Tricky Scenario- Need help / advice

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meridian1

340 Posts

Posted - 05/14/2008 : 08:02:28 AM

Hi Friends,

One of my client wants to do a rate and term refinance on his property. He owes $230,000 in mortgage balance. But the worst part is that is just worth $235000 right now.So it kind of become a 100% loan when we include the closing costs into the loan amount.

He is the other stats of the scenario:

FICO 597
Rate and Term
SFR- Condo
Loan Amount $235000
App Value $235000
FL State
O/O
30 yr fixed

Will any bank do this? Or is there a way to make the deal work? Will the present bank accept a lower payoff amount?? Any views will be appreciated.

Thanks
Ravi

hoangad

2919 Posts

Posted - 05/14/2008 : 08:28:05 AM

what's so tricky about this scenario?

Layne Jones

1478 Posts

Posted - 05/14/2008 : 08:32:42 AM

No lender is going to lend on that. Tell the borrower to call the bank directly and negotiate a loan modification.

jfink46

256 Posts

Posted - 05/14/2008 : 08:33:10 AM

You're kidding, right? Declining market, 100%, 597 FICO. There is nothing conventional for this. Have you tried FHA?

mganovsky

1910 Posts

Posted - 05/14/2008 : 09:16:55 AM

FHA will not do a 100% REFI OR WILL THEY. I do mostly purchase transactions. Try calling the lender and try to negotiate a short Refi Pay off and take it FHA.

Other than that, move on to the next one

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