Owing More Than Original Principle?
I found a NOD published in a local paper where the grantor owes about $2K more than the original principle... just curious... how could that happen? or was it a typo?
thanks in advance
The holder of the note may have advanced for taxes and that is added onto the principal balance due. It does light up your day.
Lucius
They could have had two percent of closing included in the loan. They may have been on a NEG-AM setup, or a deferred interest setup. There are many more reasons why just writing a few.
Lori
[addsig]
Lenders in the Phoenix area are offering 125% LTV loans on new builds. This means, the day the new owners move in, they are upside-down. Can we say "Short Sale?"
this can also happen in deflating markets. They buy then the value drops. They may have also gotten a 4% concession at close, so that it looks like they're upside down, but they may not have been.
I just had a call from a women who wants to sell a house she bought last year for $47,500 and the mortgage balance is $49,000. The bank had given her extra money at closing to have a new furnace installed.
JohnNH