? about mortgages, buying a house, interest, etc

[kelly12569]

Ok, had another go around with ppl were buying our house on land contract from. Ill try to make this simple as I really dont get it myself

5 1/2 yrs ago we signed a land contract to buy this house

$65,000

3,000 cash down


which leaves a balance of $62,000 Right?

Now they say we owe $63,099 and we have been paying on it for 5 1/2 years.

For the first five years we paid $630.00 , $80.00 of which was for taxes and insurance per month

In January they raised our payment to $710.00, and said that $160.00 was for taxes and insurance per month. Mind you they are still yet to give us a copy of the "new contract" with the "new monthly payment" but have no problems collecting the new amount from us.

I mean I understand there is interest, etc but after paying on it for 5 1/2 yrs and finding out we owe a grand more now than we did then just blows me away.

She says that after interest, etc that really only $40 a month goes towards principal! :eek: That seems unreal. :confused:

Does that sound right ???? Anybody do this sort of thing for a living, or atleast have more knowledge about it than I do??? Cuz any help on understanding this all would really be great.

We have been unsuccesful at refinancing lately due to the ppl we pay each month changing the payoff 4 times in a month not to mention other things they have going on in their office that appears "fishy" to the lenders. We are considering consulting an attorney for paperwork / other things we suspect are going on to benefit their pocket books but want to know what we are talking about first.

[JKATHERINE]

I can't tell you anything exact about your particular case, but I can say that yes, it's probably due to the interest. When we signed our mortgage last summer it said right in the paper work that although our loan was for $153,000, we would be paying over $300,000 when all was said and done due to interest....sucks, doesn't it? :(

[DaLilPeachy]

Did your loan allow for negative amortization? If not they probably made a mistake on your note and didn't correct it in time. It sounds pretty shady to me. Also - did they use any of the cash down for good faith or closing costs?

[kvmj]

I imagine that what you're calling "balance" is actually your payoff. That would include the balance plus accrued interest through the date of payoff.

[Eyore]

I don't know really much about it but in Jan 03 we took a loan out for 76,000 to buy a home. My payment each month also has figured in it taxes and insurance. As of now my principal balance is 74,492.90. I can check all that stuff online. So I would think your balance would be going down. But I really don't understand alot of this stuff either.

[twinkiesmom]

All depends on how long your land contract is for and the interest rate u are paying. But it does sound right. First year, if u are lucky, u might get $100 off the principal. U are paying more interest than anything at least for the first half of the time u got your mortgage to. ie 15yr loan, the first 7 will be mainly interest that u are paying for. With my mortgage, I paid 32,5 for the house, when it's all done n paid for, I'll have paid over 55. so we're looking at 17,5 just in interest. Which is half of what I paid for the house.

[justinenycole26]

Sounds like you need to talk to an attorney. From what you said, the seller needs to be checked out from head to toe. How can your taxes and insurance double and them not provide you with any proof?

[YankeeMary]

Was there an amorazation done...I can't spell worth a hoot. That will tell you the intrest, rate, and principal. I agree get an attorney, even if you have to rob peter to pay paul...I would want everything in writing, if not in writing then don't make payment, they can't prove you owe that if it isn't in writing. I know this has been a huge battle for you all...hugs.

[kelly12569]

How can your taxes and insurance double and them not provide you with any proof?



I called the courthouse this afternoon and they said that our taxes have only gone up like $200 in the whole 5 1/2 yrs we've been here :eek: And they said they havent even sent out the tax bills for this year. She said they will come out in November and be due in 2005.

We are definitely calling an attorney.

What is amortization? That word isnt in our contract anywhere. :confused:

[wyozozo]

What is amortization? That word isnt in our contract anywhere.

It's a breakdown of what each payment goes to; interest or principle.

And I would definately want a breakdown of insurance and taxes to prove justification of the increase. Also, do you have your interest rate in writing?

[kvmj]

What is your interest rate and term?

[kimp67]

I was just going to ask that too,,,,,^, also how many years mortgage did you take? I'm assuming from what you said it includes your taxes & home owners' insurance?

[DaLilPeachy]

Call your lender or servicer and ask for an amortization schedule. Maybe they can have some one go over it with you

[kelly12569]

well, it was a land contract for 5 years at $630.00 a month, $80 of which was supposed to go to taxes and insurance.

In January our contract was up. We are trying to fix our credit to get rifinanced so they said they would redo our contract for another 3 years or until we refinanced if it was before the 3 yrs.

But they said our payments were going up to $710 because they said our taxes doubled. So now $160 was supposed to be going towards taxes and insurance.

I called the courthouse. Our taxes have only gone up $240 over the past 5 yrs and they said this years tax bill hasnt even been sent out yet.

Also, they are now saying we OWE them $1300 escrow from what they said was that our $80 a month wasnt enough to cover the taxes and insurance and that they paid $1300 of it out of their $

I would think that was their problem since our contract said $80 for taxes and insurance. If they figured it wrong, I would thing that was their problem.

Another thing, we know someone who works for them. Helps them clean / fix up the houses they buy to resell. He told us that he believes the woman in the office that does the paperwork is scamming off of the ppl. So that is why we are waiting for the mortgage broker to send us copies of every thing she sent them so we can compare it to what we have, etc.

I made an appt to go in and see all of "her copies" next week. She even denied on the phone yesterday that she changed the payoff with the lender FOUR TIMES. Obviously she doesnt know that the mortgage broker is sending us copies of anything she ever sent them :eek:

The mortgage broker feels we need to just get out of this "situation" while we aren't under a binding contract as of now. But its easier said then done. We cant just pick up and go with 5 kids and a single income.

Ok, dont wanna turn this into a whine, LOL, so Im done rambling now.