Houston, TX asked in Real Estate Law for Texas

Q: My name is Debra: I had a modification on my home around 10 ago, I just discover that I have been paying interest only.

Can a company do that legally? I noticed that I have been paying for years and I noticed that the balance owed on the house was not going down. After the interest was paid they doubled my note, I am about to lose the house because I can't afford the payment of $1586.29.

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1 Lawyer Answer
Teri A. Walter
Teri A. Walter
  • Houston, TX
  • Licensed in Texas

A: It sounds like you and the lender agreed to a modification that would allow you to pay interest only for a period of time, and now that the period is over, they want you to make up the payments, which is why the monthly payment is increased.

It's not at all clear what you originally agreed to, but you're stuck with whatever it was. If you can no longer comply with the agreement, you need to look at refinancing, or moving, because the lender is likely to foreclose.

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