Financing in 60615>Question Details

Blummy99, Home Buyer in Chicago, IL

Can we refinance our rental condo under this scenario?

Asked by Blummy99, Chicago, IL Wed Aug 8, 2012

I own a 3bdrm 2ba condo that I am currently renting out. I would like to refi. My current rate is 6% with a conventional loan. My husband and I are both on the loan and have 700 credit scores. We tried to refi about 3 years ago and it was declined due to lack of sufficient reserves in the back by the condo assoc. Is there any way would be able to refi? Today, there is one pending foreclosure and two other units behind in assessments. It is an 8 unit building. The pending foreclosure was taken over by the assoc and currently rented out.

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Good Morning Blummy,

As Matt mentioned, there is the Home Affordable Refinance Program (HARP) that is available and may not require appraisal, or condo questionnaire. Your current mortgage must be a Freddie Mac or Fannie Mae mortgage. There are other criteria for the HARP program, but if you qualify, it is the easiest way to get refinanced. Just be prepared to wait aproximately 60 days to get it done, as banks are taking that long or longer to get these refi's done.

Should you have other questions, please email or call me.

Good Luck,

Nick Nelson (NMLS#384413)
Mortgage Loan Officer
1st Step Mortgage Group, Inc.
6876 Spring Creek Road, Suite 124
Rockford, IL. 61114
815-289-0880 - Phone
nickn@1stepmortgage.com - email
0 votes Thank Flag Link Wed Aug 15, 2012
With a Single Family Home, the borrower gets qualified and your home based on appraisal.

Condos are a bit more complicated - even though you may be on time with payments, you ARE affected by the actions of your fellow unit owners. The building gets evaluated and based on that you may or may not be able to obtain financing. (# of rentals, # behind on payments, etc)

Depending on when you last refinanced, you may qualify.

Should you need any assistance, feel free to contact me.

Bill J Deligiannis
First Centennial Mortgage
630-788-5288
0 votes Thank Flag Link Thu Aug 9, 2012
Hi again,
When was the last time (month/date) you did a loan on this property? You may still qualify. But this is important in determining a few things. If you want to give me a call, I'd be happy to discuss this with you.
312-608-1555.

Thanks again,
JP

JP Marzano
Senior Loan Officer
Chicago Financial Services
0 votes Thank Flag Link Wed Aug 8, 2012
Good call on still being able to qualify, thanks for your help ion our community!
Flag Thu Aug 9, 2012
Thanks everyone for the great feedback! By the way, we filled out a condo questionnaire at the time the refi was declined. I think it was declined based on the info that we HONESTLY provided. It's a shame that we and so many others who pay on time and do the right thing are stuck in this situation. I just want to be able to take advantage of the low interest rates that are out there. I'm not asking for a hand out!
0 votes Thank Flag Link Wed Aug 8, 2012
Dear Blummy,

So far all the answers have been ... almost right.

If three out of 8 units are behind in their assessments, you will not be able to do a normal conforming refi.

HOWEVER

If you qualify for the HARP program, not only can you refi, but no condo questionnaire is necessary, so the late assessments and lack of reserves become non-issues..

Let's find out if you qualify. Give me a call, shoot me an email, or fill out an online app at my website.

Thanks,

Matt Bukovy
Senior Mortgage Consultant
Wintrust Mortgage
773-416-7107
mbukovy@wintrustmortgage.com
Web Reference: http://www.mattbukovy.com
0 votes Thank Flag Link Wed Aug 8, 2012
It depends, speak with a lender. They will need to find out all the details. Its to vague for any of us to give you a proper response.
0 votes Thank Flag Link Wed Aug 8, 2012
Yes, maybe, but it depends ont he financial situation of the Association. Lenders have a questionaire required to be filled out and the answers to those questions will determine if they will do it. My web site has some lender references that might help.
0 votes Thank Flag Link Wed Aug 8, 2012
Talk to James Burke at Chase Bank - 312/316-2794 or email: james.p.burke@chase.com. James can let you know about your options.

Good luck!

Erik Sachs
RpV Realty
Cell 773/368-5515
Email esachs@rpvinc.com
0 votes Thank Flag Link Wed Aug 8, 2012
Great question seeing that many condo associations are in trouble. i would talk to the lender you are thinking of using and get them all the Association info and have them give you an answer prior to doing an app. I do have several lenders I could recommend uif you want a second or third opinion. Also make sure you have a good lease in place not expiring too soon, ie 2-3 year would be better than 1 year. Also check out my website for more info at http://www.exitchicagoreo.com

Good Luck

Ismael Perez
Exit Real Estate Partners
312-813-1381
0 votes Thank Flag Link Wed Aug 8, 2012
Yes, it is possible. The association representative would have to fill out a condo questionnaire to see the entire condo situation.I'd be happy to help you guys with this. Give me a call/email or let me know how to contact you if you'd like.

Thanks!

JP

JP Marzano
Senior Loan Officer -Chicago Financial Services
1455 W Hubbard St Chicago, IL 60642
312-204-6556- office
312-608-1555 - mobile
jpmarzano@cfsmortgage.com
http://www.themortgagecall.com
0 votes Thank Flag Link Wed Aug 8, 2012
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