We didn't reaffirm our mortgage with PNC due to economic reasons. We haven't made a payment in 1 1/2 years still living in our home. We've called desperately to renegotiate our terms, but to no avail. 1 1/2 years later PNC collection lawyers said pay $1000 a month until 2 years after your discharge, and try to get a mortgage then with another bank. Is this normal? And this is where we are at. If this is normal how do we meet current guidelines to get a new mortgage? The lender we applied to is asking if we are current on our mortgage for the last 12 months, and PNC only contacted us 6 months ago. I'm not sure what to tell the lender. We can't be the first people in this situation. What is the solve?
I can't say it is "normal", but mortgage compnaies arwe becoming really creative, they don't want to lose money on houses and they tend to get vandalized as soon as you move out. I would explain the situation to the new lender and that you have been current every since PNC contacted you with the "rental" option. The problem is likely to be that you might have to wait until you have been paying PNC longer and secondly, is PNC going to allow you to purchase the home through the new mortgage if your value of your new mortgage doesn't exceed what your PNC mortgage is. But if you can find a lender and PNC will let you pay them off art less than you owe, go for it, assuming that you can afford the new mortgage payment and want to stay in the house. Good Luck!
I am licensed to practice in Michigan, but this is general advice and you should consult your own attorney before taking any further actions.
There is not a normal any more.
If this is a deal that works for you, then great. If you don't like the deal, then don't do it.
This is not a reaffirmation agreement. This is a modification of a debt you don't owe.
Do not sign up for personal liability going forward.
Please contact me directly with document for a free 30 minute consultation to get more concrete advice. This is not legal advice. I don't have enough information to give actual legal advice. I can only take the limited information presented and provide a framework to know how your situation may turn out. I may have questions that bring up issues you did not think were important but make a big difference.
Sounds like PNC foreclosed and is now the owner, and is accepting $1000 per month in rent from you. I sure hope you have this in writing, because banks are well known to pull the rug out when you think you are on stable ground. YOU NEED AN ATTORNEY. You need to have a solid enforceable promise to sell to you at the terms you expect. It should probably include language that PNC will report payments to credit reporting agencies, because, that is the only way you will get approved on a replacement mortgage. Good luck, and you really do need an attorney.
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