Do you need a down payment to refinance?

Can I 86 Countrywide and refinance with another lender even if I'm upside down?

• Countrywide had the nerve to send me a loan modification that actually did nothing but allow me to skip 2 months of payments. I am not behind and don't need to miss a payment, I just need my payment to stay the same and not increase. Anyhow, everytime I ask if they are implementing the new Obama stimulus plan they tell me they are still working out the details. I'm pretty sure Countrywide will not be "coming onboard" with the program. I would like to refinance with a company that is implementing the program, but I am upside down by about 75000. Do you think another company would refinance my loan. For the record, I did not get into a loan that I can't afford. My payment is only going up about $400.00 per month. Problem is, our plan was to refinance after the 5 year interest only loan to a 30 year fixed. Also, my husband lost his job last October. We can afford to continue making the payment "as is".

• Answer:

  First off - I know exactly how you feel with Countrywide. My loan is with countrywide and we are upside down by a lot. We live in California's Central Valley where values have fallen 60% from their high. To answer your question, you can refinance with anyone - the hard part is the bank. Will they lend to you? Will they lend to anyone? But to refinance the bank will want an appraisal and the bad rap that appraiser's have gotten they will be conservative with the value of the property. If you owe more than the worth of the property the refinance bank will look to you to make up the difference between the refi amount and the amount you owe on the first loan. If you are looking to Obama's stimulus, more time will be needed to digest all the details and see how they will trickle down to us lower citizens. Do you have time to wait? I wish you luck. I would recommend you continue to talk to your lender about the situation, even if you are talking to a brick wall, while you explore all your options.