Posted on: 21st Aug, 2007 04:45 pm
we are new homebuyers being in our home for 2 yrs now, under our current contract we will no longer be locked into our rate and we have the option of selling the home or refinance. problem is the housing market has really hit hard here in florida and its safe to say that its a stale market.
it seemed good at the time but we are now learning from the mistake but took on the home and mortgage with an 80/20 split loan. basically ending up with a 1st and 2nd mortgage.
because of this my wife and i are finding it hard for a lender to refinance us due to there not being enough equity in the house to even try and combine the 2 mortgages together. i will say up front our credit scores are not the best in the world we have had some hard times were only one of us was working and the other out of a job for several months. we have done are best to keep up on the mortgage and bills. however we are still behind on some (mainly credit cards).
is there any possible way to refinance for us? i dont know if will be able to manage an increase mortgage payment and i really dont want to lose my house. please help if you can. i appreciate your time and any suggestions would be greatful.
it seemed good at the time but we are now learning from the mistake but took on the home and mortgage with an 80/20 split loan. basically ending up with a 1st and 2nd mortgage.
because of this my wife and i are finding it hard for a lender to refinance us due to there not being enough equity in the house to even try and combine the 2 mortgages together. i will say up front our credit scores are not the best in the world we have had some hard times were only one of us was working and the other out of a job for several months. we have done are best to keep up on the mortgage and bills. however we are still behind on some (mainly credit cards).
is there any possible way to refinance for us? i dont know if will be able to manage an increase mortgage payment and i really dont want to lose my house. please help if you can. i appreciate your time and any suggestions would be greatful.
Well, no equity in the house, reduced income, low credit score, less hopes of being able to sell the house, you seem to be in real difficult position.
But you can look for some lenders who would be willing to take the risk of refinancing your loan but for a higher interest rate (if balance on both loans combined is not more than current equity value of your house). Even if someone agrees to it, you need to check whether you will be able to afford that payment and whether it is less than what combined payments on both mortgages are right now.
You can then attempt to refinance it again if your income improves and some equity develops in the house in a few years time. But I would say that chances of anyone agreeing to refinance are very few because of the problems you have mentioned.
But you can look for some lenders who would be willing to take the risk of refinancing your loan but for a higher interest rate (if balance on both loans combined is not more than current equity value of your house). Even if someone agrees to it, you need to check whether you will be able to afford that payment and whether it is less than what combined payments on both mortgages are right now.
You can then attempt to refinance it again if your income improves and some equity develops in the house in a few years time. But I would say that chances of anyone agreeing to refinance are very few because of the problems you have mentioned.
Hi Saberad,
You may be able to refinance the existing loans. But it is quite likely that you may be charged with a higher interest rate on the refinance loan.
And for that you must be prepared to bear the higher monthly payments towards the loan. So you should try to increase your income and reduce some personal expenses.
You may be able to refinance the existing loans. But it is quite likely that you may be charged with a higher interest rate on the refinance loan.
And for that you must be prepared to bear the higher monthly payments towards the loan. So you should try to increase your income and reduce some personal expenses.
Hi Saberad,
If you are confused how to manage the mortgage payments in the future, you can consult with a financial advisor. He will be able to guide you in planning the loan payments.
If you are confused how to manage the mortgage payments in the future, you can consult with a financial advisor. He will be able to guide you in planning the loan payments.
Thank you Niics for the information,
Would it be a good idea to use a mortgage broker for trying to find a lender for us? I hear because they charge there own fees as well that it also inflates the rates and is not always a viable option? Not sure if that made sense :o/
Guess I'm just wanting to know given the situation I'm hesitant to try using a mortgage broker due to using one in the beginning landed me in the situation I'm in now with 2 mortgages.
Would it be a good idea to use a mortgage broker for trying to find a lender for us? I hear because they charge there own fees as well that it also inflates the rates and is not always a viable option? Not sure if that made sense :o/
Guess I'm just wanting to know given the situation I'm hesitant to try using a mortgage broker due to using one in the beginning landed me in the situation I'm in now with 2 mortgages.
You can very well approach lenders by yourself. It can help you on the fees brokers charge. First contact a few lenders to know what they are offering and compare.
I'm kinda in a similiar boat. Noo equity left, credit scores are crap and not making enough money. Living in Northern Michigan is not the easiest as it would seem considering the fact that the job market kinda sucks right now.
Is your loan in default? If so then you should contact your mortgage company to request a forbearance plan to help you bring the loan out of default status. The more you will delay the options will slowly dry up.
But if the loan is still current and you fear defaults in the coming months then search the market to know how much similar houses are getting sold for and whether it would be beneficial for you to sell the house and relocate.
But if the loan is still current and you fear defaults in the coming months then search the market to know how much similar houses are getting sold for and whether it would be beneficial for you to sell the house and relocate.