Financing in 48316>Question Details

Violetdove, Home Buyer in 48316

How soon after refinancing can you close on an other primary residence?

Asked by Violetdove, 48316 Thu Jan 26, 2012

We refinanced in September(9/26/11) with no intentions of moving. Since then we have decided to move and were very upfront with the lender about the refinance and they said it was no problem. They preapproved us, we found a house and signed a P.A. We are ready to close and now they said we can not close since it has not been 6 months since refinancing. Is this true? Or can we close before 6 months? On the P.A. we signed a clause that we would close on or before Feb. 26, 2012 or we would be charged $33.60/day un til closing. Our lender has told us we now have to wait until March 26, 2012 which will cost us around $1200 to close that late.

Should my lender be held responsible since they gave us the go ahead and told us no problem about the refinance? Now all of a sudden as we are about to close its a problem. We also lost a renter becasue of the date change. I would appreciate any advice/guidance! Thanks

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Violetdove’s answer
We closed on the refinace September 26 with Chase Bank. I am now trying to close on the new house, with a different lender. The new lender is now saying that there is a law or guideline in place that they have to follow that will not allow them to close our new loan on the new home until it has been 6 months since we closed on the refinance.
0 votes Thank Flag Link Thu Jan 26, 2012
Are you talking about closing on the sale of the house you refinanced? Or are you talking about closing on the purchase if your new home?

If you are talking about closing on the sale of your old home which you recently refinanced, then yes I have heard of restrictions that don't allow you to sell within a certain time frame. This restriction was put in place by some lenders to help slow down property flippers.

However, if you are talking about not being able to close on the purchase of your new home, I have never heard of a restriction like that. I personally have refinanced a property I lived in, turned it into a rental, and purchased a new primary residence within a 6 month time frame.

I would start by asking your lender to show you where it says this in the loan documents you signed.

Good luck!
0 votes Thank Flag Link Thu Jan 26, 2012
This is another answer, a possible way out. Can you "rent" the home ahead of closing for the $33/day? And pay for it by renting your own residence? Bear in mind that your mortgage could rule that out. You'll have to read it.
0 votes Thank Flag Link Thu Jan 26, 2012
I think this is a issue between you and your lender. Examine your mortgage. What it says rules - unless they relent. Am I correct to assume that it is the same company you are dealing with at both ends? If it is, you may have some leverage. This is probably not worth involving an attorney and a lawsuit. They will eat up too much of your $1200 cost to make it worthwhile. And there is no guarantee they will be successful. However a consultation and a letter won't cost much and could be all that you need.
0 votes Thank Flag Link Thu Jan 26, 2012
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