Home equity loan term is running out. what to do now?

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Our loan was for 5 years. That time is almost up but we will still owe approx. 66,000.00 as a balloon payment. Cannot find any information on what we can do now. All I can find is that you can refinance it through your existing company. We have done this twice before over the past 10 years. However, this time we have had a severe drop in our credit score. Our estimated property value is at least 3 times what we need to borrow in order to pay off this 66,000.00 balloon payment. would like it to be a regular mortgage, or whatever, so that at the end of the term, we wont owe anything.I guess I am wondering if my current bank is obligated to refinance it or would I be forced to find another company who finances couples with poor credit. We have been with this same bank for 15 years. The last time we refinanced the equity loan, when our credit was good, I asked the banker to set it up so that we wouldnt owe so much at the end of it. I guess he thought that 66,000.00 wasnt SO MUCH. Is any company out there helping couples in our situation .


  1. Reply
    May 16, 2011 at 5:51 am

    Home equity loans are generally owned and serviced by the same company. That’s the good news. Another good news for you, is that there are so many lines of credit out there that’s currently in default banks are accustomed to making all sorts of arrangements to keep people out of foreclosure.

    Don’t talk to one of their loan officers. Don’t take out a expensive refinance to get out from under the balloon payment if you can avoid it.

    Talk to a customer service rep that works in servicing. This is where you would call to ask about where to send the payment and such. Ask for their loss mitigation department and explain your situation.

    If that doesn’t work, escalate it to the head of their customer service. There’s a good chance they will work it out with you.

    Best of luck

  2. Reply
    May 16, 2011 at 6:17 am

    Since you have been with this bank and they are aware of your payment and credit history you might apply to them first to check out their refinance mortgage programs. They could very well have, what is know as a streamline program, that would be less paper work on your part. They could do this no matter your credit scores.

    Failure of your current lender/ban to refinance your mortgage loan, there are many banks and institutions that will refinance your home. You might consider a FHA mortgage loan. The guidelines concerning credit scores and credit history are not as strict as those that you would find by a conventional lender.

    One hurdle you will have to over come no matter who refinance you is the amount of equity you have for this refinance.

    Contact a local mortgage banker, complete a mortgage loan application, so this loan officer would be able to obtain your credit report and score.

    Make sure once you speak with this loan officer, he inform you of each mortgage option you are qualified for be it a FHA or conventional mortgage. With the explanation you would be able to make an intelligent decision based on your current and future financial situations.

    You could be charged loan fees, appraiser and other fees to complete this transaction. Most of the time these fees are rolled into the mortgage loan, therefore, you would not have to come out of pocket for a few of them.

    Your current lender/bank is not obligated to refinance your mortgage loan, it matters not how long you have been with this bank

    If you would want to pay this mortgage loan off then you would be looking for a fixed rate mortgage loan with terms of 15,20,30,40 or 50 years.

    It is your responsibility to make sure the loan is what you expected or want. The loan officer might suggest certain mortgage loan programs, however, you must sign the mortgage loan docs, and ultimately pay the mortgage off based on the terms of the mortgage loan.

    I hope this has been of some benefit to you,good luck.

    “FIGHT ON”

  3. Reply
    Isal Barre
    May 16, 2011 at 6:19 am

    Home Loans
    Check this Site for useful information


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