Refi plan now allows up to 125% LTV (real estate, rental)

[sh9730]

I was gonna post this in the Real Estate forum, but since it applies to so many here in our area, I did it here instead.

The Obama plan to help upside down homeowners refinance that was originally limited to a 105% Loan to Value (meaning you owed only 5% more than your home would appraise for), has been raised today to 125%! These are for loans backed by Fannie/Freddie only.

Yes, there are many with loans even more upside down, but its a pretty big jump and should allow more to qualify to get out of higher rate or adjustable loans into fixed rates at todays rates.

105% was kind of a joke here, but this should make a little bigger dent...

[YAZ]

...or make the problem worse.

[sh9730]

Yaz,

Dont think so on this particular part of the plan. Remember, this is for the people who are PAYING on time, but just have not been able to take advantage of better terms now available because of upside down equity.

Most of the people looking for help from this are people who plan to stay in house, and just looking to make a better loan. The extra money in their pockets each month should help, not hurt.

[YAZ]

We'll see. Personally, I hope it works.

For the short term, it sounds good. Interest rates are great right now; the main reason we purchased this year. That and the price of our "new" home, of course.

What I'm worried about is folks will end up paying more over the "long haul".

[YAZ]

LOL

You can only imagine how upside down we are on our rental property.

I'll fill ya in.

30 year fixed rate at 6.25%

Owe: 93k.

Appraisal: 70k

Comparables in the neighborhood: 40k.

Jingle mail, jingle mail, jingle all the way......

I'm kidding.

If things get more stupid, we'll short sell (bank approved, of course).

Other options: Sell THIS home, as we could prob'ly get what we owe on it. But then we'd lose the cash we've put into it. And then go back to the condo life.

Spend our life savings then declare bankruptcy. Losing at least one of our properties in the process.

Or....quit feeling sorry for myself and find a job.

Ding...Ding....Ding!

I think we have a winner!

[altus2006]

Originally Posted by YAZ

LOL

You can only imagine how upside down we are on our rental property.

I'll fill ya in.

30 year fixed rate at 6.25%

Owe: 93k.

Appraisal: 70k

Comparables in the neighborhood: 40k.

Jingle mail, jingle mail, jingle all the way......

I'm kidding.

If things get more stupid, we'll short sell (bank approved, of course).

Other options: Sell THIS home, as we could prob'ly get what we owe on it. But then we'd lose the cash we've put into it. And then go back to the condo life.

Spend our life savings then declare bankruptcy. Losing at least one of our properties in the process.

Or....quit feeling sorry for myself and find a job.

Ding...Ding....Ding!

I think we have a winner!

Maybe you spend too much time sitting around thinking.

altus2006