Posted on: 04th May, 2009 03:21 pm
i know this is a longshot, but i live in texas, and i have owned my home for 6 years. when i bought my property, i bought it with a forgiveable govt grant. to make a long story short, i owe 70,000, and my property is worth approximately 97,000, based on 2 comps within the last 6 months, 2 doors and 4 doors down from me and identical properties. i have a corner lot and i have made many more improvements than the others. i have been trying to refinance, but to no avail. i recently applied for a loan modification in march, which will be approved in a few weeks. i am 2 payments behind on an fha loan at 6.125%, due to loss of income, but i will have everything back on track, income wise in a month, due to guaranteed income coming in. let me know if i have any options at all.
My recommendation would be to let the modification go through. Then keep up with the payments for a while until your financial situation changes enough to qualify for another loan. I don't believe anyone will offer you a cash-out refinance unless there is a solid explanation for the lates. I hope this helps...
Even if you were to find someone who will allow you to cash out with bad credit and two mortgage lates....your rate will not be better than what you have now.
Thank you for the answers to my refi question. I have one more question: I was 2 payments behind on my mortgage, and was about to go to 3 behind, but i talked to customer service, and they said i should try not to fall 3 payments behind, due to possibly going into foreclosure, and or the acceleration of the mortgage clause. I paid a full payment on April 30th, so i am 2 payments behind, while going through the loan modification process with citimortgage. I needed the cash, but made the payment anyway. My question is: Should i pay a payment this month to stay 2 payments behind, or could i keep the cash and wait for the loan modification approval, which should be at the end of the month. For whatever reason they do not approve me, what other options would i have?
Hi hornokjeff,
If you have the ultimate objective of improving your credit so you can qualify for a cash-out refinance, you should make the payment this month and avoid any further negative items from being reported to the credit bureaus. If the modification does not go through, you have very little options left with you. You can then either go for a regular streamline refinance to lower the rate (which would be difficult, given the fact you are already 2 months behind) or do a short sale or deed in lieu.
If you have the ultimate objective of improving your credit so you can qualify for a cash-out refinance, you should make the payment this month and avoid any further negative items from being reported to the credit bureaus. If the modification does not go through, you have very little options left with you. You can then either go for a regular streamline refinance to lower the rate (which would be difficult, given the fact you are already 2 months behind) or do a short sale or deed in lieu.