Financing in 33073>Question Details

blodi, Home Owner in Pompano Beach, FL

I have a condo underwater and a equity loan with it can i refi and combine the amounts ?

Asked by blodi, Pompano Beach, FL Thu Apr 18, 2013

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The is a question that is best asked of a mortgage lender, not a Realtor. I will be happy to refer you to one of the excellent lenders in our area.

As a general rule, backs are more cautious about loans on condos than they are on single family homes. Therefore, the odds are not in your favor when it comes to refinancing an upside down condo.

Upside down owners have several avenues to try:

1) tough it out and pay off what you owe. Stay in the condo when it is paid off.

2) loan modification - for most this is a long, drawn out, frustrating process, that ends up with a denial letter, but there are a small number of people who are approved. You might be one of the rare people who gets a loan modification that you can actually afford. Failure rate on loan mod application is 96%, so set expectations acoording. Loan modifications generally do not make financial sense for the lender, so they are reluctant to grant them.

3)Short sale - If you are current on your monthly maintenance dues, you are more likely to be approved for the short sale than you are for a loan mod. Lenders PREFER short sales over loan mods and over foreclosures. It makes the most financial sense for them. The fact that you have an equity loan complicates this a bit. If the first mortgage and the equity line are with the same back, that could help speed up the process. Some lenders, like Bank of America, offer incentives for sellers doing "cooperative short sales" anywhere from $700 to $15,000. Many owners qualify for a $3,000 moving incentive when selling as a short sale under the Home Affordable Financial Alternative act.

4)Deed In Lieu of foreclosure - While not as desirable as a short sale, this is better than a foreclosure. Again, the fact that you have both a first mortgage and an equity line will complicate this and make it harder for you to get the bank to accept a deed in lieu of foreclosure.

5)Foreclosure - We are doing downwards in terms of desirability. Foreclosure comes with a host of problems that owners are oblivious to. The first would be denial. LOL For a few jaw-dropping articles on foreclosure, Google "video the home is gone but the debt lives on wsj". Then google: "the lastest foreclosure horror the zombie title". These are the kinds of issues walk-away owners are not aware of, but you should be if you are even remotely considering foreclosure as a solution.

6) Bankruptcy - Since you have a pay a lawyer to process the bankruptcy, this may or not be an option for you. However, it might get rid of the equity line. We do not know the amounts you owe or what your condo is worth based on your question.

You can find links to both of the news stories mentioned above on my website:

Feel free to contact me if I can help in any way.

Barry Dunn
0 votes Thank Flag Link Sun Apr 28, 2013
call me we can discuss further
0 votes Thank Flag Link Fri Apr 19, 2013
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