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Our HELOC is due in a balloon payment soon, refi was declined due to low appraisal. Now what?

Posted on: 14th Apr, 2009 11:23 am
our heloc is due in a balloon payment soon, refi was declined due to low appraisal. now what?...we have a heloc that is due soon in a balloon payment. we can not pay this so we tried to refinance it with the same bank that first administered the loan. it was declined because to appraisal came back too low. they gave the loan in the first place and thought the value was sufficient. i realize the economy is a huge issue here but i am not sure what my best option is now. our current mortgage is an fha mortgage and we would consider refinancing them both if that is the best option. any suggestions?
You might be able to refinance and pay off both mortgages, it depends on the equity in the home with the new appraised value, what did the appraisal come in at and how much do you owe on your first mortgage as well as the 2nd mortgage? FHA is most likely the best option if the equity is tight.
Posted on: 14th Apr, 2009 02:45 pm
owe 48,000 on 1st mortgage and 25,000 on second mortgage in this market, it should be realistic to expect 75,000. i am not sure where the appraisal came in at we are still waiting on that information
Posted on: 14th Apr, 2009 04:17 pm
You would be at 97% loan to value, which means that if we were able to get you approved for an FHA loan, you would have to come to closing with money, to cover your escrows. Another option at this point is a DU Refi Plus, this will allow you to refinance the first mortgage at a lower fixed rate and request a subordination for the 2nd mortgage, of which this program does not have a cap on the combined loan to value (CLTV)
Posted on: 14th Apr, 2009 06:23 pm
I have a 50,000 baloon due in May 2010. I have equity in house . This is an"out of plan" loan on a Chapt 13. Is there room to work out the balloon? House worh 200 , 1st mortgage is 75 000. credit score around 680-700
Posted on: 01st Nov, 2009 04:13 pm
Please see the other thread you started for an answer
Posted on: 01st Nov, 2009 04:59 pm
i had funds put in an escrow account in 1994, these same funds have never been paid and i have been paying intrest since, they should have rolled over to the principle loan after one year, how do i get the lender to release these funds or apply them to my account balance
Posted on: 03rd Dec, 2011 04:01 am
Welcome willie,

You should immediately negotiate with the lender and try to sort out the matter. If they are not ready to negotiate, you should contact an attorney and take his opinion in this regard.
Posted on: 18th Dec, 2011 10:59 pm
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