Home Selling in 92591>Question Details

Jane Doe, Home Buyer in San Diego, CA

Should I try to sell or try to refi?

Asked by Jane Doe, San Diego, CA Tue Oct 22, 2013

Co-own house with my ex and it is underwater and almost 2 years past due in payments. Neither of us are living in it. Mortgage is about $247k, 3bd 2.5 ba in Temecula, 92591. Should I try to sell it or try to refi it with the new husband?

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Answers

22
Jane Doe,

Your situation is complex and you certainly need one-on-one professional help.

Don’t you have a divorce agreement with you ex in regard to the house and the mortgage on the house?

Does your new husband really want to take on the responsibility for a house that is TWO YEARS in payment arrears? If so, I have a bridge that I would like to sell him.

Is your house underwater or not? If you have equity, you have more options than if you do not have any equity. If you have equity, the lender will be happy to foreclose and get paid in full. Not too good for you in that situation. If you do not, a short sale is an option.

Please get together with a local experienced real estate professional as soon as possible to get a realistic valuation of your house and find out what options you have.
1 vote Thank Flag Link Tue Oct 22, 2013
Ok for all the lenders that said they could refinance you, their heads are in your wallet and not giving you the straight answer. Harp guidelines state you must be current on your mortgage. So a refinance is definitely out.

Secondly, you need to ask your CPA or attorney which is less expensive for you, short sale or foreclosure. The longer this goes on, the higher your tax consequence could be. Short sale is always better credit wise, and usually better financially.

I do home loans, 27 years experience. I work with a group of experienced Realtors who can help you work through this. Your first phone call though needs to be to you CPA.

I suggest you get your divorce attorney working on this resolution ASAP as your are losing money every day you own this albatross.

Greg Herman. Nmls#215455
South Pacific Financial
Gherman@spfcnet.com
951-265-1607
1 vote Thank Flag Link Tue Oct 22, 2013
Thank you for that answer Greg... I was spazzing out here reading that some suggest they can or may be able to refi under HARP 2. This explains why probably 10-20% of all buyers in escrow fall out due to their lender pre-approved them only to deny them later on in the process.
Flag Tue Oct 22, 2013
Move back in and short sale
0 votes Thank Flag Link Thu Nov 7, 2013
Jane, Per financing guidelines, refinancing would not be possible. I recommend meeting with an agent experienced in short sales and going forward to put this behind you. If income and credit allows, perhaps your new husband could buy as sole and separate so the two of you can get into a home of your own.

All my best,

Deborah
NMLS #279125
WJ Bradley

"We Listen. We Care. We Deliver."
0 votes Thank Flag Link Wed Nov 6, 2013
Jane: Another lender will not refinance the loan because it is so behind and until a "payoff", figure from the current loan holder is calculated you really don't have enough information to move forward.

You need a payoff negotiated and the current value of your home to determine the next step.

The current note holder is where you must begin discovering your options. Gather all of the correspondence you have received from your mortgage holder. If you have not received anything lately, your loan may have been sold and in order to find out who the current note holder is your credit report must be reviewed. Contact the current note holder and get status of the loan. Once you have that information you will have more information to discuss options with your lender.

Some of the banks were in litigation for signing over their notes to other note holders and that is why so many homes like yours are sitting with no payments being made. These banks were actually prohibited from foreclosing, however you will eventually be foreclosed on if you do nothing, and a foreclosure on your credit report is more damaging than a short sale.

I have seen banks negotiate a lesser payoff in a situation of divorce or other situations of duress, but if you have money in the bank they are less likely to negotiate a lesser payoff.

The sooner you get this behind you the better you will feel and the better it will be for your credit score and future purchasing possibilities.
0 votes Thank Flag Link Wed Oct 23, 2013
Hello Jane, you should most likely sell it short sale. You may qualify to buy FHA ONE YEAR from a BK, short sale, foreclosure or deed in lieu if caused by the economy. Your choices will require more information to determine your options. You would have to occupy the property to be able to refinance and you can not have any 30 day lates to qualify.

http://www.trulia.com/blog/under640ficoscoreloans/2013/08/qu…

Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
20+ Years Experience
BRE# 01140252
NMLS# 297251
760-486-4225
9am till 7pm Monday thru Saturday, Sundays by appt.
http://youtu.be/MrygA2_8fAY
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0 votes Thank Flag Link Wed Oct 23, 2013
Your ex and you will have to sit down and look at all the options as it will affect you both.
0 votes Thank Flag Link Wed Oct 23, 2013
oh my, it is my feeling that you need several professionals to assist you.
The divorce settlement stipulations will make a difference, the laws in our state as well.
So you need to talk to a local experienced Realtor to have reality check on the true value of your home, you need the assistance of a good CPA familiar with tax laws etc. and an attorney for the legal aspects
of the home...

