Posted on: 12th Jan, 2011 03:47 pm
i am in the process of settling a charge off on my second mortgage. this will put us in an even position with the first (property has depreciated $185k) comparing the value of the house and what we owe. our plan is to make payments for a year or two, build some equity, then refinance at a fixed rate. i just spoke with a friend who told me that mortgage companies won't touch a refinance after a 2nd mortgage charge off & settlement for at least 5 years !! problem is our 1st is adjustable and who knows where rates will be in 5 years. does anyone know if this is true? thank you
Hi fci!
Welcome to forums!
If there is a charge off mentioned in your credit report, the lender will want you to pay it off in full before he refinances your existing first mortgage. Unless, you pay off or settle the debts with the collection agency, the lenders may not agree to refinance your loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If there is a charge off mentioned in your credit report, the lender will want you to pay it off in full before he refinances your existing first mortgage. Unless, you pay off or settle the debts with the collection agency, the lenders may not agree to refinance your loan.
Feel free to ask if you've further queries.
Sussane
First of all, thank you for your response. There is a charge off but we are in the process of doing a settlement. In other words, we will settle the 2nd for 20% then just have the first with an adjustable rate and finally some equity. After we SETTLE with the 2nd and pay timely on the 1st, do you know if there are any guidelines/policies for lenders that would prevent them from lending/refinancing us before a certain amount of time passes. For example, HUD has put out guidelines to lenders to wait four years before they can lend to someone who shortsells or does a deed in leu. I would like to know if I will be 'stuck' with the adjustable rate on the first, and if so, for how long. By the way, I live in California.
Reasons are many that people may look to Refinance Home Loans. Probably, the most common is to take advantage of lowered interest rates. Some of the other reasons people opt for home loans for refinance is to pay off high priced credit cards, make home improvements, and rebuild credit rating that has taken a turn for the worse.
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hi cfg!
welcome to forums!
in case of short sale or deed in lieu of foreclosure, there is a time line of 3-4 years in order to get a mortgage. but in case of settlement of loan, i don't think there is a time period for giving mortgage.
feel free to ask if you've further queries.
sussane
welcome to forums!
in case of short sale or deed in lieu of foreclosure, there is a time line of 3-4 years in order to get a mortgage. but in case of settlement of loan, i don't think there is a time period for giving mortgage.
feel free to ask if you've further queries.
sussane
First of all, thank you for your response. There is a charge off but we are in the process of doing a settlement. In other words, we will settle the 2nd for 20% then just have the first with an adjustable rate and finally some equity. After we SETTLE with the 2nd and pay timely on the 1st, do you know if there are any guidelines/policies for lenders that would prevent them from lending/refinancing us before a certain amount of time passes. For example, HUD has put out guidelines to lenders to wait four years before they can lend to someone who shortsells or does a deed in leu. I would like to know if I will be 'stuck' with the adjustable rate on the first, and if so, for how long. By the way, I live in California.
Hi CFG,
I haven't heard of any such time period that you need to wait for in order to get a mortgage after you settle your debts.
I haven't heard of any such time period that you need to wait for in order to get a mortgage after you settle your debts.