Don't have much information on your current situation but I would like to throw out a possible solution.
Why don't you ask your current lender if your loan is owned by Fannie Mae? If it is, you may qualify for refinancing under the special program that is part of the National Stimulous package. Go to http://www.makinghomesaffordable.gov for the basics of the program. Your home mortgage must be owned by Fannie Mae and there are certain other guidelines. But, it is definitely worth a shot! Current interest rates are so nice and low right now! There may be other options out there but this is the only one I can think of at this time.
If this doesn't work and you can find no other options, I would advise you to hunker down and be patient. Prices are coming up but slowly. Since you seem to love your current home and don't want to move ... you might just have to stay put for awhile and consider your mortgage as the price of a happy home. Things will eventually change.
Prudential CA Realty
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Larry Webb, Ph.D., MBA
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Sheryl Arndt, Broker
I just ran across your problem. I'm sure you've already refinanced under HARP 2.0 - It;s a governement program for folks just like you. The program came out the 3rd week in March 2012. It expires December 31st, 2012.
I have a loan funding tomorrow at 4.125% and my clients house is "underwater". If you've kept current on your payments and your rate is stil above 4.5% and you plan on being in your home for a while - please give me a call. I can save you money.
Castle & Cooke is a direct lender with our own in house under writting team.
I'm always available 24/7 on my cell - (949) 212-4578
Cstle & Cooke Mortgage
Cell: (949) 212-4578
If the 1/2% isn't low enough for you, you could propose a more reduced rate to your credit union. See if they have a loss mitigation department and send in a formal request.
I also think it's important to look at all your choices. Since your home is owner-occupied, please take the time to review the Home Affordable Refinance & Home Affordable Modification options at http://www.makinghomeaffordable.gov/refinance_eligibility.html. You actually don't have to miss a payment to be eligible for these programs. Since you haven't missed a payment, I would check first to see if you are eligible for the Refinance option. See http://www.makinghomeaffordable.gov/refinance_eligibility.html. Now, if you aren't eligible for the refi option, you maybe eligible for a modification. This does require a hardship but keep in mind that if you have loss of income directly from a job, increased medical bills or anything substantial that reduces your net income, then you have a hardship and could potentially be eligible for a modification. I have personal experience in handling modifications, so please feel free to contact me with questions.
It's fiscally responsible of you to at least try to lower payments in this day and age. I wish you the best in getting it handled & if the government options seem to complicated, take the reduced rate offered by your credit union!
Frequently Credit Unions hold the Note for the benefit of depositer(s) within the Credit Union. If this is the case, you would need to negotiate through the credit Union to see what your best alternatives would be. We provide a Free Total Cost Analysis (TCA) to see if their offer is in your best interest. The TCA is a spread sheet that lays out all the details for you and then shows you what a 5 Year, 10 Year and 15 year Analysis would look like. As others have suggested, you can also check the Freddie Mac or Fannie Mae websites to see if they own your loan and then there are other options as well although since the Credit Union has made you this offer, my first scenario cited above is most likely.
Check your property address via the lookup link on Fannie and Freddie's website and if you're not in their database I'd take the credit unions offer and feel very good about it.
If you have any other specific questions post back.
The Bank needs an Appraise Value of your home if the value is not there is going to be difficult for anyone to give you a modification. If the Bank canâ€™t approve your modification, you should talk to a CDPE, (Certified Distressed Property Expert) to see other options. Good Luck to you.
Right now you're making payments, to them there's no risk of default, why would they go & offer you major interest rate reduction?
The goal of the HAMP program (Making Homes Affordable Program) as stated in their mission statement that can be found online is to Reduce a homeowner's mortgage payment be $300-500 for a short term period of 3-5yrs. When the HAMP program started around March 2009, they were supposed to help 7-9,000,000 underwater & struggling homeowners. By Nov. 2009, Bank of America had only permanently modified 98 loans with over a million owners at a 60 day default.
Banks are not so interested in doing loan modifications which is why most people just get the run around, constantly being asked to submit another paystub or a bank statement, or the bank loses information & sticks people in trial loan modifications which aren't permanent solutions & then the bank denies the application. Which is why there are so many short sales & REOs on the market.
You can counter the bank. What the bank is looking at is this: Take your monthly gross income X 38% then subtract monthly property tax, homeowners' insurance any hoa fees & that's the payment you're trying to reach (this figure represents your HTI-Housing To Income ratio), figure out at what interest rate would cause you to get to that payment, provide proof that that is all you can afford and go from there. Keep in mind it's not just the interest rate that you can argue be reduced, you can couple this with an extension of the loan term, amortize the payment over 40yrs instead of 30, for example.
Explain your hardship & how your income has changed since you initially qualified & were approved for your original loan.
I'd be happy to forward you an itemization of expenses form you can use to help outline what your monthly expenses are, this is something you can do on your own, I wouldn't be privy to your personal finances.
Shoot me an email directly if you like, I won't check back on this same Trulia posting for responses.
Pls fee free to contact me for the best rates and services.
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How is the value compared to the mortgage balance? Is the home worth 60%, 70%, 80%, 90% of the mortgage balance, etc.? Depending upon this answer, the offer you have may be the best you can do.
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
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