Thank you all for your responses.
We tried to get a loan modification, but they told us it is only for those whose payments have been late three months in a row.

As far as the appraiser goes, she appraised it for less than what we had bought it at so that is why we were not able to refinance...according to them.

Get a loan modification. Bad credit ok.Late payments ok. Thanks to the government bail out. Right now the mods are coming in at around 5% fixed rate on bad credit. Even if you are ready to foreclose and have not made a payment for 3-6 months you can get a loan mod! You can check my website for more info

Dear E.,

I'm not a mortgage originator, but I do work with a number of good lenders who I would suggest that you maybe speak with about your situation. The one warning that I'd offer you is that if you have "too many" companies performing credit inquiries on you, then your credit score may go down slightly.

One great thing that your posts suggest that you have in your favor is that you've paid your mortgage on time for over a year. While lenders look at all credit history when they review your file, they pay particular attention to mortgage history. And a history of on time payments should be helpful to you. If you'd like a list of names of lenders to contact, then please feel free to email me directly. Good luck.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby’s International Realty
1634 E. 53rd St. 2nd Floor Chicago, IL 60615
773-418-0640 (mobile) 312-577-0985 (fax)
Christopher.thomas@sothebysrealty.com
http://www.myagentchris.com

Good Morning,

I have had a number of clients who are having issues with Countrywide dealing with refis, modifications and short sales. According to an insider at Bank of America, Countrywide will be fully absorbed by BofA effective 04-01-09 according to internal memos. Those working at Countrywide will tell you that one hand doesn't know what the other is doing. Until they are fully part of BofA I am advising clients to wait. At that time there will be more clarity on how they are going to handle those customers.

Did you have the option of challenging the appraisal? Can you order another? I know there is an additional cost but you may get a better result.

Again, I would wait until April before moving forward.

Good luck!

Hi!! Countrywide is flat out wrong in saying that an FHA loan will take away PMI. There will be MIP (Mortgage Ins Premium) which is a one time fee charged at closing that can be paid at closing or rolled into the loan as well as PMI each month.

I can take a look at your situation and see if I can help you and go from there. No commitments no fees.

Hopefully with this additional information others will join to give you some ideas. But your situation is not an easy one as you need to rediscuss your situation with your current lender.... Mortgage modification is usually possible with the lender but with your credit and with paying on time your chances of that are slimmer than otherwise and the difference in purchase price and current evaluation is not much different either....

If the appraised valuation of your property is the only obstacle you could ask for a second appraisal or contact a local Realtor who is very familiar with your building and see what they can figure out with country wide but since the market / economy was the way it is you are lucky the value of your condo was appraised the same....

By the way you can always contact another lender, not to apply with them but for advice ...
I now understand your situation better, you want to reduce your monthly mortgage payment based on the fact that interest rates are so low, but remember your credit rating and down payment situation has not changed.

What did Contryside say when the appraisal came back to them?
Edith

Here is some more info about my situation:
We bought the condo at 250,000 and didn't put any money down. My credit wasn't too good so this is why the interest was high. The balance of our mortgage is about 247,000 and the reason we want to refinance is because our PMI is really high. It's over 500.00 a month and it makes our monthly payment over 2500.00. When we went to refinance countrywide said a FHA loan would take away the PMI.

There is some information missing in your question in order to give you some advice....

For how much did you buy the property?
It is only 1 1 /2 year ago that you bought, do you know why 7.75 %?
and how much did you pay down at that time?

What was your reason for refinancing?

When we will know more, not only I but also other Realtors will be more able to give you some of their thoughts. Good Luck!
Edith
edithsellshomes@gmail.com