Question

Can someone in the banking or foreclosure world tell me what unpaid advance balance means?  

Answer 1

I’m not in that world but it looks like it’s the money borrowed that hasn’t been paid. I hope you’re ok.  

Comments

@jotunheim I read that but dont understand it.  

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When I bought my house, I borrowed 116k. That's the money the bank gave me to buy the house. After years of payments, my balance left is $53k. That's the unpaid advance balance. Otherwise known as the principal. It could also mean any fees they've added, I believe.  

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@jotunheim the person that owes has an actual unpaid balance of close to 6 thousand. Theyve tacked on close to 4 thousand more with this advance unpaid balance, so I'm not honestly sure of what to make of it. I think I'm going to help him contact a lawyer.  

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@myca45714 ah, I see. Good luck to your friend it sounds like a mess.  

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@jotunheim yeah, it does. Especially for something he didnt want to begin with. My heart hurts for him

Answer 2

If you are behind on your mortgage and facing foreclosure, it usually means they charged you for something they done, such as send you paperwork. They will also charge you an inspection fee of some sorts, which just means someone drove by your house to see if it was occupied and maybe took a picture from the road as proof.  

Comments

@henceforth ah I see.  

Answer 3

I work at a bank underwriting loans. I was going to say it may be fees that have been added to the principal balance of the loan during the course of the loan term (fees can range from late fees, title work fees, appraisal fees etc). Depending on how the loan is set up, in most situations when you roll those fees into your principal balance, then you are also paying interest on the fees + current principal balance which makes it grow pretty fast as you can imagine

Comments

@rosannrosanna if he got a lawyer involved would it reduce this cost? I feel like a 4, 000 dollar increase is outrageous

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@myca45714 Its definitely outrageous but without knowing exactly what’s going on I can’t say for sure if a lawyer would help. I think if it were me I would start with the lending institution and ask for a detailed breakdown of his current balance so he can see exactly what’s going on. If he can work with the institution without getting a lawyer involved it may save him money and the headache. Most institutions would rather deal with it without going to court so they might be willing to work with him on a repayment plan, possible forgiveness of some of the amount

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@rosannrosanna thank you

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@myca45714 best of luck to your friend!