Hi Loretta,

Sorry to hear of your difficulties. There are so many people that have been victimized by the sub prime melt down. As a signing agent I am sure that you have seen these loans in the past, and thought to yourself that the borrowers were going to be in the same or worse situation three years down the road. They were told by lenders not to  worry about it, and that the lender would re-fi the borrowers again in three years for a lower rate when their credit improved. Instead the lenders went under and home owner equity declined. Refinancing now is very difficult. Credit has tightened. One or two late payments is enough to deny a mortgage application,  or boost the interest rate through the roof.

Have you looked into some of the new programs offered by the Federal Government? Some of the States also offer assistance. In Connecticut the Connecticut Housing Finance Authority makes low interest loans available to pay mortgages for 36 consecutive or non-consecutive months in cases of hardship (loss of job, illness or death in the family). Have you checked to see if Maryland has a similar program? Some states are assisting with refinancing properties to prevent further foreclosures even when the current lender is unable to restructure the existing loan.