Ask MetaFilter questions tagged with Mortgage

The Lock In Game

thisperon — Tue, 29 Dec 2009 11:07:14 -0800

Should I lock in interest rates now for a home mortgage or hope they dip soon? A complication to make this extra nailbiting. Mefites, I need your collective powers of forecasting.... About to purchase a home, but there may be some problem with repairs. I decided not to lock in the rate and float it for a few weeks, but am concerned about the recent rate jumps! Do I lock in now or should I wait until we are closer to the close of escrow (estimated to be a few weeks). The problem is that the inspectors found various problems and I don't know if they'll be fixed by close of escrow. Am concerned that I'll lose the money if we pay for the lock. Am also concerned rates might go down again, and we're locked into something higher. Any mefites have suggestions on what to do?

Interest rates have looked great...but they seem to be rising quickly. Does anyone know if there is any holiday related influence on this, and they might dip back down? Should we lock in and eat a possible fee that we might not have to pay?

Thanks for your collective wisdom.

Selling an underwater house?

antipode12 — Mon, 21 Dec 2009 18:15:48 -0800

Previously I was considering bankruptcy, but now I'm considering selling my house. My fiancee has left, I have $50k in CC debt, student loans, and a mortgage that is under water by $15-25K. Renting it out will only cover 2/3 of the mortgage/taxes/ins., and nowhere to live. I'm thinking about selling it, but what happens if I sell for less than I owe? Also, I'd be responsible for the realtor's fee (4-6%= appx. $20-25K). Add those together, and it's 30k to 50k to SELL my house and get out from under the mortgage. What happens to the balance that I would owe? Thanks!

Refinance with HARP OK?

morganw — Fri, 11 Dec 2009 18:09:43 -0800

Are there any downsides to a HARP (Home Affordable Refinance Program [pdf]) refinance? My wife & I are employed and not behind on our mortgage, but this seems like an awfully good deal. We bought the house about a year ago to cut our commutes by 2/3 with 15% down, 80% 1st at ~6.625% and a 5% 10 year 2nd at 4.25%. It's our only house and it's the third house we've owned (in 10 years).

Now the originating bank (Wells Fargo) who sold the mortgage to Fannie Mae has called up and is offering 5.375% 30 year fixed which is low enough that we can pay the normal amortization at only 1.4% more than we were paying for a limited-time interest-only feature.

I can afford the small bump and would be relieved to not have a big hike coming in 4 more years when the original loan amount must be paid off in only 25 years. I know how dumb not paying off the principal is, but living on paychecks only with no credit card use or stock options to sell has been surprisingly hard for us.

There are supposedly no fees and no points. Our house is supposedly worth 89% of what we paid for it. The Loan-to-Value is still acceptable in the program, though the banker mentioned they may end up doing an appraisal.

I meet with the banker Monday. I'll be sure to ask who pays for the appraisal if it's needed. Anything else to watch out for?

I own my home, no really.

buxtonbluecat — Fri, 11 Dec 2009 08:11:00 -0800

So I've paid off my mortgage, almost. What happens now? After paying down lots of extra principal every month, my mortgage has less than one payment remaining (7 years into a 15 year fixed rate.) I received a payoff letter that was apparently triggered by the low principal balance. It appears that I am to send a certified check to the mortgage company's payoff processing office; seems simple enough. But I'm wondering what happens then, behind the scenes and in front of them. How is the payoff communicated to... um... that's part of my question... who gets told? I guess maybe the county recorders office? Is someone going to mail me the actual deeds to the property? What about the escrow, will I be sent a cheque for the dregs automagically? What else will happen? Is this going to be a big anticlimax?

Location: Indiana. Mortgage is held by GMAC.

I know I should be happy, and I am, but because this is new and I don't know anyone who's been through the process, I'm finding it rather stressful.

(For those wondering: I'm aware of the pros and cons of paying down a mortgage ahead of time. It's all part of a larger strategy, a major part of which is reducing my income requirements as much as possible as quickly as possible.)

Can switched bank accounts equal automatic mortgage denial?

grablife365 — Tue, 08 Dec 2009 12:59:56 -0800

Title of bank accounts were switched on mortgage disclosure. We were approved with conditions today. Could I be denied a mortgage for this or is this something easy to fix? How do I correct a mixup on my mortgage paperwork without being denied?

Biggest mistake ever, I know. I should have caught it and made sure it was fixed like I did for another issue I found.

I was approved with conditions today.
We don't know yet but my guess is that one of the conditions will be that they need formal bank statements.

