Hi!! I need some serious help. Here's some history:
I purchased a house in 2005 for 150,000
I purchased 2 acres next to it for 15,000
I couldn't sell it but needed to move so I started renting out the house.
6 months ago I stopped paying the mortgage after loss of job.
The mortgage company, instead of foreclosing, put me on a three month probationary loan modification plan. I've paid the first month of the loan modification plan, which is $200 less than my normal mortgage payment. The second payment is about to come due.
I found someone to buy the house and sold the land to those sample people today. We are closing on the house in about a month.
I have the funds to pay off the 6 months of missed payments on the house to stop the loan modification.
What should I do? Should I just keep paying the loan modification and then the house will sell and I won't have to worry about it?
Should I pay the missed payments and get back on track before the house sells?
Right now I'm set the make nothing on the house, but at least I'll be rid of it. I'm worried the modification will add more to the payoff price. I just don't know what to do. Thanks!!
Wed Aug 17, 2016 5:07 pm
oldguy Senior Member
Cash: $ 715.00
Joined: 21 May 2006
It depends on whether you actually got a loan mod (a rescheduled pay-off plan, perhaps adding a year or so to your 30 yr pay-off). Or if you are still in the 'waiting period' to get the loan mod. Just call your lender and ask - they will tell you how to proceed. It really doesn't matter to you, the new owner's (your buyer) mortgage will pay-off whatever is owed on your loan (regardless of whether it is a modified schedule or the original schedule w/ shortage - ie, it will be the same money back to you in either case.
Good job on selling the 2 acres - and on finding a potential buyer for the house.
I'm curious - why did you say "house will sell and I won't have to worry about it"? When I find myself in your position (a rental house w/ a renter who pays my payment) I keep it for a few years until the house gains $40,000 or $50,000 - and then I sell it at a profit.
Wed Aug 17, 2016 7:03 pm
jenward5 New Poster
Cash: $ 0.45
Joined: 17 Aug 2016
Thanks so much for the reply!! I'm going to call the lender now and see what they say.
When I said that I won't have to worry about it...I meant not worry about what the loan modification may do to my existing loan. I'm worried about fees it may add or what else may happen.
This house also isn't the best investment property I could have chosen. The schools are horrible (why we moved) and the septic tank scares me because I'm always worried someone is going to flush something down the toilet and I'll have a huge problem.