You can take advantage of refinance options when you’re underwater.
If you meet certain criteria, your underwater loan may be eligible for a refinance through the federal Home Affordable Refinance Program, or HARP. The program allows qualified borrowers to refinance a loan that is from 105 percent to as high as 125 percent of a home’s value.
However, not every underwater loan qualifies for HARP. First, you must not be on the road to foreclosure: Any delinquent payments in the past 12 months will auto...
Our client’s home was in foreclosure for about 3 years prior to coming to us for help. After completing the debt analyst there was no way the client could be approved for a modification. They just had too much debt. We recommended that the client consult a bankruptcy attorney. The client filed a bankruptcy; Once the BK was filed, we immediately submitted all necessary documents for the modification review. During that time, the lender filed for and received a relief of stay from the court.