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Financing in 90034 : Real Estate Advice

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Activity 6
Wed Dec 11, 2013
Cesar Rueda answered:
Although most lenders are very hesitant about funding a short pay refi and do not offer this program at all, my company works with a few lenders that do provide this service. I have successfully negotiated and funded several transactions in the past year.

Basics are as follows:

Existing loan must be conventional (not insured by FHA).
Homeowner must be in a negative equity position and current on the existing mortgage to be refinanced.
The borrower must qualify under standard FHA UW requirements.
Existing 1st lienholder must write off at least 10% of the unpaid principal balance.
Must be owner occupied.
Max Ratios = 35/48%.
This FHA program is available through December 31, 2014.

If you'd care to apply for a short pay refi, please feel free to contact me. I'd be happy to discuss your options with you.

Cesar Rueda
Mortgage Broker
RealWorks Lending
(818) 385-0271
BRE Lic.# 01382167
NMLS# 247876
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0 votes 21 answers Share Flag
Thu Aug 15, 2013
answered:
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
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0 votes 18 answers Share Flag
Thu Aug 15, 2013
answered:
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
... more
0 votes 18 answers Share Flag
Thu May 30, 2013
Gail Mercedes Cole answered:
Conventional and FHA guidelines could have changed but conventional 7 years after bankruptcy and FHA is 2 years BUT other factors are involved;
-Work history
-Credit Rating
-Etc.
I would check with a direct lender they can pre-qualify for refinance and they will have all of your information. Attached is general guidelines for Convention and FHA Lending
http://www.westlaestates.com/general/fha-financing-opportunity-for-buyers-315/

I am a Realtor and not a lenders and do not want to give incorrect information. Check with direct lender and see where you stand. If you cannot refinance Now then When will you be able to refinance. Hope this was helpful.

Gail Mercedes
310.853.9933
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0 votes 4 answers Share Flag
Thu Oct 6, 2011
Gregorio Denny answered:
Your agent does not understand an option ARM. I don't know of any neg-am ( which is a sub prime loan) that allowed an interest rate lower than the initial rate written into the note. If you look at the payment options you have, you will see you have a very low rate that negatively amortizes, such as 2%, you will have an interest only payment, a fully amortized 30 year payment and possibly a 15 year payment option. Whatever rate the 30 year is calculated at, is most likely the floor rate. Recasting your option ARM won't help you nor will it lower your payments because it will be re-amortized for the period of time you have left. If you have been in this for 5 years, it will be re-amortized as a 25 year at whatever rate is in the note and I assure you it's higher than 4.5 if written 5 years ago.

I suppose it's possible that there are exceptions to this, but it's highly doubtful. I also doubt that your agent knows anything about how an option ARM was structured so take that advice with a grain of salt.

Note that most lenders are doing modifications for borrowers with neg-am mortgages. Wells Fargo in particular lost a court ruling in California where they are to modify their portfolio of Wacvovia (formerly World Savings) pick-a-pay loans. You should definitely speak with your lender and it won't hurt to ask about the recast, but check your note first to see what the ramifications of that will be. I think you may find it to be a bad idea.
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0 votes 8 answers Share Flag
Sun Jul 17, 2011
Ron Thomas answered:
It sounds like there might be a CATCH 22 in that new revision:

I doubt that there are too many instances where the Homeowners is defaulting on the 2nd and NOT the 1st.

Also, notice the wording about the "Agreed Upon Amount"; usually the 2nd lien holder hasn't agreed to anything; they are simply told that they are getting NOTHING, and that leads to the Shortsale being held up.

It sounds like there is a lot of GRAY area here. I would not personally want to put it to the test:
What will happen when the 2nd Lienholder notifies the 1st Lienhold that you are defaulting?
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