Is there a mortgage loan company, that will refinance our home if the value is less mortgage balance?

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My husband and I are in our 30s. We have a mortgage that is unbearable but we have manage to make the payment for the three years that we have had the home on-time. Our employment status has changed and my husband is the only one working. Our home value is less than the balance we have. We have good credit. Is there a loan program that can help us reduce our payment/rate? Our rate is currently at 11%. Are there any programs for minorities? Lastly, our mortgage is with HFC and they are dissolving but there mother company is HSBC. I called them re: the President’s Home Affordability Plan that was announced on 3/2/09. Per the website, I should qualify, but HFC said that they did not have any info on this yet and I would have to wait but it looks like I would not qualify. That does not seem right.
I hope this makes sense.
I would greatly appreciate some real help.
we purchased the house for 143,900 now the house is worth 135,000 and our loan balance is 151,000.

  1. Reply
    Keif Jones
    April 29, 2011 at 11:54 pm

    Right now everyone is restructuring their mortgage loan programs. I think that’s why you have to wait for approval. I heard there will be strict qualifications. Like you could have never been late in the past, and the home must be worth more or the same at the time of purchase. In your statement you say the value less than what you owe. I don’t know about that one. There are several other new rules as well. Hope everything works out for you. Good Luck.

  2. Reply
    April 30, 2011 at 12:06 am

    It is going to be very difficult, nearly impossible for a lender to refinance your property given that you owe more than what the house is worth. I strongly suggest you contact your lender and ask for a loan modification, explain the financial hardship, I have seen lenders modify a mortgage loan by cutting the interest rate in half, and even reducing the loan amount, making the mortgage payment affordable and helping you avoid foreclosure down the line. Contact them everyday if possible, due to the high volume of pre foreclosure and foreclosure activity they are extremely busy, so call them consistently until you reach a solution.

  3. Reply
    April 30, 2011 at 1:06 am

    Your only hope is to work with your current lender. No lender is going to refinance you if you owe more than the house is worth, minority or not.

  4. Reply
    April 30, 2011 at 1:10 am

    If you checked the web site you know that the refinance option will only allow up to 105% of the appraised value. If your home is worth $ 135,000 x 105% = a maximum new loan of $ 141,750.00. It looks like your only option will be a loan modification under the Home Affordability Plan.

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