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We recently applied to remove a balloon note and the process calls for a property evaluation.

What if the property is not worth the amount left on the mortgage balance?

Can the bank refuse to continue our payment schedule?

What should we do if this happens? Our mortgage has reached its maturity.

  • The second sentence is... confusing. – RonJohn Jul 16 at 20:19
  • Since the "mortgage has reached its maturity" there is no more "payment schedule" to follow. It's like dying: there is no more breathing after dying, because... you're dead. – RonJohn Jul 16 at 20:21
  • Thank you; I am aware of that part. However, how would the bank proceed if the home is not worth the amount owed? Thanks. – Christina Jul 16 at 20:39
  • @RonJohn I believe that first "is" is supposed to be "if": "what if the property is not worth the amount left on the mortgage balance?", i.e. it's underwater. – Kevin Jul 16 at 21:14
  • So you need to refinancing the mortgage? How old is it? Was it an ARM (I'm presuming so, since you said "balloon payment")? – RonJohn Jul 16 at 21:21

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