Refinance options

[SandEagle]

my buddy owns a place in Detroit and owes 90K on a home that has a zillow estimate of 25K. his loan was bought by FannieMae a few years ago. will he qualify for HARP? what options does he have? I told him to stop paying on the home asap. can he short same or something? i don't understand how real estate works really.

 

[Blackjack200]

Wow, there are homes in Detroit that are worth $25k? Is it a mansion?

 

[RavenSEAL]

Wow, there are homes in Detroit that are worth $25k? Is it a mansion?

Has to be at least 9,000 sq ft...

 

[AFurryReptile]

I told him to stop paying on the home asap.

Great advice. Ruining your credit is always a good idea.

 

[Capt Caveman]

my buddy owns a place in Detroit and owes 90K on a home that has a zillow estimate of 25K. his loan was bought by FannieMae a few years ago. will he qualify for HARP? what options does he have? I told him to stop paying on the home asap. can he short same or something? i don't understand how real estate works really.

Yet, you decided to give him advice. Stop trolling.

 

[SandEagle]

Yet, you decided to give him advice. Stop trolling.

if you can't contribute in a civilized manner, please don't post at all.

 

[Bignate603]

my buddy owns a place in Detroit and owes 90K on a home that has a zillow estimate of 25K. his loan was bought by FannieMae a few years ago. will he qualify for HARP? what options does he have? I told him to stop paying on the home asap. can he short same or something? i don't understand how real estate works really.

1. You can't get a HARP loan if you are not current on your mortgage. If he stops paying there's no way he can get one.
2. You need to understand ALL your options and ALL the effects before you stop paying on a house. Once you go delinquent some options disappear. It's idiotic to throw away those options unless you're sure that they aren't what you want to do.

There's only one bit of advice you need to give your friend. Tell him to start paying his mortgage before it's late and to go talk to a real estate lawyer to get advice from someone that knows what they are talking about.

 

[BoberFett]

Great advice. Ruining your credit is always a good idea.

Why are people so paranoid about their credit? Oh noooeees, my credit score! However will I be able to buy things I can't afford!?!

 

[SandEagle]

1. You can't get a HARP loan if you are not current on your mortgage. If he stops paying there's no way he can get one.
2. You need to understand ALL your options and ALL the effects before you stop paying on a house. Once you go delinquent some options disappear. It's idiotic to throw away those options unless you're sure that they aren't what you want to do.

There's only one bit of advice you need to give your friend. Tell him to start paying his mortgage before it's late and to go talk to a real estate lawyer to get advice from someone that knows what they are talking about.

thanks. well, he's current on his mortgage and hasn't missed a payment yet. i just looked into HARP and they want 80% LTV? guess that ain't happening for him. if it was me in his shoes, i'd walk. no way i should have to owe 70K more than what the home is valued at. that's a zillow estimate too. i would bet that home won't sell for more than 15K.

 

[Bignate603]

thanks. well, he's current on his mortgage and hasn't missed a payment yet. i just looked into HARP and they want 80% LTV? guess that ain't happening for him. if it was me in his shoes, i'd walk. no way i should have to owe 70K more than what the home is valued at. that's a zillow estimate too.

Zillow estimates are garbage. You need to track down real estate listings of comparable homes in that area that have actually closed. This is something that any good real estate agent can do very quickly.

Also, depending on what he wants to do in the future it may be better to stay in his home for the time being rather than ending up with trashed credit.

i would bet that home won't sell for more than 15K.

For someone that admittedly doesn't know anything about real estate you're making some bold estimates. Do your friend a favor and tell him to talk to an expert.

 

[Mxylplyx]

He should be able to refinance under HARP. The 80% LTV is the MINIMUM LTV, not the maximum. The previous HARP guidelines specified a max LTV of 125%. This cap has been removed under the new Harp 2.0 guidelines which take effect this month. I just completed a HARP refinance through AIMLOAN.com with a 122% LTV.

 

[Dr. Zaus]

Yet, you decided to give him advice. Stop trolling.

Keep trolling.

 

[Rage187]

Why are people so paranoid about their credit? Oh noooeees, my credit score! However will I be able to buy things I can't afford!?!

a low credit score could stop you from getting a job and your insurance rate can go up.

 

[Fausto]

Why are people so paranoid about their credit? Oh noooeees, my credit score! However will I be able to buy things I can't afford!?!

Nominated for Most Ignorant Statement of the Day

 

[Tweak155]

thanks. well, he's current on his mortgage and hasn't missed a payment yet. i just looked into HARP and they want 80% LTV? guess that ain't happening for him. if it was me in his shoes, i'd walk. no way i should have to owe 70K more than what the home is valued at. that's a zillow estimate too. i would bet that home won't sell for more than 15K.

No one forced him to buy the house. You expect other people to pay for your mistakes I take it?