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Any local help(advice) re underwater mortgage due to reset?

  • May 02 2010 - Novato
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Answers (3)

Profile picture for Bentley Advisors
Checkout http://makinghomeaffordable.gov/.  Options may be available for a loan modification or a HARP refi depending on your circumstances.  Good luck.
  • May 03 2010
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I have dealt with a number of people with ARMs reseting who assumed that the rate and payment would be reseting to a much higher amount. In reality, most of the common indexes that ARM loans are based on are extremely low right now. As long as you have a decent loan (not a subprime loan) with a normal rate margin, then you could see your payment change by very little, unless you have been making an interest-only or negative payment. A typical LIBOR index loan has a 2.25% margin, and the LIBOR index was 1.016% this morning, so a loan reseting now could have a new rate for the coming year of a very low 3.25%. Research the amount of your loan's index using google, and then look up the margin on your loan note. You may be surprised.
  • May 03 2010
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Have you tried to get your loan modified? That should be your first step. I do know several companies that have been successful at this. Go to my web site [link removed by moderator] for some different options available. Please give me a call, [contact info removed by moderator], if you need a number to a loan modification company. There are scams out there so be careful. Never pay anyone upfront to modifiy your loan. They should only be paid when they have successfully modified it. Good luck! Connie
  • May 03 2010
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