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AH0215
160 Posts |
 Posted - 05/12/2008 : 10:45:26 PM
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| Does anyone know if of any banks or entity helps home owners with Negative Equity that has an adjustable mortgage to refinance into fixed mortgage? I have couple clients that has great job, excellent fico scores, and they have an adjustable that they are all wondering if anyone can actually refinance them into a fixed loan. I hear that it is call the FHA Back up loan or something like that from one of my Realtor. Anyone knows any bank like that? |
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slants
4261 Posts |
Posted - 05/12/2008 : 11:22:33 PM
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| Look up FHA Secure. It allows late payments AFTER an ARM reset, but cannot address negative equity. Only way to close a refi w/ negative equity is to do a short refi, but good luck getting a short payoff from a lender. |
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AH0215
160 Posts |
Posted - 05/12/2008 : 11:48:17 PM
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| So what is a short refinance? It seems that you have done one before, can you please explain that to me? how does it work, is it like a short sale, instead selling the property , we refinance it? |
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slants
4261 Posts |
Posted - 05/12/2008 : 11:54:39 PM
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| http://www.brokeroutpost.com/loans/brokers/forum/topic.asp?TOPIC_ID=220734 |
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slants
4261 Posts |
Posted - 05/13/2008 : 12:02:25 AM
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quote:
Originally posted by AH0215
is it like a short sale, instead selling the property , we refinance it?
Yep. |
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AH0215
160 Posts |
Posted - 05/13/2008 : 12:47:52 AM
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| I still can't figure out how to do this, do i negotiate with the current lender? Or shortrefi.com does? And how can I be compensated? |
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KHufford
5701 Posts |
Posted - 05/13/2008 : 01:23:46 AM
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NO NO NO...
First Step! Contact current lender, they will very likely be willing to extend the fixed period for them. Have the client just call their lender and speak with the right dept/ loss mitigation, they may be willing to extend it, and avoid all the other short refi stuff.
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JEMORTGAGE
323 Posts |
Posted - 05/13/2008 : 06:40:50 AM
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ccorica
178 Posts |
Posted - 05/13/2008 : 06:43:37 AM
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| negative equity - oxymoron? |
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Coronasteve
1435 Posts |
Posted - 05/13/2008 : 06:56:26 AM
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Kyle has it right.
Advise your client to call their lender or go on their website. Get to a loan modification person and tell them what is going on.
They will not get immediate help in a modification, but they need to complete a hardship letter, income/expense statement, a few other items. There are guidelines they must fit. Then it takes anywhere from 30-90 days to get a modification if the homeowner is persistant.
Forget the refi. We're seeing modifications of 30 and 40 year amorts, in the 5%-6.5% range. This is just the beginning of a modification boom. |
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slants
4261 Posts |
Posted - 05/13/2008 : 08:59:21 AM
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quote:
Originally posted by AH0215
I still can't figure out how to do this, do i negotiate with the current lender? Or shortrefi.com does? And how can I be compensated?
So no, if homeowners go to their lenders for a loan mod, no compensation to you. Unless you can pull off a short refi, there is no commission. Shortrefi.com will supposedly give you a fee for turning over your client and hand them back to you to refi after a short payoff has been negotiated, but no guarantees there either. |
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Coronasteve
1435 Posts |
Posted - 05/13/2008 : 09:06:36 AM
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That is true, no compensation.
However, there are ways to earn money by referring loans mods. It is legit, no RESPA issues on compensation. RESPA does not apply.
More to come in announcemens later today.
quote:
Originally posted by slants
quote:
Originally posted by AH0215
I still can't figure out how to do this, do i negotiate with the current lender? Or shortrefi.com does? And how can I be compensated?
So no, if homeowners go to their lenders for a loan mod, no compensation to you. Unless you can pull off a short refi, there is no commission. Shortrefi.com will supposedly give you a fee for turning over your client and hand them back to you to refi after a short payoff has been negotiated, but no guarrantees there either.
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AH0215
160 Posts |
Posted - 05/13/2008 : 12:51:27 PM
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| So why are these companies out there advertising about 125% Purchase or Refi? How can they get that to work? |
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