Answers
What happens if my loan amount is more than my house is worth today cuz of the housing market?
Three years ago, we refinanced our house, got into a 3 year ARM, didn't know anything about refinancing so I did that, thinking that was the best thing to do. It was worth $182,000, the loan was for $139,000. Because of the housing market in Florida, one lender said my house was only worth $125,000 today. How am I to get refinanced now, what happens?
Best Answer:
you will have to personally come up with the difference in cash to lower the loan amount
Answers:
You cannot get refinanced now. Other people like you, who took out every loan on their house they could get when they were giving out loans like candy, are having their loans called in. In other words they are being told to pay the difference between what their house is worth now and the amount they owe, and if they don't the homes are being foreclosed.
It saddens me to hear you say you "didn't know anything abou refinancing" when you refinanced. That really just is no excuse, since the information was out there. People like you, who didn't educate themselves and decided they could afford a refi loan just because someone was willing to give it to them, are one of the main reasons our economy is in such a slump right now. It's all very well to blame the mortgage companies, but if every consumer had been reponsible they couldn't have given the loans out to anyone.
From what I'm familiar with, you'll either have to stay in the house until the market turns around and the value of your property increases again or you can network with some real estate investors who may be able to sell your home if you'd be willing to buy into another home.
For more advice (especially considering whatever personal details are involved for your particular situation), you should speak with someone at a bank. And after that, go to at least two more banks and get differing opinions.
Wish you luck.
You are not alone in your predicament; this is why there have been so many foreclosures in the past 2 years and coming 2 years.
You will not be able to refinance with this particular bank. Your only other choice is to find another lender (try an FHA lender) who will use a different appraiser. Appraisals are subjective, you will get 3 different values from 3 different appraisers.
If you can not afford your loan and, subsequently, go into foreclosure some lenders will contact you and offer you an option to sign your deed over to them and write off the loan. You will not have a foreclosure on your credit, just a few late payments. (Deed n Lieu of Foreclosure)
If you have to sell your home, it would be faster to enlist the help of a real estate agent. In a short sale the lender will, more often than not, agree to pay the agent's commission.
Good luck and I hope you are able to find another lender to refinance. You may look into a mortgage company; you are still looking at about $5,000 out of pocket expenses (for closing costs, appraisal, other fees), but you will get to stay in your home.
VERY difficult. Hopefully that lender is wrong, because if not, it will not be possible to get refinanced, except through a government program. TALK to your current lender and ask what they can work out with you. If you get nowhere, call back again, and again. Speak with a supervisor. Your best bet is some sort of refi through your current lender. There are many credit-counseling and mortgage informational sessions being held by various organizations and governments in FLA. Find them, attend them. Get lots of information and find out your options. Don't go in blind like you did with the refi.
People were upside down on their mortgages all the time in the 80's. You either sell at a loss or stay put until the economy improves or sell at a loss. Also a lender is not the only person who could tell what your house is worth, check it out with a real estate broker, they have a good view of the market.
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Nothing - it's called negative equity.
You have to wait until the housing market improves again (which it will in time) or sell now and still owe the bank money.