Mortage, refinance, lending, lender, bank, home loan, refinance
Question by Brian G: Why do I have to pay the full month of interest when refinancing an FHA loan if paid prior to the end of month?
I am refinancing my FHA mortgage to a conventional loan. My current lender requires that I pay interest until 03/01 even though the loan will be paid off a few days into February by the new lender. Essentially I will be paying interest to two lenders for most of February. I called the current lender and they stated it will not be refunded once the pay-off is received. Anyone know why this is and if there is any way around that?
Best answer:
Answer by Lisa L Your mortgage payment is paid in arrears unlike rent. So when you paid your Jan mortgage payment you were paying for Dec. FHA requires a full month of interest if not paid off by the 1st day of the month. That is just the way FHA is. You signed paperwork at application & closing telling you that. Your current loan officer should have informed you of this early in the process & should have had you close either by Jan 23 or later in Feb. It is an FHA regulation, not your current mortgage holder’s regulation. There is no way around it. Try to close later in Feb if your lock is not expiring. At least you will save some interest on your new loan.
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Question by gtmoore: Is it possible to declare bankruptcy to avoid paying on a deficiency judgment granted to your mortgage lender?
This is a hypothetical situation; however, I wanted your thoughts…We owe $ 265k on our house in which we are significantly “under water”. The exact model of our house in our neighborhood just sold for $ 199k, which means we have at least $ 66k in negative equity. Maryland is a recourse state. If we spontaneously stopped paying on our mortgage and B of A foreclosed on our property and the judge granted a deficiency judgment to B of A for the $ 66k+ that we owed, what would prevent us from then declaring bankruptcy to avoid paying on the deficiency judgment? Am I correct in thinking that once they sell the house and the deficiency judgment is issued that this debt would be discharged just as credit card debt would be in bankruptcy proceedings?
Again, this is all hypothetical. Just curious as I’m paying $ 2k per month for a house that is worth 2/3 of what I paid for it and it has me thinking a bit.
Best answer:
Answer by Jonie Backer When I lost my job last year we ended up maxxing the credit cards out to stay afloat whilst trying to find a new job.
Because it as long is it did we basically found ourselves with more than 14000 in total debt and had to pay 4 different credit card bills every month and things we’re getting out of hand.
We went through all the options and spoke with a lot of people and concluded that consolidating the payments best way to go. We went to a well known debt company and they helped us get the payments right down into one easy monthly payment.
Today I’m back to financial normality and aren’t broke each month and we’re all much more positive!
This is their link to the company I used smartreducedebtworld.tk – check them out!
