Micheal, Other/Just Looking in Arizona

can I refinance my home to it's present value, even though I paid much more for it?

Asked by Micheal, Arizona Tue Dec 30, 2008

For instance I paid 400k and not even a year later my home is only worth 280k . I feel like I was robbed. What can be done if anything?

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Scott Godzyk, Agent, Manchester, NH
Sat Jan 10, 2009
Michael i see alot of people giving advice on loan modifications, however you should know that they are only giving loan modifications if you can show a financial need such as you are behind in your payments or you have an adjustable rate which has increased. It is always worth a try. good luck
Web Reference:  http://www.ScottSellsNH.com
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Tina Rospond, , 85004
Sat Jan 10, 2009
Michael, I am a real estate professional and I am also a licensed Home Retention Consultant. The terminology with this situation if you are looking to stay in your home is "Loan Remodification". First you need to have your ducks in a row, provide to your current lender the information about the remaining balance on your loan, proven stats on what the homes in the neighborhood are worth today. (Pull the recent 2 month comps from the MLS - Zillow - Get my home values are nice tools however the lenders will look at tax records on recent solds). Then put your hardship letter together on why you feel that a loan modification is required. Keep to the point, write the letter and have a trusted advisor critique prior to contacting your lender. Nothing is a for sure thing but the more accurate facts you have and if you stay level headed the banks will listen. Now from their is based on situation by situation and their is not perfect formula. There are also companies all over the valley that will negotiate with the bank on your behalf. Beware of the ones that want to charge you regardless if they can get the bank to work with your or not. The ones that stand behind their work will get paid when they are successful. Best of luck.
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Troy Erickson, Agent, Chandler, AZ
Sat Jan 10, 2009

There is not much you can do. In order to refinance your home for a lower loan amount, you would have to pay off whatever loan you currently have. Unfortunately you bought your home at the height of the market, and now the market has dropped off to a point where you home is worth less than your loan amount (I'm assuming based on your question).

If you like your new home, I might recommend that you continue to live there and make your current payments. I am assuming that when you bought the home, you qualified for the loan amount and can afford the monthly payments. If you plan on living there for several years, hopefully by then, your home will come back up in value, and even appreciate over the original purchase price.
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Diana Margala, Agent, Rancho Cucamonga, CA
Tue Dec 30, 2008
Hi Micheal:

You might want to check out


and see if you qualify for the renegotiation of your loan. It is the Federal Housing Administration page for Hope for Homeowners, If your lender doesn't do it, there might be a lender on the list that you can talk too and see if they can work with you.

Good Luck!

Diana 909-945-5763
Web Reference:  http://www.DianaM.com
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Dp2, , Virginia
Tue Dec 30, 2008
Instead of refinancing, why not consider renegotiating your loan terms (reduce the interest rate, reduce the principal, increase the amortization period, etc) with your lender. Several lenders are doing it, and not only for hardship cases.
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Carlos Ramir…, Agent, Mesa, AZ
Tue Dec 30, 2008

Part of refinancing you property includes paying off your current mortgage(s). The new lender will only lend you based on the current value of your home, so to refinance the traditional way you will have to come up with the difference yourself, in this case over $120k - which is not an option to most people.

The best advise I can give you is to call your current lender. They might be able to modify your current loan. Another alternative is a short sale, but again to do that you will have to demostrate a hardship - with documentation (pay stubs, tax returns, bank accounts, etc...).

I know it is not the best situation, but talking with your bank should be your first step.

Good luck!
Web Reference:  http://www.SmartAZRealty.com
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Steve Belt, , Scottsdale, AZ
Tue Dec 30, 2008
If you are having difficulty paying your mortgage payment, and can demonstrate a hardship to your lender, there's a chance they will work with you. It's not a guarantee, but there's a chance. You'll need to contact your lender and see if there's something they might agree to do for you. If you are fully paid up (no late payments), they probably won't believe you are in a hardship. Missing payments will kill your credit, but it may get their attention. Or, it could fail, and you end up with bad credit, and nothing to show for it.

If you can pay your mortgage just fine, and are unhappy that your investment has lost value...well, that's a different story. Nearly every home owner in the US is unhappy their home has lost value.
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