My home lost value and therefore I owe 475k and the value of my home is 400k. What can I do now!?

Question

Can I get a low 30 year fix now? Who can I ask for one?

Answer 1

That's the problem with getting a loan to buy a house with little or nothing put down, or with taking out HELOCs to 100% or more of property value.

The new program in Congress might help you out.  Talk to your current lender to see about restructuring your loan.  They generally won't give up what you owe them--that's your pain to bear, your risk.  After all, you took out all the loans and benefitted from them.

Generally you cannot get a new loan on a home when it's value is less than the loan.   The loan underwriting has been strengthened and is more realistic.

Answer 2

If you are not selling and not refinancing this has no effect on you, just wait it out.

You will not be able to refinance unless you put up the differance in cash.

Answer 3

If you can afford your payments, keep making them.

The only way to refinance is if you have the cash to cover the difference between what you owe on your old loan plus (I’m assuming) a small down payment since you’ll have no equity.

Answer 4

What do you want to do now?  If you can, keep up your loan.  You won't be able to refi without additional cash.

Answer 5

I'm in the same predicament. Wait it out.

Answer 6

I am sorry, but no conventional lender or government lender will make you a loan to cover the $475,000 you owe.  Nobody makes loan above 100% of the value of the home.

If you can't afford your payments as they are now, I would seek legal council about your options before a foreclosure begins.

Answer 7

keep making your payments, but call the bank and speak to a higher up loan officer.  Tell them you're having trouble with the payments and you want to renegotiate at a lower interest rate.  It's getting to were lenders just don't want anyone foreclosing that they're willing to work with the customers.  Hopefully you can get your interest knocked down a few percentage points, keep making the same payment amount (to build equity quickly in your home) and when the market rebounds hopefully your home value increases again and you can sell if you want/need to.

Answer 8

Join the club.  The new federal law says you can refinance 85% of your current balance into a new FHA loan.  The current lender will eat the 15% from you but maybe the government pays them something.  Your new loan is fixed. You pay apx. $10,000 in "mortgage insurance" but you add it to the loan so it's painless.

Answer 9

Can you afford the payments ?  If so, why are you asking ?  Do you somehow think that the lender should eat the reduced valuation of your home ?

That's not the way it works.  You need to be in financial distress (mostly from an ARM loan) before you're going to get any assistance anywhere.