Financing in 95831>Question Details

Hung Pham, Real Estate Pro in 95831

I own a condo that has been paid off but also own a house that I owe 185 but it's worth 150k that my sister (on title) pays for everything.

Asked by Hung Pham, 95831 Fri Nov 11, 2011

Can I do a refinance to pull equity out of my condo that I live in?

I had a foreclosure on my parents house in 08/20/2009. I was young and my parents asked me sign the paperwork and I did. It was one of those liar loans which ruined things for me. I have very little debt, make about 65k, and have 20k in savings.

Is there a way for me to cash out?

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1 vote Thank Flag Link Sat Nov 12, 2011
you should be able to refinance the condo. being 2yrs removed from the foreclosure will be a benefit. you will not be able to get FHA financing due to the 5yr rule. You must prove that the condo is your primary residence. You must also show the the home your sister lives in is paid by her and not you. if you can show 12mos of consecutive payments by her you will be able to dismiss that payment. if these are your only issues it appears you should be fine. Keep in mind you may be limited to the amount of cash you can pull. if you have additional questions feel free to contact me.
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1 vote Thank Flag Link Fri Nov 11, 2011
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at You can check us out at I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Thu Aug 15, 2013
Short of an "Uncle Guido" loan (hard money) there is not a lender out there who is going to cash out refinance for you at this time, IMHO. It would be extremely difficult to do a rate and term refinance; cash out is going to be 99.9% impossible. You may find a mortgage consultant that will put the efforts in to try...but keep in mind that the money you invest in the appraisal is likely to be water down a drain.

Sorry the bluntness, but I have seen too many consumers spend a lot of time and money trying to get a loan that was never a loan in the first place. Time heals all and you will be sucessful in a year or two. Best to you!
0 votes Thank Flag Link Thu Nov 17, 2011
Does your condo complex currently qualify for bank financing? If there are a lot of non-owner occupied units, you might have a tough time finding a bank to give you a mortgage.
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0 votes Thank Flag Link Thu Nov 17, 2011

Depending on what your project is you may be able to finance it with private/hard money and then take the cash out of your primary residence later when you qualify and pay off the hard money with those funds.

0 votes Thank Flag Link Sun Nov 13, 2011
Just to clarify, what Perry (and a few others are saying) is incorrect. There isn't a loan on the planet today where the interest rate has anything to do with a previous foreclosure. If you qualify for the loan you get the same rate someone else in your exact situation, minus the foreclosure, would get. That is the way it works.

And you can't just go out and get a loan, but have to pay a higher interest rate, if you had a recent foreclosure. All lenders (outside of private money investors) have foreclosure seasoning guidelines that must be met.

0 votes Thank Flag Link Sun Nov 13, 2011
Hi Dung916

Since, you have quite a lot of equity in your home / condo, you should be able to refinance and
Get money out for your Project in mind. The rate will be higher due to your past foreclosure, but it
Will be doable.

Good luck.
0 votes Thank Flag Link Sat Nov 12, 2011

If the foreclosure shows up on your credit report you will not be able to refinance with a conventional or FHA loan. Foreclosure seasoning is not two but actually at least three years for FHA (or longer for a conventional loan) so you'd have to wait until 08/20/2012 for an FHA loan (or even longer for a conventional).

There could be a couple of exceptions, however...

If the home was a pre-foreclosure or short sale and you have at least 20% equity conventional guidelines only require two years. But it would have had to be a pre-foreclosure or short sale, not a full foreclosure.

The other is VA. VA Guidelines are different; foreclosure seasoning is two years regardless of how the property was lost. If it was a full foreclosure and you have VA eligibility this will be the way to go.

0 votes Thank Flag Link Sat Nov 12, 2011
There are many options for you.
You are making a great start and asking questions to determine your next steps.

Don't feel like you are the only one in this situation. You are one of many who are in this very set of circumstances or who are also on their way out of them..

Your next step is to talk with a knowledgable lender who works for their clients
and can walk you through your options as stated by many people below.
1. Financing in 2011
2. Refinancing Condo
3. Cash for your project

Ask questions, compare answers, talk to several people.
Validate those responses and do what is right for you to move forward in the right direction.

Please call me and I will provide you with several trusted resources
in the Sacramento area.

Michele Peterson
Keller Williams Realty
CA DRE 01872795
0 votes Thank Flag Link Fri Nov 11, 2011
I am not looking to take the money out to put into into the other house since my sister pays for it all her self. The condo I live in is owner occupied. I just intend to take the cash out so I could finance a project.
0 votes Thank Flag Link Fri Nov 11, 2011
I would call Glenn Olsson at 916-276-6236. It will depend on the whole file but, you have a good chance. What do you plan on doing with the cash? Are you looking to refinance the other house? if so, there are a lot of refinance programs that you would not have to pull the funds out of one for the other.

Give him a call and you will get all the answers to your questions.

Good luck,

Jamie Collins
0 votes Thank Flag Link Fri Nov 11, 2011
It is likely that you will not qualify because even though you meet the two-year threshold for FHA, you own a home that is underwater -- or at least your name is on that loan. You should verify this with a mortgage broker, though, but you might qualify for a hard-money loan.

You might try calling Dan Tharp at Comstock Mortgage: 916 247 1470.

Elizabeth Weintraub
Broker-Associate #00697006
Lyon Real Estate
0 votes Thank Flag Link Fri Nov 11, 2011
Absolutely. Some things to consider. Is the condo your primary residence? Do either one need major repairs? You may be able th capitalize this improvements on your investment property. I would speak with an accountant about that. On the financing, I would finance enough on the condo to put down on the house to get a loan that doesn't have pmi.
0 votes Thank Flag Link Fri Nov 11, 2011
Sit down with a mortgage lender and see what they say. You are not very upside down on the house, but depending on how the foreclosure and all your loans are set up it is difficult say that you could or could not.
Do it in person not over the internet or phone, and make sure you understand what you are getting into.
0 votes Thank Flag Link Fri Nov 11, 2011
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