Profile picture for George300

Why Won't Ditech Let Me Refinance Under Obama's?

My loan balance is 270K, my house value is 260K. After speaking with them for several weeks, asking me to wait, now they tell me that"according to the government ddatabase" my house is worth 211K, and I am not even clode to qualify. On my first "contact" with them 3 weeks ago, they told me my house was around 260K. I have a good income, and I am starting to guess they "know" I could afford my loan after resets.

They asked me to get my own appraisal, and that they would honor it. What can I do? This sounds to fishy to me.
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April 16 2009 - Sacramento
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Answers (28)

George,

Stop paying, huh? Blame the USA, huh? You mention nothing about a financial hardship. Just about decreased value. Almost every property owner is in that same situation. What would happen if everyone that had a mortgage stopped paying? ....Rudi

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April 22 2009
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Im in NH  can anyone help me??!!
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April 22 2009
je523nn - If you need assistance with a NY property I would be more then happy to help. Feel free to call or email anytime. Please click my profile for contact info.  
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April 22 2009
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Hey Clay

Can anyone email this guy??  I need to refi with the MHA program.  I am with Chase but its Fannie Mae owned and am getting the runaround?!!  Thanks
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April 22 2009
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...alright...game over.  The house is worth 218K.  I think I will stop paying. Way to go USA!

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April 21 2009
g8julieh, since you can go anywhere, email this lender:

  chris@myqcfunding.com
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April 21 2009
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I am in NY state, it includes point (around 4500), mortgage tax (near 3000), property tax in escrow account (about 6000), attorney fee, title insurance etc, sum up to 19000$ :(

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April 21 2009
thousands = thousand, need spell check.
It looks like they may be trying to rescue their auto manufacturing division with their mortgage division.
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April 21 2009
g8julieh, does that say NINETEEN THOUSANDS DOLLARS in closing costs? If so, I think you know the answer to your question. What state are you in? ( dont mean of mind )
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April 21 2009
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Hi, my mortgage is Fannie Mae with GMAC, I tried to refinance under the program through GMAC, however, thieir closing cost is very high, about $19000 for a $330000something loan, is that reasonable?
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April 21 2009
Profile picture for Rob Cochems
George,

Your loan is Freddie Mac, so you must refinance through Ditech.  On there Freddie Mac program, they run an automated approval called Loan Prospector, which determines your value.  If it approves you there is no appraisal or income documentation needed.

The issue is, is that the automated system is saying your home is worth 211K, so you are not being approved.  When a loan is not approved at Ditech, they cannot order an appraisal, as their system will not allow a loan officer to order an appraisal on a deal with no approval.

So the only solution you have would be to order your own appraisal, if you really believe your home is worth 260k.

No one is trying to pull anything over on you, its just the way Freddie Mac designed their refinance program.
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April 20 2009
George,

No PMI company would insure a loan with an LTV of 104% at this time. 
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April 20 2009

George,

since GMAC is your only option, pursue the process. you will have 3 days to cancel after the final loan documents are signed. the agents answer does sound correct since this program is very, very new.  to help, after you signed your loan documents, stop by my office in El Dorado Hills. we can go over the documents and make sure no hidden "gotcha's" or PMI.

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April 19 2009
Profile picture for George300
Jusitn, You just raised a flag... the lady at GMAC made me submit the application acknowledging that the loan will require PMI. This is not true, it's the whole point of this "new program", so I asked and she said, "there will be no PMI on this loan", is just that the electronic signatures application has not been updated. That I should not worry.

All I know is that I did sign a document where I understood there will be PMI. Should I worry?  Will this come back and bite me? Or should I simply be careful with the final papers and make sure there's no PMI?

At some point the agent got a little apprehensive, insisiting that there was not going to be PMI. I guess my question would be, once the loan is approved and the new (final) sigining documents are deployed, do the application papers get discarded?
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April 19 2009
George,
good job! your hard work payed off.
i would convert to fixed. being on a libor index, great now, that index can and will shoot up.  stay on top of the guy at GMAC and get all thier contact numbers and emails. if something goes sideways during the transaction, you will be able to reach him or his team...

a formor cleint of mine had a really bad experiance at GMAC. we had to take his resolution up to national SVP of production. completely GMAC error but took many months. so i understand your feelings. 

freddie mac does require you to go thru the servicer of your loan. i did not see that post.  Cheers
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April 16 2009
Whoops can't spell today... "Market Analysis"
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April 16 2009
Yup, Chip is correct.  Since your loan is with Freddie and not Fannie, you have to stick with your current lender, GMAC. 

Call the Realtor who helped you buy and ask them to do a market anaylisis on your homes current value (Free Service) to at least get an idea if paying for an appraisal would help you.  And like Tawny said, get it confirmed with your lender that they will accept a 3rd party appraisal before ordering one.
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April 16 2009
Profile picture for George300
...I spoke with a different "loan specialist" at GMAC and she started me with the loan application process, they will send the appraiser, we even locked the rate at this point.

It baffles me that you can call two different people from the same company and have two different scenarios.
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April 16 2009
I see your situation is much more complicated than I thought it was. If you must stay with GMAC/Dietch you may want to go ahead and order the appraisal yourself.  How do you know the value is $260,000.00?  If your lender said they would honor your appraisal then I would get that in writing before I ordered the appraisal.
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April 16 2009
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...do you mean a broker could get me a new 105% LTV loan? then I would have to pay PMI (don't have one now). See, my rate is pretty good until May next year, 5.125%.

And with the LIBOR rate at 3 points, it would be a "wash". Won't it?
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April 16 2009
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...I am now calling the GMAC number, I am being transferred to the CA loan spcialist, I have a feeling I will be talking to the same guy.
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April 16 2009
Geogre,
hang up the phone and call a local broker!
since most of agents in these call centers are paid on volume, the agents are only interested in quick, easy loans. soon as you toss a detial loan such as your into the system, you suffer. work with local person that will spend the time and effort to earn your busienss, then send them refferals.
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April 16 2009
What you should ask them is why you were told that your home's value has dropped $49,000 in 3 weeks...  that's huge, even for Sacramento.  And "government database" sounds like they are looking at your "assessed value" which is different from your appraised value.  And yes, I would call the customer care number that is on your billing statement to talk directly with the division which owns your loan.
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April 16 2009
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I am on "automatic" payments, and my (now very small) HEL paper statement has the ditech logo.
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April 16 2009
Profile picture for George300
Tawny, I am a little confused, see, Ditech is owned by GMAC, I started these communications by calling the 800 number on the (ditech) site, I was on the impression that I've been talking to GMAC all this time.

Should start all over and contact the 800 number on the GMAC website?

My loan was acquired through ditech. I mean I do give them (ditech) the account number and see all my info.

Yes, I agree with you Sean, getting my "own" appraisal sound childish, of course they can always say, "not according to our records".


Should I get a lawyer?
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April 16 2009
I totally understand how frustrating this issue is for you. You really needed to hear 'No' before you spent so much time with them. The Freddie Mac refinance program is only available from your current mortgage lender. Call the number on your billing statement and talk to your current lender about refinancing your freddie Mac owned mortgage. They will likely not need any appraisal at all.
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April 16 2009

Even if you get your own appraisal, they could still slam the value down based on their research.  Might end up costing you a couple hundred dollars for an appraisal and no new loan. 

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April 16 2009
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...my loan is a FreddieMac loan, btw...
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April 16 2009
 
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