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And your current loan cannot itself be an F.H.A. mortgage.
The current loan modification process is plagued by bureaucratic runarounds.
And this assumes there aren't early redemption penalties locking you in to your current loan.
"It may not modify their current loan," Mr. Allnut said, "but it accomplishes the same thing".
She has repaid eleven loans, and her current loan is for thirty-two hundollarsllars.
To qualify, a borrower's current loan must be owned by either Fannie Mae or Freddie Mac.
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For instance, your current loan-to-value ratio (the amount of your loan, divided by the value of your home) must be greater than 80 percent.
Any loan with a combined current loan-to-value ratio of greater than 100percentt is considered "underwater" -- meaning that it exceeds the value of the property it was intended to finance.
But S.& P. estimates it is worth 87 cents, based on the current loan-default rate, and could be worth 53 cents under a bleaker situation that contemplates a doubling of defaults.
Morgan Stanley's chief economist in Japan, Robert Feldman, believes that banks need two or three times their current loan-loss reserves, or an extra ¥25 trillion, to be adequately provisioned.
Berg took a close look at the biggest commercial mortgages made by several firms in recent years and matched up original purchase prices with statistical data on how far prices have fallen to come up with current loan-to-values.
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