"John A. Weeks III" <john[at]johnweeks.com> wrote in message
news:270920031316473376%john[at]johnweeks.com...
- quote -

It seems to me that if you think you could qualify for a home equity loan,
then you should have no problem securing a first mortgage to pay off this
balloon payment coming due. Do as John suggests, and apply for a mortgage
asap so you'll know where you stand. You may be worrying for nothing.

Elizabeth Richardson

In article <Yngdb.33283$TM4.2432[at]pd7tw2no> , Things Planet Earth
<thingsplanetearth[at]shaw.ca> wrote:

- quote -

I would go apply for the new loan on Monday. If you are going to get
turned down, you want to know that as soon as possible so you have time
to do something about it, and you want to know what the exact problems
are so you can fix them. Rates are dropping again, so if you get a
good rate this week, all the better--go do the loan.

- quote -

Assuming that a bank or credit union turns you down, and you are unable
to fix the problem before your baloon explodes, this would be an option.
They have a number of alterantive loan programs, and one might fit you.

Another option to consider is getting a close relative to co-sign
the loan for you. Since you have a good chunk of equity in the home
and have put in sweat equity, you are not likely to simply walk away
from the house, so you are actually a pretty good risk for a co-signer.

- quote -

Brokered and high-risk loans rarely get over 10% or 12% since they have
the property backing up the loan. Don't wait for foreclosure. Rather,
put the place up for sale first. There are many reasons. First, a
foreclosure is like a nuclear bomb on your credit. Second, you lose
control of the sale. Third, the bank has little incentive to sell for
more than the value of the loan, so you are likely to get screwed.
Fourth, you become liable for all kinds of expenses as part of the
forclosure process. Finally, forclosure takes time, and they will
tie up any money that you might get for a long time.

- quote -

I don't see how a home equity loan will help. You have $52K in equity,
or if you use a 120% loan to value, you can borrow up to $88K. That
isn't enough to cover the full amount of the mortgage. You could borrow
that amount and pay down the mortgage, but they will still count the
H/E loan against you when you apply for the now smaller mortgage.

If you become desperate, you could do the 120% H/E loan, then (after
the H/E loan is funded), borrow the remaining $40k from your 401K
plan, cash out your IRA, or put it on credit cards. Keep in mind
that these are very, very expensive sources of money, and lots of
very bad things can happen if you do this.

Good luck with the loan.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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I am worried now. I have put a lot of TLC $ into this house and therefore I
do not want to lose it. I also never ever want to rent again. Even if it
means taking my $40,000 equity and buying a mobile home.

So, if I get turned down for the mortgage what should be my next step?
Should I go to a mortgage broker and if so what is their HIGH interest rate?
Is it stupid like 15 -25%??? Or do I just wait for the foreclosure and take
the money that is left over?
I don;t know if a home equity loan would help. My house is worth about
$180,000 and I owe $128,000...how would taking the home equity loan help me?

thanks for your help


Original message:

I have a question that someone may have the answer to.

2 years ago I assumed the mortgage on a house $165,000 (I paid the person I
assumed from $20,000 and assumed from there). The reason I assumed the
mortgage is because I was not able to obtain a mortgage
on my own due to credit reasons (bad). It is now 2 years later and I have
had perfect credit since then. Every mortgage payment has been on time and
we even have
our RRSP's with the bank that holds the mortgage.
Now the mortgage is due for renewal in Jan 2004.
I am worried now that they may not renew my mortgage.
My question is....CAN THEY REFUSE TO RENEW
MY MORTGAGE???
I have made all my payments perfectly on time, but can they do this??? If so
....where does that leave me and my family? Do they foreclose? Do they review
credit when it comes to renewal???
Anyone with any comments or expertise in this area please e-mail me

thanks