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  1. #1
    Join Date
    Apr 2012
    Posts
    2

    Default negative equity nightmare

    Hello,

    I'm new here, so greetings and I'll get to the point.

    House siding is deteriorating; it's composite/hardboard.

    The problem is there's no apparent way to finance a major siding job and we can't afford to sell the house. All possible solutions are based on satisfactory appraisal which does not exist.

    Any ideas??

  2. #2
    Join Date
    Jul 2010
    Location
    SoCal
    Posts
    5,081

    Default Re: negative equity nightmare

    I need help understanding your situation:
    - you want to sell your home,
    - you need new sidings,
    - you don't have the money to do it,
    - you don't have an appraisal,
    - you can't get a loan to finance the siding replacement.

    Please give more information.

    Generally, if a homeowner has equity in his home, he can get an equity home improvemnet loan. But if you have negative equity, you need a private loan.

  3. #3
    Join Date
    Aug 2007
    Posts
    6,481

    Default Re: negative equity nightmare

    Quote Originally Posted by dj1 View Post
    Generally, if a homeowner has equity in his home, he can get an equity home improvemnet loan. But if you have negative equity, you need a private loan.
    Therein lies the rub, with the collapse of the market, home equity is a thing of the past for most people.
    I suffer from CDO ... Its like OCD, but in alphabetical order, LIKE IT SHOULD BE!!!

  4. #4
    Join Date
    Apr 2012
    Posts
    2

    Default Re: negative equity nightmare

    We don't want to sell, but the siding is rapidly deteriorating.

    I had a bank appraiser come by and he said there would be no reason for me to pay him $300 for an official appraisal because:

    1. the local housing market reflects low values

    2. the exterior is in bad shape

    I'm stuck because there is no equity for FHA 203 (k), home equity loan, and I don't qualify for conventional loans.

    So, I was wondering if anyone has an idea that no one has thought of to help me and others in similar situations.

  5. #5
    Join Date
    Dec 2007
    Location
    Tennessee
    Posts
    1,381

    Default Re: negative equity nightmare

    Your question would probably be better suited for the Today Show's money segment. If you have a Fanny Mae or Freddy Mac loan, there are new refinancing options. Same with loans that originated in any one of five banks (Wells Fargo and Bank of America being two of them) thanks to a settlement with the feds. I'm not sure where to tell you to start with this, maybe Google. At least ask your current lender.

    The house will not always be in negative equity. The market will rise and you will pay down the loan. But what you need is to preserve what you have until then.

    This is a self help site for those who normally do their own work. If you are willing to try, even if you aren't good at things like this, you might be able to save the house until the market rises and you can get a loan for the repairs, and maybe refinance at a lower rate too.

    First try paint. A couple coats of paint over the siding will keep the water out. That will slow down the deterioration. A couple gallons of good paint and a roller and a brush should not set you back more than $100 or so. Don't try to get fancy with a cheap paint sprayer system, they are not easier to use, take a lot more time and end up just costing a lot of money.

    Next, if you have exposed framing or insulation, then you need to do some kind of patch, even if its just a piece of plastic. For these areas, come back with specific questions and we will try to help.

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