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Monica
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0.10 Dollars($)
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 Posted: Mon Apr 02, 2007 11:12 am Post subject: Upside down mortgage |
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What can I do if due to the real estate market in Miami, the townhome that i bought last year for 400,000, it was appraised at 335,000 at this time.
I still owe 379,000. I cant continue with my payments but I like to avoid foreclosure. Is it anyway that my lender can refinance what the house was appraised for, so I can lower my payments and give me a payment plan for the rest of the money owe? |
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rvmt
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0.10 Dollars($)
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| Posted: Mon Apr 02, 2007 11:32 am Post subject: |
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| You can look to refinance your townhome for its current appraised value, but the balance left on the previous mortgage will need to be paid off at the time you take out this new mortgage. |
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 miller_st
Joined: 17 Jan 2007
Posts: 917
168.84 Dollars($)
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| Posted: Mon Apr 02, 2007 12:17 pm Post subject: |
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Monica,
Try to know from your lender if a loss mitigation plan can be set up where he will agree to modify your current mortgage. In that situation he may reduce the monthly payments or extend term of the mortgage thereby resulting in reduction in the monthly payment amounts.
As currently the position you are in, refinance will cover current home value but you still owe a lot on your previous mortgage. Even a 100% ltv refinance will not cover the balance that is left on that mortgage and you have to come up with the balance amount. 125% ltv's are available but they have higher rate which will be difficult for you.
If a loss mitigation plan is possible then it will be give you some more time and hopefully home's value will increase during that time. Afterwards you may well look to get it refinanced or sell off the home. |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1539
Location: MASSACHUSETTS
137.28 Dollars($)
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| Posted: Mon Apr 02, 2007 10:31 pm Post subject: RE: refinance or loss mitigation |
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Hi Monica,
Welcome to the forum.
The lender may allow you to refinance. You need to talk to him on this issue. If you can get a loan of $335,000, you can still get away with a modified payment plan requiring you to pay less.
It will be better that your lender refinances the loan; otherwise you may have to go for another lender and this may take some time. But I would still advise you to consult the lender and find out if he is willing to report your loan to the loss mitigation department.
The loss mitigation department will come forward to help you out by either forming a different payment plan or asking you to go for a short sale (sale for less than the home is worth) or any such techniques.
Hope this helps..
God bless you.
Samantha |
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Rovell
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0.10 Dollars($)
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| Posted: Sat Apr 28, 2007 8:44 pm Post subject: |
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| Quote: | | I still owe 379,000. I cant continue with my payments but I like to avoid foreclosure. |
ACORN's Foreclosure Assistance Program can be helpful for you as in this program your interest rates could get reduced enough so that you can afford the payments. I hope it helps: http://acornhousing.org/TEXT/fap.php
Rovell |
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