+2 votes
Purchased home 10/08 $231K . 6/09 mortgage was sold to another company. When transfer happened figures were wrong and although loan was piti the mortgage co. didn't collect or pay the taxes. Went to court because the mortgage co wanted us to pay $12k in back taxes and wouldn't apply payments to account put them in escrow and would not do loan mod. in stead of jury trial Agreement to settle through loan mod New mortgage amount $260K 9/12 with all new loan docs. and correct numbers this time with interest rate at 375% instead of 675% .Property new value $300k + amount owed $230K. Do we go by the original loan amount of $231K or the $260K amount when figuring to drop the MIP. Can the mortgage co.choose to not use the new appraisal value at all?
asked Jun 13 in FHA Loans by Wonderer

2 Answers

+1 vote
Your lender needs to order the appraisal. I am figuring you are talking about a conventional loan correct? The 22% equity in your home is based on the current market value and the current loan balance. Hope this answers your question.
answered Jun 13 by GustanCho (107,040 points)
0 votes
Based on your description, you will need to go off the $260,000. This is how much you currently owe on your home. Check your modification paperwork. But it sounds like the bank added to your principal amount to help you catch up. Every modification can be different, so it is tough to answer your question without a little more information. When cancelling private mortgage insurance, you need to go off of combined loan-to-value or CLTV. Meaning the total amount you owe on your home needs to be 80% or less of current market value.
answered Jun 13 by MikeGracz (16,780 points)
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