If you are under water, i.e. the home is worth less on today's market and plus you owe a lot of
months of loan payments, CAREFUL with short sales and foreclosure there are impacts on your credit ratings and when you can buy another property...

Go and meet with the experienced professionals in your area and make sure you get well educated
and the 3 professionals above have all the information they need as to ownership of the home, late payments, divorce stipulations etc.

Good Luck to you
Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties Brokerage, 30 Green Bay Road, Winnetka, Illinois 60093
EdithSellsHomes@gmail.com
Check out my website at htttp://tinyurl.com/YourRealtor4Life
HAVE THE MOST WONDERFUL DAY :)
0 votes Thank Flag Link Tue Oct 22, 2013
You may qualify for a HARP refinance if the loan is owned by Fannie Mae or Freddie Mac. Your ex would have to sign off on it though.

You should speak with a lender who can help you evaluate your options. Feel free to call me or email me and I will let you know if refinancing is an option.

Tony

Tony Grech | Mortgage Loan Originator | NMLS #977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 ext. 278
Mobile (313) 622-7383
Fax (248) 945-4842

tony.grech@pmac.com
0 votes Thank Flag Link Tue Oct 22, 2013
I will answer your question with another question. Is your ex cooperative? Anything you do would need both of your signatures. If he is not willing to expend the effort, there is not much you can do.
0 votes Thank Flag Link Tue Oct 22, 2013
As explained by some of my colleagues, you could potentially refinance it and transfer it to your current husband in the process, BUT if you are 2 years past due on payments, your credit probably isn't good enough to refi AND you would have to come in with all the back owed amounts in order to refi...

Thanks!
​Sinead McAllister-Clifford
Real Estate Broker/ Realtor®

McAllister Homes Real Estate
Residential Sales & Property Management
http://www.McAllisterHomes.com
License 01366009
858-205-5215 CELL
info@mcallisterhomes.com EMAIL
0 votes Thank Flag Link Tue Oct 22, 2013
It may not be underwater but I don't know. The values I see for it flux from 236-255K depending on which website I look at and I'm not sure what homes are really selling for in our area. According to the conversation I had with my bank this morning, it's currently in pre-foreclosure status and they have not set a date yet to do anything else so I was thinking of selling it. My ex doesn't want anything to do with the house so if we sell it that's fine. My husband on the other hand, would rather own it if we can get the ex off the mortgage and deed (which my ex is more than happy to do).
0 votes Thank Flag Link Tue Oct 22, 2013
The websites are not showing true value, I would need an address to run comps... jkwhomes@gmail.com is my email if you would like to private email me.
Flag Tue Oct 22, 2013
Please give me a call. we can discuss the deed situation in private. My number is 951-315-3201. Thanks!
Flag Tue Oct 22, 2013
Hi Jane: Great question. First off it would be difficult if not impossible to refinance your home if you are 24 months behind on payments. You would most likely need to come current with the payments plus pay any late fees and penalties. The first thing to do is to determine what is called the 'payoff' amount which would include all of those fees so your mortgage might be more than the $247K you mentioned. The next thing you would need to determine is the value of your home. Is it worth more or less than the payoff amount. Upside down mortgages would not qualify for refinancing.

Determine the value of your home and determine if you want to keep the home or sell the home. You say neither of you live in the house and you are 24 months behind in payments. So the house appears to be vacant. If you want to keep the house and it can provide good cash flow than you may opt to keep it. however....

Prices have increased in recent months so depending on the homes present value you 'might' opt to sell either as an equity sale or a short sale. I have a listing right now in Temecula where we started out as a short sale but it transitioned over to a standard sale. The seller was 6 months behind on payments ... so great news for the seller.

Also, you will need to find out if the home has a Notice of Sale date. 2 years past due is a long time so it would be a good idea to find out if your home has any looming and pressing deadline dates that you will need to take into consideration.

