Comments on: Operation Refinance Denied. (Shocker)

By: J. Money

J. Money — Mon, 25 Oct 2010 04:21:12 +0000

That your lender doesn’t care??? I’m so over some of them. I wish I had a good answer for you but I just don’t :( I can tell you that you’re not alone though! so hang in there :)

By: mila

mila — Thu, 21 Oct 2010 23:34:35 +0000

I’m in rather similar situation with @finallygettingtoeven.com —
Not so similar in that the house that I’m in is under mine & my brother’s name, then — My brother got laid off but I still have my job…
The similar situation is that the bank denied our application for modification program for the same reason as @finallygettingtoeven.com’s son.
We (technically) still can afford the house (barely) but, applying for the mod program so that at least the monthly payment can be reduced — but, not sure why we keep being denied though…
Any ideas?

By: J. Money

J. Money — Thu, 29 Jul 2010 02:11:22 +0000

@Financial Samurai – That is sick, isn’t it? I hope to never borrow over $300k again though :) Or if I do, it’ll be on a smaller but way PIMPER place! Gonna try and get outta this place as soon as we’re able to.

@finallygettingtoeven.com – That blows. Good for him in sticking it through and accepting responsibility though! Yeah it may not be a good business decision, but we gotta keep our word and pay what we promised to pay.

By: finallygettingtoeven.com

finallygettingtoeven.com — Sun, 25 Jul 2010 17:30:59 +0000

My son’s bank was less than helpful on a loan mod program. He filled out all the necessary forms and jumped through all the hoops (he is currently un-employed) and was hoping for a reduction until he can get back on his feet. The bank informed him that they couldn’t help him at all because “based on his information he can no longer afford to live in his house so they feel it is a waste of their time to go through the mod procedure because he will lose the home anyway.”. How’s that for help? How do they know he will ultimately lose the home. Anyway, he has no intention to and will continue to eat hot dogs for 3 meals a day until times get better. Some help, why bother offering it if that is going to be your attitude.

By: Financial Samurai

Financial Samurai — Sat, 24 Jul 2010 17:54:01 +0000

The great irony is that the MORE you borrow, the more the $2.5-3K it costs to refinance is a no brainer. If you borrowed $1.5 mil and dropped your rate by 1% for example, you’d save over $1,000 a month interest cost and pay for the ref fee in just 2.5-3 months!

Hence, it’s good to borrow a boat load and be rich!

Also, have a re-read of your old post about how happy you were refinancing. Remember back to that time, and if you are making more money now and are more secure, then it’s all good!

By: J. Money

J. Money — Sat, 24 Jul 2010 17:31:48 +0000

@Samurai – Hah! I like the way you think, but I’ve gotta believe things are a lot more sticter now than back in the day ;) Plus I’d feel kinda bad lying, even if it did save us a hefty amount. I’m kinda hoping some new plan comes out in the next year or two, or that I just unload it for that matter. I really can’t see myself staying here and being happy – my wannabe minimalism side keeps getting stronger!

@Mysti – Hey, this boat is plenty big for all of us :) What the others don’t know though is that we’re headed to the land of fortunes! haha…opposite of.

@Glass Is Half – OH yeah, credit checks are def. being done over here, although not too sure on how big of a footprint the check is on the records. If you’re looking for a house or refi and you get 2-3 checks I’m sure it’ll be fine. But if you’re trying to pick up boats and cars and houses and bling, etc etc, it’ll prob start looking bad.

As for *why* we want to refinance, it’s simply just to save money every month. Probably $200-$300 in a perfect world. But then again, that also means we’d have to shell out $3k or more just to DO the refinance – so pros and cons. I don’t think the reason for refinancing though comes into play over here, just the numbers and risk factor. Interesting idea though :)

By: Glass Is Half

Glass Is Half — Fri, 23 Jul 2010 07:35:38 +0000

Is the states the same as the UK in that obtaining a mortgage entails a credit check and regardless of approval you get a footprint on your record? Makes it hard to try and get credit out here as you know that just in applying you are going to be impacting yourself further down the line.

If you don’t mind my asking – the reason for refinancing was … ? Again out here, if the reason is provided as “home improvement” it is looked at more favourably vs. “debt consolidation”.

By: Mysti

Mysti — Thu, 22 Jul 2010 23:13:54 +0000

We are about 25k underwater, and that is being conservative. With closing and such, we are probably closer to 30k. And we don’t have a Fannie or Freddie mortgage either.

We are in the same boat as you…..scoot over. ;)

By: Samurai

Samurai — Thu, 22 Jul 2010 22:55:18 +0000

Hey J, I hear you. I went through the long list of questionnaire things as well and started to get a headache so I just cut them off.

Is it possible to SAY you are going through hardship and discuss a sob story? i.e. my firm is on shaky ground, and my wife has student loans to pay off and is not working with triplets on the way or something?

Seriously, maybe that will help?

Cuz, if I was your bank, and it was the difference between you defaulting, and lowering your rate to say 5.875%, I’d lower your rate in two seconds!

Thoughts?

By: TODHD

TODHD — Thu, 22 Jul 2010 22:48:40 +0000

I see a lot of people trying to refinance on their homes nowadays and the banks keep denying all of these people