Here's my problem:

I spoke with my loan officer (weeks ago) gave her account info but the accounts were listed wrong on the disclosure. I have them by me right now and I'm at a loss for what to do.
Example BoA has the balance that Chase should have. The names are switched up. My bank statements line up fine with the amounts so its not that I was lying, they just have the wrong names.

On top of that one account that was mixed up now has less then it did to start but still enough to close and be fine. I could always transfer money into but that would be more paper trails. She did say it was only a snapshot of that time so I'm not worried too much on that.

I'm planning to email her and let her know that we need to get this changed but will this automatically mean we get denied cause it doesn't match up?

Again, I do know this is something I should have caught already. Please don't remind me. I'm having a tough enough month as it is.

Help! Credit card elimination or consolidation?

antipode12 — Sun, 06 Dec 2009 09:31:20 -0800

Help! -- My credit debt is nearly $50,000, my mortgage is upside down by 25% and my fiancee walked out the door a month ago. I can't make my bills. I'm trying to sort out which route to go with the credit cards. A service like CCCS? Or some other route like Credit Elimination? Please help me understand this. Thanks

Helping a first time Canadian home buyer!

Meagan — Fri, 04 Dec 2009 06:40:20 -0800

Share with me your Canadian mortgage knowledge! I've been thinking about buying my first house, and an amazing opportunity has presented itself in the past few days. I will be going to see the house and meet the owners this Saturday. As a result, I'm putting myself through a crash course of Canadian homeownership and mortgage knowledge.

I am already becoming aware of the "hidden costs" such as land transfer tax, at the same time I'm becoming aware of the many opportunities to help first time homebuyers such as myself like tax credits.

Some more information: the property (a 70 acre farm) was listed previously at $249,000 but was dropped to $219,000. It is in Ontario, Canada. I know the property tax is $2000/yr. I have already been preapproved for a mortgage that I applied for in the past few days and am waiting on another from a different bank - both are bi-weekly accelerated payment mortgages with the option to further pay down the mortgage each year. I will be getting a full house inspection and a property line evaluation. I have a massive list of questions to ask the current homeowners ranging from when the house was built to what type of pasture has been grown.

So far I have done all of this on my own. I have not consulted with a mortgage broker. Should I be? Also, as far as I can tell, this will be a private sale, as a result I will likely be retaining a real estate lawyer to complete the required paperwork, if you have any recommendations I'd love to hear them.

I would appreciate any knowledge, tips, suggestions, pitfalls, etc that anyone has experienced, whether it's about a mortgage, about buying a home, about owning farm land, about what questions I should be asking them, any information you can offer will be appreciated!

"Buy a condo," they said. "It's the best investment you can make," they said.

Anonymous — Tue, 01 Dec 2009 17:11:45 -0800

Caught between a potentially troublesome mortgage and a bad job. How should I proceed? I moved across the country, largely to take a certain job. To do that, I had to rent out my condo because it would have been hard to sell in that market. (And would still be hard to sell now.) That condo is under a 5-year ARM (adjustable rate mortgage) that starts adjusting in almost exactly one year.

I went shopping for refinancing, and the condo's status as an "investment property" and the loss of equity is killing me. Only my current lender is able to offer me a reasonable (although not great) deal for a fixed rate mortgage. However, the refinance process will take about three months, and during that time, I have to stay at this job.

The problem is that I hate the job and was planning to move on around now. It's easily the worst job I've ever had. It is bumming me the hell out, and I'm at the end of my rope. I was planning to start looking for contract work for a while, and then get started on my own consulting business. I'd really like to not have to stay or to hop into another full-time job for a while.

So, I guess my options are to stick it out for the refi or to move on and see what happens with the ARM next year. Some lenders have told me that I might be OK with it because interest rates are so low, but can it be reliably predicted that the Fed won't raise them in the next couple of years? A friend of mine in finance says that knowing what happens

I completely missed the non-resident-owner problem with refinancing when I made my decision to move, and I'm hoping I'm not missing anything this time before I make my decision. Please let me know if I am.

Should I buy a home?

Anonymous — Sun, 29 Nov 2009 18:16:38 -0800

I'm looking to buy a home, am I ready to finance this? I have about $35k in private student loans at 5.25%, no other debt. I've been pre-approved for $150k at 5% for a 30 yr fixed and I currently have about $25k in cash. The homes I'm looking for are between $140k-175k, with most being on the low-end of that band. On the high end I'd be paying just shy of 25% of my monthly take home pay, which seems like a lot.

