Profile picture for Nanas

Our lender doesn't offer FHA loans, so how can we take part in the new FHA short re-fi program?

Our loan is with Indymac Bank. We are current (but struggling) and our home is "underwater". We were so excited to hear of the FHA short re-fi program because it finally appeared to be a way for us to improve our situation without damaging our credit by doing a loan modification (in which Indymac requires us to default for 3 months) or worst case foreclosing. But once again, we hit a brick wall because Indymac advises us that they are not doing FHA loans at this time therefore they clearly cannot participate in the the FHA short re-fi program. So now what? 
  • September 10 2010 - Los Angeles
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Answers (8)

The program should be about as successful as the Hope 4 Homeowners.

Why would a lienholder write down 10% or more of a performing asset?
  • September 11 2010
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I worked at Indymac until they closed and were bought by Metrocities and Prospect Mortgage.  You might ck with those companies BUT I do not believe that the refi plus program will be an option - other similar programs were promoted but never happened.  Sorry but I just don't believe the lenders are going to forgive `10% ---
Have you tried a LEASEBACK PROGRAM?  I'm finding this new loan to be able to work great!
Good luck!
Sincerely,
Celia



  • September 10 2010
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Profile picture for Crestico Funding
Nanas, My understanding from the Mortgagee Letter that was issued by the Department of Housing and Administration, the Lender/Investor does not have to participate, you have to understand that FHA says i will refinance up to 115% of your loan to value but your current lender must be willing to lower your loan balance by 10% and they don't have to do that if they don't want to.
  • September 10 2010
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why would the lender have to be local? 

If//when you find one go for it, even if they're in Iowa.
  • September 10 2010
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Profile picture for Nanas
Currently we have a 7-year, interest only loan. 
  • September 10 2010
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That program was just introduced. The borrower cannot currently have a FHA loan. The current lender must agree to discount the outstanding balance by 10%. The borrower must be current on their payments.

Usually, it takes at least 30 days for the lending community to understand how, or if, they will market a new product. Hang in there and check back in a month to see where the dust settled. .... Happy funding, Rudi
  • September 10 2010
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In order for a lender to offer you the FHA short re-fi your lender must be an approved FHA lender.  Indy-Mac would have to approve the short re-fi.  It's best that you speak to a local lender that is FHA approved to review your options. 
  • September 10 2010
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I believe that technically any lender can do it; as long as your servicer agrees to the write down. In reality I don't think that'll happen. But then again we've seen plenty of thigs that won't happen happen in the last couple of years.
  • September 10 2010
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