25% under to refinance - Loan Modification Forum

ladyfijiana · 07-03-2009, 11:24 AM

I just wanted to know how true is this.
Have you heard of anything as such where you can now refinance your home
if you are underwater 25% now as oppose to before at 5%. This is something that just came out recently.
Moe have you heard of this.....really appreciate any info.

Moe Bedard · 07-03-2009, 12:14 PM

Yes, you are correct. Here are the details.

Obama mortgage refinancing program to 125% loan to value | Loan Modification & Home Loan News

Good news to the millions of underwater homeowners who need a life raft, vest and an island to hold on to. It looks like Obama has a new refinance program that will assist borrowers with homes worth up to 125% of the current market value.
With the rapid deterioration in real estate markets all over the country, Obama’s refinance plan appears on the surface to be a good option for many underwater homeowners.

However, in places like Southern California and Las Vegas where it is common for homes to be at 200-300% of the current values, many will be left in the foreclosure waters to fend for themselves.
From CNN:

Fannie Mae Implementing New Loan-to-Value Ceiling for Home Affordable Refinance Program | Loan Modification & Home Loan News

Loans Eligible for Delivery September 1

WASHINGTON, July 1 /PRNewswire-FirstCall/ — Fannie Mae (NYSE: FNM) announced today that the company is providing information to servicers regarding changes to the Home Affordable Refinance Program (HARP) that permits refinancing of existing Fannie Mae loans with loan-to-value (LTV) ratios up to 125 percent. The loans will be eligible for delivery on or after September 1, 2009.

“This step aims to reach even more borrowers who would benefit from a lower payment,” said Michael J. Williams, President and Chief Executive Officer. “Many borrowers in good standing have been shut out from the benefits of refinancing due to significant declines in property values across the country. By broadening the scope of the initiative, more borrowers will experience savings on their monthly mortgage payments and have a better chance of sustaining homeownership over the long term.”

ladyfijiana · 07-03-2009, 10:45 PM

Thanks for all the information Moe.

07-03-2009, 11:24 AM	#1 (permalink)
ladyfijiana Senior Member Join Date: Mar 2009 Posts: 33 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	25% under to refinance I just wanted to know how true is this. Have you heard of anything as such where you can now refinance your home if you are underwater 25% now as oppose to before at 5%. This is something that just came out recently. Moe have you heard of this.....really appreciate any info.

07-03-2009, 12:14 PM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: 25% under to refinance Yes, you are correct. Here are the details. Obama mortgage refinancing program to 125% loan to value \| Loan Modification & Home Loan News Good news to the millions of underwater homeowners who need a life raft, vest and an island to hold on to. It looks like Obama has a new refinance program that will assist borrowers with homes worth up to 125% of the current market value. With the rapid deterioration in real estate markets all over the country, Obama’s refinance plan appears on the surface to be a good option for many underwater homeowners. However, in places like Southern California and Las Vegas where it is common for homes to be at 200-300% of the current values, many will be left in the foreclosure waters to fend for themselves. From CNN: Fannie Mae Implementing New Loan-to-Value Ceiling for Home Affordable Refinance Program \| Loan Modification & Home Loan News Loans Eligible for Delivery September 1 WASHINGTON, July 1 /PRNewswire-FirstCall/ — Fannie Mae (NYSE: FNM) announced today that the company is providing information to servicers regarding changes to the Home Affordable Refinance Program (HARP) that permits refinancing of existing Fannie Mae loans with loan-to-value (LTV) ratios up to 125 percent. The loans will be eligible for delivery on or after September 1, 2009. “This step aims to reach even more borrowers who would benefit from a lower payment,” said Michael J. Williams, President and Chief Executive Officer. “Many borrowers in good standing have been shut out from the benefits of refinancing due to significant declines in property values across the country. By broadening the scope of the initiative, more borrowers will experience savings on their monthly mortgage payments and have a better chance of sustaining homeownership over the long term.” __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

07-03-2009, 10:45 PM	#3 (permalink)
ladyfijiana Senior Member Join Date: Mar 2009 Posts: 33 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: 25% under to refinance Thanks for all the information Moe.

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