5 of 6
Jose Rivera: Still waiting
Jose Rivera: Still waiting
Jose Rivera at his home in Manchester, Conn.
Jose Rivera has been trying to refinance his mortgage since April under the president's foreclosure prevention plan, which allows those with little or no equity in their home to take advantage of today's low mortgage rates.

First, his loan servicer told him he'd have to wait until the end of July because he has private mortgage insurance.

Now, Bank of America said to him it is awaiting guidelines from the federal government on how to refinance loans for those whose mortgages are valued at 125% of the home's worth. The Obama administration adjusted the refinancing program in July to cover more homeowners whose properties have declined in value.

The program's expansion was critical for Rivera, whose home value has dropped by more than $50,000 to $297,000. His mortgage is now 119% of his home's worth.

Rivera, a quality analyst at a financial services company, can afford to pay his mortgage, but would like to lock in today's rates, which have hovered below 5%. He is paying 7%. Rivera, who received no raise and only 20% of his typical bonus, thinks he can save nearly $500 a month by refinancing at 5%.

"This continues to be an extremely frustrating process," he said. "This program was approved in July, but here we are in October and apparently it is still not available to people like me who qualify and could very much use the assistance from the program."

A Bank of America spokeswoman said the servicer hopes to start processing refinance applications under the expanded program soon. The bank will also see whether Rivera qualifies for a loan modification.

NEXT: 500,000 homeowners receive modifications

Last updated October 24 2009: 8:56 AM ET
Email | Print | Share  |  RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.