A few years back I took out a load on a property that exceeded the value, now I am have trouble refinancing that loan it seem that there are no lenders out there willing to touch the refi, are there resources available.
So you took out a loan for more than 100% of the value of the property? And now there is no one who will refinance it? How upside down are you?
That really sucks. But it reminds me of when I did a refi ayr. ago. The appraiser asked me what figure I was looking for. I responded only by saying, " The true value". I’ve seen this before. If an appraiser gives you a figure that you “wanted”. He may be letting you get in over your head. I don’t know your situation, but you have to be careful with LTV’s. Good luck.
phlem,
I believe the OP is talking about one of those 125% LTV loans that people were doing a few years back. Talk about your nightmare loans.
Capital One was doing that. But they did it with two different lenders with a 1st & 2nd mortgage. I was tempted but fortunately common sense won. They also wanted to charge me $5500 for “closing costs”.
Irwin Mortgage was still doing them as of last year. If they were on a fixed rate at least you could hold on to the property and eventually you would catch up. There was a guy on here a few years back proclaiming the greatness of the pick a pay loan and talking about how all of his rentals were on PAP loans and trying to sell other investirs on the same idea. Now that is a nightmare scenario. Negative amortization on top of property values dropping like a stone.
THAT IS A BAD SITUATION…I’M ASSUMING WHEN YOU GOT YOU…WHAT IS CALLED A ONE 15 OR A ONE 25 LOAN…THE INTENTION BY THE LENDER WAS FOR THAT EXTRA MONEY TO GO INTO THE HOUSE…KITCHEN…ADD A GARAGE OR ROOM…ETC.
I DON’T KNOW WHERE YOU ARE LOCATED BUT IT SOUNDS LIKE A DECLINING MARKET…
IF NOT…YOU MAY FIND A RARE LENDER TO ALLOW USE A AVM WHICH TAKES THE AVERAGE OF THE HOMES SOLD IN YOUR AREA AND NOT CONDUCTING AN APPRAISAL…BUT REMEMBER YOU’LL HAVE TO SIT ON THE LOAN/HOUSE UNTIL CONDITIONS ARE BETTER AND A GOOD IDEA TO MAKE IMPROVEMENTS…
GOOD LUCK…THAT’S GOING TO BE REALLY DIFFICULT
DONNIE