Can anyone tell me if its true that you cant refinance a house while it is listed for sale?

Tamala
true,

Blaine
True. Fannie Mae and Freddie Mac guidleines are off the market for a minimum of 6 months (at least that's what my underwriter told me.)

Joni
True

Ella
yes, some houses are listed for sale for YEARS, sad but true...

Ferdinand
True and most lenders won't refi unless the house has been taken off the market for at least 30 days, the standard however is usually 60-90 days off the market before they'll consider a refinance.

Florentino
Though you are not permitted to make changes to the liens affecting a property while listed for sale, you can temporarily remove the property from the MLS, refinance it and put it back on the market the second the new mortgage is recorded in the county records.

Doris
True. Although you can temporarily take it off the market for the refi, some lenders want the appraiser to check the MLS to see if the house is in there.

Ethel
you can talk to the listing company and ask them to remove the listing and let you out of the contract...try that.

Alejandra
True. Think about it, why would anyone want to refinance while it is for sale. Refinancing costs around 4% of the loan amount. For a $100, 000 house why would anyone spend $4, 000 only to turn around and sell the property? It's like throwing money away.

Alyse
Very true, in fact, most lenders, once it has been listed on the MLS, will make you wait 6 months to 1 year before you can have it refinanced.The reason? Too many people have refinanced, pulled cash out, then allowed the house to go to foreclosure.PS: You are probably wondering how the lender will know if you just pull the contract tomorrow, right? I'll tell you...it's one of the questions on the appraisal ...if the property has been listed for sale in the last YEAR. Appraisers are MLS members and do a search for the property to see if there are any past sales OR listings.