What refinancing options are available if you're not distressed but your home has decreased in value?

Asked by Casandra, Seattle, WA Tue Feb 17, 2009

distressed homeowner but would like to work with a local (CA) broker to discuss my financing options. e.g. a condo that's decreased in value, options for new financing. Prior recommendations resulted in no call backs. Has $ really disappeared? Thanks.

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4
Bonnie Sterl…, Agent, Simi Valley, CA
Wed Feb 18, 2009
Hi Casandra, Be very careful of anyone offering you something that sounds too good to be true. The offers can be very tempting but if you are asked to pay for a loan modification, which some companies are charging on average of $2500 or told to let you payments go behind when you can actually make the payments, think twice. I have several homeowners I know who are concerned about paying on something they are upside down on or have a loan adjusting up. If there was something out there, available, I have several lenders that I trust, who I have asked to share those details with me. None have told me of a "good" program available yet so, I would be hesitant to believe that there is anything really out there yet. If you can afford to make the payment a little longer, hang in there. Everyone in lending tells me that there are programs coming.
0 votes
Barry Shapiro, Agent, Camarillo, CA
Tue Feb 17, 2009
Casandra,

As long as you are current in your payments, owner-occupied, and working, you may be able to refinance at a lower rate when the new stimulus package becomes law. Unfortunately, most lenders today will not refi- if your equity position is less than 90% loan to value. Sometimes, you can tap into family resources, to pay down your balance (through cash or their cash-out refi). A loan modification may also be an alternative -- whereby the lender agrees to a "haircut" on the principal balance. We are hearing more and more about 2nd lienholders writing off the loan and issueig a 1099-C (cancellation of debt). Contact me in the morning and I will be glad to refer you to a top-notch mortgage Broker that understands your unique goals and situation...
0 votes
Ted Mackel, Agent, Simi Valley, CA
Tue Feb 17, 2009
You can try Sean Hart at First Rate at (818) 735-5991 in Westlake Village or Michael Chabot at (805) 496-5415 xt 19 at Sherwood Mortgage. Both these guys are very good at what they do.

If you have any equity left then there could be a possible solution. If you are upside down, there has been talks and rumors of Short refi's but no one I have talked to actually has met anyone who completed a Short refi.

The question was asked at the recent California Association of Realtors conference if anyone was involved in a Short Refi and the they could not find anyone there who has been involved in one.

I think your biggest challenge is going to be getting an appraisal that will stick.
Web Reference:  http://www.homebuysblog.com
0 votes
Crestico Rea…, , Los Angeles County, CA
Tue Feb 17, 2009
Casandra

Contact the lender below, they have a short pay refinance program that might help you.

Houtan Hormozian
American Guardian Home Loans
T: (949) 242-5215
T: (877) 242-5215
hhormozian@amguardian.com
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