Refinancing my house?

Dudley
I started the refinance process on my house 11 weeks ago. To this date I am getting nothing from my broker who says she is still working on this. To start with a little background. I filed bky 2 years ago. I bought my house about 10 months ago at a high interest rate and was told I could refi as soon as my bky was 2 years old that was beg of aug. We have since been told by the broker trying to find me a lender that we wouldnt have any problems so after the 1st appraiser for conventional loan then went VA appraiser for a VA loan. The house has appreciated from 158, 000 which I bought it for to 229, 000. I have also put in 15, 000 worth of work into the home since I have purchased it. I have had nothing bad on my credit since my bky nothing late everything on time. What on earth could the hold up be? Is the market really that bad that with as much equity that I know have in the home that the past BKY is killing me like this? By the way I live in Murray, Utah.

Fredricka
There's really no justifiable reason for this process to take 11 weeks. You probably are getting the run around. It sounds like they're running into issues using current appraised value versus purchase price as you're less than a year from the purchase date. It's actually pretty easy to get this waived as you've done significant home improvements and probably brought your value up to market range. You should show receipts for everything you did to the appraiser, also send a copy to your loan officer to show to the lenders when they question it.The sad part of all this is you had to get an answer here, as opposed to having your broker explain this to you. Another thing you may want to tell your loan officer you'll need is a letter of explanation which explains the circumstances you filed bankruptcy in. Like you said if you've been clean since your BK it's probably not a credit issue. If you don't have enough reestablished credit then they should have already gone the FHA route...months ago.I hate second guessing anyone's work when I haven't had a chance to look at your entire situation, but it really does sound like this broker either doesn't know what they're doing or is incompetent. I'd suggest you look around for a second opinion for a broker who has some experience in VA and FHA loans to get this loan done for you. VA loans should take about 30-40 days max to get done.Good luck on getting a good mortgage done correctly!

Jacelyn
Too many facets to this to answer it completely. First off: how did your home appreciate by $71K in 10 months? That doesn't make any sense at all - unless you got a great deal and it was worth more than your bought it for. Regardless, the lending industry will say that for the first 12 months it is worth the purchase price and not the appraised value. You must prove to the lenders that it is worth more (the appraisal can do this by itemizing the work done and showing you rec'd a great deal on the home originally). It's tough to show more value for the first year, but not impossible.Second, putting $15k of work in a home does not equate to $15k in value. Any decent appraiser can tell you this. The value is dictated by the market which is dictated by your location and recent similar sales in that area. Finally, it sounds like your loan officer told you all about roses and candy...but has produced thorns and wrappers. This sort of problem has exacerbated the housing market. It should not take any more than 45 days - tops - to get a loan closed. I don't care if your go VA, FHA, Conventional, Rural Housing...whatever. Your bankruptcy has caused some problems but since you are now 2 years from the discharge, many more loans are available to you. I'd sit down with this loan officer and put them to the task. Why is this taking so long? What, exactly, is holding this up?If you don't like the answers, go somewhere else.

Aleida
You seem to be getting the standard run around ones gets from a loan officer who over promises and under delivers because they think they can do anything and haven't done the research to know how to put it together the first time out.You are close enough to 12 months ownership now that a competent loan officer should be able to get you an approval on an FHA loan and that is what I would recommend.Find yourself an experienced and highly recommended loan officer who is proficient in FHA financing. Try calling your local escrow office and asking for a referral from an escrow officer. They know who has smooth closings.

Chantel
Unfortunately the credit crunch has but a stop to loose lending practices. Since lenders cannot finance the loan they will extend you through Mortgage Backed Securities, they are now requesting very thight lending requirements. What lenders do is to rebackage all their loans and sell them to investors through what is called bonds (more specifically Mortgage Backed securities). As the foreclosure rate went up, these bonds started to go bad and investors did not see the return they were promised. Therefore investors have stopped buying these bonds and are now requesting perfect underlying loans that backed any bond. What it means is that lenders are now requesting perfect credit to be able to loan you the money as themselves are under pressure to show that their repackage loans have no risks. I would say that in this new environement unless you have a extremely good credit history, they will be no lender ready to extend you an offer. Any one who just bought a house (10 months ago is "just bought a house" from a lender prospective), any one that filled for bankruptcy within the last 5 years or even the last 7 years will not qualify. The other issue is on the apparaisal. Because houses do not sale, lenders cannot rely on appraisal value anymore. My guess is that you are either stuck with your loan or will have to pay a higher rate for a new loan, and that is if the broker can find a buyer for your loan. I would wait a few months before trying to refi, but check with your broker and a financial adviser.

Flavia
It appears the best way to do this loan would be to go VA, with a Bankruptcy within the past two years it will be difficult getting a better loan than what you currently have now. Instead of working with a broker, you should contact a mortgage banking company that funds their own loans, like Countrywide or Wells Fargo, they do VA loans and could probably provide a better loan for you.

Denae
The loan office can not get the loan done. VA loan required 4 years of BK (Lied to you) You are gone to have a hard time refi your mortgage. 1) you are in a sub prime loan 2) you have a prepaid which will be about $7, 000. Contact your mortgage telling them you are have a hard time make the mortgage payment, and the loan officer told you could refi your loan into lower payment in a year. See what they could do.

Janean
the problem is that most lenders want 12months seasoning of title. this means that they want you to own the house for 12months. there may be a 'couple' of lenders that will allow 6months seasoning. but will be harder if you're planning to take cash out. not many lenders can offer VA or FHA which may be your best bet. I would be weary of doing the VA loan if this is your 2nd time using the VA loan. Also, 3.3% will be the funding fee for the second time use of the VA.