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Refinance Conventional Underwater Loan

My current loan is with ING Direct, an ARM at 5 percent that will adjust in February of 2014. The home is now underwater with a loan value of 380K and the home value is 361K. The loan has both my name and that of my ex-husband as the borrowers. I need to refinance to remove his name from the loan. I could easily qualify for the loan based on my salary alone.The loan is NOT backed by either Fannie Mae or Freddie Mac so HARP 2.0 isn't an option for me. ING will not allow assumption of the loan in my name alone nor will they refinance since it is underwater. What, if any, options do I have for refinancing since I have to do it?The home is in San Bernardino County, CA. by kodaboda45 from Rancho Cucamonga, California. Jul 2nd 2012 Reply


Robert Le (robert_le)
#620 ranked lender in California - 36 contributions

The only options is you have to bring money into the new loan to make the Loan-to-value low enough for you to get approved. If the Loan-to-value is above 80%, then you have to pay for mortgage insurance. Also, if your ex-husband is on title, then he will need to quit claim. Give me a call if you have any questions. 714-943-6499

Jul 2nd 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

You can bring enough cash to the table to buy down your mortgage balance to 80% loan to value so there's no monthly mortgage insurance, or at least enough to get you to 90% loan to value, but you would have some type of mortgage insurance (either upfront premium, or monthly premium), but in either case it will require you bringing in money to satisfy the lender's loan to value requirements.. Also, There's the HARP 3.0 in the works, but no details yet.. We know it is intended for borrowers like yourself, however we won't know the particulars until the program has been released.. Another option is to go FHA refinance. FHA will allow up to 97.75% loan to value, however you will have mortgage insurance added to your payment to the tune of $376 per month.. But with the rates on FHA fixed being below 4%, you should still have a lower monthly payment than what you currently have, and you can get your x removed as well. The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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. 480-287-5714 WilliamAcres.com

Jul 2nd 2012
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Patrick McCarthy (PatrickM)
#22 ranked lender in Ohio - 196 contributions

There is another option that noone has mentioned. Tel ING you are going to walk away. Maybe they will modify the loan into your name then. :)

Jul 3rd 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

Best you can do right now is 95% refi based on value and get one time lender paid MI built it should still be around 4% ..

Jul 2nd 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

I might have anothe option for you. please emai me at yourloanpartnerforlife@live.com linda

Jul 2nd 2012
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Jonathan Rhode (jrhode)
#183 ranked lender in California - 130 contributions

You can easily do an FHA loan to 97%loan to value or look at a conventional loan at 95% with MI or even a lender paid MI option. Anyof these ortions will require you to pay down the principle balance. If you would like to discuss these options please give me a callat 877-401-1389 xt103 or email me at jrhode@cstonemortgage.com. Any of the options I listed can be done as no points and no costs.

Jul 2nd 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

A loan modification will not work unless you can show some sort of financial hardship. As others have mentioned, paying down the principal to anyware from 80% -97%. Obviously the more you pay down the better type of loan you will qualify for. Quit claim deed will have to be executed as well.

Jul 3rd 2012
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Dr. Shab Kavandi (skavandi)
#469 ranked lender in California - 53 contributions

You can short sale it! Maybe this the best option at this point however there are talking about the HARP 3 which will cover people like yourself but it is still in a pre mature phase yet! You can call me for more info :) 714 639 6694 Shab

Jul 3rd 2012
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