Basically, we got a call from Ameripath saying that the investor (who owns our loan, not the servicer), wants to unload all sub-prime morts, or any mort that looks sub-prime. I guess my name came up. Since they can't unload it on wall street, they're willing to do this refi. He said they will refi our loan, so we can afford it, as long as we qualify. The refi will also be up to $210 off our mort now. I know that if they take the money off, we will get a 1099 or whatever that IRS form is. And he did tell me the same, but suggested I talk to a tax accountant to find out if I will have to pay it or not, as I may not have to.

Thoughts on this? Our servicer, HomEq has sent us multiple letters saying that they are working with Ameripath, so I'm not afraid that they're soliciting us without our consent, but I'm just curious to know if this has happened to anyone.

No one answered, but thought I'd give an update. So far, everything is going well and is legit. Had an appraiser come out, title company called to verify things, loan docs are going through.

Our lender is willing to take a hit, and we get a mortgage that will now be about $123k less than what our house appraised for.
I guess if your lender is working with a company that can help you refi, contact them. I know HomEq services our loan and is not the lender, so they can't really do mod's. Looks like I will have a FHA backed refi, w/o any penalties, which means, if we can't afford our home in another 3 months, we can sell for almost nothing and STILL come away with equity.

Yes, I'm sure a 1099 will show up, but I don't think I'll have to pay it. But not depending on that.

Congrats!!!!

Hopefully you wont't get stuck having to pay on that 1099. Did you consult a tax advisor?

Just make sure you thoroughly read and understand the paperwork BEFORE you sign it. Homeq is not the most ethical servicer.

I haven't yet, but will once this goes through (assuming all goes well)

I am.

FYI, this doesn't have anything to do with HomEq though. They are a servicer, but this refi is coming from the investor. Remember, as a servicer, they can't refi a loan because they're not a lender.

Sorry, I was in "mod mode" at the time I posted. We can and do modify loans with servicers like HomEq and SPS. If we come across re-fi deals, those get referred out to the appropriate mortgage professionals.

Update: refi closed as of last week. our mort is now about $120k less than appraised value of home. I'm sure we'll get some sort of 1099 and need to discuss that with tax guy, but overall, I'm just grateful to have a 30-year fixed, low apr, fha loan, AND that if we still cant' afford it, we can get out of our loan WITH money in our pockets WITHOUT a foreclosure. sigh. so far, i am relieved.

Very nice! Congrats! I'm talking to Aurora right now, and they are still borderline clueless Glad you had a fortunate event!!

Thanks. I have very glad for this fortunate event. We may not be able to keep the house, but at least we can sell w/o BK or foreclosure and those were my biggest fears. Good luck with Aurora.