If my house mortgage loan is higher than the house appraisal, can I get the loan amount lowered through a refinance or another option?
Question Details: I bought my house at $285,000 but its worth $205,000. Is there a way to lower the mortgage loan?
No, there is not. The loan is a contract: an agreement that in exchange for receiving a certain principal amount, you will repay that amount plus interest. If the other side (the lender) fulfilled their obligations (provided the money/loan), you are then contractually obligated to fulfill yours. Changes in home value do NOT affect the obligation: just as the mortgage amount would not go up if the home rose in value, so, too, does it not go down if the home turns out to be worth less than the loan.
Rate This Answer:
Not Yet Rated
The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you go to AttorneyPages.com
and retain an attorney to represent you.