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Anthro1212
LIF Zygote
Member since 1/13 18 total posts
Name:
H
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Refinancing
Message edited 1/11/2013 4:48:24 PM.
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Posted 1/2/13 9:14 AM  |
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Pumpkin1
LIF Adult
Member since 12/05 3715 total posts
Name:
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Re: Refinancing
I would think that your credit took a hit when you defaulted on your other mortgage and that would cause the other bank (or any crediter for that matter) deny your application.
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| Posted 1/2/13 10:20 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Refinancing
Posted by Anthro1212
Hi, is there any way to refinance on your primary residence if you have stopped making payments on another property you own?
The 2nd property is worth 75% less than what it was purchased for. We asked the bank to refi the rate we had on that property and the bank wanted nothing to do with it, so we stopped making payments and will let it short sale or foreclose at this point.
We went to refinance our primary residence and the bank told us there was no way because of our current situation with the 2nd property. They are 2 different banks.
Is there any way to get around this?
Sorry but it's situations like there where refi's should NOT be allowed.
You are purposely allowing a property you own to foreclose/short sale. Regardless if your current financial condition, refi's should be available for people who have good credit and missing payments on a house excludes you from this category.
This is one time where I am happy a bank is actually sticking up for another bank.
Message edited 1/2/2013 9:04:31 PM.
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| Posted 1/2/13 11:04 AM |
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Anthro1212
LIF Zygote
Member since 1/13 18 total posts
Name:
H
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Re: Refinancing
Posted by ave1024
Sorry but it's situations like there where refi's should NOT be allowed.
You are purposely allowing a property you own to foreclose/short sale. Regardless if your current financial condition, refi's should be available for people who have good credit and missing payments on a house excludes you from this category.
This is one time where I am happy a bank is actually sticking up for another bank.
Message edited 1/11/2013 4:48:47 PM.
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| Posted 1/2/13 1:28 PM |
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DumpsterBaby
My compass when I'm lost
Member since 5/11 2210 total posts
Name:
My anchor when I get tossed
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Re: Refinancing
Posted by Anthro1212
Posted by ave1024
Sorry but it's situations like there where refi's should NOT be allowed.
You are purposely allowing a property you own to foreclose/short sale. Regardless if your current financial condition, refi's should be available for people who have good credit and missing payments on a house excludes you from this category.
This is one time where I am happy a bank is actually sticking up for another bank.
I would agree with you, however everyones situation is different.
I make all my payments plus, on time with my primary mortgage on my primary residence.
The 2nd property, every payment we make goes only to interest not principal. the property is worth nothing anymore. We contacted the bank so many times to change our loan to a fixed rate, they wanted nothing to do with it, so they can have it at this point. I will not continue to make interest payments on a property when the bank is unwilling to help.
They can have it. We even tried shortsaleing and they were making it beyond difficult for us, and we lost 2 deals.
It's not like we haven't tried to work with them.
But that's not the banks fault. You purchased it at a certain price and were willing to make payments. You just don't want to make the payments because it isn't worth what you want it to be worth. Sorry, you need to be responsible for your situation and either continue to pay your mortgage or rent it. You never said you couldn't pay for it because of a job loss, etc., so I will assume you're capable of doing so. Such a shame that you think you're owed something, but you're not.
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| Posted 1/2/13 3:25 PM |
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Anthro1212
LIF Zygote
Member since 1/13 18 total posts
Name:
H
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Re: Refinancing
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Message edited 1/11/2013 4:50:41 PM.
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| Posted 1/2/13 3:51 PM |
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Re: Refinancing
Refinance = Applying for and getting a new mortgage loan (unlike loan modification, which is changing the terms -- interest rate, time frame, etc. -- of an existing loan). So the only way you can refinance is if you can find a lender willing to give you a mortgage loan. I don't think that's going to happen if you are delinquent on ANY loan (student loans, car loans, etc.), let alone another mortgage. Mortgage lending requirements are quite strict now and I don't see any underwriter approving a loan to someone who has recent missed payments on another loan.
I know you said you stopped paying the mortgage on your second property because your payments are all toward interest, but (i) anyone with a long-term (e.g., 30 year) mortgage is paying pretty much all interest for the majority of the life of the loan (principal isn't really paid down until the latter part of the loan), so it's not so unusual and not really tied to how much the property is worth, and (ii) at least the interest is tax deductable, so you do get a financial benefit to paying at the end of the year when you file your income taxes.
