Mr. Anonymous asked:


Yesterday I got a letter from my bank, they are offering me to pay about half of my second mortgage loan and saying that, if I do it, “my loan will be considered payed in full”. They also say they will give me an IRS 1099-C form for the amount forgiven.

I have never been late in a payment but I have a terrible loan (balloon), I don’t trust my bank and I was considering refinancing soon (it might not be possible as my loan is higher than what my house is appraised for).

Should I take the offer? Will this inflate my income and kill me at taxes time? What questions should I be asking? Is it as good as it seems?

Professional advice is very welcome.
Ok, the answers up till now seem really good but I want to put a little bit more detail to see is it can help me get even better answers:

First Loan:
$189,000 30 years (5 years interest only)
6.5% APR for the first 5 year, then it will go up

Second Loan:
$45,000 30 years fixed
13% APR
***offered to pay only $20,000 to pay it off***

My loans total: $234,000
My house is now worth: about $220,000
My mortgage bank is Aurora Loan Services, just do a search for their company name online and you will know why I don’t trust them. I called them today and they said there was no more information that I could get, just the letter, that’s it. They were kind but not helpful at all and I have only 30 days to take the offer and send my money order… because they will not take a bank wire or any other more secure kind of payment.

Franklin

five e asked:


Please is there anyone that knows where I can get a loan for $2500.00 in 2 days? We don’t have time for a bank loan, I tried that takes much longer. We had someone steal over $6000.00 from us. We need to pay our mortgage and utilites. We would go to a loan shark if we knew where to find one. We are in Saginaw, Michigan if there is anyone that knows where we could get help. We will pay any fee at this point. We need to keep our house payments up. Please any advise is appreciated. You can email me threesenough5@yahoo.com if you have any advise.

Jesse