My dad is paying more than the house is worth?

Maira
Okay, so the house is now worth 70, 000, but my dad is paying 170, 000. A lot of that money was added on because he refinanced, is there any way he can lower that? I haven't really looked in on Obama's stimulus package, is it possible for him to get help?

Asuncion
Yes he does have options, They are different programs he might be able to eligible for, your dad can apply for a modification under the financial stability plan. Under the program you may obtain an interest reduced to 2% and bring your payment as low as 31% of your current income.They are some guidelines and requirements for each program, you can contact The Helpful Hands Foundation, Non-Profit Organization at 787-408-5996 they will give you a free phone consultation and may be able to help you with your situation.

Claude
It seems like your Dad should be writing this and not you. He is apparently not as concerned as you are. That all comes with maturity and as long as he can make the payments, enjoys the house, is patient and stays the course the value will increase over time. He refinanced and received the money and probably spent it on things that were important to him.It amazes me that nobody gets bent out of shape when they buy a new car that loses ten or twenty percent of its value the same week in which they purchased it. People have to realize that the real estate market that we went through was abnormal and now the market is readjusting just like the stock market. Be patient and see what happens -- your Dad has to live somewhere.

Laurel
Nope.He's upside down...by choice.Sounds like he got into a negative ammortization loan...that risk was disclosed up front when your father signed the papers.I seriously doubt that the value has fallen that much. It would be very difficult to find a house in most areas of the USA for that unless it was in a very horrible neighborhood.Think of it this way..for the number of bedrooms and square footage...if he was renting, he would probably have to pay the same.

Albina
well Obama isn't gunna help your daddy sweet heart. He's to busy thinkin about his own ideas. So let me give you a bit of advice here, Pretty much everyone in the U.S.A are paying more than the house is worth. So keep hope and think about other ways!

Debbie
Your father apparently borrowed $170, 000 on his house. That means he has to repay $170, 000 plus interest. The value of what he bought means nothing in this situation. He still owes what he borrowed.