I know you didn't ask for further advice, but have you gotten a real estate agent or appraiser's opinion of the current property value of the second property that's not your primary residence? Maybe you could sell it and pay off the mortgage without bringing too much money to the table. I don't know where the property is, but the housing market is definitely coming back on LI. Even if you take a short-term hit, I think that would be far less damaging to you financially then waiting for the bank to foreclose, which in NY could take YEARS (as we are a judicial foreclosure state), while your credit is ruined and you have it hanging over your head.
Before you make any decisions, I would consult with your accountant, attorney, real estate agent, etc. and see if maybe there is a better way to handle the situation with the second property.
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| Posted 1/2/13 4:11 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Refinancing
Posted by Anthro1212
Posted by DumpsterBaby
Posted by Anthro1212
Posted by ave1024
Sorry but it's situations like there where refi's should NOT be allowed.
You are purposely allowing a property you own to foreclose/short sale. Regardless if your current financial condition, refi's should be available for people who have good credit and missing payments on a house excludes you from this category.
This is one time where I am happy a bank is actually sticking up for another bank.
I would agree with you, however everyones situation is different.
I make all my payments plus, on time with my primary mortgage on my primary residence.
The 2nd property, every payment we make goes only to interest not principal. the property is worth nothing anymore. We contacted the bank so many times to change our loan to a fixed rate, they wanted nothing to do with it, so they can have it at this point. I will not continue to make interest payments on a property when the bank is unwilling to help.
They can have it. We even tried shortsaleing and they were making it beyond difficult for us, and we lost 2 deals.
It's not like we haven't tried to work with them.
But that's not the banks fault. You purchased it at a certain price and were willing to make payments. You just don't want to make the payments because it isn't worth what you want it to be worth. Sorry, you need to be responsible for your situation and either continue to pay your mortgage or rent it. You never said you couldn't pay for it because of a job loss, etc., so I will assume you're capable of doing so. Such a shame that you think you're owed something, but you're not.
I do have a renter, and the rent is peanuts. I didn't ask for your advice on whether I am right or wrong. That is my business. I was asking if there is a way to refi the property I currently live in.
When you buy a property and make payments only towards the interest, and are losing thousands of dollars a month, then talk to me. If I felt this property would come back at some point, I would totally keep paying, but since their is no way it is coming back to what it was, and it is costing me thousands, I have to let it go, but again that is none of your business and don't judge until you walk in someones shoes.
So you have a renter AND you aren't making payments? Wow. 
No offense, but it's people like yourself who contribute to the mess we are in regarding housing and the banks. Everyone is looking for a handout feeling they are entitled since they lost money on their house. And these people just expect the banks to put these losses on their balance sheet, even though the bank had nothing to do with the purchase or the price.
While I don't know your business, I would certainly like to know HOW you ended up with two properties. Perhaps if you didn't feel entitled to purchase a second property you wouldn't be in the mess you claim you are in with the first.
Everyone lost money on their houses (including myself). Why don't we give 50-100k bailouts to everyone since we all lost money. Why are the people who made the foolish decisions of IO loans the only ones that should get the freebies with minimal impact on their credit.
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| Posted 1/2/13 4:22 PM |
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Anthro1212
LIF Zygote
Member since 1/13 18 total posts
Name:
H
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Re: Refinancing
Message edited 1/11/2013 4:49:37 PM.
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| Posted 1/2/13 4:22 PM |
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Anthro1212
LIF Zygote
Member since 1/13 18 total posts
Name:
H
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Re: Refinancing
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Message edited 1/11/2013 4:49:56 PM.
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| Posted 1/2/13 4:26 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Refinancing
Posted by Anthro1212
I forget the type of loan it is since it was purchased 6 years ago, but its an adjustible rate, and all payments for the past 6 years go towards interest since so little had to be put down.
If it's adjustable rate you are actually doing better than most. Your interest rate is probably so low right now because the prime rate is at historical lows. You should be the last person looking for a refinance. What are you trying to refinance to?
Prime rate now is 3.25%. The prime rate six years ago was 7.25%
If you have a high interest rate now, thats likely because your credit is poor and you are not going to get a refi with poor credit.