I'm a first time buyer so it looks like I would get the tax credit along with being able to deduct interest payments.

I would only be in trouble if I were to lose my job within the year, as I plan on using all but $5k for down payment and closing costs. I'll still be saving around $300 a month. I'm young and single, I would expect my salary to rise in the field I'm in, but the economic collapse taught me that nothing is set in stone. Any thoughts on how if this is a good idea or not? Am I missing anything?

Refinance Problem

kim in chicago — Mon, 23 Nov 2009 12:40:53 -0800

How can we deal with Fannie Mae/Freddie Mac's rule that, for new mortgages or refinancing in condo buildings with fewer than ten units, one person may not own two or more units if those units are rented out? In our 8-unit Chicago condo building, Mr. and Mrs. A, who do not live in the building, purchased two units for for the purpose of renting them out. Both units are in Mr. A's name only. The owners of another unit, Mr. and Mrs. B, are trying to refinance their mortgage through Fannie Mae/Freddie Mac. Apparently Fannie Mae/Freddie Mac is now enforcing a rule that, in condo buildings with fewer than ten units, one person cannot own more than one unit if those units are being rented. If Fannie Mae/Freddie Mac agrees to make an exception and let Mr. and Mrs. B refinance, which is unknown at this point, it will cost them an extra $1,000 up front and $200 per month for the life of the mortgage.

An even bigger problem, which will affect all of our owners, is that this new rule will drastically shrink the number of prospective buyers of units in our building. Eighty percent of mortgages are obtained through Fannie Mae and Freddie Mac; therefore, due to the new rule, the vast majority of prospective buyers would be denied a mortgage for a unit in our building. This would obviously make selling more difficult and eventually lower the value of all of our units.

A real estate attorney has advised us that the problem can be easily solved if Mr. A would file a quit claim deed to put one of the units in someone else's name, such as his wife's. Mr. and Mrs. A have resisted our association's efforts to persuade them to file the quit claim, despite the fact that they too will be negatively impacted when they try to sell one of their units. They have agreed to consider it at some point; meanwhile, Mr. and Mrs. B's refinancing has been stalled.

We can't force them to file the quit claim, of course. Any suggestions on other avenues our condo association could pursue?

Pay down the mortgage?

acoutu — Fri, 13 Nov 2009 13:19:11 -0800

Should they pay down their mortgage? My friends, who think I'm a financial guru, have come to me seeking some advice on their mortgage. However, while I have an opinion, I thought I'd ask the folks here at AskMefi too.

Should they pay down their mortgage?

Due to several unexpected windfalls, my friends have about $100k in the bank. They have earmarked $25k for retirement savings, general savings, a trip, and so on. They have ample emergency savings and decent retirement savings funds already, as well as college savings. Their car is paid off. They have no debt outside their mortgage. They live on one income and use the other to pay down their mortgage. They have 2 children and one parent works part-time, while the other has a very good job. When the other parent returns to f/t work, their income will rise substantially, but they are already in a very comfortable household income bracket.

My friends can pay up to $65k as a balloon payment on their mortgage each year. They have previously made several balloon payments, but none this year.

Their current *fixed* rate is 5.89%, with 2.5 years left in the term.
Their marginal tax rate is around 35-40%.
Their mortgage payments are around $2050 a month.
The outstanding balance is now $275,000, down from $350k when they bought 2.5 years ago.
Their condo is worth around $600k and is in downtown Vancouver.

If they break the mortgage, they would pay an interest rate differential of about $17k.

They could refinance at around 4% fixed or 2.2% variable, give or take.

They have excellent credit.

My friends think they should pay down their mortgage by $65k, so that they get a 5.89% return with no tax. This will reduce the burden of a mortage (in a city where a house is $1M) and also mean that, when the term is up for renewal in a few years, they can shorten up the amortization or else benefit from much lower payments. They don't think it makes sense to break the mortgage ,since, over the course of the entire mortgage, they would actually save much more by applying the $17k penalty against the mortgage instead. Besides, they have money sitting in the bank.

Does it make sense to pay down the mortgage by $65k?

Thanks in advance.

How about 2%?

kitty teeth — Thu, 12 Nov 2009 08:13:13 -0800

How exactly does one negotiate a lower rate on a (new) mortgage? My partner and I may be buying a house sometime soon. Neither of us has ever bought a home before, so the whole process is new and a bit daunting. I've been reading up a lot on all different aspects of home buying, and one thing I've learned is that the rate that the bank offers you on your mortgage loan is negotiable. But how and when do you negotiate?

