Mortgage Questions and Answers

My current mortgage loan balance $301,000 is much higher then my property is worth now $175,000. The property value is lower due to the bad economy. Can I refinance my mortgage loan to a lower mortgage rate and lower mortgage payment? My current mortgage rate is 7.875%.

You aren't alone when you say you owe more on your mortgage loan than what your home is currently worth.

You may be eligle for the HARP program.

HARP is the Home Affordablilty Refinance Program and is designed to help homeowners refinance their mortgage loans to lower mortgage rates and lower mortgage payments if they have a loan to value ratio higher than 80%, which you do,

I recommend contacting your current mortgage loan servicer and ask them if you qualify for the HARP refinance program.

There are certain mortgage criteria you have to meet to be eligible for HARP.

The main requirement is that your existing mortgage loan has to be owned by Fannie Mae or Freddie Mac.

Your current mortgage loan servicer will know who owns your existing mortgage loan and can tell you whether you qualify for the Home Affordability Refinance Program HARP.

I filed chapter 7 bankrputcy in 2009 to surrender from my home. My husband remained in the home and continued to make the mortgage payments on time every month. Now he is my ex husband. If he decides now to file chapter 7, will I have to wait and additional 3 years in order to get a mortgage loan in my name only?

Im not sure what you mean when you say "surrender from your home."

Im guessing you didn't include the home mortgage loan in the bankruptcy 7 if your husband continued to make mortgage loan payments.

Your chapter 7 bankruptcy seasoning will begin from the discharge date your bankruptcy, not your husband's, as long as you weren't included in his bankruptcy and he was legally your ex husband at the time he filed.

You can apply for a FHA mortgage loan or a conventional mortgage loan once the bankruptcy seasoning has passed.

FHA and conventional mortgage loans have different seasoning periods that have to be satisfied before which you can apply for a new mortgage loan.

What happens to a mortgage when the down payment money turns out to have been stolen?

Wow. That's pretty shocking! Im assuming you're buying a new home and real estate earnest money deposit was stolen? If so, then the mortgage underwriting process is put on hold until the real estate earnest money deposit is found.

Can a home be complete demolished before the mortgage is paid off?

Great question.

The answer is no.

If the home is completely demolished before the mortgage has been satisfied, the lender's colleateral is negatively impacted - even if the land value by itself is worth more than the existing mortgage balance.

There may be a clause in the mortgage language that addresses this.

Banks and mortgage companies are very sensitive about their collateral and so they would not allow the home to be demolished while there is an outstanding mortgage balance.

If you're doing construction to the home or wish to demolish it to build a nicer home in its place, you'll want to apply for a construction loan.

You can use the construction loan to refinance the existing mortgage balance, then draw on the remaining construction loan/line of credit to pay your builder as the new home is being constructed.

How many days can you be late on a payment before they can evict you?

If you mean rent payment, it really depnds on your state's landlord tentant laws. I am not a real estate lawyer so I can't answer that question.

If you mean mortgage payment, if you're delinquent past 90 days, your lender will begin to file a foreclose action against you. However, I've heard stories of homeowners staying in their home for years without making a mortgage payment.

You may want to try to negotiate something with your landlord or mortgage lender so you can continue to stay in the home. Offer to make a smaller mortgage or rent payment until you can afford to get your feet back on the ground.

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