The first thing you want to do is talk to a lender and see what your mortgage options are. Port City Realty's office is right there in Tillman's Corner in Andrew's Plaza right next to Dick Russell's BBQ. If you would like to stop in we can help you get with a lender, give you some good home buying information, and look up some properties for you to look at.... more
Jt the reason being is the insurance is to cover the cost to rebuild the home to it's existing status. The loan and it's rating are based on the loan to value ratio which the bank wants to make sure stays the same or better because it affects the rating for investment purposes of the securities sold against it. Also a mortgage loan is securitized by a occupiable home.
So say your home is worth $400,000 at the time of the $100,000 loan. The Insurance company figures it would cost $300,000 to rebuild the home to the standards set forth by their industry at time of the loan. Your loan is based off a 25% loan to value so it has basically minimal risk to the bank as long as is has enough hazard insurance to again keep these same or similiar ratios ( 33% ltv for insurance terms). If you have only $100,000 in hazard insurance then your loan to value (from an insurance standpoint for the loan) is 100% and you don't have the ability to rebuild the home unless you have $200,000 laying around, thus the bank has a much higher risk.
I hope this explanation helps Jt.... more
Yes you need to continue to pay if you have the ability. Not all modification requests are approved. It has been my experience that most are not approved and those that are result in a very minimal monthly adjustment. This just isn't a program that is working (at least in our area). So your application is certainly not going to relieve you from making that payment.... more