There are so many rules that are stopping homeowners from refinancing.  Banks are running scared and are cherry picking only the best loans right now.

i don't know if there is a solution to that problem other than the  clients will have to either lower their debt, or raise their income to qualify. 

to many questions to identify. I have heard that over half the homes in foreclosure have never contacted the lender to work anything out. 

You bank will work wth you especially if you are in a high ltv mortgage. You need to contact your lender   

tony     

Ann,

I understand the frustration.  I have been spending a lot of time with my customers in Providence, helping them with Loan Modification or assisting them with Short Refis with their current lenders...  What a pain but some day when this mess is fixed they will remember my help.  Don't hold your breath waiting for the government.  They are too busy trying to put more restrictions on us mortgage folks..

-George 

You can do a short refinance by negotiating the payoff lower just like a short sale. 

We have a lot of this activity on Florida.  No Way Out!  I like the Short ReFi Pay-off!  Has that worked?

A) A little late now but the government should have sent the "economic stimulus" checks directly to the lenders for the benefit of each homeowner.  If you are current on your mortgage, you have the choice of refund or applying directly to principal.  Otherwise, the money goes directly to making all or part of a payment. 

B) Regional mediation on write downs and short sales.  Rather than having an already overworked servicing department work for approval with the investors, requests are sent to external mediation and the lenders/investors are stuck with the results.  This isn't intended to punish the lenders, but to expedite the process and get things done.

C) "Superbank".  Government creates a new "lending institution" for the purpose of bailing out future bank losses.  Banks can sell delinquent and foreclosing loans at say 75 cents on the dollar and be done with them(except fraudulent loans).  The government run "superbank" can rework these loans with the borrowers on the lowered values.   Banks have until the end of the year to sell the problem loans to the superbank. 

Just a few quick thoughts off the top of my head.