We bought a nice cabin in California, that were able to put $70,000 down and the seller carried the balance of about $271,000. When it was time we had a very high interest loan from Chase 8.8% and several months later Litton bought the loan.
Not until I reviewed a statement did I notice our high payment 2150.00 for a 8.8 "interest only" loan. I had "assumed" this was a 30 year fixed since the payment was so high.in addition to that was the fact my rate was going up to 9.2 and the payment was going up accordingly. When I called them on it I found out my rate was tied to some European rate, not the US rates which at the time were going down.
I was refused every sort of modification until I stopped making payments and then they offered the same rate of 8.8 but the payments were magically $200.00 less than I was paying for 3 years.
I'm walking from this loan. I had $70,000 equity into the property and made payments for almost 4 years, only to find it was interest only with no help in ever actually owning the property.
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