Mortgage Forum

Mike

My wife and I filed bankruptcy in early 2007, plan confirmed by the summer I believe. Payments to both the 1st and 2nd mortgage holder have been made by the trustee starting about August of last year, payments from the trustee are both the arreages and current payments. Here is my dilema, while putting together my tax retuen for the 2007 year I noticed my 2nd mortgage holder only accounted for $36 in interest payments for the year. Looking at the trustees website they made payments for over $5000 to the regular payments, therfore my 1098 from this company should show more in interest payments. I contacted the 2nd mortgage holder and they tell me no payments have been made since 2006 and they have charged off the debt, although I see payments made to my loan online which the trustee has sent, but they are not applying these to my account since they charged it off as bad debt internally. Same answers from thier loss mitigation dept and BK debt. Called my lawyer concerning this, and they have been little help, stating that the company filed a proof of claim and whatever they are doing internally is your problem. finally I ended up talking to the director of the loss dept at the 2nd mortgage company, and he says he is going to look into this. He also stated I can offer to settle with them, through the trustee, to lift the lien this company holds on the property. What is the possibility of the trustee accepting this proposal, and also what is a fair settlement that the company might accept? Currently owed on the 2nd is about $52K. The property value is now about equal to the balance of the 1st mortgae holder. Any suggestions???

Zino

A homeowner loan is a loan that is only available to people who own their own home. This type of loan is secured against your home and is also known as a Secured Loan. Because your home is used as the security against the loan, failure to keep up with your repayments may led to you losing your home.

The Advantages of a Homeowner Loan

Because your own home is used as the security in a homeowner loan you will be able to borrow a lot more money than you would be able to with a personal loan. Personal loans usually allow you to borrow up to 25,000 pounds whereas a homeowner loan can let you borrow a lot more than this.

Also as your own home is used as the security for a homeowner loan it means that lenders can often overlook some problems that you may have with your credit history or ability to get a loan from elsewhere. This means that people who are self-employed, have problems proving their income or have a bad credit rating may still be able to get a homeowner loan.

The Disadvantages of a Homeowner Loan

The biggest disadvantage of a homeowner loan is that your home is at risk if you do not keep up your repayments on the loan. Therefore you should think very carefully before using your home as security for a loan, and be honest with the lender from the start to ensure that you can realistically keep up with your repayments until the loan is paid off.

You need to think long-term when it comes to a homeowner loan as these can sometimes take some years to pay off depending on the amount you are borrowing and the company you are borrowing from. You need to be sure that you are financially stable for the foreseeable future and be prepared to deal with an unforeseen circumstances that may affect your ability to repay the loan.

If you are using your home as security for a homeowners loan then you need to consider if the purpose for the loan worth risking your home over? Finally, if the homeowner loan is being used to consolidate existing debt, you need to make sure that you have made the necessary plans to ensure that all avenues of the existing debt are controlled to prevent a similar situation from arising again in the future.