I'm underwater by $130k (21%) on my Marin condo residence but can still make the payments, I need to do something before interest rates rise.

Asked by Salothemessenger, Marin County, CA Mon Mar 29, 2010

I have two lenders (Chase - $440 and WF (home equity line)- $190) both ARM's and need to do something before interest rates rise. Zillow shows a $500k value versus $630k debt. I have a stable job and can currently make the payments but worry about the future. Do I have any options? Short Pay Refinancing? Should I stop making mortgage payments?

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, ,
Thu Aug 15, 2013
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
0 votes
Hannah Flieg…, Agent, Larkspur, CA
Tue Mar 30, 2010
Hi S,

There is a free upcoming workshop about this very issue in Corte Madera at the Corte Madera Recreation Center on Saturday, May 15th 10:00 a.m. to Noon, it's free. No one wants to tell you to stop paying your mortgage because it's against the law to answer this question for you. If you do not have the reserves to cover your obligation then file a "Qualified Written Request" with your lender prior to going delinquent. This will protect your credit, meaning the lender cannot report you late on your mortgage even if you are while this is in motion.

In the upcoming workshop, we will discuss strategic walk aways, short sales, deed in lieu, principal write down refinances, short sales, hybrid short sales, loan audits, refinances with negative equity, loan audits, lien stripping and more.

I do hope you will attend. Good luck!

Hannah Fliegel
0 votes
Dan Chase, Home Buyer, Texas City, TX
Mon Mar 29, 2010
I would talk to my lenders and see if they will modify your loans into a fixed rate. Come May 1 there is some program coming that is supposed to make banks more likely to say yes. Time will tell if true or more empty promises.
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Sylvia Barry,…, Agent, Marin, CA
Mon Mar 29, 2010
Hi Salothemessenger:

I am very sorry to hear about your situation and I understand how difficult a situation you are in and how anxious you must feel about all these. Unfortunately, there are a lot of people who are on the same boat and trying to figure out what they can do.

The good thing is there are quite a few options for you; but the first option really should be loan modification, whether it's short refi or adjustment in interest rates. Another good news is I have recently been hearing of successes on loan modifications, although it does take a long time and a lot of effort to get it accomplished, but the homeowners are able to get their loans modified. This is after hearing the news at beginning of this year where statistics showed very few loans getting modified. Another real important good news is that the terms of modifications are something the homeowners, such as yourself, who have good income, can actually afford and will be able to keep the house!

One of my clients actually saw her ARM’s rate adjusted lower instead of higher like she was afraid of, so she was real pleased – this is the regular adjustment due to the terms on ARM, not loan modification.

You should be able to do that yourself by checking out the HOPE NOW site Tristan provided; it does take a lot of time and energy, but it's worth it.

I also have some names of professionals who help with loan modifications with success - one organization does it for free or charge sliding scale fee, another a bit higher and have many successes; a most recent one is from my open house yesterday - a neighbor told me she got her loan modified, she had to pay but only after the modification was successful. She was very pleased with the service. I asked for the contact information.

Please be very careful before you stop paying mortgages, it damages your credit scores a lot, and some lenders will not modify your loan if you are behind (depending, of course). So, do check the facts before you do that – by coming and asking the question, I know you are being very careful about what you do.

Another thing you should be careful about is services who charge you upfront without any promises or refund policy if the loan modification is not successful. I have seen and heard of too many scam out there; which is a real shame considering they are preying on people who are desperate.

Please click on the link below for my recent blog about one loan modification success story. I will follow up with another one but have been really busy.


Please do give me a call to discuss your situation, because a lot of these will depend on your personal situation. Do be assured that everything we discuss is confidential.

It pleases me a lot to help homeowners keep their home if they are willing and able – what home ownerships are for. Very, very beneficial for all involved and other homeowners.

Good luck!

Sylvia Barry, MAS, ePRO
Frank Howard Allen Realtors
(415) 717-0293
0 votes
Nicholas, , San Francisco, CA
Mon Mar 29, 2010
you may be able to refinance the first mortgage if it's a conforming loan.
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Tristan Cela…, , Marin County, CA
Mon Mar 29, 2010
Contact http://HopeNow.com, 888-995-HOPE (4673)â„¢, for free guidance. Legislative and administrative pressure continues to motivate lenders to cooperate so keep on top of the news.

The link below is to a reference you can use for almost all your real estate questions.

RSVP if I can help.
0 votes
Liz Williams…, Agent, Sausalito, CA
Mon Mar 29, 2010
First, I wouldn't rely on what Zillow has to say. It would be best to first ask a local agent who can look at what comparables there are in your neighborhood. Difinitely, do not stop making payments for now. Please feel free to call me, I have experience in working with clients in similar situations.
0 votes
Scott Cherry, Agent, San Rafael, CA
Mon Mar 29, 2010
Where is the property? I can do some checking for you.
0 votes
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