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I have a conventional loan and I am under water what can I do?

by michelle.osborne638 from Boston, Massachusetts. Jul 28th 2016 Reply


Scott Fix (ScottFix)
#1330 ranked lender in California - 184 contributions

Great question Michelle. Along with being a loan professional, I am a certified short sale specialist and REALTOR. In May I helped a couple of families keep their homes simply by providing advice. No loan, no sale etc. First off, have you stopped paying your mortgage and is it near or in default? Do you have any assets, cash, stocks or other liquid assets to pay the mortgage if you are behind? Have you fallen on hard times, which would include medical problems due to illness or injury, divorce, loss of job etc. If so, you may qualify for the short sale process. If your intention is to get out before foreclosure, find an agent with experience in the short sale process. MANY will tell you yes just to get the listing, but they have no clue what to do first. The property SHOULD NOT be treated as a traditional equity sale if you owe more than it is worth. So, find one which uses a short sale negotiator or master negotiator (ONLY) with the lender to get a pre-approval on price and terms for such a sale. DO NOT use one to list the house and get permission for the sale after you have received an offer. When an inexperienced agent takes on this type of sale, many of those properties end up in a foreclosure status due to inexperience. Now, If your intention is to stay, but need financial help, look to refinance. Rates are low and if your credit is OK and income is good, you could possibly lower your payments to help ease the pain. Look in Boston for a local loan professional and ask about HARP. See if you qualify by going to http://www.harpprogram.org/faq.php This is an easy read and step by step to show you if your mortgage is HARP eligible!! Now, if HARP or refinance is not an option, you can ask your lender for forbearance. There are conventional lenders who will be helpful to you in retaining your property and will give you forbearance. Forbearance is a temporary reduction or suspension of your mortgage payment due to falling on hard times. Work with your lender to have them help you solve the problem first. Communication is key. Take great notes as to the person and extension you spoke with, time and date and what was said or promised. SUPER IMPORTANT. In short, seek the help of only EXPERIENCED agents and EXPERIENCED Loan Professionals with your situation. If you need further assistance, please call. I will be happy to speak with you. All the very best, Scott.

Jul 28th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

Much more info needed to advise you.. Are you wanting to sell or stay where you are? Are you current on your payments? Are you looking for refinance advice? When was your loan originated? Etc, etc, etc.. If you are looking to sell, then you might have an opportunity to do a short sale.. But understand that this could affect your credit and prevent you from purchasing for several years.. Are you looking to refinance? Thee is a government sponsored refinance program called the HARP, which is due to expire at the end of this year, but this might be a way for you to refinance without the need for an appraisal.. so even though your underwater, you can still refinance and take advantage of today's lower rates.. Again.. much more info needed to address your specific scenario.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jul 28th 2016
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Dan Paladin (dpaladin)
#2 ranked lender in California - 433 contributions

More info is needed as mentioned. If you are looking to stay and need help and have kept your payments current. Harp could be an option. First your current loan must have been secured prior to June 1st 2009. Secondly it must be owned by Fannie or Freddie. Fannie link: http://www.fanniemae.com/loanlookup/Freddie link: https://ww3.freddiemac.com/loanlookup/If you meet these two guidelines then HARP could be your answer. Consult with a local mortgage professional to clarify the rest of the conditions needed. If you do you may also receive a PIW (property inspection waiver - no appraisal).Good luck.

Jul 28th 2016
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