Saturday, May 11, 2013

Is Your House Underwater?


Chances are that your mortgage was backed by Fannie Mae or Freddie Mac – let's hope.

If your mortgage is now underwater and you've sucked up all of the equity like Dracula on a fresh vein, let me walk you through the process of getting out from under, getting some real sleep, and ending the fantasy loop running in your mind of taking a blow torch to your mortgage company – no violence necessary. You can even wrap this up in less than a month – it's true.


HARP – the Home Affordable Refinance Program actually began in 2009 and was put in place by the Obama Administration to help home owners find relief instead of abandoning their life long dreams in the middle of the night. Whether your original mortgage is with Wells Fargo, Bank of America, Citibank, or Chase, it's probably backed by Fannie or Freddie and was sold to a much smaller mortgage company you never heard of. You may still qualify for a HARP. And guess what? If your lender won't process your HARP, you can do it with another lender – don't lose heart, all is not lost. If you have an FHA loan, you may qualify for a Streamline Refinance Loan, which is similar.


One requirement is that you be current on your loan. This is to make sure you have a chance to make your payment more affordable and allow you to save for your other dreams – retirement, college for your children, and the continued quality of home ownership.

Banks are creating their own subtle changes into HARP, so be prepared to shop for the best rates and the qualifiers that relate to you. My advice is to gather all of the material and research before you jump in paying fees and losing time filling out voluminous forms. My other advice is to seek the help of your banker. They've got your money, make 'em work for it. You're a customer, not a vagrant, and if they don't appreciate you – dump them. If no bank makes any loans, they are going to go out of business.

If you need to be pointed in the right direction, please give me a call.




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