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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Rainmaker
707,217
Juli Vosmik
Dominion Real Estate Partners, LLC, Scottsdale, AZ - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Are they trying to do HARP?  There's not supposed to be any LTV issues.  Something stinks there, Kathleen. 

May 05, 2012 11:51 AM #1
Ambassador
736,989
Jerry Newman
Green Home Realty, 210-789-4216,www.Selling-SanAntonioHomes.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Sad to hear this bad news about your client, Kathleen. I hope he is able to get things going his way soon. I didn't think refinancing was all that hard.

May 05, 2012 01:24 PM #2
Rainmaker
404,880
Ellen Caruso
Daniel Gale Sotheby's International Realty - Glen Head, NY

Kathleen, humor is good in times like these....unrelated but I'm having issues with Health Insurance companies....I have to have my wits or my health will surely be effected!

May 05, 2012 01:36 PM #3
Rainer
10,166
Sean Pierpont
First Home Mortgage Corporation - Dunkirk, MD

Kathleen - you are spot on, Congress gets on tv to congratulate each other on what a fine job they have been doing to help the American people....here is the problem, they gave the green light BUT the investors(who ultimately fund and service the loan) essentially told congress to kick rocks.

Example - HARP 2 was announced in November, do you know we just received guidelines for this program in March(5 months later), these guidelines had added restrictions than that which was announced "To The American People"....

Long story short, I am a direct lender in Maryland, I turn down more loans weekly than I get for a refinance because I know they will not get done.

This is good news for you, more listings! 

Great Post!

May 05, 2012 02:15 PM #4
Rainmaker
648,282
Realty Works Temecula
Realty Works Temecula - Temecula, CA
Real Estate, Temecula, Murrieta, Menifee

Kathleen:  Isn't this the sad truth...Fannie Mae, now owns so many loans, in the form of a bail out!  This is so crazy that the banks get the bail out and the consumer mortgage holders get the shaft!

May 05, 2012 04:14 PM #5
Ambassador
1,236,424
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

Juli,  You nailed it. There is not supposed to be any LTV issues.  Being approved for a Fannie Mae or Freddie Mac HARP is not the issue.  The real issue is finding a lender to fund the refinance.  Add to that, many junior lien holders are not subordinating.  So what's the point of the programs!?

Jerry, Refinancing is not all that hard IF: borrower is not underwater; has more money then they know what to do with; high FICO score; and low debt ratios.  For those who truly need help; have the income; high FICO scores; and zero debt other than their mortgages - they are screwed. HARP does not work ... period!

Ellen, Medical Insurance, Life Insurance, Home Insurance, Auto Insurance ... any type of insurance and the Big Bad Banks don't care about the consumer. It's all about profit and they don't care who they stick it to while profiting!

Sean, Straight from a lender who lives, eats, breathes and drinks loans ... you know the bare-naked-truth.  The programs and the process has us all chasing our tails and in the end we get stuck!

Jane, Spot on ... you forgot to mention they get bailed out with our tax dollars!

 

May 05, 2012 05:48 PM #6
Rainmaker
1,239,675
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I hope you will forgive a tacky comment.  I have been watching my son play baseball in a tournament all day and out with the team tonight.  Just want to say hi!

May 05, 2012 11:14 PM #7
Rainmaker
1,375,718
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kathleen, you do a wonderful job with your short sales, with your knowledge, patience and hopefully you can help your neighbor.

May 06, 2012 06:31 AM #8
Ambassador
1,724,038
Barbara-Jo Roberts Berberi & Corinna Birgit Cromartie
Charles Rutenberg Realty - Palm Harbor, FL
Palm Harbor & Dunedin FL Residential Real Estate

It is pretty amazing, so many programs promise to much and then they don't deliver.

May 06, 2012 07:21 AM #9
Rainer
30,267
Peter Michelbach
International, INT
i Sell Real Estate

Thank you Kathleen ~~~ for a wonderful job to your clients and by keeping as all updated with mysterious ways the banks are handling this. The way you shared this was so much fun - hope your client can regroup!

Brilliant Post!

May 06, 2012 07:51 AM #10
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

Gene,  Nothing tacky about stopping by to say hello. It's appreciated.  I hope you enjoyed the day with your son and baseball!

Joan,  He does not want to short sale ... he really wants to keep his home and can afford to manage the underwater mortgage.  He just needs to refinance to get out from under the adjustable rate.  Seems reasonable to me! Thanks for your kind words.

Barbara-Jo, I say shame on the administration and shame on the lenders for not doing the right thing now that they have a golden opportunity to actually help.  It's no secret that banks continue to make a killing in profits.  Thanks for your comment.

Peter,  I tried to be politically correct with the message.  The graphic helped tremendously. We all know where the lenders are sticking homeowners.  Thanks for stopping by.

May 06, 2012 09:17 AM #11
Rainmaker
443,692
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Kathleen,

This post in right on the fanny! LOL

The majority of my short sale sellers tried to refi (loan modify) and even when the seller gets a "temporary mod" it hardly ever materializes to a permanent mod, making the homeowners feel that their time (LOTS of hours) were just wasted.

May 06, 2012 09:54 AM #12
Ambassador
1,236,424
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

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 #13
Rainmaker
707,217
Juli Vosmik
Dominion Real Estate Partners, LLC, Scottsdale, AZ - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

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 #14
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

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 #15
Rainmaker
565,341
Kathy Sheehan
Movement Mortgage 770-634-4021 - Atlanta, GA
Branch Manager

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 #16
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

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 #17
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