Oct
23
Does Anyone Have Information On The Modification Loans To Avoid Foreclosure?
ByMy husband and I are still able to do our house payments so far, but we want to refi to the amount it’s now worth (bought it for 480K and now worth 350K). Do we have to be behind on payments? Is there anything we can do to save our home before it’s too late. Any help is greatly appreciated.
Thanks!!!
4 Comments
October 23rd, 2009 at 4:33 pm
Hi there,
With that much of a difference between your home’s value and what you owe, you will not be able to refinance. Lenders now are demanding strict Loan to Value ratios (as they call it). In your situation, if your home is worth $350, you would need to owe just $280 to get it refinanced, depending on your credit.
You might be able to negotiate a loan modification. In such instances, the lender lowers your interest rate, which lowers your payments. Early in this housing crisis, some lenders were also lowering your overall debt (principal on the loan). But that is rare.
To qualify, you will need to show that you are in the “sweet spot.” Meaning you make enough to pay the lowered monthly payment, but not too much to afford your current payment. I strong suggest seeking a professional’s help in the negotiations.
October 23rd, 2009 at 4:44 pm
Talk with your lender to see if they will refinance but if the bank agrees it’s refinancing the whole amount it will not knock off 150|K it is not a short sale, even with short sale not sure if the lender would write of 150|K versus going to foreclosure and collecting the insurance payout
October 23rd, 2009 at 5:12 pm
Dont do a refi, do a loan modification… i was in the same situation i was behind and after dealing with the american modification agency they got me caught up and lowered my interest rate so i could afford it! Email my agent that helped me save my home from foreclosure.
AMartino@YourAMA.com
October 23rd, 2009 at 9:34 pm
get in touch with your lender but if you even go 30 days down in today’s market the lender may start foreclosure proceedings an way.