If you have a conventional loan, you may also be able to refinance and get up to 125% of the home value. But again, additional restrictions apply. If you can't qualify for a refinance, then a loan modification or a short sale would be your solution depending how long you plan on staying in the house and what are the rental fees in your area. And yes you can negotiate it with your bank yourself.
They are two different things.
To do a loan modification, you would work with your current lender to lower your monthly payments so that you can continue to stay in your home and pay your mortgage each month. Homeowners often need to do this if they have had unexpected expenses due to illness, for example, or a loss of income that now affects how much they can pay on their mortgage each month.
When you refinance, you work with a new lender to qualify for a new mortgage and pay off your old one. This would not be possible if your home's current market value is now lower than the amount of your existing mortgage, and the home does not appraise for the amount you need to borrow.
If neither of these is a possibility, a homeowner could try to qualify to sell the home in a short sale. If you're in one of these situations, you may want to consult with an attorney.
Maggie Hawk, REALTOR
Watson Realty Corp.
No, it is not the same.
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Here's a link to information put out by the National Association of Realtors: that explains the HAFA program: http://tinyurl.com/ygc66zy
And, here's a link to our governments web site that explains what options and what qualifiers may be available for a refinance, or loan modification: http://tinyurl.com/d8y26s
I believe you will find the information from these two web sites helpful to either you or someone you know.
Dear Home Buyer ,
Refinancing can also to lower your payments when you have a high rate that can be reduced by refinancing to a lower rate. It is advisable to calculate the cost of refinancing and how long will it take to make up that expense.
When the rate difference is less than two percent of the current mortgage it is more advantageous to accelerate or prepay the principal thus reducing the debt . In conclusion do your numbers.
Saving is always a good choice.