Coming Soon: Refinance Option for Underwater Homeowners

I am not the first to report this good news, but felt it was worth sharing.  The Obama Administration announced on October 24, 2011 details of expanding a government sponsored refinance program to help more underwater homeowners refinance to reduce their payments.

Many clients of mine wanted to refinance in the past, but due to the lending guidelines only clients that could prove certain equity in their property were eligible.  Under this new rule, the caps for negative equity will be lifted and the pricing add-ons will be going away.

Stay tuned, because the lending guidelines have NOT rolled out yet, but are supposed to be available by November 16, 2011. Borrowers can start applying by December 2011.

So if your house had more than a 25% negative equity loss, you could be eligible under these new changes.

Once this happens, I will again share all the new details.