No Where To Turn

[InterestOnlyNJ]

Hello Everyone:

This is my first post on this forum. This is my story. In 2006, my wife and I opted to refinance and do an "Interest Only" loan for a portion of the total mortgage (533K) @ 6.75%, originally with Lehman Brothers, they sold it off to Aurora Loans. We start paying on the principle in 9/11. The remainder is an installment loan (132K) @ 9.0% with National City. Total owed is 665K. 2006 value of home was just over 700K. Value of the home now is low 600's. Loans are not Fannie or Freddie. We want to take advantage of the lower rates and get locked in to a fixed rate for 30 years but we just don't have the loan to value ratio that the banks require. Never have we fallen behind on our 5K/mo payments. Credit scores are in the low 700's. Does anyone know if there is a vehicle coming out to help folks in my situation? It almost seems that if we were to get behind on payments, then we may get some help!!!

[Moe Bedard]

HI InterestOnlyNJ,


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

The loan to value guidelines are only required for the refinance.............for the modification there is a different set of guidelines..........if you have not already done so, here is a link to the payment estimator and FAQs about the Making Home Affordable modification program to see if you are able to qualify for that instead................

Making Home Affordable - Payment Reduction Estimator



You can also log into your account from this link and see if you qualify...

https://www.alservices.com/

[InterestOnlyNJ]

Thanks for the reply ***. Unfortunately, our loan is not a Fannie or Freddie & our DTI is below the 31%. Apparently we do not qualify for either of the options offered in the Making Home Affordable scenario.
I will keep my eyes and ears open for any other programs that may arise.

Cheers