than walking away. but you have to think, since you already filed, is your state a deficiency state? will they go after me for the balance...it's a hard one for certain. if you are in a state that is not a deficiency state AND is a non-judicial state i would give it some serious thought about walking. why? well, if they can't go after you after they foreclose, cool, then if they are quick about their foreclosure process, even cooler as a bk states on your credit report for 10 years whereas a foreclosure is 7. (if you were in a judicial state it could take YEARS for them to foreclose, i'm living proof of that one!). on the other hand if you were NOT a deficiency state but a judicial state, you could hang out for as long as it takes and save $$$$$....i mean if the foreclosure is going to show up on your credit anyway, some savings for your move wouldn't hurt?

[tobee43]

ahhhh i didn't see you other posts since i was typing...GMTA...LOL!!

oh i SO hear you about the paperwork! i thought when this was all over that would be the end of us having to maintain a "home" office. shoot, we are in a 4/2 and i have files all over and an entire area in the garbage and it's still so hard to keep ahead of it. i usually attempt to scan everything into a computer or two and then promise i will throw away the stuff, but just seem to manage to still hold on to most likely way too much!

[InOverHead]

I am in Florida. I think it non for both. Near certain on the judicial. Despite the fact the attorney did not list the BK - i know it is in there on the the list of creditors and i know the 2nd tried to get me to reaffirm (which the attny assistant tried to have me sign lol) scary!


Here is what i think i should do, but of course one side always has to impact the other:

Stop sending any more $$ (tuck it away)
Wait for them to call and and see if they will offer any concession

at this point don't know if spending the $600 for attny to remove the 2nd isnt just throwing away that $$ but still seems to get rid of 40+ grand for 600 is a no-brainer, still hate to waste it if it means nothing.

There is a florida timeline posty and it seems it could move quickly depending on banks and other factors

[InOverHead]

Tobee, Fuji makes some great scanners similar to the neatdesk but much better. i want soooo bad it's on my wishlist!!

[tobee43]

i'm here too...nope it's a deficiency state and a judicial state. i recall some guy that declared bk in orlando and it included his mortgage, YET the bank still went after him for the deficiency!!

florida still has to go through the court system, so min you will have 14-18 months if they are quick about it.

yeah that second i would head right over to the atty's office first chance after not paying the 1st this month or next. where we are, in florida, it's taking at least 2-3 years, but it has picked up a bit with the banks moving.

[tobee43]

really???? like the neatdesk? i have to go to best buy next week, one of my hard drives blew up (can you believe 3 days before the warranty was up LOL!) i am going to have to check out that scanner....the one i use is an all in one and pain in the butt!

[InOverHead]

Tobee it's actually Fujitsu, the snapscan s1500. Check it out - it's my dream to get paperwork organized. makes PDF's. Quite expensive - the software alone license is very $$
so even tho the property is iib they can still come after me? on the 2nd too??
So you agree pursuing 2nd lien strip is pointless??

What if the 1st agrees to a new loan? or a better modify? seems like i should get rid of the 2nd while i can...$600 only!! but again it could be like throwing it away

[InOverHead]

HHM - I did teh Mod via email. Unless the emails were bogus and what i signed completely different, the bank is full of crooks. I have teh table in fromt of me now and it is clearly ammortization. They have my 1st principle payment Oct '38. Now thru Aug of '14 it shows Zero for principle, then it changes to 1 cent until Oct '38. Zero balance april 2058!!

Here is teh final email i had from MOD person:
Hi,
I have re-run the figures as I realized that you have already made your May payment (that changes the figures). The bank is giving you a 2.5% rate reduction at no charge, but in order to bring you out of the red every month we need to do the add'l 1% buydown. That is where the $4,183.71 comes in. Over 36 months you are actually saving over $16,600 in the payment difference. The add'l buydown comes in 1% increments, sticking with just the 1% add'l keeps the amount added to principal as low as possible.

The $2,548.24 being put into the escrow account is approximate, (I won't know the exact figure until I tell them you want to escrow, but I know it couldn't be much different). This is the amount that needs to be in the account as of now in order for the taxes & insurance to be paid in Nov & Dec without having a shortage (which would increase your payment amount). The farther we get from when the taxes & insurance were last paid the more that needs to go into the escrow account.

Current Balance
$164,800.00


Current Escrow Balance
$0.00


Required Escrow
$2,548.24
This would be the amount put into escrow, so that when taxes & ins are due, money is there

Total Escrow
$2,548.24


Interest ( Calculated )
$0.00


Add'l 1% Buydown
$4,183.71


Contribution
$0.00


Total Added to Balance
$6,731.95


Modified Balance
$171,531.95




$464.57 interest $364.08 taxes & ins $828.65 total payment


I would not advise you on the 2nd mortgage issue as I am not a real estate attorney, you might want to consult an attorney on that. I really do not know enough about that to give you advice.

I hope my explanation has been clear, let me know if you still have questions.

Thanks,