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Is there a new refinance program that forgives negative equity and refinances the house at current value?
Question : Is there a new refinance program that forgives negative equity and refinances the house at current value?
I heard about some new government loan where if your home has dropped in value, the government will absorb the depreciation and refinance your house at its current market value. I just bought my first house in August of 2008 for $ 275,000 which was a foreclosure and the other foreclosed homes surrounding me are now being offered in the $ 240,000 range. So in 4 months I’ve already lost around $ 35,000 in value.
refinance
Best answer:
Answer by Rick T
Dude if your going to live in the property and can afford the payment, which you should be able to since you just got the loan, don’t even worry about the value. You people think that you lost thousands when all that is happening is a correction in the market and all you have Truly lost is on paper (until you sell) is when you lose. Stop whining and go to work. Anyway you bought AT a terrible time and the values still have not hit bottom. That was your mistake.
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#2 written by Mst A 1 year ago
buddy….there are many refinance program online sources where you can get full of information and also get the refinance loan at lower mortgage interest rates and reduce your negative equity…i have the source where the option of existing loan modification and low interest rates : http://www.refinancing101.net
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You heard incorrectly. The government is offering assorted help programs for those who may LOSE their homes due to taking adjustable rate mortgage loans and similar. However, the government isn’t in the business of absorbing equity losses when values fluctuate. I assume you would not be pleased if our government demanded $ 35,000 in equity from you if your house had increased in value. It works the same way in the other direction.