Keep up mortgage payments
Sunday, October 14th, 2007Q: I have a negative-amortization mortgage on a new house in Florida. It is now worth $140,000 less than when I bought it in January 2006. I am losing about $23,400 each year and will have to take out a $60,000 second mortgage to sell or refinance. Should I stop making mortgage payments and allow a foreclosure to occur? I feel that is my only choice.
A: As you knew when you obtained that mortgage, you had a very low monthly payment. The unpaid interest portion of each payment was added to your mortgage balance. The result is you owe more than you originally borrowed.




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