Loan subordination--any guesses?

tishtoshnm Zone 6/NMApril 3, 2009

We have been hoping to refinance our house during this time of great rates, we have a 1st and 2nd and with the current appraisal we are at a LTV of 91% which greatly increases the cost of PMI.

Any guesses as to whether or not banks such as, say, Wells Fargo, are going to be willing to subordinate 2nd liens for the Freddie Mac Relief Refi program? It really is our only shot at refinancing now.

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dave_donhoff

Hi ttnm,

Any guesses as to whether or not banks such as, say, Wells Fargo, are going to be willing to subordinate 2nd liens for the Freddie Mac Relief Refi program?

Not a clue, unfortunately... and the more I know, the more uncertain I become.

The banks aren't going to be very predictable until after the government stops flying in with surprise alterations, and the industry settles out their uncertainty of such surprise interventions.

Its all a 'duck-for-cover & wait & see' sentiment out there right now.

Cheers,
Dave Donhoff
Leverage Planner

    Bookmark   April 3, 2009 at 6:53PM
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tishtoshnm Zone 6/NM

Thanks for the response Dave. The mortgage officer we are working with goes to training regarding the program Monday so hopefully I will have more info then.

    Bookmark   April 3, 2009 at 7:32PM
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tishtoshnm Zone 6/NM

Well Dave, I have to say you have my respect for being able to wade through all of this day in and day out. I have been working on educating myself in all thisprocess and my head spins but it is becoming clearer. I beginning to see that we will likely not be able to refinance at this time. Our loan is a conventional A-minus with Freddie so I guess that we are pretty much out of luck at this time and will hopefully have more luck in the future.

    Bookmark   April 7, 2009 at 12:46PM
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