 akean20
Joined: 16 Apr 2009
Posts: 2
2.21 Dollars($)
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 Posted: Thu Apr 16, 2009 7:01 pm Post subject: Own 2 underwater homes in Michigan, Lender will not refinanc |
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| We own 2 homes in Michigan, a rental with a 30 year fixed mortgage and a low payment (our first home, my mom is renting), and our home, which is an 80/20 loan that will adjust in October. We bought the home, believing we could refinance within a couple of years, and then the market took a plunge. We have tried to work with our lender to refinance into a 30 year fixed loan on our home, but they will not budge. If we had a 30 year fixed loan and our payment did not adjust, we would be fine. We have good credit, but we are $30,000 underwater on each house, and we would like to ride the market out, but may not be able to pay when our mortgage adjusts. If we foreclose on our home and move into our rental, which is much cheaper, what could happen to us? What are our options to keep our home? |
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jenkin7
Joined: 04 Jun 2007
Posts: 3429
Location: Hawaii
514.13 Dollars($)
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| Posted: Fri Apr 17, 2009 1:07 am Post subject: |
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Hi
The lenders are not willing to do a refinance because there is not enough equity in the property. Instead, I think you can go for a loan modification which can help you lower your monthly payments. If you are current on payments, the lender might not want to work with you on modification. Then, you need to send them a hardship letter explaining how difficult it would be for you to stay current on the loan once the payments readjust. A foreclosure should be your last option. |
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