What can I do to keep my rates low on my home?

I live in California and purchased a home in 2004, we refinanced in Aug. of 2005 and got an interest only 5 year fixed loan which will become variable in Aug of 2010. We purchased our home for $195,000 fixed it up and refinanced for $224,000 (it appraised for $280,000) We can't refinance right now because our home has lost so much value. Does anyone know what to do in this situation? I heard something about FHA loans but I don't really know what they are. My husband heard there were government assisted programs to help get people out of bad loans like ours, is that true?

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  • 1 decade ago
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    If you bought a Rolls-Royce instead of a Chevrolet, the government may have a program to assist you and others who make unwise decisions.

    Your home was treated as an asset, against which you borrowed sufficient cash to place you at risk. You gambled.

    I am not yet licensed in your state, so this information is made with no expectation of establishing a client-practitioner relationship.

    You may contact three or four real estate offices to obtain three or four answers. Not all people know of all government programs to help people who "bought a Rolls".

    My immediate hope is that you invested the capital you acquired. Doubtful, of course, but still a hope.

    WIthout knowing more about your particular situation (which includes emotional feelings toward risk), my guess is that you could contact the state directly, and the federal government directly.

    You are probably better off now because of the current situation with everything from Lehman to Countrywide. In other words, your loan may not adjust upwards as it should in a normal world. Your bank may negotiate with you to maintain the current rate so you do not default.

    Since you are not a client, I would suggest doing the extensive leg work by yourself. You may find out something about which others are unaware.

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