I am sorry that you are going through this situation with your home. Based on what you described it seems you signed an interest-only loan, which means you have to pay only the interest on the loan. The numbers though do not make sense - $130k interest for a $250k loan in 5 years seems high. I don't think you will get a satisfactory answer here on Trulia (or anywhere else in the Internet for that matter). I strongly suggest you talk with an attorney who can review the specifics of your situation, including the loan documents and contracts. There are laws against predatory and/or fraudulent lending that might apply to your case - not saying that they do.
Jose Dias, REALTOR | (623) 418-5700 | Jose@MyFirstHouseAZ.com | www.MyFirstHouseAZ.com... more