Profile picture for turfdoc

Bank won't refinance my interest-only loan coming due this year!

Because a recent appraisal came in soooo low due to 'short-sale' comps in the immediate area!  They send a letter to tell me this.  Besides a 'ding' in my credit, what prevents me from defaulting on my mortgage payments until the BANK tries to contact me and negotiate a truce.   The home had only depreciated to $35K below what I owe them ($200K). 
  • February 10 2010 - Mi Wuk Village
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  • February 10 2010
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Contact your lender again and try to go up the ladder.  Defaulting without trying to resolve on your own could come back to bite you.

Good Luck.
  • February 10 2010
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You would need to do the contacting. .... If it was as easy as you think, would there have been all the short sales in your area? .... Best wishes, Rudi
  • February 10 2010
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Profile picture for Bentley Advisors
Sadly, you're in the same boat as many.  Nothing stops you from defaulting on your mortgage pymts.  As far as the "ding" to credit for a mortgage late, it's more of a "BAM"!  If you're loan is owned by Fannie or Freddie, you might possibly qualify for the Making Home Affordable program.  Check out http://makinghomeaffordable.gov/refinance_eligibility.html.  Good luck.
  • February 10 2010
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Short sale comps in the immediate area are perfectly valid.   If you default (like you are considering), then the lender wants to know what the property would sell for as a distressed sale.

You can certainly try a bluff by defaulting.   You might win, you might lose.   Just ante up the house and hope they don't call down your hand.  :)
  • February 10 2010
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