Can We Refinance?

[MotherOf5]

Hello Everyone,
We have had problems refiancing. We have been trying for months. We have credit scores of 688, 632, 686. We have a jumbo mortgage 557000. Our monthly payments are 5540 and that is with taxes and insurance. We have a 10.7% rate and all we want to do is lower our interest rate with no cash out. Our house appraised at 620000. We have a problem that our ltv is to high. What can we do. We are struggling to make these payments and need to refinance ASAP.

[mreedlaw]

Good morning and welcome to the forum...I see that you (like me) probably experienced a little hiccup on the forum's server for a few moments...

Would you be able to share a little more info. re: your situation?

Who is your lender(s)?
What are the term(s) of the loan(s)?
Have you been late on your payment(s) yet?
Are property and hazazrd insurance escrows part of your payment?

Thanks - it is appreciated, Michael

[MotherOf5]

Who is your lender(s)? EMC

What are the term(s) of the loan(s)? Sub-Prime

Have you been late on your payment(s) yet? 7 months ago. I refinanced and Our old mortgage company received the payoff of the mortgage on July 31, 2007 and they processed the payment on August 1, 2007 and they said we were late on the payment. Even though we paid them off.

Are property and hazazrd insurance escrows part of your payment? Yes

Can you help me please.

[mreedlaw]

I should have asked you also what state you were located in...

The Homeowner's Tool box at the left of your screen is an excellent resource as to what you can do ... for example, just off the top of my head, I would recommend drafting a hardship letter and gathering together a monthly expense report as soon as possible, to explore possible loan workout solutions with EMC.

While I am not familiar with EMC's tendencies (and others on this forum would be more familiar), I did look at their website, and this direct link may be of assistance as well -- EMC's servicing website

https://emcmortgagecorp.com/emcccn/faq/keepmyhome.jsp

Please let us know if that will be of use to you, thanks.

[Mary Salzer]

Mom...we went through this on another thread...you are understandably very concerned, however the advice is still the same, you need to wait for the higher loan amounts with FHA to come out and determine that that time if the area you are in will allow for a Jumbo Refi with FHA.

There are no loans presently that will accommodate your situation, and if you allow panic to drive the decision making in this situation you will most likely end up with a loan worse than the one that you have.

Please go back to the original thread and re-read the information that I gave you, this is a lender viewpoint and an underwriters viewpoint on the situation.

No one on this forum can achieve the refinance for you, we do not allow the lenders or the brokers to sell loans on this forum. Your situation is very common and until the higher FHA loan limits are established you are not in a position to achieve a refinance yet. The LTV is just that the problem and FHA will relieve that problem. The late payment in August is moot as long as the one in January or Feb came off as you indicated.

[MotherOf5]

Hello Poppy,
The late payment is off. Thank God. Panic yes i am there. When will the FHA limits go into effect?

[Cat Damiano]

The dates for the increase hasn't been set yet, but you can check on it by calling Fanni Mae, here is the lates info:

Statement by Amy Bonitatibus, Senior Manager, Communications

February 13, 2008


The temporary increase in the GSE loan limit that President Bush signed into law today will help bring stability, liquidity and affordability to an important part of the housing finance system. Fannie Mae welcomes this opportunity to help support the housing market in high-cost areas, and we are working with our regulators and our lender partners to implement the change as quickly as possible.

Contact:Consumers -- 1-800-7FANNIE

[Mary Salzer]

The bill was approved on 2/13/2008, FHA/HUD has 30 days to meet the requirements of determining the High Cost Areas....then on top of that the markets and the guidelines for the Jumbo product have to be rolled out. I am assuming that if all goes well 45 to 60 days for the product to be rolled out and on the underwriting shelf with the markets to sell the end product/loan to. There has to be a TSA or Market to sell these buggers to, the money has to regenerate so that they can make more of them and that is one of the issues that is facing FHA and the Agency loans FNMA and FHLMC....find the markets to sell the product to as it is untested, untried and has no track record.

The determination of High Cost is the easy part. The markets and guidelines as well as the Senior Underwriters that can actually safely underwrite these products are the toughies... in this equation.