Posted on: 16th Feb, 2011 07:33 pm
we bought our condo in 2006 for $535k. we got caught up in the neg am loan. we took out a first and second w/ no money down. property value has declined to $458k. we currently owe approx $580k. we tried to do loan mod on first but were unsuccessful. banks wont entertain a loan mod because we arent past due. we diid modifyour second successfully in 2008 and got them to reduce our interest rate to 8% (clearly not anywhere near rates currently avail) we were doing our best to be proactive and get bank to reduce interest rate on second and modify first into fixed rate loan. when loan fully amortizes, we wont be able to afford our home. how can we refinance both loans into an affordable fixed rate? or is this nonexistent?
Hi newjack!
Welcome to forums!
It is true that unless you're delinquent on your mortgage payments, none of the lenders will be ready to modify your loan and give you an affordable repayment plan to pay off the dues. As far as refinance is concerned, you will be able to get it only if you have equity in your property. As you don't have equity in your property, you won't be able to refinance the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It is true that unless you're delinquent on your mortgage payments, none of the lenders will be ready to modify your loan and give you an affordable repayment plan to pay off the dues. As far as refinance is concerned, you will be able to get it only if you have equity in your property. As you don't have equity in your property, you won't be able to refinance the loan.
Feel free to ask if you've further queries.
Sussane