Mallard Posted April 6, 2010 Report Share Posted April 6, 2010 Ok now that is a tough one there. Balloons are very risky if you can't flip the house before it is up. His best bet is trying to find someone that will refinance the mortgage and that is probably going to be damn hard to find someone that would be willing to do it. The bank is probably not willing to work on a short sale because the guy couldn't afford to pay the deficiency balance. Also another thing that might be coming into play is the type of loan he has. Say if it is an FHA loan, banks don't have much room they can give people since FHA loan regulations are set by the government, not the bank. The bank can only do what the FHA loans allow them to do. Can't refinance because he is so far in the hole. The "Obama rules" that help people refinance underwater mortgages are for people that have 10% or less negative equity. Anything over that you would need to bring to closing in cash. Further complicating it for him is the fact that he has a second mortgage (I think he did an 80/10/10), and no one will let you refi unless you pay off the second mortgage first. Basically he's fucked. He's trying to get the bank to just convert his loan to a 30 year and fix the rate, but they have not been helpful. Next March/April he'll get a bill for ~$150k, which means he'll just foreclose/file bankruptcy/ruin his credit/have nowhere to live/etc. Quote Link to comment Share on other sites More sharing options...
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