30 year fixed at 6.125% Discharged in CH7 and home is underwater by about 20% - Options for ReFi?

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AloneInTheWilderness

LoanSafe Member
Jan 8, 2012
71
0
6
My wife and I bought our home five years ago. We simply bit off more than we could chew, carrying CC debt that had been racked up during college, and then adding to it by furnishing the house, making repairs, improvements. After a while minimums got higher and higher and we found ourselves paying for gas and groceries with plastic. Fast forward to 2011 and my wife lost her job due to the recession, the proverbial crap hit the fan, we filed for CH7 in December and were discharged in April. We did not reaffirm our mortgage but instead decided to "stay and pay." Unemployment carried us through the BK and is keeping us afloat now, and my wife (thank God) has accepted a position that will begin in late August, so things are actually looking up for us. Now there is the question of what to do about the house.

As stated in the thread title, we have a 30 year fixed mortgage at 6.125% which was a decent rate at the time we took it out, but obviously things are much different now. The other issue is that even though home prices seem to be rising all the time (at least according to the news), our area (NJ) seems to be languishing. We owe about $225K on the mortgage and the house is worth anywhere from $185-190K depending on the source. We don't want to move and have no reason to. We have made improvements to the house, the schools are good, we love our neighbors, it's a beautiful area, etc... Now that we can show income (Just over $100K a year once my wife starts), are HARP/HAMP/etc...available to us to try to get refinancing or a principle reduction? How do we start this process?
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
My wife and I bought our home five years ago. We simply bit off more than we could chew, carrying CC debt that had been racked up during college, and then adding to it by furnishing the house, making repairs, improvements. After a while minimums got higher and higher and we found ourselves paying for gas and groceries with plastic. Fast forward to 2011 and my wife lost her job due to the recession, the proverbial crap hit the fan, we filed for CH7 in December and were discharged in April. We did not reaffirm our mortgage but instead decided to "stay and pay." Unemployment carried us through the BK and is keeping us afloat now, and my wife (thank God) has accepted a position that will begin in late August, so things are actually looking up for us. Now there is the question of what to do about the house.

As stated in the thread title, we have a 30 year fixed mortgage at 6.125% which was a decent rate at the time we took it out, but obviously things are much different now. The other issue is that even though home prices seem to be rising all the time (at least according to the news), our area (NJ) seems to be languishing. We owe about $225K on the mortgage and the house is worth anywhere from $185-190K depending on the source. We don't want to move and have no reason to. We have made improvements to the house, the schools are good, we love our neighbors, it's a beautiful area, etc... Now that we can show income (Just over $100K a year once my wife starts), are HARP/HAMP/etc...available to us to try to get refinancing or a principle reduction? How do we start this process?
There would be refi options available to you for an underwater property with HARP, but only if your loan is backed by either Fannie Mae or Freddie Mac, which you can check here;

For Fannie Mae: 1-800-7FANNIE (8am to 8pm EST)
www.FannieMae.com/loanlookup

For Freddie Mac:
1-800-FREDDIE (8am to 8pm EST)
www.FreddieMac.com/mymortgage