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Old 03-03-2009, 09:43 AM
 
Location: Pawnee Nation
7,525 posts, read 14,544,367 times
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Oz, send us your original appraisal as well as a copy of the current one and let me review it. also talk to your attorney about auditing the original loan package. CW did a lot of pushing back then (pushing for high end loans for people who really could not afford it). If the audit and reviews turn up malfeasance on their part, they could likely have to repay you every dime you've paid them (including closing costs). At that point, if you tell them they can either redo the loan or you will take them to court, chances are they will sit down. Right now they are looking at getting a property they will have to convert to $100,000+/- less than they loaned on it. If they have to repay you as well, they are not going to like it much....it would be far better for them to reduce the principle/interest and extend the terms and keep the money coming in......all you have to do is persuade them that the failure in their due diligence and their failure to negotiate now is going to increase their losses tremendously.

Let me know if you want some help.......
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Old 03-03-2009, 09:46 AM
 
Location: North Cackelacky....in the hills.
19,556 posts, read 18,740,290 times
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Thanks we appreciate it.

I will let you know more when we get a copy of this appraisal.
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Old 03-03-2009, 10:07 AM
 
Location: WA
5,293 posts, read 20,705,220 times
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All indications are the announcement this week from the government will allow Fannie Mae loans to be refinanced up to about 105% at market rates without asking for usual changes (no additional down, no change to PMI or escrow status).

We won't know until the final rules are out but this may allow a real savings for borrowers, although it puts Fannie and therefore taxpayers at greater risk.
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Old 03-03-2009, 10:13 AM
 
Location: North Cackelacky....in the hills.
19,556 posts, read 18,740,290 times
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If the current appraisal is correct even a 105% refi can't help...

The appraisal pretty much floored us yesterday...I know price per square foot isn't the way it is calculated normally but the appraiser valued our house at $93/foot...this is an older home it is true but we have hardwood,imported tile and marble floors,granite countertops,updated windows,HVAC all on an acre...

IF this is truly the case I think a LOT of people here are going to be VERY upset with the losses their homes have suffered...
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Old 03-03-2009, 10:22 AM
 
1,613 posts, read 2,327,883 times
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Quote:
Originally Posted by oz in SC View Post
If the current appraisal is correct even a 105% refi can't help...

The appraisal pretty much floored us yesterday...I know price per square foot isn't the way it is calculated normally but the appraiser valued our house at $93/foot...this is an older home it is true but we have hardwood,imported tile and marble floors,granite countertops,updated windows,HVAC all on an acre...

IF this is truly the case I think a LOT of people here are going to be VERY upset with the losses their homes have suffered...
What about the modification portion (not the refi portion) of the plan that's being detailed tomorrow? Would that help you lower your payments and help your situation?
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Old 03-03-2009, 10:28 AM
 
Location: North Cackelacky....in the hills.
19,556 posts, read 18,740,290 times
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I don't know,we haven't looked into modifying the loan mainly because in the end we want to sell the house.

We were doing a refi to lower our monthly payment(increasing how we owe however) to make it easier to either lease to own the house or rent it until the market gets better...

All that is out the window now it seems.
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Old 03-03-2009, 10:42 AM
 
Location: Long Island,New York
8,163 posts, read 12,819,426 times
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Quote:
Originally Posted by oz in SC View Post
To be honest,we do not WANT to renege on our obligations,If the house sold for less than what we owe I would be willing to pay the balance owed back if we could.

However it seems that until you fall behind on your payments they aren't really offering much help at all.

And sadly we would be in better shape financially if we DID stop paying on our mortgages on this home,we would not be paying out almost $2200/month for one thing.

Our one fear is that IF we do turn the house back in/be foreclosed on/whatever is that the lenders can go after our other property that we have been trying to move to....does anyone know about this???
If you are willing to sell and pay the balance then why not call the real estate companies that buy homes for cash?Obviously they will pay less but you'll be done with the home sooner and can pay the balance to the bank after this and then you can move to where you want to be.
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Old 03-03-2009, 10:55 AM
 
1,613 posts, read 2,327,883 times
Reputation: 284
Quote:
Originally Posted by oz in SC View Post
I don't know,we haven't looked into modifying the loan mainly because in the end we want to sell the house.

We were doing a refi to lower our monthly payment(increasing how we owe however) to make it easier to either lease to own the house or rent it until the market gets better...

All that is out the window now it seems.
Maybe if you can modify with the new rules that will appear tomorrow, it can lower your payment enough to make it easier to rent the house?
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Old 03-03-2009, 01:32 PM
 
1,134 posts, read 2,469,695 times
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I have a friend who rented out his house after he couldn't afford it anymore due to being laid off early last year. His new job pays significantly less and he has been unable to sell the house but didn't want to foreclose.

His mortgage payment was about 2500 / mo.; He rented an apartment for something like $900, and rented the house out for 2000 / mo.

He pays the 500 difference between his rental income and the mortgage. In doing so, he went from paying 2500 / mo for housing to paying 1400 / mo. for housing... and he still owns the home and has good credit. So over all he saves $900 / mo., keeps his good credit, and still owns the home - which, eventually he'll be able to reclaim.
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Old 03-03-2009, 01:56 PM
 
Location: North Cackelacky....in the hills.
19,556 posts, read 18,740,290 times
Reputation: 2496
Quote:
Originally Posted by Lancet71 View Post
If you are willing to sell and pay the balance then why not call the real estate companies that buy homes for cash?Obviously they will pay less but you'll be done with the home sooner and can pay the balance to the bank after this and then you can move to where you want to be.
The local company I contacted stated they would pay 70% of appraised value.

If the house had appraised for basically what it did the last time(going from memory somewhere around $232,000) I would have gone for it...

We are willing to bite the bullet and take the loss and move on, problem is finding any takers on the house.
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