by Concerned Homeowner from Virginia Beach, Virginia USA
Ask Kate your foreclosure questions: Hi Kate, Will the bank call in my loan? When I bought the house I was making $50,000. I got laid off and now work for $32,000. If I try to refinance at a lower rate (currently 6.125 percent), can the bank cancel my existing loan? I'm afraid they'll think I can no longer afford the payments and I couldn't if my parents weren't helping me.
Concerned Homeowner continues...
I don't want my parents to co-sign on a refi. I have about 25 years left on my mortgage. I owe $170,000 on my $210,000 home.
Thanks for the help and advice.
Kate Answers Foreclosure Questions
Dear Concerned Homeowner,
If a homeowner continues to make timely monthly house payments, generally speaking, a bank cannot foreclose on the property.
But since terms of home loans can vary (for example, certain mortgages have balloon payments, sums of money due at certain intervals during the term) I recommend you contact an attorney to review your documents.
If you'd like to read more about the promissory note, deed of trust, prepayment riders and others, I have written about them at Adjustable Rate Mortgage
and Private Mortgage Financing
I have also included more ways to avoid and deal with foreclosure issues at the bottom of this page.
Good luck. I know these are trying times for homeowners and am happy to hear of your parent's assistance.
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