Refinancing with negative equity. PLEASE HELP, I’m only 18!?
by Mortgage Rates on Sunday, September 26th, 2010 | 4 Comments
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He needs to try and obtain a short sale. Have him get a bi-lingual agent to help him sell the house and negotiate with the bank.
He is too upside down at this point to do anything else.
Your idea of him making money is incorrect, he will not at this point.
There are many sources of information that you can tap and for free. You can talk to a counselor with the Hope Now organization and they can explain all your options that they are aware of. I would think this would cover most of the ground that you would need to cover. I would certainly talk with your lender as well they may be able to modify the payment and rate, although they will be less likely to agree to a principal reduction except as their last option. Do you have just 1 mortgage or 2, if you have 2 you have more leverage to get the 2nd to agree to a short pay refi because if they foreclose they typically get pennys on the dollar to zero dollars and depending on the state they may or maynot be able to get a deficiency judgment. Here is a link that is worth a look for you.
http://www.foreclosurelaws.org/
Good Luck
Unless your dad lost his job or something comparable, I’m not sure I understand why he desperately needs to refinance NOW. Is it JUST to get a lower rate? He did a 30 year fixed, which means his payments aren’t increasing.
If you truly do need to refi, your first step is to get an appraisal so you know what your house is worth now. THEN talk to the banks. Typically they’ll finance 80% of the value of the home. You could possibly refi 80% of the value and get a home equity loan on the rest of the amount that you need?
Just because you’re upside-down isn’t the end of the world. At least his loan is a fixed-rate and if he could afford the payments when he took the loan he should be able to afford them now.
On the other hand he could simply declare bankruptcy and you can rent a place in your name and he can live there.