Need to refi negam loan - no equity

I currently have a negam loan on a condo in Sacramento which is an investment property. I would like to refi but have little or no equity, not to mention my fico score is not too great - I think 585. I currently owe about $226k on the first and have a 2nd for $26k. I’m just making the minimum payment and I know that’s not helping by adding on to the principal. :banghead Any ideas or suggestions would be very appreciated! Thanks! :help

Whats the current value on it? Probably nothing that can be done with that fico though.

With all the crashing and burning in the lending industry these days, you will not find a high LTV replacement for the scores you are reporting.

You aren’t doing yourself any favors by paying the min. payment—you are accelerating the recasting process (once you loan hits 115% of market value, the loan will be reamortized and your payments will increase).

If possible, try to pay the interest only payment—it will slow down the recasting of the loan and buy you some time.

When you get from under this loan, do yourself a favor and never use an option ARM to cash flow an investment property. If the property doesn’t cash flow with a full PITI payment, it isn’t investment worth having.


Scott Miller

Thanks for the advice EZloanz. But how can I get from under this loan. Will raising my fico score help?

I owe more than the value. I think the average comps in the area is $220k.

What information do you want to know? Thanks for your replies.

Will raising my fico score help?

If you are “upside down” on the mortgage, (owe more than it is worth) then raising your score will not be of much help unless you can get it back into the high 600’ s or 700’s. There are some higher LTV (100+%)products, but the rate is not pretty and they still may not cover the spread that you need.