We have a program that if it meet the requirement you can refinance your home.
It is called a SHORT REFI
> A minimum credit score of 560 is required
> You must be current on your mortgage
> You must occupy the residence as your primary
> Your existing loan may not be a FHA loan
> Your existing lien holder must write off at least 10% of the principal balance.
> Existing subordinated mortgages must be re-subordinated and the new loan may not have a
combined loan to value greater than 115%
If you would like to speak to me in confidence I may be reached at
Camille Marotta #9838
Branch Manager, First Alliance Home Loans
FHA allows you to use the new rental income of your converted owner occupied home for qualifying purposes if you had a 30% down payment when you bought your existing home. You'd need to have a copy of the original HUD closing statement to prove this for the underwriters.
I closed one like this a few months ago where the buyers had put 35% down payment back in 2003 on their current owner occupied home which was now underwater by $10,000. They were able to use the new rental income to qualify for a 96.5% LTV FHA loan, all because they had at least 30% down payment back in 2003.
Your only 2 options are to rent the current home out and get into your new home or you can try a short sale. A short sale will damage your good credit. Usually the current mortgage company will not even speak with you about a short sale until yo are deliquent on the mortgage and then the process can take several months to complete. You can always rent the home but make sure that you set the market rent for the property so you can get it rented quickly. Let me know if I can be of any assistance.
Not knowing your current financial situation, I would suggest you rent out your present property and move on. Not only will you have someone else pay down your mortgage, you will eventually gain equity and benefit from the loss when you file your taxes even if you have to add in a few bucks monthly. Your rental will become an investment property.
I just did this last year with a client who did not want to hurt their credit. They lowered their price range on the second property, rented out the first to a wonderful tenant and could not be happier.
It can work. Just make sure the rental property is in great condition, and you will get a great tenant. Then YOU will own 2 properties, not the bank. I love Real Estate!
Prudential Fox and Roach Realtors
Short refinance is really a forbearance and is only a good option if you want to stay in your home.
Do not walk away... You have gone this far in maintaining your credit. How do you know you are underwater? http://goo.gl/oj97O
Don't just short sale and be told you have to be late on your payments before you can short sale.
And, if you do miss payments, there goes your credit. There are economic reports that 24 million homes are underwater in the US where people are still current on their payments.
- David Cooper..Las Vegas Foreclosure Investor in Bank Owned REOs with Cash Flow. email or call for FREE daily list. +1-7024997037 not a real estate agent
I know what you are going through. I have 2 short sales listed right now. Prior to this they had great credit too. You're not alone. Call me and I'll be glad to go over the short sale process. There are many programs out there to limit your liability so let's talk privately. Jodi 215-275-7301
Have you considered renting your current home? You'd have to speak to a mortgage professional to see if you'd qualify for another mortgage while holding your current home as a rental.
Rentals are very active right now, you may be able to get more than your mortgage payment in rent every month.
If you want more info about rental rates in your area or need to speak with a mortgage professional about qualifying for a mortgage while renting your current home, please get in touch with me via email or my cell phone below.
Barbara L. Smith
Weichert Realtors, Moorestown
SFR Short Sale & Foreclosure Specialist
Thanks for your question.
I assume you are talking about your primary residence. Have you tried the NJ Mediation Program for people underwater like you said? The will work between you and the bank who hold your mortgage and negotiate in your behalf. It is free. 1-888-989-5277.
Ines De La Cruz
GMI Home Loans
Sr. Mortgage Originator 9838