You may say "I'm working with my mortgage company"
I would say..."you're working with you mortgage company, that's great." What is your mortgage broker saying on getting you out of your situation? Does the mortgage broker know you're behind on payments? Did you tell them about that? What did they say about that? How many payments are you behind? In your situation, being over 90 days behind, you will only qualify for a 55 to 60% loan-to-value loan. Do you understand what that means? If you have a $100,000 house, you will be able to borrow only $55,000-$60,000. If you are 60 days behind you will be lucky to get a loan for 75% of the value. At 30 days late maybe 85% of the value.
How much do you owe on your mortgage? What is your house worth? What would that loan-to-value be, you know, to get you our of your situation? So you see that refinancing your house if you are over 90 days late will not be an option. I hate to tell you this, some mortgage brokers don't tell you the truth. I apologize for being so blunt; however, I tell people the truth...not what they want to hear. Let me show you what I can do for you, O.K.?
Now, that is the typical conversation that I have with homeowners. So many homeowners have $150,000 and owe $140,000 on it and are 3 months behind in payments and they have a mortgage broker that charges them up front fees...Appraisals, Application Fees, Credit Check Fees, Background Check Fees with no intention of getting the loan approved because they know they can't.
Beware of Mortgage Brokers
Why? Mortgage Brokers will promise to get your property financed even with your faltering credit. They will burn up your precious time while you are in foreclosure. They will tell you what you want to hear, to get you to work with them, knowing darn well that they cannot perform on what they promise you. Folks, please be careful of these individuals. They typically ask for a $500.00 application fee. Do not give them any money ever!
Call me, I can help you work out the numbers to see if you actually qualify for a refinance. If you are more than 90 days behind on your mortgage payment, the most you might qualify for is a 55%-60% loan-to-value loan.
Example: Value of your home $300,000
55% loan-to-value is $165,000 + closing fees of approximately $5,000.
Therefore, if you owe more that $165,000 you will not get the loan. In addition, your interest rate will be much higher, so you have to qualify for that, too. If you are over 90 days past due on your monthly payments, chance of getting a 60% loan is approximately 10%. I am not here to give you bad news...just here to give you the facts, no fluff.
Whether you work with me or not, REMEMBER these important points in this booklet.
Call me for more information 720-541-9991.