Underwater mortgage
We are currently underwater with our mortgage/home value, although we paid $115K down on the property in 2004 (total cost incl. upgrades $542K, current zillow estmate approx. $400K, loan 427K). My original lender was sold to another company that went bankrupt in 2008 and now SPS is collecting for an "investor" (basically in a repackaged mortgage backed security). My credit is not so good because I paid a few times 30 days late and no one wants to refinance because it is not a FHA loan. Can I have a loan with the primary borrower my wife, who has good credit - above 700- and me as co-signed (644 score) that will cover the refinance? She is a homemaker, we have also rental income. Income wise we would qualify if we find a lender. We are currently at 5.75%, refinancing @ 3.75% would save ate least $377/month. by benne._127_848 from Oceanside, California. Sep 19th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Under HARP 2.0, you can refinance even if you're in negative position, but you do have to qualify.. if your loan is owned by Freddie/Fannie, and your loan was initiated prior to May 31, 2009, then you might qualify, however with the late payments on your credit, it might be tuff... all conventional loans are run through an automated underwriting system to determine eligibility... if the DU/LP results are not an approval, you can't get a loan... It's also possible, that even if you don't qualify now, you might in the future.. HARP 2.0 is due to expire December 2013, so there's still plenty of time to work on your credit... As far as adding your wife and you cosigning, that won't work either. The automated system looks at all borrowers not just the good one's... 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
Ralph Richard Guertin (ralph@absolutelowrates.com)
#58 ranked lender in Georgia - 807 contributions
they are going to go off the lower of the 2 scores, so just because you put her as primary, it won't hide your score or your lates...
Derick Condron (rightstartoregon)
#30 ranked lender in Oregon - 598 contributions
It wont matter what position you put your self and wife in, they are going to take the lowest mid credit score to price the loan. The only other programs that may be out there for you are HARP 2.0. With the balance being 427 you might not qualify since most of the time Fannie and Freddie are only purchasing conforming loans. You will need to have no more than 1 30 day late in the last 12 months as well.
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