Underwater Refinances - NO Change
After all the hype about the changes coming for those whose mortgages were underwater - with Fannie Mae and Freddie Mac's revisions on rewriting mortgages the details have been released. There is NO Change!
Basically, what they did in issuing their new guidelins was to put things off until March 2012. Until then the LTV maximum is still going to be limited to 125%. (If you can find any lenders who will go that high - most are limitting to 105%)
Actually, there are two changes that take effect. The first is that Fannie Mae is relaxing the Bankruptcy waiting period -- but you still have to have no lates in past 6 months, and a maximum of one 30 day late in past 12 months. The second change is in the pricing. There will be an additional charge of .75 points where the loan to value is greater than 80% and the term on the owner occupied mortgage is over 20 years.
In five months we might find something else chaning, but not NOW!