Profile picture for manta_rai

Townhouse under water @ 6% - now a rental - refinance options?

Greetings,

My wife and I purchased a 2 bedroom townhouse in IL back in Feb 2005 (ouch) for $150K @ 6% doing an 80/10/10. Freddie Mac is the servicer. Fast forward to today - current balance on the first through US Bank is 101K and the 2nd through First American Bank is $7K @ 7%. Townhouse is now appraised for $81K. Never missed a payment and never re-financed. As you can see by the balances, have paid additional principal every month. Both our credit scores are 780 & 795.

We purchased (FHA @ 4.25%) a single family about a mile away last October as our family grew forcing us to rent out the townhouse. Townhouse was gutted and rehabbed.  We now have wonderful renters in place.

My question is, what can I do about the mortgage(s) on the townhouse? I would like to get the % down to lower the payments if possible.

Any help or guidance would be appreciated.

Thanks.
  • August 29 2012 - US
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Answers (2)

Profile picture for Mike_Davidson
It sounds like the loan would qualify under the HARP guidelines.  Feel free to contact me through my profile to discuss your options.
  • September 12 2012
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Did you contact US Bank? You would have to subordinate the 2nd but refinancing the 1st should not be a problem. US Bank is great with HARP and they are your best option.

Call me if you have Q's

Ivan Diaz
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  • August 31 2012
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