Reply #11: It sucks losing your home. [View All]

[Warpy]

You do pay mostly interest and little principal for the first 10 years. That's how the lenders are supposed to make their money and how the process was designed to make a 30 year mortgage attractive to lenders. For many years, it worked, until somebody decided a housing bubble helped along by mortgage scamming and financial shenanigans was a good idea.

Before the 30 year mortgage, all mortgages were 5 year balloon mortgages. You paid a set amount of interest to the bank every month and after 5 years, the payments would balloon up to include a quick payoff of principal. Since people generally didn't get rich quick and never were able to pay those balloon payments, they renegotiated the deal every 5 years, never owning anything and never being able to pay the sucker off.

I'm sorry you lost your home, but I would suggest the medical bills had a lot more to do with it than the standard 30 year mortgage amortization. I hope you recover your health and recover from bankruptcy. I hope we all recover from this mess.