Underwater after a bankruptcy 3.5 years ago. Can I refinance?
Q: Can I find someone to refinance? We filed bankruptcy 3.5 years ago after a failed business. We were never late and never missed a payment on our mortgages (1st & 2nd) or our cars and did not include these in the filing. Since the filing we have paid off one of the two cars. We have an adjustable rate first mortgage that is set to adjust in 2013 - currently it is at about 6%. The second mortgage is fixed at 9.9%. Looking at both mortgages, we are slightly under water. Since the filing we have not taken out any credit at all. Is there any hope of re-financing?
A: The bad news is that the combination of your issues - being underwater and having a fairly recent bankruptcy - means finding new financing will be next to impossible. Fannie and Freddie require "credit recovery" periods after bankruptcy of up to four years, and being underwater leaves fewer options outside of a Home Affordable Refinance -- available only if your loan is owned by Fannie or Freddie in the first place. You can check with your existing first mortgage lender to see if help might be available, but it does seem unlikely at the present moment.
More help from HSH.com
Buying a home? 15 ways to shop for the lowest mortgage rates
Mortgage Rates Radar 06/21/2016: Mortgage rates creep lowerHSH.com releases its latest Weekly Mortgage Rates Radar showing another decline in popular mortgage rates in the seven-day period ending June 21, as concerns about this week's so-called "Brexit" vote is keeping investors on their toes. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
Metro area definitionsMetro area definitions for the 27 metropolitan areas in "The salary you must earn to buy a home in 27 metros"
HSH.com on the latest move by the Federal ReserveThe Federal Reserve concluded a meeting today with no change to the federal funds rate and no changes to other monetary policy tools.
Mortgage Rates Radar 06/14/2016: Fixed mortgage rates at three-year lowsHSH.com releases its latest Weekly Mortgage Rates Radar showing a decline for a second consecutive week in popular mortgage rates during the seven-day period ending June 14. A soft U.S. economy and the potential exit of Britain from the European common market continues to worry investors. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).