ARM GETTING READY TO ADJUST

[Anonymous]

My subprime ARM will be adjusting 12/1/08 and my prepayment will expire on 10/31/08.  I'm trying to be proactive with my refinance options and would greatly appreciate any feedback for reputable lenders, scams to look out for,etc. Just need to know what steps I should be taking. 

Here are some details on my current loan:

-80/20 loan, purchase price 132,500, Nebraska

(80)  Conventional ARM/Original loan amount 106,000 (current principle balance 105,336.85).  8.100% interest rate. 

(20) Fixed Equity Loan /Original loan amount 26,500 (current principle balance 26,255.77).  10.450% interest rate. 

676 equifax as of 8/15/08

Thank you in advace

[Anonymous]

Do you have equity in your house?

[Anonymous]

And how long have you been there? If you've been able to clean up any baddies you may be able to go FHA. A lot of industry pro's are calling FHA "THE NEW SUBPRIME".

[Lel]

What are the index, margin, and caps on your ARM?

How often does it adjust?

With such little equity in your home, it is going to be hard (probably impossible) to do a conventional refi of the ARM.

[Anonymous]

And have you had any late payments in the last 6 months?

[Lel]

Also, what do you think your house would appraise for now?

[Anonymous]

If you have no equity left in your home for a refi, you can call the loss mitigation dept at your mortgage company. They will ask you to verify income, check credit, and in many instances, will help you to keep the rate from resetting. Many lenders have become much more agreeable to doing this now, due to the mortgage "crisis" getting worse.  I just helped my friend go through this process with her lender, and it worked. The Mortgage company just needed to see that she could actually afford the home, and had a little bit of a surplus left over at the end of the month (in her case, 300.00)

Best of luck!

[DallasLoanGuy]

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jandy1 wrote:

And how long have you been there? If you've been able to clean up any baddies you may be able to go FHA. A lot of industry pro's are calling FHA "THE NEW SUBPRIME".

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you mean: "industry idiots'

fha never was and never will be subprime.

some loan officers put fha eligible borrowers into subprime because it was easy and they didnt know fha would take people with less than perfect credit.

now, those loan idiots are boning up on fha rules and offering fha.

sad

[Anonymous]

Sorry, I thought I would get a e-mail if I had replys to my post.  When I purchased the home (Oct 06) I had about 4k in equity.  Well we both know things have changed drastically on home values across the nation.  But, no I'm not sure what the value is.  I'm praying I'm not upside down!

[Anonymous]

Thanks for the information.