Here is the run down; A friend bought a home in 1980 for $ 45,000, he put $ 15,000 down. The mortgage was perfect for over two decades, the payment was not even $ 300 a month. he thought the mortgage would be over in 2010. Within the last 5 years things have made a turn for the worst. His wife has done things to the mortgage and he does not understand what has been done, nor is he being told what has happened. Essentially, the mortgage debt now stands at $ 73,000 and the past two years has paid very little off the total debt, it seems all that is being paid is interest and a small amount at that. So what has happened, what has she done? What amount likely was taken out in a Equity Loan and was a refinance done? What can I tell him to help him and what can be done. This is in New York State as well.
Not playing dumb, his wife tricked him into believing something else was taking place. His english is not the greatest nor is his understanding of the US ways. His thing is to wake up early go to work, all he knows for the last 35 years.
Structural change in the mortgage market and the propensity to refinance (Federal Reserve Bank of New York / Staff reports)