"Sub-Prime" mortgage refinance

Need some in-put. I have a nephew who has gotten into some trouble with his mortgage. Several years ago he was laid off. It took him about 4 months to obtain new employment. He has now been in his current employ roughly 3 years.

Even though he is thankful for the employment the income is much less than his previous employ. Needless to say, he has suffered financially to the point that he is having difficulty making the mortgage on a house that he has paid on for near 14 years. His current mortgagor, Select Portfolio, has allowed him to use the HAMP program to give him brief relief, but his payment has not changed.

He has been trying to lower his mortgage from the 9.5% that he is currently in and is well aware that he does not qualify for the historic lows we are currently experiencing. However, any decrease in payments would be welcomed. I know that the sub-prime industry has all but dissolved, but wasn’t sure what options are available out there.

What options are available to him in today’s environment? Would appreciate any and all input.


You or any friend or relative could join him as an equity share partner and then jointly refinance the property together after seasoning. I think the longest the property needs to season is 12 months but I believe there are programs available offering financing with as little as 90 days of seasoning.

Talk to a qualified mortgage professional in your nephews area about refinancing programs with a new co-owner?

You know if he has a lot of equity in the property and current debt is less than 70% he also might want to try advertising for a local person who may have enough capital in the bank drawing little interest who might be willing to pick up a new amortized note on this property for significantly better returns than a bank.