Health & Fitness
Millions of Underwater Mortgages Not Refinanceable
Even with the government programs there are still homeowners with perfect income and credit but can't refinance because of the lack of equity in there home.
In spite of HAMP and HARP, many mortgages owned by Fannie Mae and Freddie Mac cannot get approved for refinancing for one reason or another. Many are paying 6 to 7% interest.
There are also mortgages that were not purchased by Fannie/Freddie with interest rates at 6 to 8%, that are current and being paid perfectly, but these folks presently have no options to refinance. There is no avenue or vehicle to do these transactions, these folks are just plain stuck.
In 2006, Jerry did a mortgage with Countrywide, at the time the mortgage was considered subprime. His credit was not good enough to get a conventional or FHA mortgage. He has been paying 7.75% interest for the last 6 years on a $265,000 mortgage and I can’t help him.
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Today Jerry has 750 credit scores, outstanding income and no ability to refinance, as this home is worth less than the mortgage. He along with millions of others are in the same boat.
For the last few years this issue has been talked about in Washington, hopefully in the near future, the Jerry’s of this country will get some relief.
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Click here for the full article from National Mortgage News:
By: Brian Collins
"The Treasury Department is considering ways to help underwater borrowers with private mortgages to refinance into a lower interest rate and reduce the risk of default."
