mortgage refi questions (interest rate, creditor, rate, refinancing)

[nnyl]

I wonder, do mtg companies ever do re-fi or modifications on a mortgage that is current?

I need a lower interest rate. I need something.

The home is upside down by, hard to tell, nothing is selling in my area, maybe somewhere in the range of $15k, to $30K, something like that.

Homes are for sale (but not selling) for $135k, $140k, $165k. Somewhere in that range. I can only find one comp anywhere in my neighborhood, and that was obviously quit claim deeded, it was sold, the home was, for $100 (no not $100k, $100 only).

I owe $173k on it. My interest rate is 9.7%, fixed. I would like to get in on the lower interest rates. But here's the problem, may leave me outta luck here.

We've experienced this downturn in the economy, lowered income. We have managed to stay on top of the house payment and not fall delinquent there. But the cc's, oh that's a whole other story. Of course, gone are the days of cashing out equity in the home, to pay down debt.

I have gotten seriously delinquent with creditors outside of the mortgage. The mortgage is current and has stayed so. But the creditors, the cc's, a huge mess.

I have called, and for the most part, worked out hardship programs with the cc's, and so am beginning on that road.

So, if I could somehow get a lowered interest rate on the mtg., thereby freeing up more $$$ monthly to get these creditors paid down, then maybe I wouldn't be driving this thing off into a ditch of BK, which is where I'm going if things don't change.

And before anybody chastizes me about cc debt that I can't pay off. Please know, that once the savings were depleted, in this downturn in the economy (reduced income around here), then it was cc's for means of survival, just as a whole lot of other citizens have had to rely on.

Yes, I am mortified to be in this predicament, and no I'm not somebody who utilized cc's to buy loads of fancy gadgets and big screen tv's, and take vacations. None of that. Haven't had a vacation in over 4 years. Have the same ole trusty tv I've had for about 15 years. Drive older model paid off vehicles.

So, the question is this, does one ever get a modification on the mtg, if it's on time and not delinquent? Can one, even do anything at all, except suffer along, if their credit is now shot?

I've thought about falling behind on the mtg., on purpose, in the hopes of a modification. But that is sure a risky proposition and one that I just can't stomach.

[Iwillthink4u]

may i ask when you bought to have a 9.7% rate?
you could basically cut your mtg payment in HALF if they let you refi.
good luck!

[VictorBurek]

Your only chance at refinancing will be with your current servicer, who you make your payment too. With the deliquences, i would think your fico score would be under 620 and that is the minimum score you would need to qualify for a refinance with a new lender.

Call your lender and ask them if they can help under the Home Owner Affordabilty and Restablization act.
Good luck.

[SmartMoney]

There is heavy pressure on current lenders to modify current customers. Have you contacted your lender?

And what ever you do, DO NOT buy into "you have to be late before we will negotiate" trap.

[nnyl]

Originally Posted by SmartMoney

There is heavy pressure on current lenders to modify current customers. Have you contacted your lender?

And what ever you do, DO NOT buy into "you have to be late before we will negotiate" trap.

The above is precisely what I was told by the current mortgage company. And I even asked to speak to someone in the Loss Mitigation Dept.

[VictorBurek]

I agree with SmartMoney, dont buy into that trap. Always remember, the greasy wheel gets the oil. So, call, call and keep calling your current lender til you get to someone that can help. Lenders are supposed to be helping homeowners that are current but upside down.

Additionally, i recommend to clients to keep a notebook and write down notes each time you call with whom you spoke to, what you spoke about and any results.