Worst luggage scenario if my mortgage isn't renewed ?
I have a 2 year mortgage which is up for renewal. I have freshly become self employed and i'm worried that they may not like the look of my accounts. If i do not miss any repayments what is the worst case scenario if my mortgage isn't renewed.
Answers:
I'm assuming you parsimonious you are in a Balloon mortgage when you say it is up for renewal. This resources your loan balance will be fully due at maturity. Typically a refinance is the single way to fix this, HOWEVER I would talk next to your lender now. Explain your situation to them. In today's market, lenders are doing anything and everything to hold on to people from foreclosing. If they put you in this type of program and you enjoy been paying them as agreed, they may allow for a restructuring of your loan into a longer term. Every lender vary in what they will offer. The most vital thing is to communicate with them proactively. Source(s): Senior Mortgage Officer
7 years of Banking Experience
Worst overnight case?
They take your house away and charge you with any shortage that arises from the foreclosure mart. If you can't pay the shortfall they may turn it in as "phantom income" to the IRS and you would owe taxes.
You asked for worst overnight case and this is as bad as I can imagine. They can't dispatch you to jail unless you lied on your original loan papers.
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Answers:
I'm assuming you parsimonious you are in a Balloon mortgage when you say it is up for renewal. This resources your loan balance will be fully due at maturity. Typically a refinance is the single way to fix this, HOWEVER I would talk next to your lender now. Explain your situation to them. In today's market, lenders are doing anything and everything to hold on to people from foreclosing. If they put you in this type of program and you enjoy been paying them as agreed, they may allow for a restructuring of your loan into a longer term. Every lender vary in what they will offer. The most vital thing is to communicate with them proactively. Source(s): Senior Mortgage Officer
7 years of Banking Experience
Worst overnight case?
They take your house away and charge you with any shortage that arises from the foreclosure mart. If you can't pay the shortfall they may turn it in as "phantom income" to the IRS and you would owe taxes.
You asked for worst overnight case and this is as bad as I can imagine. They can't dispatch you to jail unless you lied on your original loan papers.
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