I am in MA. I can no longer afford my home. I have been turned down for refinancing. What can I do?

Asked by O'donnell, Methuen, MA Mon May 5, 2008

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Michael Giles, Agent, Beverly, MA
Sat May 10, 2008
Hi O'donnell,
You need to talk to your banks loss litigation department to determine your options. Each bank offers different solutions depending on the situation. You may also consult a Realtor to determine if you have enough equity in the house to sell and pay off the mortgage.

If you determine that a short sale is necessary, get a Realtor that knows how to handle a short sale. At this point you should give the bank permission to speak directly with your agent and let him/her handle the negotiation from there.

Your bank will send you a short sale package outlining the documentation that they need in order to complete the short sale. Most banks will not even look at the file until ALL documents are received.

The important thing is to get things moving. I wish you Luck!
1 vote
Will Robles, Both Buyer And Seller, 76248
Mon May 5, 2008
1. Sell your house traditionally, i.e. Realtor
2. Sell to a an investor
3. Rent it
4 Owner finance it (sell it)
5. Short sale if you owe more than it's worth and are in heading towards foreclosure
6. Deed in lieu of foreclosure

These are just the majority of the options, the others I'm thinking of require you to keep your current loan which seems to be the problem. If your loan is an ARM or steadily increasing some how and you can't sell via For Sale By Owner or a Realtor, an investor is your best bet. I'm an investor and may be able to buy. Give me a call and we can see if I can help you out.

Will Robles

888.605.9190 ext. 1
1 vote
Catherine Fi…, , Methuen, MA
Wed Mar 31, 2010
Hello, I forgot to add you may want to check the recent news about short refinancing - fyi.

Under the new Short Refinance program may qualify to lower your payments and keep your home. It does affect your credit, but I have information about rebuilding credit in less than 6 months if you want a read - let me know.


Here is a link for the DTI (debt to income) ratio info with a free calculator at the far bottom, though I have also attached it. http://www.thetruthaboutmortgage.com/dti-debt-to-income-ratio/

All the best,
Web Reference:  http://www.catherineaziz.com
0 votes
Catherine Fi…, , Methuen, MA
Wed Mar 31, 2010
Hello, I see there are many answers, but hold on......if you didn't get a CMA then do it now. Determine if there is equity for you to sell your home. A good Agent has empathy for your situation and shortsales require lots of work. A shortsale will also cost you points against good credit, but regardless, my position has always been to find a Buyer quickly for the Seller in lieu of dealing with the banks - who tend to tie up everything, create more red tape, and slow the process. Your in the middle of a situation and do not need to be more confused, so find a compassionate and trusting Agent who has a large network of investment buyers so you can move forward now! You may not loose anything and actually put some cash in your pockets. Don't forget the next step is where do I go once I sell? A great Agent is already thinking about what your needs are, in terms of short/long term goals and can help you with an interim rental or lease to buy option, and so on - so many other options. Go with someone unconventional who thinks outside the box ;-)

All the best,
Catherine Fiorello Aziz
Web Reference:  http://www.catherineaziz.com
0 votes
Laura D'Amico, Agent, Revere, MA
Tue May 6, 2008
I work with a number of Attorney's that specialize in shortsales. A short sale is essentially a transaction in which a property is sold for less than what is owed on the mortgage. For example a homeowner is no longer able to pay his mortgage, he enters into an agreement with his lender to sell the home for $150,000 when $200,000 is owed. I definately suggest you use an Attorney that has experience in short sales to help you deal with the bank. I would be happy to guide you. Good Luck.
Century 21 Citiwide
0 votes
Arlene Santa…, Agent, Andover, MA
Tue May 6, 2008
Good morning. The very first thing you should consider is to discuss this with your mortgage company so as not to fall into default, and to discuss your options with them. Depending upon your financial ability to continue making your mortgage payments, you should consult with a real estate attorney. I am certified in Loss Mitigation, and would available to assist you further. Please feel free to contact me directly, and good luck to you.
Arlene Santangelo
0 votes
Michael Lefe…, Agent, Westborough, MA
Mon May 5, 2008
Have you spoken with the people who hold your current mortgage? Do you currently owe more than you think your house is worth? If there's is any positive equity in your home, you may be able to sell and get out of a bad situation. Speak with a reputable real estate professional in the Methuen area. Have that person perform a REALISTIC market analysis and show you what you will NET after all the expenses have been paid. If there is a positive number, you can get into a rental situation until the market and your personal situation improves. If you owe more than you will NET from the proceeds of a sale, you will either have to bring some money top the closing or explore a short sale scenario.

I'm really sorry that you're in a tough spot like this. You're not alone. There is a lot help out there. Explore all your options, starting with your current lender. Just because one lender turned you down for refinancing, doesn't mean that no one can get it done. Not familiar with Lance's suggestion of NACA.com but maybe worth a look. If I can help in any way, please let me know.

Good luck, keep your chin up!
0 votes
Lance Holtman, , 80138
Mon May 5, 2008
Contact NACA.com, they are non-profit & they have a home save program
0 votes
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