Why cant you refinance if your house has been on the market?

Coletta
My husband and I have owned our house for about 3 years. We have gotten into a lot of credit card debt, and with raising interest rates we are unable to make even the minimum payment. We were trying to sell our house to move down to North Carolina, but my husbands job transfer did not go through so we are stuck here. Not even one person came to look at our house. We apply to refinance with cash out to pay our credit cards off. Everything was going good with it then they found out our house was on the market for 109900, but we were told before this that it appraised for 125000. They said now they could not give us that amount. We tried another lender and they said we don't qualify for a good rate because our house has been on the market in the last 12 months. We are now going to have to foreclose. What is the deal? Please help.

Ashli
Dear Debi, In answer to your question, if you had your house on the market most lenders will require you to wait 30 days after your listing expires with the multiple listing service (market).This is standard practice.Unfortunately the market is experiencing an adjustment and property values have come down. I wish you strength. Hope this helps.Daisy

Beryl
Many are right; you haven't come across the right loan officer. I recommend First National Banc Corp. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a First National loan officer will contact you within 24 hours. Good luck.

Patience
My guess is there is a lender out there who will give you a refi, but since you are considered a risk, the interest rate will be high.You may want to look specifically at lenders who specialize in high risk loans - they are out there. Chances are it will be a high rate, and maybe adjustable too.Make a financial plan for yourselves so you don't repeat the same mistakes and then look to refi again in 1-2 years when your house will have been off the market and hopefully your debts paid down. You can get a better rate then.Lastly talk to a bankruptcy lawyer who might be able to take you through a bankruptcy where you keep the house and write off most of the credit card debt. This would be a last ditch effort though.

Iris
Look for another lender, or take the bad rate.Rather than foreclose, you might try selling again.

Delena
Yeah this is a tough situation to be in. I'm a Wells Fargo Rep for people with tough credit. I come across this situation sometimes too. I have to admit it frustrates me as well. I don't know your entire situation but if you can hold on for just a few months, most lenders allow you to cash out after a 3-6 months. If you need to do something in the mean time to tie you over try getting a Home Equity Line of credit. Sometimes you can hide the fact that your house was on the market, they tend not to ask as many questions with that type of loan. If you get desperate try one of these Consumer Credit Lenders like Beneficial and/or HFC or American General. These guys are REAL sharks, but they play by their own rules becasue they are using their own money, unlike most banks which are using Wall Street Money and have standardized rules. Although this is NOT a solicitation for business. If you have questions or really can;t find any answers, feel free to email me.I'll do what I can to help. - Mark