If you are trying to refinance to get principal written off and think this is how the bank should be "working with you"... forget it.
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| Posted 1/2/13 4:33 PM |
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Anthro1212
LIF Zygote
Member since 1/13 18 total posts
Name:
H
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Re: Refinancing
Message edited 1/11/2013 4:50:11 PM.
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| Posted 1/2/13 4:35 PM |
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Re: Refinancing
Hi Anthro, I am in a similar situation as you but was able to refinance my underwater condo (my 2nd home) under HARP 2.0. I bought it about 6-7 years ago, and since then, the market value dropped about 30%. After Sandy (the property is on the south shore), I think the value will drop even more.
I also have a tenant living there which covers maybe 85% of the mortgage payment. I am still on the hook each month for HOA dues, taxes, insurance. I have tried to sell it, but I would need to fork over $40K down of my own savings just to get out clean at closing.
However, because DH and I need excellent FICO scores to qualify for refinancing on our current home and to qualify for any financing for a new home, I have been making the payments on the underwater property. Even with refinancing to a 4.75% rate under HARP, about 80% of my mortgage payment goes JUST to interest. So the Principal right now is only like $5K less than it was 8 months ago.
Yes I agree its frustrating. If I were you, I would try to ask Suze Orman or Dave Ramsay for help. You can always write to their TV/radio shows and ask for advise. I actually watched a Suze Orman episode where a Midwest couple was in the same boat - they were denied for a Short Sale and were contemplating Foreclosure. I think Suze told them to just walk away and give up the keys to the bank. In doing so, they agreed their FICO would drop from like 800+ to around 450 (the higher your FICO, the more damage a negative action like Foreclosure, Default will do). It is sad but I doubt any bank will approve you to refinance. 
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| Posted 1/2/13 4:37 PM |
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Anthro1212
LIF Zygote
Member since 1/13 18 total posts
Name:
H
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Re: Refinancing
Message edited 1/11/2013 4:50:27 PM.
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| Posted 1/2/13 4:43 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Refinancing
Posted by Anthro1212
I think you are missing something, and you have no clue about whats going on. I am working with professionals who are advising me, thanks for your input have a nice day.
I am curious if you have all these professionals who are advising you, why ask a bunch of strangers on a random internet board?
Posted by Anthro1212
The property is still on the market. We understand by short sale or foreclosure our credit will tank (well DH, it was his property before meeting me)
Then why would you even think about buying a second property when you knew about the situation with the first house?
I will never understand the logic (or entitlement) there is with home purchasing. You were obviously in a crappy situation with the first house. If you could not sell then and take a loss, you were not financially able to afford the second house.
It's a shame a bank can't sue somebody and go after their primary residence in this scenario.
Oh wait, Florida is a "recourse" state so they can not only sue - but sue you for the full 100k mortgage amount if they want.
Hopefully your "professionals" have already advised you of this little tidbit.
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| Posted 1/2/13 7:05 PM |
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Anthro1212
LIF Zygote
Member since 1/13 18 total posts
Name:
H
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Re: Refinancing
Message edited 1/11/2013 4:50:59 PM.
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| Posted 1/2/13 8:49 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Refinancing
Posted by Anthro1212
Posted by ave1024
Posted by Anthro1212
I think you are missing something, and you have no clue about whats going on. I am working with professionals who are advising me, thanks for your input have a nice day.
I am curious if you have all these professionals who are advising you, why ask a bunch of strangers on a random internet board?
Posted by Anthro1212
The property is still on the market. We understand by short sale or foreclosure our credit will tank (well DH, it was his property before meeting me)
Then why would you even think about buying a second property when you knew about the situation with the first house?
I will never understand the logic (or entitlement) there is with home purchasing. You were obviously in a crappy situation with the first house. If you could not sell then and take a loss, you were not financially able to afford the second house.
It's a shame a bank can't sue somebody and go after their primary residence in this scenario.
Oh wait, Florida is a "recourse" state so they can not only sue - but sue you for the full 100k mortgage amount if they want.
Hopefully your "professionals" have already advised you of this little tidbit.
LOL you must be really bored. I'll tell ya the whole story one day. Have a nice HAPPY life.
No problem. Consider my "professional" advice free of charge. 
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| Posted 1/2/13 9:03 PM |
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