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Refiancing mortgage and underwater

Established Member

Refiancing mortgage and underwater

So I've been lurking,searching and reading an lots of great information on the boards. Here is my situation and I would love any advice. We currently own a home that was originally purchased as. 80/20 loan back in 2004. We had planned on staying here for 4-5 years and then moving. Unforutanely values have decreased greatly and it is taking a long time to sell homes in our toe home community. I have a combined 110,000 left but my home value according to yearly tax assessment is about $90000. I called BoA and they said loan was sold to Bank of New York and they do not participate in the new refinancing options. So since its not Freddie Mae/Mac we have no options but to wait until the market turns around.
We can afford out payment and have never been late. We just realize that we are stuck here for awhile and want to take advantage of lower interest rates. As much as we would like to move its just not smart until we pay off some debt. Our scores are 740-780.
Any ideas? The mortgage person I spoke to said to talk to loan modification but we don't need that. She says call another phone and talk to refinance department. Feel like I am getting the run around. Wish I hadnt bought a new vehicle this year and and maybe we could have rented the town home out and move into a much needed bigger home after having 2 kids. Thanks for any help.
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Regular Contributor

Re: Refiancing mortgage and underwater

I'm in the same boat.  I bought our condo in 2002 for $173K  it is now worth $120K and I owe $140K  Right now I am underwater for about $20k.  I have a conventional loan through B of A, so I am ineligible for any refinance options as well.  My Intereste rate is over 6% and it is killing me to see it almost 3% lower, and there is nothing I can do about it.  We are probably going to rent our place out, and move to something larger.  Hopefully we will rent it until we break even, then we will sell it.

Starting Score:2/1/16 565
Current Score: 3/1/16 575
Lender Mid Score: 3/1/16 575

Goal Score: 700

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