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September 15th, 2010

HSH’s “Value Gap Refinance” plan: Reactions still rolling in



Are you making monthly payments on an underwater mortgage? Have you been denied a refinance just because you’re underwater — even though you continue to make your monthly payments on time? If so, you’re going to want to read our Value Gap Refinance plan.

Our Value Gap Refinance plan has been featured in Fortune, the Washington Post, the Baltimore Sun, Yahoo Finance, Realtor.org and lots of local real estate websites.

Last week we posted some comments and reactions from readers concerning our solution to help underwater borrowers refinance. Since then, the comments haven’t stopped rolling in.

Here are some more comments we’ve received since last week:


THIS PLAN IS TOO LOGICAL & SIMPLE for our great leaders in
Washington DC to understand. I do not feel that “responsible”
homeowners will be getting a free ride for many thousands of dollars in debt, to be unpalatable, with this proposed program and do not think the alternate plan is needed. Our government is and has shelled out billions of dollars that they won’t get back from unresponsibles (Wall Street included) so why not offer this program, or a better version of it, to the responsible homeowner that did not create this mega housing issue?! If you give an alternate to this first plan you take the chance of presenting complicated choices to “politicians” and may blow the whole proposal. Why take the chance of losing the interest of the responsible homeowner…who is footing the bill for all unresponsibles. I have one suggestion, where you state the purchase date beginning at 2003, you should add purchased or refinanced between those dates. Good luck with this plan and certainly choose a responsible homeowner of ordinary means to present it, as in someone who is really a hard worker and is not living with a silver spoon in their mouth or within the special privileges of Washington DC. In closing, this is too logical for it to ever happen but good luck anyway.


I read your article on value gap coverage and I agree that this is an outstanding idea whose time has come. I am a realtor in Florida and see so many good, hard working people with nowhere to turn, who are current and would like to stay in their homes, but when they try to attempt a mortgage modification, they cannot unless they are in arrears on their current mortgage..how stupid is that??

Many people are in this situation, as well and if the banks would refinance the current loan at a fixed rate in today’s market and we could get the government to back the required equity amount that the banks want but are not evident in this downturn..a lot more foreclosures would be stopped, the market would stabilize and the banks would not lose more money. The responsible people like myself need some reasonable option too.

Thank you for bringing this to light.


Regarding the Value Gap Refi… is there any difference in conforming vs. jumbo loans? (Many of us in California have the latter and would benefit greatly.) What’s the next step – call our congressman?


I think your idea of a Value Gap program is innovative and excellent. I hope mortgage companies do this. It’s a win-win proposition.


This is a brilliant idea! How can we make it happen?


I very much appreciate your plan to clean up the underwater loans in place throughout our nation. It is estimated that one half of all homeowners in Florida are affected. Even those of us fortunate to still have equity are negatively impacted because of the falling prices.

But not all the comments we’ve received have necessarily been positive or supportive. If you’re interested, check out the comments left by Washington Post, Fortune and Baltimore Sun readers.

If you haven’t already, be sure to read our Value Gap Refinance plan and decide for yourself whether you agree with our plan to help underwater borrowers refinance.

3 Responses to “HSH’s “Value Gap Refinance” plan: Reactions still rolling in”

  1. milt riseman Says: October 18th, 2010 at 9:56 am

    I believe that one of the great challenges and opportunities to straighten the mortgage mess out is to modify loans of homeowners whose loans are underwater. However, the key is to make those loans to people who can afford to carry the modified loan. Servicers do not have the qualifications or technology to successfully work with homeowners to create these loans. I have developed this technology and a stratyegy to reach these home owners and would love tp demonstrate it to you. Although I developed a somewhat different strategy, it could support your ap0proach.l

  2. Tim Manni Says: October 18th, 2010 at 10:35 am

    Hey Milt, Could you tell us more about your strategy? Thanks for your comment, Tim

  3. BertaHumm Says: February 28th, 2011 at 12:32 pm

    Excellent idea. I just need to re-fi my underwater mortgage to a fixed rate and can’t do it under the new HAMP or HARP as I don’t qualify for either of those. I pay my bills on time and my mortgage isn’t a Fannie or Freddie. Why not make the “need base” under HAMP the fact that it is an underwater mortgage? Or… under HARP for ALL underwater mortgages and not just the ones secured by Fannie or Freddie? My lender is on the list of lenders @ makinghomeaffordable.gov. So why only Fannie or Freddie? HAMP seems contrary to the law as one of the “needs” is divorce yet the law stipulates can’t discriminate based on marital status.

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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