Home Buying in Charlotte>Question Details

jeannebarnes, Home Buyer in Charlotte, NC

I own a condo which I currently rent. My loan interest rate is 6.25%. I am underwater with my LTV. My loan is guaranteed by Fannie Mae. I have tried

Asked by jeannebarnes, Charlotte, NC Tue Jan 1, 2013

to refinance my loan at a lower interest rate to no avail. I called HARP and they said that I did not qualify because I did not live in the condo. Can you help?

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4
Jeanne,

If you are able to maintian the payments on the condo then you may not have any option besides paying it at the higher interest rate. You are in a little bit of a predicament becuase the programs offered out there by the governemtn to help with the people that cannot afford their payments are designed for home owners. It sounds like you are a landlord.

The only options you may have are to move back into the condo and maintain it as your primary residence for at least 6 months and then try to refinance ti again as a primary residence or if you are truly underwater on the loan to value amount and cannto afford to maintain the existign payment on the house you may want to consider a short sale......

But all this is specualtion without knowing a little more detail as to whay you are trying to refinance your mortgage.

Dave diCecco
Realtor/Broker
Coldwell Banker United
http://www.davedicecco.com
0 votes Thank Flag Link Wed Jan 2, 2013
Good afternooon, JEanne:
If you are current on your rent, even though your interest rate is higher than current rents, you may not need to anything. However if your rent is not paying the mortgage, and you are facing foreclosure, http://www.NCForeclosurePrevention.org is a good site for foreclosure prevention. If you don't qualify for the HARP refi, you still have some options, including going through a short sale or possibly re-establishing it as a primary residence, then trying the HARP or getting a foreclosure prevention loan. Whatever you do, if you have gotten a notice of foreclosure, you should act quickly and engage an attorney to negotiate this debt settlement. A foreclosure is not settlement of debt and can leave you open to future collections. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
0 votes Thank Flag Link Tue Jan 1, 2013
If you are having trouble with your loan payment and can not refinance then I would speak to your lender about doing a Short Sale. This may be a valid option versus Foreclosure. A short sale is when you list your property with a Real Estate Agent to sell your home. The bank can some times tell you what they would accept to foregive the loan. Foregiving of the loan does affect your credit. It usually is better than going to a foreclosure process. I have done a number of short sales this past year and helping many people to get relieve from a bad situation. If you would like to discuss the process further do not hesitate to give me a call on my mobile at 704-607-7514
0 votes Thank Flag Link Tue Jan 1, 2013
Because you do not live there, it is considered an investment property which does carry a higher interest rate. You can try with your current bank and ask for a loan modification if you can show a hardship makin the higher payment.
0 votes Thank Flag Link Tue Jan 1, 2013
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