Mortgage Loan Question in 2003 we refiniance to cover the back taxes we owed on our house.?

Deal Score0

Our new loan is in my Husband’s name because he had better scores then me. Our interest rate started out at 10% and now it is going to 14% next month. Our Lender says that they can not refinance at a lower rate becasue we don’t have enough equity in our home. Our payments are going to $ 2900 a month on a Home that is not worth that amount. We had our home on the market for
5 months and it did not sell because it was priced to high so we could pay off the loan. Our lender will not agree to take less to payoff the loan so we are going to be forced to go to foreclosure. If the loan is in my husband ‘s name will I be able to get a loan in my name?

  1. Reply
    April 29, 2011 at 10:28 pm

    Unfortunately your married and share every thing including credit scores. In the future allways set up and escrow account for your taxes and insurance. Sorry for the bad luck. You can still probably get a loan but it will be high intrest.

  2. Reply
    April 29, 2011 at 10:38 pm

    If you are not listed on the current mortgage as a co-borrower, and if you credit score(s) are in line with lender requirements you may be able to secure a loan in your name.
    You did not mention the appraised value of your existing home, but if the taxes were so high you had to re-finance to pay them off, you may want to look for a lower priced home. Additionally, since you have had a problem paying your taxes independently, I would suggest that on your next house you have an escrow account so a portion of each monthly payment will be set aside for taxes by your mortgage servicing company.

  3. Reply
    April 29, 2011 at 11:31 pm

    That’s a HUGE problem people are running into these days. Adjustable rates are going through the roof & people can’t afford to keep their homes. I’m really sorry that you’re in this situation.

    Try refinancing through another lender, forget the current lender.
    You can refinance in both your names, or just one. I would try both of you guys have steady jobs & hopefully not too much other debt.

    Before going through all the chit-chat that a lender will ask, tell him you want a fixed rate of 8% & find out if he can do it. If not, move on, you don’t have enough time for a lot of sales talk.

    Try, Washington Mutual, ING Direct & Option One Mortgage to start.

    Good Luck!

  4. Reply
    April 29, 2011 at 11:41 pm

    Good question, the reason rate cannot go any lower during refinance b/c his credit score has dropped. My house payment recently went up as well due to the plan I went with when I initialed bought the house. Did you buy under a 30 year fixed rate? Why don’t you list your house at what the market value is and get what you can from the house rather than trying to make money and sell high, Offer incentives to buyers like paying part closing cost or buying a home warranty. The market has definitely changed to a buyers market meaning buyers are looking for perks! I know it is tough but it is possible. I do not know where you live nor the market there but try another mortgage broker and try another real estate agency. As far as your name not being on the initial loan it doesn’t matter b/c your husband is going to owe that money regardless unless maybe you bought him out. Meaning you buy the house from him and put it in our name only. I would only try this if your credit is better than his. I would talk to other lenders. That interest rate seems pretty high so what I can tell his credit must not be to good. Also do not add any credit to any of your names as this will hurt you. I hope this helps and for the record I am not a lender so I would ask professional advice from one. This is only my experience as a real estate agent. Good Luck!

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