Financing in Virginia Beach>Question Details

Sam Pitts, Other/Just Looking in Virginia Beach, VA

Should I try to refinance under the Obama program?

Asked by Sam Pitts, Virginia Beach, VA Wed Apr 22, 2009

I have currently have a 30yr fixed 5.875 IO loan, and am not having problems making payments. Sure times are tight, but making everything on time. The balance on the loan is 232,000, the current online comps are at or below loan balance. This is down from my last appraisal of 290,000 which was done 2 yrs ago. My loan is backed by Fannie Mae. I called my mortgage holder for a regular refi, and was instucted to fill out the necessary paperwork(online) under the Obama refi plan which requires some sort of financial hardship, none of which I am currently having. I just wanted to refi at the great rates. When I took the last loan 2 years ago, I was at 20% equity. Now I will be lucky to have any equity according to my lender and other comps I have done. If indeed my homes value has dropped below the loan balance, and I am in good standing on my loan, and have a good fico(745), shouldnt I qualify for a refi under the new Housing Affordability Plan?

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See the blog post below. You can refi under HASP up to 105% of the value of your home. It should be easier (and cheaper) with your current lender, but another lender can do the underwriting if your lender hasn't completely rolled out the program... plus, banks are not REQUIRED to participate, so maybe that is how your current lender is administering the program. I know there are Bank of America's in your area - and they have rolled the program out. You do not need a hardship.
0 votes Thank Flag Link Thu Apr 23, 2009
Hey Sam,
Brad Shoemaker from Southern Trust Mortgage here. I think we may have a way to re fi you without the hardship part. Since you have a Fannie Mae loan , we may be able to refi it without even doing an appraisal. Feel free to call me with any questions nd we can do a FREE loan anlysis.

Thanks,
Brad Shoemaker
(757) 685 3913
0 votes Thank Flag Link Thu Apr 23, 2009
Sam, stick to your guns. You are a good customer; you have an income & a good FICO score.
I would call your institution and demand to speak to a manager or supervisor, or better yet, if they have a brick and mortar location go there and do the same.
I encourage all of my clients to go directly to the institution!
Should they attempt to steer you in the direction of the Obama program, tell them no!
"I want to speak to a supervisor"!
You need to say to them that you are considering to refi with another institution, but since they currently have your information/loan in house, it would be easier and cheaper to continue with them.
Also, remind them that you are a great paying customer!
You should be able to negotiate around 4.5-4.7% with no closing costs!
Some institutions are easier and more understanding than others.
Most of these institutions received assistance themselves and they are attempting to parlay this money into profit!
Demand and stand tall!
You should be proud that you are one of just a few attempting to do the right thing!
Don't worry too much about your equity position.
It may take longer than a 5 year cycle to turn the economy around, because fundamentally nothing has really changed.
Unemployment will increase, bank and credit card rates will increase, income will decrease, inflation is a given with all the free money out there, home prices will continue to decline for at least two years, bankruptcies will increase, short sales will increase and gold prices will most likely rise.
Having said this, the sun will rise again and you will see your equtiy again!
A home is a great investment over time!
Good luck and please let me know what happens!
0 votes Thank Flag Link Wed Apr 22, 2009
your lender is confusing the refi for people with payments that are current with the program for people who are behind in their payments. President Obama has asked us all to refi under the new program in order to help the recovery. If you owe more than your property is worth you qualify. basically a 5 minute call to your lender is all it should involve. perhaps signing a paper or two.


check out http://makinghomeaffordable.gov/
note there is no (s) after home.

sometimes you have to know more than the people you are dealing with to get things done--if your lender still doesn't come around--talk to his supervisor.
Web Reference: http://tinyurl.com/VBREIG
0 votes Thank Flag Link Wed Apr 22, 2009
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