late but worth the wait asked:
I received a call today from a lender (referred to me by a friend months ago) she calls me to tell me they have a new program coming out in october that will allow you to refinance on what your house is worth and write off the balance. When I pushed for my answers, like what happens to the write off? and why would someone allow this? what is the catch she replied she would have more answer when the program starts october 1st. Has anyone heard of this? I told her that I assumed any write off would be something we would note on our taxes as income right? she again stated she would get us more information october 1st. this sounds too fishy…
Jerry
I received a call today from a lender (referred to me by a friend months ago) she calls me to tell me they have a new program coming out in october that will allow you to refinance on what your house is worth and write off the balance. When I pushed for my answers, like what happens to the write off? and why would someone allow this? what is the catch she replied she would have more answer when the program starts october 1st. Has anyone heard of this? I told her that I assumed any write off would be something we would note on our taxes as income right? she again stated she would get us more information october 1st. this sounds too fishy…
Jerry
Philip
have your lawyer examine carefully any such deal
Comment by estielmo — June 27, 2010 @ 10:11 am
Mark
Read the fine print dont sign anything until your happy with what is offered and never beleive FREE
if they say right off something remember no one in mortgage business looses so who pays for the right offf YOU DO
Here in Australia there is an add buy this car and get free on road cost free insurance if you are PAYING for the car You ARE paying for All the so called Stuff
it is called Buyer Beware
Comment by armouror2000 — June 28, 2010 @ 7:28 am
Ray
Lenders need to be up front with prospective clients and supply all information when it is required and asked for.
This person is trying to get you to agree to getting information on a certain day – a day when they will have a persuasive sales person giving you all the information in one big confusing rush, and then press you to sign up.
This is dangerous for you, because these people can be very manipulative and are trained to close deals quickly.
I suggest you get real advice from a reputable lender. Now this is asking a lot, because we have seen a lot of reputable lenders go under in the last few weeks!
Do you have to do this right now? I would wait until things settle a little. Also, writing off the balance is not something I would believe just like that. These guys are talking about using your equity… are you sure you want to do that?
You need expert advice. Get a broker. A reputable mortgage broker who can act on your behalf – it will not cost you anything. My broker is great. He knows all the laws and regulations, which is more than I can say about myself.
Good luck.
Comment by elmina — June 30, 2010 @ 10:52 am
Pauline
When she calls back, have her mail you the information. Read it carefully and then compare it to what other lenders offer.
Congress may address your problem very shortly so stay tuned….
Comment by Sharon T — July 2, 2010 @ 10:31 pm
Jimmy
Hi, I am a financial advisor and this is not a smart idea. If you are looking to restructure to be able to reduce your payments and have more cash flow and minimise your interest as well as pay down your debt as quickly as possible see an advisor. It is not in the banks interest to show you how to pay down your debt quickly as they enjoy what they make from the standard 30 yr loans. Hence why their net profits are always large. An advisor can end p costing you less to refinance at the end of the day and would beat anyone you would think of going to for improving your situation.
Comment by planyourfinanceswisely — July 5, 2010 @ 1:19 pm