I posted about 3 years ago regarding my mortgage situation and just am looking for some advice/thoughts/feedback just in case I missed something along the way. Let me quickly recap - I have a home in Atlanta that has lost about 25-30% of its value since 2008. As a result, I can't do a traditional refi because my LTV is 110%. I'd have to sink about $100K (which I don't have right now) into a depreciating asset to be able to refinance (to get to 80% LTV). I am in a 5/1 IO ARM that is currently adjusting down, but that trend will not last forever. I simply want to refi into a fixed rate conventional loan and take advantage of these unbelievably low rates we are seeing right now.
A few other things about me - I have a great deal of financial stability meaning debt to income ratio is pretty low, a number of assets (own 2 fairly new cars, have a vacation home, etc.) and an 800+ credit score so underwriters would love me if I was able to do that traditional refi!
HARP 2.0 would be the perfect solution for me, but CitiMortgage decided to keep my loan in-house - they call it a portfolio loan - not backed by freddie or fannie. Thus HARP is not an option for me. I have called Citi on numerous occasions and the bottom line is they seem to only care about the folks that are in financial trouble. Folks like me who are trying to be proactive and get out of a risky IO ARM into a fixed rate loan are definitely at the bottom of the priority list - and honestly I don't even think my scenario makes their list.
I have read all about HARP 3.0 and it specifically will address my situation - loan NOT backed by freddie or fannie - but I honestly don't know if/when that will get passed.
Bottom line for me is that my financial situation is really good right now, but things can change fast. I simply want to refi into a more stable fixed rate loan, but I am handcuffed by Citi because they kept my mortgage in-house.
Does anyone out there have any suggestions - or is my only hope that HARP 3.0 is passed very quickly by Congress? Or of course, I could rob a bank so I could pay down my mortgage $100K so I could do a traditional refi...joking of course!
Please let me know your thoughts...