We were pre-approved back in late August, and in our pre-approval packet there was a rate listed, but it's my understanding that since the rates change each day, the actual rate we will be offered will depend on when we find a house we like (which has not happened yet) and actually apply for a loan.

So how and at what point during the process do we ask for a better rate? Should we try to get pre-approval from a few different lenders and then use that as bargaining power? I'm somewhat reluctant to do this because 1) handing really personal financial documents (tax returns, bank statements, etc.) over to a bunch of different people makes me nervous, and 2) if I understand right, a mortgage lender pulling your credit report can negatively impact your score.

We are in California, if that makes a difference.

Thanks in advance!

Help, my partner has been evicted!

Flitcraft — Tue, 10 Nov 2009 18:37:55 -0800

Eviction UK - what does a 're-entry' hearing involve? Please help! My partner was thrown out his home (he is the owner) yesterday morning by bailiffs and didn't tell me till now (middle of night UK Time). He tells me he has something called a 're-entry hearing' this morning 11am at a court. He was unaware of having missed any mortgage payments as it is paid by direct debit. (money is not a problem he is in a well paid job and so am I but something has gone wrong somewhere). Due to ADD, he hadn't opened his post for a long period and hasn't done anything like get a lawyer or contact his bank, or seek advice, beyond doing what the bailiffs told him - to file for what he described to me as a 're-entry hearing'. I am worried sick - what does the re-entry hearing involve? What can we do? Is there anything he should do before it, or read before it? You are not my lawyer, but can you advise? Also if he does need a lawyer- how does he go about getting one urgently in London? Anything you can tell me which I could use to help him would be valued. Thanks!

Please explain reverese mortgages for me

doubtful_guest — Tue, 10 Nov 2009 09:58:27 -0800

Please explain reverse mortgages to someone who isn't all that savvy about mortgages and property. I've Googled for the basics, but would like an explanation that a layperson can understand -- including all the drawbacks.

Specific questions I have: Are they kind of a scam? (They're legal, but it sounds iffy to me.) Is it possible to pay them back, or is it a hole too big for most people to crawl out of? Does it have to be on the property you live in, or can it be a house you rent out? I'm in California, if that is relevant.

I need to leave Mortgage Electronic Registration Systems

jragon — Sun, 08 Nov 2009 12:33:05 -0800

I signed up for a "pay half your mortgage twice a month" thing and now Mortgage Electronic Registration Systems (MERS) is a little too involved for my liking. Help me leave them. I got a funny feeling about MERS so I started doing some research. While not 100% scam, they seem to get between a homeowner and their mortgage provider, which can lead to all sorts of trouble. (wikipedia info)

A few days ago, I got an Appointment of Successor Trustee and a Deed of Reconveyance, which I've never seen after 6 years of my loans being sold to people willy nilly.

So now I want to leave, but have to wait until tomorrow when they're open. My concern is that I'll call and they'll basically say I can't leave and dare me to press the issue. And then I'll call MetLife, who I originally got the loan from, who will say it doesn't concern them. At that point I'm not sure what I'll do, so I wonder if anyone has any suggestions.

Thanks.

Do I dispute a bad appraisal or get another?

tristeza — Fri, 06 Nov 2009 08:57:13 -0800

[RefiFilter]: I'm applying for a re-fi on my condo, and just got a HORRIBLE appraisal. Like, so horrible the mortgage broker AND the underwriter of the loan both are scratching their heads. Short question: do I dispute, or suck it up and blow another $500 in hopes of getting a more realistic appraisal? The appraiser used comparables with no apparent relation to my place (i.e. mine was a rebuild in 1984 on a 1904 foundation, he compared it to buildings built in the 20s and 30s), comparable sales in my neighborhood in the past 3 months have all been FAR over what he appraised mine at, I have outdoor space that almost no condos around me do, he got the # of floors in the building wrong, etc etc.

I know I can't pick an appraiser because of government regulations now, but I don't know if it's best to dispute THIS one, or just start over and request a whole new appraisal (and start new re-fi paperwork also).

I do know that homeowners typically overvalue their own property, but when a BANK and a broker both think the number is ridiculous, I feel I have some solid footing.

Any experience with this? Do appraisal disputes *ever* work, or would it be a waste of time? Did you prevail in a dispute, or spend more $ and pray for the best?

(If it helps I'm on Capitol Hill in Seattle near Seattle U)

How best to buy two places?

