If you are incredibly upside down, you should seriously consider doing a short sale.

Many banks are not taking part in the Making Homes Affordable program. Even if you get a loan modification & you have a really neat 3% interest rate for a few years, it didn't really solve the problem of your having too high of a loan balance with the market still in decline.

If banks were lowering principal balances on 1st mortgages, you wouldn't see hundreds of people in your city losing their homes to foreclosure.

You've got the Mortgage Debt Forgiveness Act of 2007.

For more information or to find out exactly how much negative equity you really have just shoot me an email. I can tell you if it would make sense for you to attempt a loan modification, short refinance etc.

By the way, you can find out if your loan is Fannie Mae owned by going to:

http://loanlookup.fanniemae.com/loanlookup/

Or if it's owned by Freddie Mac go to:

https://ww3.freddiemac.com/corporate/


emilyknell1@yahoo.com

Hi Mishy228-

If your loan is serviced by Wells Fargo I am a direct representative of the mortgage unit and can help you directly. Please let me know if this is the case. Simply contact me through my website listed below.

Best Wishes,

Thomas,

I've refinanced a few customers above 100% Loan-to-Value using the "Obama Refi" as Jeremy likes to call it. You can go above 100%.

It's not easy, as the loan must be owned by either Fannie Mae or Freddie Mac. Works best when there's no mortgage insurance (PMI). The only lenders who will do this loan if there is PMI is the existing servicer, but I received confirmation that Bank of America does NOT do this loan if it has PMI and you're loan is with them. Weird.

Mishy288, find out if your loan is owned by Fannie Mae or Freddie Mac. The links on on the reference I posted below. Once you find this out, you can see you qualify. Also, if you're upside down to a second mortgage, there is no Loan-to-Value limit but you need to get the 2nd lien holder to subordinate. Tricky when value is so backwards.

Yes, Mishy,

You can do 105% with no problem.

But also, there may be ways to modify your loan with the current lender (and do NOT pay for a loan mod service, especially the ones that want money upfront!).

If you have a VA or FHA loan, there may be ways of doing what is called a streamline where there is no appraisal done, but they are hard to come by now.

You may call me at 877-282-5789 with details and I can give you your options.

Fred

Yes, I call it an Obama Refi, it's better known as making home affordable. Your loan needs to be serviced by Fannie Mae or Freddie Mac. More info at http://www.jeremydrobeck.com/makinghomeaffordable

NO, currently the most homeowners can refinance is to change the rate and term up to 97.75% of the homes value. But that would be accomplished with an FHA mortgage loan.

Technically, up to 125% per Fannie Mae. However, not all lenders will allow this.

Read the web reference for details. You have to have a Fannie Mae or Freddie Mac loan. The links are in the blog post. If you give us specific details of your transaction, we can probably help answer the question for you.

Loan amount
Estimated Value
Credit (1-10 with 10 being perfect)
Does your current loan have mortgage insurance?
Who is your current servicer?

These questions will help.