Outstanding mortgage balance that much higher than original!?

Outstanding mortgage balance that much higher than original!?

Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes

I know it is not possible to get the mortgage balance without permission/info from the borrower.

I also know you can get a rough estimate by pulling the mortgage doc from public records, lookup the prevailing interest rate at the time, and plug it into an amortization calculator. But..

I've been seeing judicial foreclosures with balances that are almost 50% higher than the original loan amount. I know there are some legal costs in there but does that explain most of it? Can being delinquent on your mortgage really rack up that much in fees!?

In another context if I am buying subject to the existing mortgage it is pretty damn important to know what the loan balance is. If I can be off by that much then it is a very risky proposition indeed.

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  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    Just guessing but could it be that these homeower's lenders modified their loans, throwing past due balances and legal fees on the back end and charging fees for the processing of that modification?

  • Rental Property Investor · Gainesville, FL · Member since 2015 · 1k+ posts · 432 votes
    9y

    if there was a loan mod those papers should also be filed with public records. Yes?

  • Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
    9y

    Yeah it's not a loan mod or there would be a public record of it.

    I've heard someone say that when you stop paying your mortgage and get foreclosed on that it can had $30K-$40K to the loan balance. Fortunately it's never happened to me or anyone I know.

    To give you perspective what I saw was a $240K loan go up to $320K by the time of auction.

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