Short Refinance. EMC says OK.

[citadel]

295k - purchase price
234k - loan amount
105k - property value

We have an interest-only loan. EMC may allow a modification but will remain interest only and monthly savings get tacked onto the back-end of the principal, driving loan amount up.

We could probably afford a fixed rate payment at about 4% but they will not consider changing the type of loan.

Again, this is an investment property/condo in Florida.

Any ideas? We could throw up to 34k at the problem but that would be about it.

We are wondering if we should just short sale instead. What a shame.

[Moe Bedard]

citadel,


A short sale is something that you would need to get permission from EMC/Chase to try...............you would need to fill out a hardship package and ask what additional information they would require to see if you qualify for that and if the investor on the loan is willing to do that.
EMC
1-877-362-6631

[citadel]

If we wanted to refi instead, as discussed above, any options you can think of? How would we get them to refi into a fixed?

[Moe Bedard]

not for the amount of negative equity that you have unless they will accept a short payoff from you,
which you can ask EMC at the number I posted above.

[citadel]

Does anyone have experience with "Short Refinance"? EMC is telling us it is something we can do. We need to understand how it will affect our credit score, particularly in comparison to a short sale.

[citadel]

*** --

Do you understand what the credit effect would be on the short refi versus a short sale. It is an investment property, so we would be interested in a refi if the credit hit was less or significantly less. If is about the same, we would rather dispose of the property. Would love some more info on this.

[Moe Bedard]

It may be the same only because it may report as "settled for less" on the credit in either scenario............I am not real sure.......but you may want to take a look at myfico.com and see if someone has asked that question on the forum.

[sadandconfused]

citadel any luck on the refinance? any news from emc, i have them as well. I them contemplating ch13 bankruptcy as well.

[citadel]

No, haven't really done anything. Would love to do a regular refi but can't b/c property is so underwater. Dragging my feet on a short sale or short refinance b/c we have such good credit.

Good luck.

[sadandconfused]

i am months behind and even went on emc's payment plan and i am behind on that too. I want to get a loan mod and switch over to a fixed loan. actually the second loan is fixed but it is 11% @45k. The first is option arm which will reset in 2010 which doubles for the life of the loan. I have to call emc and see what they can do. I am seeing an attorney about filing bankruptcy cause I have a lot of unsecured debt.

[dcdubbs]

what part of florida is your condo in?
I live in Vegas- and there are not too many places besides here with that kind of depreciation.

When prices become so cheap that you almost can not believe it, you'll have to start seeing a turn around. I know vegas is starting to perk up because of the amount of vultures looking for bargains. Thats how it all starts.

With a loan mod- will they ever modify the balance or just the interest rate?

[Moe Bedard]

Unfortunately, that isn't happening............
Home Affordable Modifications are designed to prevent foreclosures by making mortgage payments affordable for working homeowners struggling to retain homeownership. The plan is not intended to replace equity lost by home price depreciation.