When will some of the most honest Americans be able to refinance?

Asked by Brian Halstead, Miami, FL Thu Nov 15, 2012

Look I have a client who bought a house from me in 2006, she have faithfully paid her mortgage since then despite her home being under water for the past four years when the market collapse, she cannot refinance because her primary loan from BoA is not a Fannie Mae or Freddie Mac loan hence she does not qualify for any government program (HARP), unfortunately it is owned by investors Wall Street, whose fault is that? If anyone deserve a break it is this woman she paid her mortgage religiously all these years despite everyone advising her to just walk away, of course she has great credit but her home is so far underwater at least 300K now, she is house poor and will be for at least the next two administrations.

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Jaime Mondes…, Both Buyer And Seller, Miami, FL
Fri Nov 16, 2012
As hard as it may be to swallow. I would recommend to keep making the payments. Bank of America need to get off their soap box and give this women the break that see needed. Follow @Larray Tollen advice, he is on point in this matter.
1 vote
My NC Homes…, Agent, Chapel Hill, NC
Fri Nov 16, 2012
If your client has 20% equity she can easiy refinance. If prices have dropped so significantly that she no longer has equity my advice is that she contact both your state Attorney Generals's office and the real estate commission and lodge a complaint against BoA. If you've been paying attention to the news BoA is activley refinancing all sorts of buyers as part of a legal settlement with the justice department.

You were happy to sell her the house and earn the commission when the market was overheated and if you want to help her now, then get involved and point her in the right direction. My understanding is Florida real estate is rebounding and I can't help but wonder about the advice she received when buying if she's still $300,0000 underwater as you suggest. The fact that she's been making her payments is admirable, that's the agreement she made when she got a mortgage, the fact that real estate does go up and down and that there's no gaurantee on market prices always going up isn't news.
1 vote
That some good advice there Larry I really appreciate it. I will definitely advise her to do that and of course give her all the help she needs to get this done, I will never forget that commission my wife was pregnant that year and it went a far way.
You are right about the market rebounding her in Florida but it is quite sluggish and inconsistent. I also do not wish to remove blame for myself for selling her a home when the market was high everyone was doing it I am sure you did also further she loved the property very much and after the sale had enough equity to refinance and remove PMI in a few months after buyer in 2006 this increase her mortgage but reduced her payments.
So the advice she receive from me at that time was pretty solid as I did not have a crystal ball to tell her do not do it the market is going to crash in a few years and you would be stuck as you said from all foreseeable impressions “real estate does go up” and it moved here faster than anywhere else which was not normal to say the least but we all went with it and that I will never forget.
Flag Tue Nov 20, 2012
Kevin Clouti…, Agent, Cape Coral, FL
Fri Nov 16, 2012
Honest Americans are discriminated against and are the true minority. The rules were made to favor the bankers and politicians.

When the bank puts the screws to us, its "just business, nothing personal". When we take advantage of using the system and walk away or short sale, the banks says "What about your morals and intergrity and the fact that you made a deal, honor it." Then it calls the whitehouse and gets reimbursed more than it "lost". Great deal right? She is a slave to the banker like most of us.

I would advise her to walk, doi a short sale, wait the 2 years or find an owner financing property in the meantime, there out there. Break the chains that bind her enjoyment of life.
1 vote
Who is this guy? I cant say I agree 100% with you but I understand you completely if you do not fight for you, no one will, they will be no peace until the people gets justice, sometimes the only way to get it unfortunately is to play their dirty game, sad... real sad.
Flag Tue Nov 20, 2012
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