There's lots of moving parts on this one so I suggest you contact a professional that can help you understand your options and help you through the process. I hope you find this information helpful. If you would like to discuss the details of your particular situation please give me a call. I am happy to assist you!

Sherry Kotvis
Allison James Estates & Homes
Certified Short Sale Specialist
951-315-3201
http://WWW.SherryKHomes.com
0 votes Thank Flag Link Tue Oct 22, 2013
I would agree with many of the other comments here. A refi would likely not an option if you owe more than the property is worth, but considering how fast prices have risen here this year are you certain that the house is underwater? It is conceivable that the property could be sold and clear all current obligations.
If there was a reason that you and your ex would like to keep the house then it might be possible to see if a loan modification could be achieved which would potentially allow the property to be rented out and sold at a later date?
First step would be to understand your objectives, then review options and present the information so that you can make the best decision for your situation. Would be happy to discuss with you further without obligation. Please feel free to call us at 888-447-9650.

Regards,

Andrew
0 votes Thank Flag Link Tue Oct 22, 2013
Being underwater doesn't leave you many options outside of possibly renting it, going short sale or someone moving back in and slowly bringing the back payments current and waiting until it's salable. Many people are in the same boat as you and deciding what to do can be stressful. Usually whatever road you choose is not the most desirable answer. Pick one that can work with you, your new husband and your ex. Hopefully you decide on the best way to handle this property as smoothly as possible to avoid any further stress. Sometimes it's just not worth it depending on the realistic outcome.
0 votes Thank Flag Link Tue Oct 22, 2013
Hi Jane Doe....based on the info provided , I dont think refi is an option . You may want to focus all your efforts on getting the home sold ASAP. Hopefully your ex is cooperative with the process and you both have some play $$ when its over.

Please dont wait...

Jory Blake
Web Reference: http://www.JoryBlake.com
0 votes Thank Flag Link Tue Oct 22, 2013
Well the only way you can refinance it is if you are HARP eligible.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Tue Oct 22, 2013
As long as their last 12 payments were on time, it does not matter if they were delinquent 2 years ago Brad.
Flag Wed Oct 23, 2013
HARP will not allow a borrower to be 2 years delinquent on pay history Alex.
Flag Tue Oct 22, 2013
Hello, there are a lot of factors you will need to consider as to which would be the best for you. As another agent has stated you need to know the value of your home as to what your options are in order to move forward with either option selling or refinancing. Also another thing to consider is what would your ex like to do with the property? If you would like to discuss this further please feel free to contact me at your convenience. I would be more than happy to assist you with figuring out your best options.

Best regards, Kristi


Kristi Johnson
Realty One Group SW
951-265-2889
KristiJohnsonHomes@gmail.com
0 votes Thank Flag Link Tue Oct 22, 2013
Hi Jane,

If it is underwater (meaning you owe more than it's worth) you most likely won't be able to refi since it won't appraise for the loan/refi amount. The first step would be to have me do a Comparative Market Analysis (CMA) on the property to see what the current market value is. Once we know that, you and your ex can decide if refinancing is an option, short sale is an option, etc. If you email me the property address (Shanna@RealtyBySR.com) I can do a CMA for you and we can go from there.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Tue Oct 22, 2013
Two years past due and you've both moved on from the property. It seems like a future short sale or foreclosure.

A lot would depend on the current value of the home and if it's worth paying it up current and taking a hit on the balance/refi fees.

You definitely want to talk with a good Realtor in your area to discuss all of your options.
0 votes Thank Flag Link Tue Oct 22, 2013
Hello,

Do you know what your home is worth? If you would like to contact me I can give you a value...Its possible that it is no longer under water... We also have a rehab division, where we come in a rehab the property and split the profits. If this sounds interesting please give me a call. John Wilson 951-609-5788. Of course there is no obligation
0 votes Thank Flag Link Tue Oct 22, 2013
Hi "Jane Doe,"
It is going to depend on a lot of additional factors. How much you can get for rent? How a short sale will affect your credit? What do you want to do long term with (or without) this property?

I would be happy to assist you. I work in both San Diego and South Riverside Counties.

Thanks!
​Sinead McAllister-Clifford
Real Estate Broker/ Realtor®

McAllister Homes Real Estate
Residential Sales & Property Management
http://www.McAllisterHomes.com
License 01366009
858-205-5215 CELL
info@mcallisterhomes.com EMAIL
0 votes Thank Flag Link Tue Oct 22, 2013
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