Dee Xtrovert — Sun, 01 Nov 2009 01:41:09 -0800

I'd like to buy a place in America. I'd also like to buy a place in Hungary. I've got enough for a 20% down payment on both. I've also been told that I would qualify for a loan for a place (in America) equal to what the cost of the *two* places would, in actuality, be. I would have no problem affording both - I live on about 25% of my net income and have not a penny of debt, even if the mortgages would be equal to the upper end of what I might qualify for - so I'm not worried about that. But does the fact that I'd be buying *two* places, in two different countries, affect the situation? To put it another way:

Obviously, I'd have two separate mortgages. If I bought one place (for much less than what I would have qualified for), would I have a hard time qualifying for the second, even if the amount of that second loan were smaller than the difference between the amount I originally qualified for and the amount of the mortgage of the first place?

Anyone have any experience with such a thing?

Are mortgage scams back?

n'muakolo — Wed, 28 Oct 2009 14:31:06 -0800

Is this a mortgage scam? I have an 80-10-10 mortgage (put down 80% in 1 loan with a great interest rate, put down 10% in a 2nd loan with a lousy interest rate to avoid paying PMI, and put down 10% as a down payment). The bank holding the 2 mortgages on my house (Amtrust) has contacted Quicken Loans and given them information about the smaller loan. Apparently Amtrust wants to unload my loans. Amtrust says they will pay off 5% of the principal of my 2nd loan and will pay for an appraisal. If it all works out - i.e. my credit score, income are still good and my house is appraised high enough, the 2 loans will be consolidated into 1 loan at an interest rate such that my monthly payments will be lowered by about $300, without me paying any costs of refinancing. Quicken Loans thinks my property value has gone up quite a bit since I bought. I called Amtrust's mortgage 800# and they say this is legit and they've been doing this for about a year. But they're mortgage companies, so I'm nervous.

So a few questions:
- This sounds to good to be true. Is it a scam?
- If my house is appraised substantially more valuable than when I bought, does the appraisal I do through the refi process automatically make my property taxes go up?
- Anything I should be wary of?
- Why wouldn't Quicken Loans just buy my 2 loans from Amtrust?
- Has anyone heard of this sort of thing?

Refi-filter: Lowering my monthly payments, but paying more in the long run. Is it worth it?

ericbop — Mon, 26 Oct 2009 07:45:18 -0800

I'm eight years into a 30 year mortgage, having paid off about 10% of the total amount of the original loan. Does it make sense to refinance now if I can get a rate that is about 5/8 of a point lower than my current rate? This would shave about $250 off of my monthly payments. But then I'll still be paying for this loan for eight additional years after the original one would have been paid off, right? How do I calculate how much additional $$ I'll owe overall, and how do I decide whether paying more later is worth saving money now?

How much is reasonable (if anything) to pay to a lender for a mortgage application fee?

mockjovial — Thu, 22 Oct 2009 13:32:18 -0800

How much is reasonable (if anything) to pay to a lender for a mortgage application fee? The fiancé' and I have finally found the perfect house…a condo actually. The contract was accepted by the seller yesterday, and we are super excited! I went into the process benefitting from many of the great posts on the green that came before me. One of the things I did was get preapproved for financing of a 30 year fixed rate mortgage. Now that the contract has been accepted, the mortgage company wants to meet to complete the actual application. I was surprised when the representative told me that there is a $350 application fee. In your opinion / experience, is this outrageous? Should I find a different company? I’m not sure if it matters that I have excellent credit and can qualify for the most favorable interest rate offered. I am in Chicagoland. I am of course hoping to close by 11/30 for the tax credit, so time is of the essence to secure financing. Thanks in advance!

Wants to work hunting scammers

CollectiveMind — Thu, 15 Oct 2009 16:39:53 -0800

Someone I know wants to find a job as the person who is portrays themselves as seeking housing or employment, and is either preferred or discriminated against because of their race, sex, age, etc. I would guess a job like this; someone who portrays an apartment or job seeker, might be offered by the state, or the feds or a reputable non-profit, but I don't know. They are even interested in starting out pretending to be a customer who is victimized by mortgage fraud or auto garage scams as part of an investigation. Does anybody know which agency to approach and what credentials she might need to get her foot in the door?

When getting a divorce, how does a house with an underwater mortgage count towards dividing assets?

cnc — Sun, 11 Oct 2009 14:16:34 -0800

You're not my lawyer, but when getting a divorce, how does a house with an underwater mortgage count toward dividing assets? My spouse and I are getting divorced after six years of marriage, and we're in California, if that matters. We purchased the house shortly before getting married. We paid $265,000 and borrowed $28,000 from the spouse's family for closing costs and the down payment, so the loan amount was about $237,000.

