Greetings all...special shout out to the mortgage Pros!
I'm sure I'm not alone in the "underwater" situation, but is anyone aware of any lenders doing a refi when, in all likelihood, I'm more than 125% under??
I have a 3+ year perfect payment history, (life of mortgage to date) but with the home values dropping the way they have, is anyone offering this? Without making me trash my credit by purposely missing payments???
To add a little more info...EQ FICO is 697, TU is 740 (ballpark when 2 cc accts update to 0% util in the next week), by mid Aug, I will have 1 inq affecting my FICO's across the board. Last baddie was 09/03. No lates since then.
Thanks all...
Oh, it's definately all about the lower rates. I do believe that one crucial factor will be having an appraiser who knows the value of a 100 yo home in an Historical neighborhood....on a double lot 
Hopefully they'll see the "love"!! 
And it won't hurt knowing what my EX FICO is either!
119 views....and ONE reply!
That's sad.....
@BungalowMo wrote:119 views....and ONE reply!
That's sad.....
Here's reply #2 Mo.
I just don't know how to help you. Sorry.
Unfortunately, that's probably because there really are no options for refinancing with that much negative equity. 
Here's what I would suggest: since you seem certain that you're upside down, you could try to speak with a lender that is participating in the Making Home Affordable program. Find out if they are doing Home Affordable Refinances. I don't think you have to stay with your current lender . If you find someone (and you'd want to make sure that the loan officer is familiar with the program), maybe they could do a desktop appraisal to see what your home's value is. You could be surprised - maybe your loan balance isn't >125% of the market value. Then you could move forward with a Home Affordable Refinance. Keep in mind that you'd still be on the hook for all the regular closing costs. A refinance through this program should not have any impact on your credit beyond the usual inquiry and new account effects.
Oh, I suppose you'll need to find out whether your current mortgage is backed by Fannie or Freddie (the MHA website has links for that). If not, then ignore everything above because you won't be eligible.
@Lel wrote:Unfortunately, that's probably because there really are no options for refinancing with that much negative equity.
Here's what I would suggest: since you seem certain that you're upside down, you could try to speak with a lender that is participating in the Making Home Affordable program. Find out if they are doing Home Affordable Refinances. I don't think you have to stay with your current lender . If you find someone (and you'd want to make sure that the loan officer is familiar with the program), maybe they could do a desktop appraisal to see what your home's value is. You could be surprised - maybe your loan balance isn't >125% of the market value. Then you could move forward with a Home Affordable Refinance. Keep in mind that you'd still be on the hook for all the regular closing costs. A refinance through this program should not have any impact on your credit beyond the usual inquiry and new account effects.
Oh, I suppose you'll need to find out whether your current mortgage is backed by Fannie or Freddie (the MHA website has links for that). If not, then ignore everything above because you won't be eligible.
Thanks Lel...I'm a Freddie...I know that for sure!
@BungalowMo wrote:Greetings all...special shout out to the mortgage Pros!
I'm sure I'm not alone in the "underwater" situation, but is anyone aware of any lenders doing a refi when, in all likelihood, I'm more than 125% under??
I have a 3+ year perfect payment history, (life of mortgage to date) but with the home values dropping the way they have, is anyone offering this? Without making me trash my credit by purposely missing payments???
To add a little more info...EQ FICO is 697, TU is 740 (ballpark when 2 cc accts update to 0% util in the next week), by mid Aug, I will have 1 inq affecting my FICO's across the board. Last baddie was 09/03. No lates since then.
Thanks all...
Unfortunately, I'm not sure another bank will agree to lend you $200k on a home that's only worth $125k (or whatever your numbers are), because if you lose your job 3 months from now and can't make your payments like you have for the past 3 years, they'll only be able to recover less than $125k (after all legal/transaction costs) when they foreclose and auction your house at the courthouse steps.
No bank in their right mind would agree to such a transaction in a free market, but might under the Obama administration's current loan modification programs. Your only hope is to find one of the many loopholes that will allow you to qualify for some of the government cheese being given out in the form of loan modifications.
You're one of the few that's actually repaying the debt you signed for even though you're so far underwater. Most homeowners(homedebtors) in your situation are choosing a Strategic Default and squatting in "their" home payment/rent-free for at least 15 months until the bank forecloses.
Thanks for the reply Mark_
don't even get me started on people like those in your post.....