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House values gone down? There is still hope!

By
Mortgage and Lending with Golf Savings Bank

Many people are in a situation where their house values have declined and they are in an ARM or just a higher rate mortgage.  Because their values have come down to or below what they owe most lenders won't refinance their mortgages.  This leaves them stuck in a situation where they can't get into the better rates and programs available today.

The government has a solution to this that they released last summer.  It's called the Fannie Mae DU Refi Plus and Freddie Mac Relief Refinance.  With these programs you can finance up to 105% of your homes value on your first mortgage and if you have a second if they will resubordinate combined loan to value is unlimited in some cases.  This makes this loan program especially great for people who got into an 80/20 a couple years ago!

There are a couple restrictions to these great programs.  Your current loan has to be with either Fannie Mae or Freddie Mac.  That does not mean that you send your payments to either but that who ever you originally got your loan through has to have sold it to one of the two.  Many times your current loan may be serviced by Wells Fargo, GMAC, Indy Mac, etc however the actual owners of the loan could be Fannie Mae or Freddie Mac. 

Servicing a loan simply means collecting the funds for the loan and passing them on to the actual owner of the loan.

To find out if your home is owned by Fannie Mae or Freddie Mac click on either of the two links below and and fill in the appropriate information and it will tell you if they do.  Make sure to be accurate or it could say no when actually they could own your loan.  Make sure you fill it in your address exactly as it shows on your statement.

http://loanlookup.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/

There are some restrictions to the types of loans you can do.  The new loan has to show a benefit to the borrower.  You can't go from a Fixed loan to an ARM but you can go from an ARM to a fixed loan.  You also can not go to an interest only loan.  Your new loan has to have lower payments unless you are going from interest only to fully amortized. 

There is also a possability that you could do this loan without getting an appraisal!

If you find your loan is owned by either Fannie Mae or Freddie Mac and would like to see if you could qualify to reduce your mortgage payments or if you have any questions on this loan program call me today! 206-778-0525

Coldwell Banker Cutting Edge
Coldwell Banker Cutting Edge - Grants Pass, OR
"Your Proactive, Trusted Real Estate Advisor"

This is going to be happening like crazy in the commercial side of things, 2010 is going to be rough on commercial realestate.

Jan 27, 2010 11:48 AM