Profile picture for rickbon

Banks are not doing refiancing on homes not backed by Fannie or Freddie.

Are there any programs coming in the future that will address this issue?  They are also not refinancing if you are under water in your mortgage, which accounts for more than 1/2 the country.
  • January 21 2011 - Sparks
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Answers (4)

I would hope so, but doubtful.  If a client is making there current mortgage payments on time and the rest of the credit is good, it does make some sense to offer them a loan that reduces there current interest rate. Then that client has more money to spend and help stimilate the economy, Which in turn means more jobs, then more buyers, and home values going back up. But again, I don't see it happening.
  • January 21 2011
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They are and they aren't,...hmmm.

Fannie & Freddie have refi programs if you are underwater.
FHA can possibly streamline you, if you have an FHA loan loan.
If you have a portfolio type loan with the Bank, you can ask for a modification or principal reduction (good luck).

So the programs are out there. But as Dan stated above,...they are horrible investments so it is no surprise that Banks are not throwing money at underwater consumers.
  • January 21 2011
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What is your loan to value?

Happy funding, Rudi 
  • January 21 2011
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Profile picture for the_country_hick
I would ask you a simple question here.

I have a car worth $5,000. It is depreciating every year. Will you give me a $6,500 loan on it?

No one should do this as it makes no sense. Yet that is exactly what you are asking about with a new mortgage on an item (house not car) that is worth less than is being wanted to borrow against it.

More than likely some foolish program will come from the government. It is not a good idea but could easily happen. Look at all of the programs the government has done of this type they are all failures.

Just because you owe more on something that it is worth does not make it a good idea for me to let you borrow money to cover what you owe. Doing so is likely to bankrupt the lender if you do not repay the loan and that is likely in this scenario.
  • January 21 2011
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