How is your Fannie Mae Refinance Progressing?

By
Real Estate Broker Owner with KD Realty - 408.972.1822 CA BRE#01366594

How is your Fannie Mae Refinance Progressing?

That is the question I asked one of my friends and neighbor who reached out to me for help with his underwater mortgage on his San Jose home. Those who know me know that I prefer to laugh and find humor in situations than to be frustrated or angry about things.  I must say that’s not working so well for me when it comes to the lack of real help for homeowners attempting a refinance – loan modification.

When I read his email response, I literally laughed out loud.  Why?  Although sad and shameful, it is true.  For your reading pleasure and maybe a good laugh, the following is his response: 

The refi hasn't gone through.  The combined loan LTV is 160% which is understandably high, but Fanny Mae gave me the green light (level III) or whatever technical approval.  However, Karen is having difficulty finding a lender to fund the loan.  My credit score is good... pristine may drop it to a level II approval rating which 'may' get a bank to fund it.  However, I call bullshit on it all though.  Here you have a loan owned by the Federal government that gives it the green light for private funding yet the banks give a middle finger to it.”

Adding more humor is his spelling of Fanny Mae.  Could not be more appropriate!

pin the tail on the donkey

It could not be more appropriate because the refinance programs are simply games the government and lenders play with borrowers.  For the most part, attempting to refinance is a total waste of time and energy. It's like working with blinders on. The borrower is both the donkey (fanny) and the player being played by the lender.  It's a frustrating and painful process that most typically catapults homeowners into the need to short sale their San Jose homes.

If your Fannie Mae refinance is not professing well and you can no longer sustain your mortgage payments, then contact Kathleen Daniels, San Jose Short Sale agent for a free consultation.

Call 1-800-972-1822 today!

If your lender does not want to help you keep your home with a Fannie Mae refinance, then I can help you return your San Jose home to your lender with a San Jose short sale.

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Kathleen Daniels, Broker-Owner of KD Realty, serving San Jose and surrounding San Jose Communities in Santa Clara County - Silicon Valley. Kathleen is a Certified Probate Real Estate Specialist.

BRE# 01366594

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Topic:
Lending / Financial
Location:
California Santa Clara County San Jose
Groups:
"Whacked"!!!
Hyper-Local
Bartender, Make it a Double
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Tags:
san jose short sales
san jose homes
san jose short sale agents
fannie mae refinance

Comments 17 New Comment

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Ambassador
1,157,826
Kathleen Daniels
San Jose Homes for Sale - Probate Specialist
KD Realty - 408.972.1822

Patty,  Only those of us who eat, drink, sleep, and breathe short sales and all the programs designed to help homeowners know the TRUTH. People need to go through the exercise so they know they have done all that they could to save their home.  It's a double edge sword ... it needs to be done and it is a waste of time.  Thanks for your comment.

May 06, 2012 10:51 AM
Rainmaker
692,759
Juli Vosmik
Scottsdale/Cave Creek, AZ real estate 480-710-0739
Dominion Real Estate Partners, LLC, Scottsdale, AZ

Kathleen, stopped back.  I didn't think about the second mortgage aspect.  Can't blame the banks for not wanting to remain in the second position - the second mortgage lenders have probably lost more than the first mortgage servicers.  

May 06, 2012 10:55 AM
Ambassador
1,157,826
Kathleen Daniels
San Jose Homes for Sale - Probate Specialist
KD Realty - 408.972.1822

Juli, They are already in second position.  Their failure to agree to subordinate again for a refinance is just plain stupid. Many borrowers with great six figure incomes; FICO scores in the 800's; and zero debt are hog-tied into high interest payments and forcing many strategic short sales.  Junior lien holders will make dimes on dollars on a short sale. If they allow a refinance borrowers have more money to apply to the second lien.  If they morons would only cooperate they could restructure terms of repayment which would be to their benefit.

May 06, 2012 11:14 AM
Rainmaker
563,794
Kathy Sheehan
Movement Mortgage 770-634-4021

Sean said it all.  The programs are given guidelines, but each investor has the option to add their own overlays.  Hence the problem.   I hate when I can't help someone refinance, but like Sean, I turn down the ones I know we can't get funded.

May 12, 2012 09:52 AM
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1,157,826
Kathleen Daniels
San Jose Homes for Sale - Probate Specialist
KD Realty - 408.972.1822

Kathy, Sadly, the consumers are hurt by the smoke and mirror effects of the programs and their guidelines.  The bottom line is that lenders are not truly helping consumers with refinancing.  Now that they are not selling off their risk and putting the screws to consumers and investors, they are not willing to take it.  There are great candidates who are extremely low risk and are being denied a refinance. Thanks for your comment.

May 12, 2012 09:56 AM
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