Georgia has decided to take the “moral high road” and attempted to make laws that prohibited preditory lending. Most non comforming lenders said “Forget this, there is too much liability for us. We are out of here.”
Georiga is the high water mark for the nation in regards to these anti-preditory laws. The law makers needed to pass some laws to look like they were looking out for the good of the people. They didn’t consider any reprocussions, just needed to get re-elected.
Knowing how strict and mindless the GA laws are I would say you are just screwed.
We have a very interesting scenario and would like any suggestions as to how to proceed. The situation is as follows:
We own an investment property with a mortgage balance of $67,000. At this present time the interest rate is 10.75%. The monthly payment is $630.10 and does NOT include taxes and insurance. We have had this property for four (4) years and have about $15,000 worth of equity in the property. There is also no pre-payment penalty on this mortgage. The middle credit score is 667. We also have about $19,000 worth of credit card debt that is haunting us.
We are in the process of speaking with a mortgage person to decide what our next move should be. He said that he can offer us a 10.73% second mortgage to consolidate debt and give us some cash back in our hands. But, he can’t touch the first mortgage due to the new investment property laws in Georgia as of 10/02. We really want to reduce the current 10.75% interest rate and pull out the cash to pay off bills and/or get another property. Also, we want to include the escrow in the new mortgage.
Can someone please advise us or give us some suggestions?