Six years later, the house is now worth somewhere between $190,000 and $200,000. We have repaid around $9,000 of the loan from the spouse's family. We owe something like $205,000 to the bank for the house.

Let's say we have $100,000 in the bank, combined. My spouse will be keeping the house. How does the underwater mortgage and loan to the spouse's family affect the dividing of assets?

Is it as simple as assets ($100,000 in cash) minus liabilities (-$15,000 underwater mortgage, -$20,000 to the spouse's family) divided by two? This would leave me (the non-home-keeper) with $32,500.

Secondary questions - my spouse will be keeping most of the furniture and household items and the more valuable vehicle. Are these factored into the assets in calculating where the cash is divided? Is retirement account value also factored in?

I know that a lawyer can better answer these questions, but I'd like to have an idea of the answers, and Metafilter isn't going to cost me $250 an hour. Thanks.

Help me guess my mortgage and pick my house

grablife365 — Thu, 01 Oct 2009 20:19:18 -0800

Finally getting ready to start house shopping and planning soon. I have two questions: is the total monthly mortgage payment really 1% of the costs and how crazy am I for wanting to try for a house in this range? I know how much I'm approved for, know what I can afford, not for sure what would need to be added in just yet and now I just need to know how to determine that by house cost. I was told by a Realtor a little while back that a total monthly mortgage payment is generally 1% of the house cost including insurance and everything. Is that true cause that would help me budget tremendously just by looking at a house. Maint and HOA fees may not be included though, she wasn't specific enough.

On a salary of 32,911.20 how bad is it if I decide to get a $119,900.00 home? I'm trying to keep it under 100,000 which is around 3x my income and surprisingly, I've found a few but today a home popped up that just out of reach but as perfect as that first time dream home could be. Though the house will be mine, I wont be the only one paying for bills, food, etc for at least a year guaranteed. By the middle of next year I'm hoping to change jobs. If I stay where I am I'll get a raise (not huge but still). On top of that I'll have money saved up to cover mortgage for some months. How logical would it be to try for a house in this range or even in the 110 - 115,000. range? When subtracting the 1% from my monthly budget (after food, bills, gas money) I still have a little bit left. I'm stretching and may not even go that way but how much stretching is too much?

I haven't been able to get a very realistic view of mortgage yet. I'm with a downpayment program that only requires me to handle a few things like earnest money, appraisal, inspection and to have 1000 saved so I have no idea just yet what other costs I'll need to factor in for the monthly mortgage payments. I'm still reading and learning. Any help is appreciated.

How flexible are mortgage lenders on second properties?

Anonymous — Thu, 24 Sep 2009 18:09:40 -0800

How flexible is a mortgage lender likely to be on the mortgage for a second home that looks like an investment property? My wife and I live in a home that we purchased in a partnership with my father in law. Since the economy has tanked and taken housing values with it, we are upside down in the loan and would like to negotiate a lower payment until the economy picks back up.

Some details:
The mortgage lists my father in law as the primary owner. This property is the second home he owns but we are supposed to be making the mortgage payments. I was laid off in June and have been working on piecing together enough work to get us back on our feet.

So, how likely is the mortgage lender going to want to help us out in lowering our payments?

How do I handle the Mortgage company?

Anonymous — Thu, 24 Sep 2009 08:34:48 -0800

Probate/mortgage/house question. You are not my lawyer, just looking for a general sense of how this will work. I am on the deed of my mother's house. She is dying of cancer. I am not on the mortgage, which is for about 90% of the home's value. When she dies, what will happen? I cannot afford to pay the mortgage prior to selling the home unless I rent out the property, which I don't want to do (would prefer to sell). I don't think the home will go to probate because I am a co-owner, but clearly the mortgage holder will file a claim against the estate, which has essentially no assets.

My plan is to sell the home and pay off the mortgage, but what do I do about the mortgage while trying to sell the house?

Do I just call the mortgage company and tell them to be patient? Despite the market I do think the home will sell within a few months, it's a nice house in a hot neighborhood and where I live (Maine) the market is still strong in pockets.

(Note, because of the L/value ratio, she has been paying PMI, but my understanding is that does not pay off in case of holder death?)

Again, I know you are not my lawyer, I will get a lawyer when the time comes, I just want to know how the process will work.