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Posted by Raj on August 31, 2003 at 02:36:24:
In Reply to: foreclosure consequences ,Colorado posted by christy p. on August 27, 2003 at 18:17:06:
Christy,
There seems to be a communication problem here. What do they mean by " the back end loan will be $ 10,300.00"
This is what I think:
you are 7 months behind. 7x1240.00=8680.00
Add attorney fee $ 500.00
You owe them a total of 8680.00+500.00=9180.00
they want you to pay 10,300.00+1240.00=11,540.00
you are paying them an extra 11,540.00-9,180.00=2,360.00
Now let us see what you are getting for this extra 2,360.00 dollars that you are paying.
My guess is that suppose you have 15 year mortgage. You will pay the lender $ 1240.00 and continue with your normal $1240.00 per month payment. At the end of 15 years your balance should be $ 00.00. But now in your case your current deficiency of
$ 9,180.00 will appear as a balance of $ 10,300.00 which you will pay off at the rate of $ 1240.00 per month. They are applying your current deficiency at the end of the term of the loan. Please call your lender and confirm this. If this is indeed the case then it is a good deal since you are paying an extra amount of $ 2,360.00 and paying the current deficiency of $ 9160.00 after 15 or 30 years or after what-ever the term of your current loan
is.
Confirm with the lender and make your decision.Have them explain it to you and then send it to you in writing.
Raj
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