Question by firstname.lastname@example.org: how to go about refinancing a mortgage that is already more than the house is worth?
Answer by um-kay
not a good idea and I doubt the bank will approve it. If the loan would default then the bank would have no way of recovering all the money financed. You can usually never borrow more than the home is worth. If you ended up losing the home and the bank had to sell it they would have to take a hit and recover much less than what they lent out. They are more eager to give a loan in the amount that is less than what the home is worth. That way they would make a profit if you default on the loan.
Add your own answer in the comments!
If you are having trouble paying it, just dump it and find a nice rental.
You got ripped off on your house, no sense keeping a bad investment.
You can’t. Start doing a better job of saving so that you will have enough to pay down the difference. Nobody will loan you more than your place is worth. It was that mentality that got us into this financial mess in the first place.
See http://www.esuperfind.com/lowermybills.phpp?id=hra0tt16koo9 the affiliated site is an Experian company BBB approved so very safe.
They might or they might not have you on. It depends on many factors and how big the debt is.
Try http://guidearticles.com/Home-refinance.html it helped me.
Not easy. You lost out it seems and can only pray that prices will come back up a little.
I doubt that you can refinance mortgage with upside down LTV (loan to value ratio). You see, technically refinancing is two steps deal.
New lender is paying of in full your old mortgage and by the next step is lending you new loan. And nobody will give you more than your house cost at the moment. Your house is a collateral for money lender gives you.