I asked the bank to let me refinance the house at the current market value they said i was dreaming is it bet?

Dewayne
ok so they will take the house back on a forclosure becasue i can't no longer pay for the loan. By going into foreclosure they are loosing more than just refinancing the house with me at the current market valuse is this reasonable for them and me?. The bank told me i was dreaming. He said they would write the loan as a loss and the will still have the house as an asset to sell letter on and still be in the winning side. can somebody tell me if what i am trying to do makes any sence.

Essie
I understand what you are trying to do, and that it makes sense to you, but it does not make sense to the bank. They already loaned you money, and you can't pay them back. Why would they want to loan you money again when you may do the same thing next year?Further, just because you can't repay your loan doesn't mean that you don't still owe the money. They can still go after you for their losses on the credit that was extended to you.

Angla
it makes sense you are trying to take their money & they won't let you. Even if they did, the difference between the new loan & the old one would be considered income to you. They will tell the IRS & you will have to pay taxes on it.

Wai
Run to the government.They bail you out.I get to pay for it!

Adan
I think you are the same guy that owes $300K and the house is worth $150? If your ex can't afford it, then your best bet is to walk away. You are asking them to do this: Imagine you lend your friend $5000 for a ring worth $5000. The ring gets a ding (market gets bad) and now it is worth $2500. Your friend already took the $5000 from you and now he wants you to give him a NEW loan for $2500. Would you do it? HECK NO! He owes you $5000 and regardless of the value of the ring, you want your money back. If he doesn't pay you, you are going to keep the ring and attempt to re-sell it to get at least the $2500 it is worth ..right? Same thing with your house. Sorry about your situation it stinks!

Hilario
As to what will happen to you in a foreclosure or short sale, I would need to know what state you are in. Anyway, here are your three options to keep your home:1. Loan Modification - Hire a loan Modification company (don't do this on your own) who use real estate lawyers to write letters to your lender in order to modify the loan balance and/or rate.2. New FHA Loans - New FHA loans are coming out on October 1st which will give you a loan of 95% of your current appraised value. This is good if you are upside down on your house.3. Forbearance agreement - You can ask your lender for a Forbearance agreement if your hardship is temporary, such as a loss of a job. This option allows you to work something out with your lender to buy you time to catch up on your payments.FYI...The law you reference is correct. If it is your primary residence and you get 1099ed by your lender, then your accountant can help you fight up to 250k if you are single and 500k if you are married.Regards, Satar Naghshineh