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can I ever accumilate equity in a modified mortgage?

My mortgage was just modified where the lender took 90,000 dollars off the mortgage and said that 90,000 will be a balloon at the end of the 40 yr. mortgage.I am wondering if the eexisting balance becomes lower than the value can we assume that this would become eequity and maybe I could borrow against it?
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October 09 2010 - Flushing Township
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"90,000 will be a balloon at the end of the 40 yr. mortgage"

That means in 40 years when the mortgage appears to be paid off you will then owe the bank $90,000. This is not equity. It is $90,000 of debt you must pay at that time 40 years from now.
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October 09 2010
The lender didn't take $90,000 off the loan balance they just restructured it into a ballon payment.  Yes, if you home value is more that the total outstanding loans against the property the difference is equity and you could borrow against it.
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October 09 2010
 
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can I ever accumilate equity in a modified mortgage?
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October 09 2010 | 2 answers
  • Asked by landscape1
  • In Refinance
  • October 09 2010
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