Should I worry about foreclosure when the house value goes down?

[clelta279]

What is the name of your state (only U.S. law)? California

Hi,

With the bad housing market right now, and slow economy, if I refinance to cash out, would I run into any risk. I have went on some forum to discuss about my thought to refinance. Some said it would be hard for me to qualify. Some said that I should be careful, with the many foreclosures, banks are very careful to approve a loan. I had gone to some mortgage lenders and banks to ask about possible options of refinancing to cash out. They all said I would be able to qualify, but I am afraid they might do something shady to help me qualify. Even if the bank approve my loan for 30 year fixed, if the housing market get worse in the near future, should I be worry about the bank sending me a foreclosure statement, increase my interest rate, transfer my loan to a different lender service which may change the policies of the loan or even close my loan out. What should I look for before I sign the 30 year fixed rate loan with no prepayment penalty. Thank you.What is the name of your state (only U.S. law)?

[nextwife]

A fixed rate loan CANNOT be changed.

If payments are made in accordance with the loan, the bank cannot foreclose.