financial question?
I took out a 70k HELOC 1.5 years ago, adding my 1st i owe 205,000. My intrest rate on my 1st is "ARM' 10% and 2nd 12%. These are killing my payments. I went to try to refinance my credit is 670, but they are telling me my property is valued at 185. if i would come up with 20k they tell me i could save a huge chunk of money. My home was actually appraised at 220 when i took out the HELOC 1.5 years ago. They used a computer to figure it out not a actual appraiser. After doing some reasearch homes sold for 184,000 at that time. I live in a townhome communtiy. I need some help tired of explain this to banks.
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You are not alone in this predicament. Housing prices have been falling in many parts of the country and many people find themselves underwater - they owe more than the property is worth.
You can try to establish that comparable home sales to yours have been at $205,000 or more. If you can't you are stuck.
Your interest rates are quite high. A HELOC at 12% a year from a half ago is pretty drastic, but your credit score is marginal.
You have two choices - riding this out and hoping that your house rises in value or selling out and realizing your loss. Neither is very attractive.
You can do better. Find a local representative from a reputable mortgage company. They will show you how to get a favorable appraisal of your home so that you can qualify for a better rate.
You should be able to refinance for far better rates.
I highly recommend you contact a representative from a subsidiary of Citigroup called Primerica. They offer a couple of exclusive products in the "mortgage" arena. The exclusivity part is based on how the interest is calculated. To make it a short story the mortgage is almost always considerably less based on the concept of modified simple interest vs compound interest. Contact them for details.