ARM up in Sept - options?

[sunnyleah]

I currently have a 5 year ARM at 5.5% and owe 116,000. The ARM term will end on September 1 and will adjust every 12 months. If the interest rate reaches the 8% or higher, I won't be able to stay in my home. I'm in AZ have been told the property value is probably 115,000 - no equity.

I have great credit scores in the high 700's and have always made my mortgage payments on time. I really could use some advice. I've been talking with Chase about refinancing but they are charging 750 to start the loan application and appraisal process. I already know my home won't appraisal for what I need it to which is 125,000. Can I even refinance? Has anyone ever heard of Chase extending an ARM or locking in the current ARM to a fixed rate?

[Moe Bedard]

Hi sunnyleah,


Welcome to the forum and thank you for joining.......................


There are two MHA (Making Home Affordable) guidelines that Chase is using right now.................one for a refi..........but the loan has to be backed by FannieMae or FreddieMac...............and one is a modification in which the criteria for eligibility would need to be met...................


For the Refi:

The eligibility criteria for a Home Affordable Refinance?

• The property must be owner occupied,
• The borrower must have sufficient income to support the new mortgage debt, and
• The first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less.

For the refinance the loan would also need to be backed by FannieMae or FreddieMac which you can check here................

Both Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Borrowers will provide or enter information to determine if either agency owns or securitized the loan. This information is not a guarantee of eligibility for the refinance program, as other qualifying criteria must also be met.

• For Fannie Mae,
o 1-800-7FANNIE (8am to 8pm EST).
o Does Fannie Mae Own Your Mortgage? Loan Lookup Tool

• For Freddie Mac
o 1-800-FREDDIE (8am to 8pm EST)
o Avoiding Foreclosure - Freddie Mac

There are no up front fees if you meet the eligibility for this option............


For the Modification:

To be eligible for a Home Affordable Modification, a borrower must:

• be an owner-occupant in a one to four unit property, and have
• an unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties, consult the Guidance for limits),
• a loan that was originated before January 1, 2009,
• a mortgage payment (including taxes, insurance, and homeowners association dues) on the first lien alone, that is more than 31% of the borrowers' gross monthly income, and
• have experienced a significant change in income or expenses, to the point that the current mortgage payment is no longer affordable.




If you meet these requirements you would need to fill out the information and contact Chase.................

The steps to take and the information and forms can be found here...........
https://www.chase.com/chf/mortgage/hrm_steps

[sunnyleah]

Thanks for the advice ***. I'm going to apply for the refi home affordable modification. I have a Fannie Mai mortgage with Chase. Hopefully I'll qualify.

[sunnyleah]

Not sure if i'm posting in the right place or not. I'm filling out the MHA Refi package and have some questions in regards to the supporting documentation. Unfortunately, the supporting office for Chase isn't open on weekends. Would anyone happen to know the answer to some of these questions? Sorry if they seem a little triveal but I want to make sure I have all the correct information and documentation the first time around.

1. If my property taxes are part of my mortgage, how do I provide a recent property tax bill? Can I simply attach my mortgage statement?

2. I live in a Condo and part of my homeowners insurance (exterior coverage) is included in HOA. I do have property insurance (condo insurance). What sort of documentation would be best to attach for this?

3. I pay my HOA bill online through my BofA account. What can I use as proof of payment as I don't have canceled checks or HOA statements?

4. I own my car, how do I prove that and can I use the Kelley Blue Book value?

5. I currently work in a contract to hire position and will transitioning to be a fulltime employee on July 10. Should I state this?

6. On the assets page there are two columns Amount Owed & Value. Do I state the value of my home or leave that blank?

7. On the monthly expense form it asks for loans, credit cards etc. Do I put the minumum payment information or can I put what I actually pay if it's higher?

8. Is there a place where I can find a sample Hardship Affidavit?

My situation is not in position of hardship at the moment. I experienced the hardship last year with a 70% paycut and am trying to get back on my feet now but with my ARM coming due in August and no equitity I will mostly likely be in hardship once again if the mortgage payments increase too much.

Any feedback you can provide would be greatly appreciated.