Posted on: 25th Oct, 2009 10:09 am
currently the home i'm in has a $1.2mm mortgage. purchased near $1.6mm a couple of years ago - home likely worth around the mortgage due, possibly lower ($1.1mm?)
i can in theory afford the payments but have several issues. one, it's an arm loan that was a 5 year fixed (5.5%) and that will be adjustable in about 3 years. that's a concern. two, would really like to refinance to something fixed but obviously with the house being worth no more than the mortgage not sure that's an option.
sure, i'd love a loan modification but there's no way i'm going to qualify for any of the government programs so i need options to at least improve my situation. ideas?
i can in theory afford the payments but have several issues. one, it's an arm loan that was a 5 year fixed (5.5%) and that will be adjustable in about 3 years. that's a concern. two, would really like to refinance to something fixed but obviously with the house being worth no more than the mortgage not sure that's an option.
sure, i'd love a loan modification but there's no way i'm going to qualify for any of the government programs so i need options to at least improve my situation. ideas?
Hi marks,
It is true that you won't be qualify for a refinance because your property is underwater. However, you may apply for a loan modification. Are there any specific reason to think that you won't qualify for it? I would suggest you contact your lender and apply for it by writing a hardship letter. If your request is accepted, the lender can reduce your interest rate for paying the mortgage dues.
It is true that you won't be qualify for a refinance because your property is underwater. However, you may apply for a loan modification. Are there any specific reason to think that you won't qualify for it? I would suggest you contact your lender and apply for it by writing a hardship letter. If your request is accepted, the lender can reduce your interest rate for paying the mortgage dues.