Financing in 85351>Question Details

simmonsrr63, Home Seller in Lacey, WA

is there a way to refinanace a loan thats under water?

Asked by simmonsrr63, Lacey, WA Thu Jul 12, 2012

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Just to clarify on another answer, there is NOT a 125% limit to the availability of a HARP refinance. Depending on whether you have a Fannie Mae owned loan or Freddie Mac owned loan will determine what lenders might be able to do your refinance. We do have the ability to do a Fannie Mae or Freddie Mac owned loan with NO limit to the Loan To Value (LTV). FHA streamlines with no appraisal use the original appraised value at the time of your current loan, but they do have a 125% limit to the LTV. However, if you got the current FHA loan more than a couple years ago, then there is a good chance your last appraisal was much higher than where your property value is now, so your LTV will likely be much lower.

While short sales are an option, you should definitely check into your refinance options if your rate is higher than current rates and you're able to make your payments. Property values are rebounding quite well this year and you should take your entire financial picture into consideration before any decision. You don't want to damage your credit for the next several years by short selling if you could potentially see your property value get back above your loan balance in the shorter term.

Brian Cardenas, Sr. Mortgage Banker
AmeriFirst Financial, Inc.
Mobile: 480.233.7897
0 votes Thank Flag Link Thu Jul 12, 2012
Hi Simmon:

As mentioned by the two lenders who have responded, the type of mortgage you have right now will determine what your options will be. Contact a licensed mortgage loan orginator and discuss your situation in detail. That is the only way you will know the correct answer.

To clarify, 125% is no longer the maximum for refinancing if you have a FHA, Fannie or Freddie loan. I would agree there are many lenders (think, Big Banks) who are squashing homeowners' attempts to take advantage of the stated parameters of HARP 2.0 (Homeownership Affordability Refinance Program) but, thankfully, there are still lenders out there who will do refinancings of unlimited loan-to-value. Many lenders do NOT offer over 125%, heck a good number of us don't offer HARP at all, but there are some of us whom do offer the program as it was meant to be--unlimited loan-to-value and combined loan-to-value (if you have a second mortgage); transfer of mortgage insurance, etc. You just have to find them.

Bill Parker
NMLS #223607
480-993-3080
Bill.Parker@LegacyG.com
0 votes Thank Flag Link Thu Jul 12, 2012
Each of these responses make good points and should be considered.

But, based on what I have seen here in Arizona, generally if your loan is no more than 125% of the appraised value of you home, you have a chance to get it refinanced. Otherwise a short sale or other options may be a better choice. Since your financial situation plays in to which ways may work, we would need to explore all your options.

We use a team approach that brings in a lawyer, lender and title company to give you the information necessary to make an informed decision as to what is best for your situation. If you are interested in learning more, please call.

Loren Hoboy-Realtor
Central AZ Real Estate
LHoboy@centralAZhomes.com
Your Local Expert
623-688-0004
0 votes Thank Flag Link Thu Jul 12, 2012
Check out http://www.PinalCountyShortSales.com where you can find a great deal of information and resources. This site is loaded with information for anyone who is under water. There is also information that has been provided by an attorney as well as how to contact the attorney.
0 votes Thank Flag Link Thu Jul 12, 2012
Gregorio is correct. The type of loan that you currently have will determine what options are available to you. Give me a call to discuss what loan you have and what options are available to you.

Brian Cardenas, Sr. Mortgage Banker
AmeriFirst Financial, Inc.
Mobile: 480.233.7897
0 votes Thank Flag Link Thu Jul 12, 2012
If you arent' able to keep the house, you could consider a short sale.
0 votes Thank Flag Link Thu Jul 12, 2012
If it's an FHA or VA loan, you can do a streamline refinance without an appraisal. If it's owned by Fannie Mae or Freddie Mac, you may be able to participate in the HARP 2.0 program that allow you to refinance regardless of how much you owe.

You can check http://HarpSupport.Com to check on the details on to find a link to check who owns your mortgage.
Web Reference: http://HarpSupport.Com
0 votes Thank Flag Link Thu Jul 12, 2012
Two ways;
If you come up with a large amount of CASH to cover the difference of the Appraised value,
or, with a HARD MONEY loan at a very high interest rate.

Homeowners have been trying to find a third alternative for three years now.

Good luck and may God bless
0 votes Thank Flag Link Thu Jul 12, 2012
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