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Trying to help sister with mortgage refi...
I knew my sister and her husband were badly underwater. I finally got her to reveal the ugly facts.
Took out jumbo, zero down, 40 year (WTF?!?!) mortgage in 2007 at 7%. Took out additional loan to cover balance at 9%. Original price was just north of $600k.
The home is in the Highland Park area of LA. Today they owe about $580k. Zillow says the place is worth about $450k. Payments per month are about $5000! Comps in the area are bad. Real bad. They live up on a hill, but the prices of homes in the flats kill their values....
They don't want to walk away. They have decent income. But those numbers....dear lord.....
Is there any scenario in the universe that would allow them to refinance to a better rate? We could potentially have my parents co-sign the loan. Any hope?
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