{"id":1710,"date":"2010-03-08T00:11:14","date_gmt":"2010-03-08T00:11:14","guid":{"rendered":"http:\/\/www.mortgageblogarticles.com\/?p=1710"},"modified":"2010-03-08T00:11:14","modified_gmt":"2010-03-08T00:11:14","slug":"can-i-refinance-my-va-loan-if-i-am-upside-down-on-my-mortgage","status":"publish","type":"post","link":"https:\/\/dev203k.orbitwebx.com\/dev203k\/can-i-refinance-my-va-loan-if-i-am-upside-down-on-my-mortgage\/","title":{"rendered":"I’m Upside Down On My Mortgage. What Can I Do?"},"content":{"rendered":"

\"\"If you find yourself\u00a0upside down on your VA mortgage <\/a>a very common question is, can I\u00a0still refinance?\u00a0 In today’s economy home values just aren’t what they used to be and this situation is becoming a fast growing reality for may homeowners.\u00a0 So the answer to that question is…Yes You Can Refinance Your VA Home Loan<\/a>!<\/strong><\/p>\n

Just to be clarify, being \u201cupside down\u201d on a mortgage is when you owe more on your mortgage than what your home is actually valued at in the present economy<\/strong>.<\/p>\n

Here\u2019s an example scenario:<\/strong><\/p>\n

Let\u2019s say that you bought a home back in 2006 for $250,000. The 2006 economy was pretty strong, and home prices in many markets throughout the country were steadily increasing in value.<\/p>\n

Now let\u2019s fast-forward to today. The recession that started in 2008 has been declared “over” by the National Bureau of Economic Research <\/a>(NBER for short), and the economy is in the first stages of recovery.<\/p>\n

Considering the current housing market, it’s possible the home you bought in 2006 won\u2019t sell for the same price or higher today. For this example, let\u2019s say the market price in your area is now $200,000.<\/p>\n

The catch is even though the market price is now $200,000 today, you still owe the remaining principal on the $250,000 on the mortgage you took out in 2006. Unless you’ve made extra payments to pay down the loan, it’s likely your balance is still greater than the $200,000 your home is worth.<\/p>\n

In other words, you are upside down on your mortgage.<\/em><\/p>\n

With that said, there is some great news for veterans:<\/strong><\/p>\n

In 2008 a law titled the \u201cVeteran Benefits Improvement Act\u201d was passed to assist veterans who were upside down on their mortgage. This law created the opportunity for eligible veterans to get a VA refinance and drastically change their mortgage state of affairs.<\/p>\n

The Veterans Benefits Improvement Act of 2008 was signed by President Bush on October 10, 2008 and was officially applied by the VA on October 16, 2008.<\/p>\n

The enhancements made to the VA home loan <\/a>program are as follows:<\/strong><\/p>\n