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What can I do to get more (or better) quotes for my loan request ZR-ZDTCQHM

We are looking for options to refinance our condo bought in 2007.  We're in a negative equity situation since 2007 have had 2 children which necessitated a move to a larger house in the suburbs.  We are current on both mortgage payments but have no extra money available each month. 

We are looking to rent out the condo (haven't been able to sell it for almost a year.) but our interest rate is 7.25% meaning even if we rent it for a fair market value we'll still be losing $1400 a month or more. 

Are there any lenders who are able to help us do a refinance to lower our monthly payments and help us lose less money each month?  We have the income to support both mortgages but 7.25% interest is just ridiculous at this point.
  • May 09 2011 - Avondale
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Answers (2)

the sad truth is you are pretty much stuck with what you have.   You haven't been able to sell it. Due to the negative equity you can't refinance it. If you are making payments on time, your current lender most likely would not approve to do a loan modification.

The only solution left is to let the home go to foreclosure. It would ruin your credit, but at least you would be out from under the $1400 a month loss (assuming you could find a renter)

Just remember, you are not alone.   I hear from people everyday who are in the same situation.
  • May 09 2011
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The answer depends on who owns your mortgage.  If you have an FHA mortgage, you can check into a no appraisal - streamlined refinance.  They will use your current mortgage and the purchase price to determine your LTV.  With FHA rates in the 4s, that should be a piece of cake.

If you have a conventional loan, like most people received in 2007, you need to know if Fannie Mae, Freddie Mac or a bank own your loan.  If Fannie Mae or Freddie Mac do, your bank is still servicing it, but the bank doesn't own it.  Your lender/broker can help you figure this out or feel free to google Fannie Mae lookup or Freddie Mac lookup.  If either one of them own your loan, you can check into HARP.  Your lender/broker should be able to see if you would qualify for it without any cost to you upfront.  (these programs do have appraisal waivers sometimes in the approval findings). 

If the bank owns it, you will need to go to them and ask what your options are to refinance.
  • May 09 2011
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