Adjust Your Snorkel

I predicted this would be the Year of Change. Not entirely in the ways I had hoped, but it's proving true.

Having a mortgage situation isn't for the faint of heart, that's for sure. It began as a simple inquiry - hey, can we look at this, please ... ?

Last year we went to a lender who said we qualified; had the appraisal done which came back okay; decided to pony up some cash to equalize things; had a decent interest rate and terms; and were denied because the original loan has PMI. (Private mortgage insurance, an additional fee to the loan because the bank lent outside their comfort zone criteria. It is their hedge against default.)

Next, we called BofA who holds the Countrywide note to talk about a modification, and were told by the first line bank answerer that she would maybe get the PMI removed. $135 a month, just like that, gone? Was this woman the CEO to wield such power? 

She said any homeowner who has paid a while on their mortgage without incident can request a review of PMI, maybe even have it dropped entirely. No one knows this, of course. If you happen to call in and happen to ask, they will look into it. Except they said no for us, even though we were current on our loan.

So on we went to Wells Fargo, where Randy has banked since he was in high school. We met with the loan officer in October. He never even called us back.

And this, with two stable incomes and 35 years of great credit histories.

We were clearly being discriminated against! So I did some online research and am now hooked into the 5-refi-solicitation-calls-a-week and as many emails that won't qualify us. Then researched the Government website and the HARP program. And the VA option. Nope.Nope.Nope. Too high of a loan to value (meaning, we're underwater).

Hello!!! After not losing sleep over funding loans that required 50% or more of someone's take home pay to pay back, they worry for being asked to help families stay in their own homes? Banks are sleeping alright: it's the rest of us that are worried sick.

Multiply that by thousands and thousands of people who want to do the right thing and are told it would be better to miss a few payments, to get the bank's attention. And when they follow that advice, the bank still won't work with them and they fall into default.

Or those that are being encouraged by friends and family (and attorneys) to walk away and live rent free until the 3 day notice comes. It sounds sweet to be hounded day and night by creditors and give up the good credit they have spent a lifetime to build.

Hang onto that snorkel: it's still low tide.

Hey, is anyone in the market for a 3/2 on a busy street, sparkling pool and hot tub, remodeled kitchen and baths, for 25% more than it will appraise?