Posted on: 21st Jun, 2011 10:10 am
i'm in ca, and i'm trying to do a refinance to use the money to pay some bills and buy out two of my sisters who co-own the home. there are 5 of us and we each own 20%. one of my other sisters (not the one i'm buying out), however, filed a reorganizing bankruptcy (11 or 13?) a few months ago, so the bank is trying to "figure that out". everything seemed fine up until this point, and the agent at the credit union is still talking optimistically. what can i expect here?
The BK should not affect your ability to the refi. If you have enough equity and can qualify for the loan on your own, then you should have no problem getting a refi. Your family members would have to sign off their rights to the property at closing.
Thanks. We have 100% equity, and so far, it looked like I was qualifying. I was waiting for the bank (credit union) to schedule an appraisal and decided to call to see if there was something holding things up. There was.
So what is the problem with the lender you are using. If your sister filed BK, but there is no loan on the house, and she is not going on the new loan, I dont see how it affects you...I am a direct lender in California, so if you explain a little more, I might be able to understand better and give you a better answer.
I don't know. I'm dealing with a loan agent at my credit union (Kinetca). He said that his underwriters were "looking at it" and they'd get back to him. He sounded optimistic, but since this is my first house issue, I don't know what to expect.
I've applied through them and gotten a Good Faith Estimate back for what I want. I'm trying to get 180K, and was led to believe that the house would appraise around 300K by my sister. I told Kinecta that I wanted to move forward and they were supposed to schedule an appraisal. This happened last Thursday, and Kinecta led me to believe that I would get a call on Friday or even Saturday. Since I hadn't heard anything, I called them and they told me the underwriters were having some issue with my sister, who filed BK, being on the title.
I told my sister, and she said she would try to get in touch with the BK trustee to see if there is something that she needs to do with them.
I've applied through them and gotten a Good Faith Estimate back for what I want. I'm trying to get 180K, and was led to believe that the house would appraise around 300K by my sister. I told Kinecta that I wanted to move forward and they were supposed to schedule an appraisal. This happened last Thursday, and Kinecta led me to believe that I would get a call on Friday or even Saturday. Since I hadn't heard anything, I called them and they told me the underwriters were having some issue with my sister, who filed BK, being on the title.
I told my sister, and she said she would try to get in touch with the BK trustee to see if there is something that she needs to do with them.
I just checked with my manager who has 28 years in the business and he agrees with me that there is something else wrong. Maybe they are using the BK as an avenue to brush you off??? I just don't understand. If there is no mortgage, then your sister could not have affected you and the mortgage loan (since there is no loan). And if you are trying for a loan against a free and clear home, and your sister is NOT going on the loan, her personal finances and bk is not even an option. The only thing any of the siblings would have to do is sign off their rights to the property via quitclaim. Is there something else, maybe a lawsuit against her, that is attaching to the property? Do you have a copy of the prelim from title? Either there is something pending against the home, or the loan officer is just incompetent or scared to tell you that they cant approve your loan. I could get this resolved in a day. There is no reason for this to drag on another moment...
I'm sorry. I don't know what the "prelim from title" is. I don't see it among the GFE paperwork, so I have to assume that I don't have it. It would really be unfortunate if they were trying to blow me off. The only problem that I know the title would have is that we're behind about $1,500 on the taxes. He didn't mention that, however. My sister is unaware of any actions be taken towards her with regards to the BK, but since it is a reorg, I would think that no one would be attaching anything
Sorry, the prelim is basically your title report. Showing who has a lien against the property. Then you can know for sure if there is any action against the home. Ask for a copy from your escrow agent or your loan officer. If they hem and haw regarding not providing it to you, beware. I would like to know the outcome of this. Would you be so kind to update us all? And of course if you need any questions answered, please ask!
absolutely
I have the report. Where should I send it so you can review it?
The loan officer is now asking if the "BK is closed, and if so what chapter?". He says the title and lender will want documentation (not defined) if it is closed.
you can fax 949-270-1775 or email chrisg@pacbaylending.com