Refinancing is not Impossible

Homeowners are refinancing at numbers that we haven’t seen since 2004. Home purchases have also increased due to these low rates.

But, what if you can’t refinance due to job loss, poor credit or low property value?

Some homeowners find themselves on the outside of this new refi bubble and continue to struggle to pay mortgages with no help from their banks. Remember, banks will only start to modify a mortgage if the homeowner is 90 days delinquent. This is a double edged sword of course; the homeowner in this position has sacrificed his or her good credit after being 30 days late and has even less motivation to stop a foreclosure at 90 days. Acceptance of their dire financial situation may have already set in and they are less eager to do anything to stop the process.

If you are a homeowner who is making your mortgage payment, about to fall behind and could use a little assistance with a refinance, here’s some information that you may find useful. Part of President Obama’s housing plan is directed at you. If your house has decreased in value or your interest rate is high, the government is now enticing lenders to offer a rate as low as 2% in order to make your monthly payment affordable, within 31% of your monthly income. The lender will benefit by a government payment. If that does not work, then 40 year mortgages are now being set up. Help is here.

If you find yourself in this situation call the institution that services your loan and ask them what your options are. This is the company who you send your payment to. Also, call HUD at 888-995-4673. The government has set up a Web site: www.makinghomeaffordable.gov)