Refinance: mortgage is 280K property value is only 230K. Do you know anyone who can refinance this?

Question

The mortgage resets in another 2 months and the payment will go up about $500. Is their any plan to refinance this mortgage???

Answer 1

Not currently, and this is a part of the housing problem that hasn't been addressed by Bush's 'solution' yet. During the boom appraisers went CRAZY in an attempt to make all of the deals go through. So aside from people getting drawn into teaser rate ARM's, there are hundreds of thousands with fixed rates but homes that were appraised to a ficticious value. Now even though Bush has rolled out a plan to help those who picked up ARM's that are about to default, he has failed to take into account these inflated appraisals mean no mortgage company will refinance them with loan to value numbers like that. Add to that the fact that the fixed rate folks aren't currently being offered any sort of help yet and we have ourselves a real mess.
I am torn in my feelings on this matter. I can do nothing but bow down to Mr. Greenspan and his wildly successful efforts to avoid the economic storm that swept the rest of the world over the past 10 years, but I saw then what it was doing to the housing market and knew this day would come. I couldn't make any sense of the complete failure to see the issue and take measures, so finally decided that the housing market was deliveratley left to it's own devices being the commercial endeavor that it is. Just the scope made me wonder if that was such a good idea. In thinking on it over the last few months I lean toward agreement with Mr. Greenspan. Businesses and consumers came together with knowledge to offer and accept loans with clear terms.

Answer 2

The value is lopsided. Unless you can get this appraised for this value, the likelihood of getting a lower or current rate on a refinance is slim.

If you plan to stay in the house for a while - the dynamic changes a bit and you might be better off making that extra payment.

Answer 3

Unfortunately, there is no way a new lender is going to finance a home with negative equity regardless of how good your credit is. Your best bet is to contact the bank you have your note with and try to work something out with them.

Many lenders are working with borrowers these days to keep them from going to foreclosure. If the rate goes up and you can't make the payments and the lender has a lot of equity in the property, they are in a much more favorable position and are less likely to work with you.

However, since there's negative equity, they might work something out, because it does them no good to incur the loss of all that interest that you could be paying and have it sold at sheriff's sale at a major loss on top of that. That's really your only option here. It may or may not work, but it's certainly worth the shot.

Good luck.

Answer 4

Call the local FHA office and see if you might be eligible for the special refinance package that the federal government announced a couple of weeks ago (it was all over the news). Failing that, look for non-profit organizations that can try to help you renegotiate your current mortgage. And failing THAT, start reading up on foreclosure and talking to a CFA... if you don't have a moral issue with stiffing your lender, it may make a lot of sense for you financially.

Answer 5

Understanding the dynamics of mortgage interest rates and performing your mortgage rate search during the shortest Understanding the dynamics of mortgage interest rates and performing your mortgage rate search during the shortest period of time possible will help you qualify for the best interest rate when mortgage refinancing. The best scenarios for you to consider mortgage refinancing is when you owe a large amount and you still have many years of paying off your home loan. In consortium with other factors, your credit rating will determine either the approval or decline of your mortgage refinancing application; thus, efforts should be exercised in making sure that at least your credit score remains high. For specialist information may I suggest you access: http://www.refiadvisor.com/ and ask a mortgage advisor, alternatively, you could access: http://www.insightempire.com/mortgagerefinancing.htm for additional resource links pertaining to your question.

Answer 6

Your only hope is to do a short sale. Since as a firm, general rule banks will not do a forgiveness of this amount, you would have to have an outside entity or buyer negotiate with the bank to agree to a lower payoff amount.

I have some contacts with some investors who do short sales for a living. If you would like to get in contact with one, send me a personal msg with some info about the property (cuty/State/lender etc) and I'll put you in contact with one.

I wish you well

Answer 7

You need help and fast. I suggest you contact this HUD approved counseling service 888-995-HELP on Monday. You also need to contact your current lender and ask for their help. The Fed's are putting alot of pressure on these loans companies to help their clients with these issues. If you've paid your payments on time and have no other credit issues, they will probably work with you at this point. But do call them!

See your problem at this point is your are upside down in value. And it won't appraise.

Answer 8

I have been browsing the internet more than two hours today searching for answer to the same question, yet I haven't found a more interesting debate like this. It's pretty worth enough for me.

Answer 9

Unless you can get a appraiser to value the property higher no.It may be best to keep the place if you can until prices rebound.

Answer 10

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