Foreclosure in Phoenix>Question Details

yvonne.hudson, Home Owner in Phoenix, AZ

If you bring a loan current from foreclosure, does it add to the principal balance each time.

Asked by yvonne.hudson, Phoenix, AZ Fri Jan 18, 2013

We have a very rough period of time, like many, financially. Keeping up with our mortgage has been difficult several times. Each time we were able to bring the loan current. But as a result we owe 2 years longer than from origination. It was a 15 year seller financed loan from 1995 to 2010. We're making our last payment 2 years later! Why?

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It is crucial that you seek advice from an attorney that you trust. Keep all your cancelled checks to make sure that they applied your payments to your mortgage payments.

Best of Luck,

Maria Cipollone
2 votes Thank Flag Link Fri Jan 18, 2013
You really need to talk to an attorney. One of the things you may have coming in to play is if the lender has started the foreclosure process on you there will be attorney fees that are getting added onto your loan for the foreclosure process. You need to have an attorney review your account and see if what they are adding on to at the end.
0 votes Thank Flag Link Fri Jan 18, 2013
There are too many variables in play to properly answer the question. You should contact an attorney who can assist you with interpreting your loan documents and to determine what your options are, if any, and what your lender can or cannot do under the terms of your agreement.
0 votes Thank Flag Link Fri Jan 18, 2013
You would need to look at the terms of the note for this seller carry home loan. Generally when bring a loan current from any event means the loan is current. If the original note has P&I payments then the P&I should be current unless there is some other arrangement.

Dave Jackson
Real Estate Asset Planner
Financing Solutions for Arizona Real Estate since 1993
American Financial Lending, Inc.
20860 N. Tatum Blvd, Suite 160
Phoenix, AZ 85050-4277
602 277-3800 w
0 votes Thank Flag Link Fri Jan 18, 2013
Hello Yvonne,

You may want to speak to an Attorney to get legal advice.
It would depend on what you agreed to with lender/seller. There are interest and finance charges that could be accruing.
0 votes Thank Flag Link Fri Jan 18, 2013
When you are behind in a payment, the interest keeps accruing. So even when you eventually get your payments back on track, you will owe more interest, which can spread out the period of time over which you must pay back the loan. I agree, get your attorney to look over the loan agreement to be sure it is fair and correct.

Good luck,
Ann Griffin, Realtor
Coldwell Banker Trails and Paths
Web Reference:
0 votes Thank Flag Link Fri Jan 18, 2013
Are the loan payments that you were in arrears being added to the end of your loan? You will need to look at the documents that the lender is having you sign. You may want to have an attorney look these over as well.
0 votes Thank Flag Link Fri Jan 18, 2013
Congratulations on bring it current during the tough times.

It's possible you wrapped the past due principal onto the back end of the loan.
0 votes Thank Flag Link Fri Jan 18, 2013
Did you just pay back fees and interest? Perhaps you didn't pay your loan for 2 years and when you brought it "current" they let you just pay fees and interest not payment (principal).
0 votes Thank Flag Link Fri Jan 18, 2013
I would look through your financing contract that you have with the sellers and see if there is some sort of penalty and for how much for not paying on time.
0 votes Thank Flag Link Fri Jan 18, 2013
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