Question by MMK: What to do when my home value is less than the principal of my mortgage?
I live in Florida and have a 7 year ARM, recipe search and I was interested in re-financing to a 30 YR fixed rate. However, pills my house is now worth $ 90K LESS than the outstanding principal amount on my mortgage, information pills so of course, my bank will not let me re-finance.
What are my options, if any? Is there a gov’t program or any new law that will let me refinance based on the new value of the house?
Best answer:
Answer by golferwhoworks
not if you are current and can pay the note since you are bound by the terms of the note. Your only hope is to have the values come back in time
What do you think? Answer below!
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Not a thing. Unfortunately all of the help that the government is giving out only helps those that are already behind but have a potential to catch up with they are offering. I am in a similar situation, though I do have a fixed rate (but want a better rate now) and it’s not as large of a negative value. We’re stuck!
YOU bought a hosue and YOU signed the loan docs and now you want a “do-over”???
There is NEVER a guarentee that things you buy will not go down in price and most things you buy ALWAYS goes down in value but suddenly you think you should be able to make the dollars owed on a home loan dissapper?
Learn to be an adult and understand that you were GIVEN money based on YOUR promise to repay those funds.
If the shoe was on the other foot and your home value had gone up $ 70,000.00 would YOU be willing to have the bank say,” Gee, sorry but we advanced you money on the house and we think you are getting an unfair share of the profit and want you to GIVE us most of your profit.” Would YOU be willing to give them a “do-over”???
A LEGAL CONTRACT is binding on BOTH parties and why should a bank NEVER get the profit if values go up but ALWAYS acept ALL the loss when values go down?
You don’t need to refinance now. Values will eventually stabilize.
Just keep adding principal into your monthly mortgage payments so you can pay it down and reduce your interest. Just wait it out.
well, if you want to try a loss mitigation then you could restructure your mortgage. you do have to fall behind on your mortgage to pull this off and show proof of hardship