Re-financing Home Mortgage

[polishmafia]

2) Those that are not managing to pay on-time everytime (not 'performing' as you put it).

This really kills me. I understand why this type of rule is in place, but why would a lender not even take me into consideration for a refi? I can pay my bills, I just want a lower rate.

Over the next 30 years, is the lender going to make more money sitting on non-payers and selling their foreclosed property? It makes NO sense to me.

[Goat Blower]

I've had several friends that weren't able to make their payments, the banks didn't help them a bit, they lost their houses. All that BS about the government helping homeowners is just for show, I haven't heard of one person that it's helped.

[Halon]

I know of plenty of people who've had monthly mortgage payments waved by their lender for several months due to income issues.

[TalonFiero]

I know of plenty of people who've had monthly mortgage payments waved by their lender for several months due to income issues.

Right, there is another program and one that gets used a lot more than the HARP I posted a bout early. It's called HAMP home affordable mortgage program and pretty much anyone who has used it ended up foreclosing in the end anyway.

Slowbubblecar is right, I have had a hard time getting my lenders to look at the HARP, most haven;t done many and say things like they are not ready or have you fill out applications for the wrong programs. It's seems like they want you just to get lost in the paperwork and just go away.

[slowbubblecar]

This really kills me. I understand why this type of rule is in place, but why would a lender not even take me into consideration for a refi? I can pay my bills, I just want a lower rate.

Over the next 30 years, is the lender going to make more money sitting on non-payers and selling their foreclosed property? It makes NO sense to me.

You can always apply, but their goal of the loan is making a profit. If they allowed everyone to refi to lower rates, they won't make as much money. If you would have signed up for a variable rate loan, you would have had the benefit for the change in rates the past year and a half or so. You also would have possibly had to pay more down the road when rates increase as well.

I've had several friends that weren't able to make their payments, the banks didn't help them a bit, they lost their houses. All that BS about the government helping homeowners is just for show, I haven't heard of one person that it's helped.

Many banks are doing a bad job working with their members. I think it is primarily due to the volume they are dealing with. Often times, the bank moves so slowly that the member doesn't make any payments and by the time the bank goes to resolve the issue, it is too late and the bank just decides to foreclose.

I have a friend who hasn't made a payment on his home the past year. It still hasn't even gone to the sherrif sale yet.

I have been interested in buying a house that was in a short sale for the past year and a half. Eventually the owners just said F-it because the bank wouldn't take what the house was worth and they didn't want it. When the seller gave up on selling it, I was told the bank wanted $80k more than my offer for the house (highest offer over past 1.5 yrs) which is rediculous. I am waiting for it to come back up again as the sherrif sale was completed recently and the member didn't have any interest in keeping it. I decided to just wait it out since the bank will be holding it for a while. I don't think the bank realizes the house needs 35k in repairs as it sits to fix 2 issues let alone the updating that needs to be done... The house has also been winterized the past few years so who knows what works now. I am hoping to get it for less than my original offer sometime next spring-summer.

I know of plenty of people who've had monthly mortgage payments waved by their lender for several months due to income issues.

If they are struggling with making their payments, banks will be more willing to work with them to some extent. This practice is ok as long as the borrower has fixed the issue relating to his/her lack of repayment. Letting someone skip payments doesn't make any sense if it repayment issue will continue going forward.

[asshanson]

I actually called US Bank about refi, and they do approve them up to 125% loan to value which I barely qualify for. So everything was approved for me at < 4.5% until they realized my mortgage was FHA instead of a conventional loan. Sucky.

[slowbubblecar]

I actually called US Bank about refi, and they do approve them up to 125% loan to value which I barely qualify for. So everything was approved for me at < 4.5% until they realized my mortgage was FHA instead of a conventional loan. Sucky.

I don't understand why it would make a difference if it was FHA. FHA standards are more strict than conventional loan standards and all they would be doing is paying your loan off and creating a new loan. It would be no different than if you refinanced a car loan at a different bank (aside from additional paperwork).

Their explanation doesn't make sense to me. I am guessing it is something else and they just said that as a reason. I guess it is possible if they were trying to qualify you under the HARP program, but if they are holding the loan, they can make what ever changes they want.

[asshanson]

Yea the only way they'll give me a good rate being underwater is through a government program like HARP. They called it something else but it's basically the same thing, and FHA loans don't qualify for some reason.

[slowbubblecar]

If they really wanted to help you out, they could do it. I am not sure what incentices the banks have for using the government programs, but it is possible that it might not qualify under US Banks program because of the LTV. I would be amazed if US Bank was originating anything new >90% unless they have PMI.

[stikx]

Was your loan not through Fannie Mae? My brother's mortgage is through PNC, which is apart of the Fannie Mae network.

They refinanced him from 6.xx% to 5.xx% (I forgot the exact APR); they basically streamline refinance and you pay the closing cost or put it on the loan.

What's interesting is that other banks have called to offer better rates and the same process. I guess banks are being notified within the Fannie Mae network once you are in the system.