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interest arrearage

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K

kl26

Guest
What is the name of your state? Maine

We bought our home in 1984 by assuming the current mortgage from the sellers. Two years later we were unable to keep up the payments and HUD took over our mortgage. We made smaller payments to them after agreeing on terms. We were never told that the interest continued to grow based on the original terms.
In 1997 HUD sold our mortgage to another company, who hit us with the news that we had 96,000 dollars owed in interest arrearage. We are in a forbearance plan and have made payements every month since 1997, but we are unable to refinance our 11.5% loan because of the arrearage. Our original assumed mortgage was for 15 years and 65,000 dollars. Our principle balance is still 63,000 dollars. Someone recently suggested to me that they thought it was illegal for a company to buy another companys interest arrearage. Do we have any way out of this mess? Is there a way to refinance our existing principle? Thank for any help.
 


JETX

Senior Member
"Someone recently suggested to me that they thought it was illegal for a company to buy another companys interest arrearage."
*** They were wrong.

"Do we have any way out of this mess?"
*** Can't say without a complete and thorough review of the 'mess'.

"Is there a way to refinance our existing principle?"
*** Yes. Simply meet the refinancing criterial of your lender.
 

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