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property value has dropped what should we do?

Posted on: 24th May, 2009 03:58 pm
Originating loan amount $150,000, we have two interest only loans and now find that our property value has dropped to $89,400. We both have jobs, our loan payments for 1st & 2nd are 1045 & will be going up in July to 1099. If one of us looses hours or our job we won't be able to continue with the payments. My husband is a school bus driver and our income is short during the summer months. Any suggestions on what we should do with our current mortgages.
hi tonishaul!

welcome to forums!

refinancing the loan at a lower rate would have been a better option for you but as there's no equity in the property, lenders won't refinance. i would suggest you to speak to your lender about the new home affordable refinance program introduced by the obama government. under this program, there is a chance that you would be able to refinance it.

feel free to ask if you have further queries.

sussane
Posted on: 24th May, 2009 07:50 pm
First, where are you coming up with the figure for the value of your home. There is a program lending up to 105% 1st mortgage Loan To Value(LTV) of the property, while also allowing up to 110% Combined Loan To Value(CLTV). Please clarify if you have had the home appraised. I hope this helps...
Posted on: 24th May, 2009 07:55 pm
the obama plan wouldn't work b/c of the 105%.
call the loss mitigation department and see if they will renegotiate the terms of your mortgage.
who are the lenders for both...i may have a # for you
Posted on: 25th May, 2009 10:11 am
Elnora, I agree the Obama plan would not work if the Loan To Value ratio exceeds the 105%, but that would be the reason for asking where they have come up with the value. If the number is simply based on their own estimation, they may want to do some research in finding out the true value at the present time. If the value does come back at the number you have stated, then proceed to renegotiate terms. I hope this helps...
Posted on: 25th May, 2009 11:01 am
$89,400 is what is on our 2009 Assement Notice paper received.
House not appraised in the last 2 years, we are locked into these loans until March of 2010.
Posted on: 26th May, 2009 04:55 pm
Type your address in to a website like Zillow.com or cyberhomes.com and they will give you an estimate of the homes worth and the neighboring area. This is not always so accurate, but it is another option for looking into your homes value with the present market conditions. I hope this helps...
Posted on: 26th May, 2009 04:59 pm
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