We are upside down on our mortgage. Both or first and second are with large, well known banks. I have tried calling the holder of the first, and I get the run around since I am current on my payments. The holder of the second won't budge until the first does. Do I have any options? Neither will do a short-pay refinance. Would any lender refinance my current loans into one when the value of the house is less the the loan value?
(We want to refinance the entire amount even though the house is worth less. We just want a better interest rate. The total amount may be considered a jumbo loan.)
The SF Chronicle recently had an article on short refis - it sounds like you may have already explored that option, but here's a link to the article in case you can glean anything helpful from it!
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/09/...
Good luck!
I work in banking. I cannot think of any bank that will refinance you into a better rate when the amount owed is more than the market value of the home. Many banks are even loathe to lend at anything >89% loan-to-value. BTW -- Jumbo mortgages can only be done at <60% loan-to-value.
I think what you are trying to get into is a loan modification program. Unfortunately, you are usually not eligible for this until the loan is at-risk of default. But because you are making payments on time and in full, your bank feels your current terms are just fine with them.
Hi~
I don't know what options you may have, but I have worked with a wonderful mortgage broker in the past and she was able to help me. She is very understanding and patient and will explain all of your options.
Marge Nogosek
Cedar Mortgage
###-###-#### ext.128
Best of luck!
Lory
I would talk to a local bank and see what they say. They can at least let you know if it is something you should pursue or not.
I feel your pain. We have been trying to work with Bank of America for over a year now. They won't budge and we too are upside down as we re-fied almost 3 years ago. Good thing we didn't re-fi for the full amount. But even if we wanted to sell we couldn't. I really hope you can find a way to do what seems like common sense but not in the banks eyes.
I would suggest calling another company all together or working with an independent mortgage broker first. You might be able to get a better feel of what your options are, if you have any. Trying to deal with the companies that already hold your loans will be a lot harder because there is no incentive for them to help you (of course, good customer service SHOULD be incentive enough, but so often isn't these days).
Things don't look good. I know it's hard, but look at it from the bank's point of view, if they give you a mortgage for more than what the property is worth and you default, they loose money.
You may want to call a mortgage broker and see if there's anything they can do for you.
If you've had a loss in income and miss a payment your bank should do a loan modification - especially if you have an ARM. Don't expect a principal reduction. DO expect HOURS & HOURS on the phone and a mountain of paperwork once you find the right depeartment to help you but it's worth it in the end.
Look for a local chapter of NACA in your area and attend a free workshop to get an idea of how the process works and if it's for you.
The laws changed in April we were turned down before but qualified under the new rules and just got a better interest rate that is permanent. Thank you Mr. Obama!
Our lender is automatically reviewing our 2nd loan now that the first has been approved for a modification but wouldn't even talk to us about our 2nd until the 1st was finalized.
It depends on who backs your loans. If it's Fannie Mae or Freddie Mac, then you can get a loan of over 100% of the value of the house so it will just depend on how upside down you are.
i called our bank.. and asked about refinance.. and they said no.. but they would change my rate for a few hundred dollars.. it really went well.. it's called a buy down the rate.. ask them... also the government just last week... put in a new thing.. that the bank has to change your rate if you owe more than the house is worth.. i don't know much on it.. but i heard it on the news last week... good luck
There are some options out there but I think that it's worth finding someone in finance or real estate that you trust. In order to get a refinance or any kind of loan modification no matter what the banks tell you. It has been my experience talking to people that you have to stop paying for a few months for them to understand that you are serious. Under the current laws which may change rapidly of your mortgage 1st and 2nd are costing more than 33% of your income then they have to modify for you. But if your first and yor second where not taken at the same time that changes things. Anyway we have gone through the process as have many people we know and the one thing that seems to ring true throughout is that every bank is different. My best advice would be to talk to as many people as you can who know about these things. Somewhere between the banks the real estate agents and loan and other finance people generally lies the answers. Be prepared for a lot of paperwork and some frustration because everyone has a different plan and sometimes you have to try more tha. One:). Good luck
