Names: Michael Akers and Ralee Bankston
Hometown: Seattle
"Of course it's not fair that Freddie Mac and Fannie Mae loans aren't eligible," said Michael Akers. "This is leaving millions of struggling homeowners out in the cold yet again."
Akers, an app developer for Steelbrain Web Consulting, and his partner, Ralee Bankston, purchased a home together in August 2007 for $390,000 near the top of the market. Since then, they've watched its value shrink.
Zillow currently values the home at around $250,000, putting it $140,000 underwater.
The couple has tried to refinance their mortgage's pricey 6.75% rate to no avail.
"The cost of maintaining our loan -- and we have never missed a payment -- combined with the drastic drop in value, means we aren't able to spend money investing in our home, things like electrical upgrades, insulation, weatherproofing, new windows," said Akers.
Yet, since Bank of America sold their mortgage to Freddie Mac, the couple won't qualify for principal reduction or a refinance under the settlement deal either. Only about 750,000 borrowers will be able to refinance their bank-held mortgages under the deal, allowing them to significantly reduce their monthly payments.
There is another option for Akers and Bankston, however: The Home Affordable Refinance Program. HARP was expanded in December to include borrowers whose mortgage balance is far more than their home are worth, 125% and up. Akers is looking into that program for help.
"We need some meaningful relief," he said. "Watching others receive such tremendous assistance is heartwarming for sure, but we are still in the same dire situation."
NEXT: Made BofA's list! Now we wait...
