Refinancing underwater home without Fannie or Freddie

unfortunately, there are no programs out there that will help you within your current scenario. And for certain, there are no programs that would allow you to combine a first and 2nd when you have no equity.. you could try a loan modification.. however I will caution you on going down that road.. as most loan mod's are a farce. The guidelines are real simple.. Household income X 31% = modified housing payment.. if your current payment is lower than your potential modified housing payment, then you shouldn't waste your time.. If HARP 3.0 ever develops, that might provide you some relief, however don't hold your breath.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

It looks like you one of millions of homeowners that would be helped by HARP 3. Congress has not made this a priority so I recommend contacting your representatives in DC and tell them your story. Have you contacted your current lender to see if there is anything they can do, like a modification? Options are very limited for homeowners in your position I'm very sorry to say.

Sorry, your options are limited. If you can hold on for a few years, your situation may improve. Walking away may be an option, but that will, of course, damage your credit.

I unfortunately have to agree that there is not currently a program for you, as you are not in a mortgage that fits the current programs for refinancing. However, I would caution against the option of "walking away" -- not so much because of the credit hit -- but because most lenders will then not lend to you again until several years after the foreclosure completes (current reports are 1-3 years for that to happen) and then you would have another several years before anyone would qualify you (with current rules). So you would be locking yourself into renting for maybe 5+ years. Holding on a bit longer, while the values increase is probably your best bet for getting to a refinance situation.

Harp 3

Sorry, but only current Fannie / Freddie, FHA, or VA loans have options. The small remaining number of homeowners are sadly out of luck for the moment. Washington is working on a program, potentially to be called HARP 3, which would help you. It doesn't exist yet..... www.HARP3-Refinance.com

We ALL hope for Harp 3 but you could always look at getting the loan modified via HAMP but don't miss any payments ieven f they ask you to.

Based on your situation it sounds like you might have to wait to see if and when the HARP 3 refinance program is released. Meeting with your current lender to see if they could offer your a loan modification is an alternative. Good luck!

When and if HARP 3 comes out.

Unfortunately, a program doesn't exist (yet) that'll enable you to refinance.

As all have mentioned.....currently no options but we will see outcome of HARP 3

I have an idea, but it's a bit creative and out of the box... not exactly what you're asking for, but might provide some payment relief if your credit scores are good and the debt ratios work. First, I'd look into a rate and term refinance on your first mortgage. Rate and term means that you're only paying off the "purchase money" loan(s) on the property. The majority of the time, this is just the 1st mortgage, as many people pulled equity out later with a 2nd mortgage. Rate & Term means you're either reducing the rate, or reducing the term on the loan, vs. "Cashout". Rolling in a non-purchase money 2nd mortgage results in a "cashout" refinance, even though you're not ending up with cash in your pocket at closing. Fannie Mae guidelines now look at any junior liens being paid off on a refi as cashout, unless they are proven to have been used for the purchase. (NOTE: If the 2nd WAS a purchase money 2nd lien, and a Home Equity LINE of Credit (HELOC) that can be drawn out and paid down, drawn out and paid down like a credit card... then the underwriter will also want proof that no monies have been pulled out within the last 12 months... strange, but true. They consider that cashout refi as well.) SO, recapping here, I suggest looking into refinancing the first mortgage to reduce the rate... but in the process you still have to do something with the 2nd mortgage. A), If leaving it in place, you have to see if the first mortgage guidelines will allow the 2nd to stay in place for 125% Combined Loan to Value, or where ever that CLTV falls with the appraisal value on the home. B, If this works, then you have to see if the 2nd lender will subordinate (go back in 2nd position) again behind a new first mortgage. (Some will, while other won't and prefer to keep their heads in the sand, They don't want to know how upside down their loan really is.) AN ALTERNATIVE to this process could be to look into obtaining an unsecured line of credit and paying off or paying down the 2nd lien to where the numbers make sense. Unsecured credit lines can have higher rates however, so it's important to shop that around and put the least amount of money on that line / loan as possible. Depending on the monthly payment savings on the first mortgage, it could make sense. Or, another option (head spinning yet?) could be this. Let's say you get a new first mortgage up to the max loan to value that makes sense... then you get a new combo 2nd with a lower rate up to the max the guidelines and lenders will allow. If there's a small amount left over, you can either pay it off if you have liquid assets to do so... or possibly get that unsecured line of credit I mentioned. (I told you it's creative and a bit out of the box). Hard to say if any of this will make sense to do... a few moving parts... and much of it is dependent upon appraised values. I have done a process like this in the past that did work out well and saved the client 100's of dollars per month. Takes the right teamwork to make it happen though. I will also say that home values are on the rise and if it makes more sense to stick it out a year or two, the comparable sales could make all the difference in the world. Even if HARP 3 does pass, it doesn't include non-Fannie / Freddie loans yet. Oh, and it doesn't allow for cashout refinances to pay off non-purchase-money 2nds. Hope this is helpful, and I'd recommend talking with a lender in WA who can run some value estimates and maybe even talk with a real estate agent about any pending sales in your area that could help support a higher appraisal value to make things work a bit better on your options. I know Vancouver well as I have relatives in Camas and Washougal and have also done a fair amount of loans down there. Pockets of areas were hit pretty hard on values, but we've also seen some improvements recently with the sales early this year. The appraiser will try to use comparables that are most recent and closest to the subject property, matching the size, bedroom count, appeal, etc... Hope this helps!

You can wait for the HARP 3.0 program if it ever comes out- A possibility depending on your assets may be a "Cash In" refinance-this is where you would bring money to closing - If you have assets that are not generating a substantial return, you may want to considerthis option with your financial advisor or Accountant -Good Luck,Pete