Home Selling in Marshfield>Question Details

Gertrude, Home Seller in Marshfield, MA

Waiting 6 months after house is removed from MLS to refinance?

Asked by Gertrude, Marshfield, MA Fri Oct 22, 2010

Our house has been on the market for almost two months now with no offers. We are considering taking it off the market and staying put since we can't drop the price anymore (using up all our savings just to pay commission). Our plan B was to stay put and refinance. We had NO idea that the rule of thumb is that you have to wait 6 months after your house is removed from MLS to do so? Our realtor told us that if she removes it from everywhere, and then writes us a letter, we should be okay. Any idea if this is true or had any experience with this?

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Two months is not too long. This "rule" depends on the lender. Basically the only issues are -- you still need to be living in the place (for real) and you may not be able to refinance right at the price you were trying to sell at -- maybe for a bit less.

There is no such rule of thumb for FHA loans. But you may be asked to provide an explanation -- like keeping a job, or changing your mind, or describing your "plan B" justification. Should be ok with most lenders. Call around. Should not be a big deal, especially at this time when a lot of people are trying a lot of nontraditional techniques.
0 votes Thank Flag Link Fri Oct 22, 2010
It sounds like no equity is a bigger problem for refi than time off market.
Talk to a lender and use some savings to buy down and do a new 15 year loan if you can.
If your rate is 6% or higher you may find these numbers very comforting.
1 vote Thank Flag Link Sun Nov 21, 2010
It sounds to me that your preferred choice is to stay and refi, and I would believe that if you may be able to refi with a good appraisial, or via and FHA loan. And if you do wish to stay in your home, please accept my best wishes to you that it all works out.

Should you come back to the selling end of the equation, you should read my blog on this site. I have covered a number of items that could be of interest to you. While I will admit that often times these days price is a key factor in the sale of a home, so is marketing. How was your home marketed? What was your pricing strategy? Did your agent use things like social media to promote your home? Today's market requires a special combination of price and marketing strategy.

Price is the issue in the absense of value.
1 vote Thank Flag Link Tue Oct 26, 2010
I have an office in Plymouth. Not sure how local you want the Loan officer you work with to be.
1 vote Thank Flag Link Sat Oct 23, 2010
Thanks! It's not that I don't want to hear that my house is priced too high. It's just that we can not afford to drop it anymore than we are selling it for - we are already paying 100% out of pocket for the commission - which is why we are considering taking it off the market. I do think we are in the ballpark price-wise though - the house 4 houses down from us (same exact house, without a 3 seasons porch which we have, a smaller yard without a marsh view like ours and less updated just closed with a cash buyer last week for $6K less than our asking price. They did sign the P&S before our house went on the market though. Based on what everyone is saying - it appears that it may not be so cut and dry. Anyone recommend a good broker in the Southeastern MA area who would be willing to look around and get us in into the best loan for our situation?
1 vote Thank Flag Link Sat Oct 23, 2010
If the banks told you to wait six months. This is what you should do., after all they are the one's with the power to lend, right?
1 vote Thank Flag Link Sat Oct 23, 2010
Perfect for VA and would be looking at a rate around 4%. It will really hinge on the appraised value. VA may have an issue with the property being on the market. I will have to double check the VA guides.
1 vote Thank Flag Link Sat Oct 23, 2010
If your home isn't selling it is priced to high. I know that may not be what you want to hear. 80/20 loan refi if both were done at the time of purchase they don't consider it cash out. Biggest problem as others have stated is loan to value.
1 vote Thank Flag Link Sat Oct 23, 2010
Considering the fact that you have said that if you drop the price any more you are going to have to pay the realtor commission out-of-pocket. If that is the case, I would think that your loan-to-value is high. This may make the refinance picture into something totally different than you expected. What type of loan do you have now? Is it conventional, FHA, or with a local savings bank or credit union? Are you paying PMI on the loan? The answers to these questions will help in determining your best course of action, before you get too hung up on the idea of refinancing.
If you have a Fannie/Freddie loan, you may be able to use one of the HARP programs that will not require you to pay PMI if you are not paying it now.
OK, before I posted this, I see you answered some of the questions. This would not be considered a cash-out if both loans were purchase money, and you have not access the 20% in the last 12 months if it was a line of credit. The idea of a VA loan may be the best one, and the only way for you to combine the 2 loans into one. You will pay a VA funding fee, but there is no monthly MIP or PMI on that.
1 vote Thank Flag Link Sat Oct 23, 2010
PS - we have only been in our house 5 years - we bought at a bad time (obviously) and do not have a lot of equity. We didn't refinance initially because we were told several times that we probably couldn't (since our house is worth less now than when we bought it). We have done a considerable amount of work (basically gutted house down to studs) over the past 5 years though and especially in the past 3 months (getting it ready for sale). We feel that if an actual appraiser came out here, it would appraise almost exactly where we need it to - not what we paid for it, but enough to let us be able to refinance. This whole situation is sort of what led us down the road to sell since we thought, if we are going to be paying this much for a mortgage, we might as well be in a bigger house (since we have outgrown this one anyhow!)
1 vote Thank Flag Link Sat Oct 23, 2010
Thanks everyone. Andrew - I think we are technically "taking cash out" because we are looking to refinance our 80/20 loan into a traditional single loan. So, is this why we'd have to wait 6 months??? What about VA loans. My husband is a veteran and we have not used the VA loan yet. As far as holidays go, I think our realtor was suggesting we pull it because we have 2 small children? If I thought it would sell it would be fine with me - she just sort of made me feel that the market slows down considerably and that our chances of selling would be very slim.
1 vote Thank Flag Link Sat Oct 23, 2010
As long as you are not pulling cash out, we only require that the property not be on the market when you submit your loan application.

Feel free to call or e-mail Andrew Adams Salem Five 978-720-5632 or Andrew.Adams@salemfive.com
Web Reference: http://www.kloanking.com
1 vote Thank Flag Link Sat Oct 23, 2010
eally depends on the lender. Most don't care as long as it isnot presently on the makret.
1 vote Thank Flag Link Sat Oct 23, 2010
Gertrude it is true banks do not want to fund a loan and have it paid back very quickly.

The reason is they often repackage and resell their loans (for a commission) on the secondary loan market. If too many loans are paid off too quickly, this hurts their reputation with their investors (who buy those loan pools).

Now a negotiating point for you, if the bank asks about this quick change of heart, would be: I have made a definite decision to refinance and stay -- why would I be going through this process and accumulating closing costs on the loan if I weren't planning on staying a good long while?
1 vote Thank Flag Link Fri Oct 22, 2010
Question from October, 2010? Just curious, Gertrude...........is this the same agent you are listed with now?
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Mon Jan 31, 2011
Actually... not to argue with anyone's agent... but I have tons of lenders that I work with that will allow you to refinance regardless of it being listed for sale in the MLS.

Like anything... it is always good to shop around and ask questions. I would advise talking with several different lenders... They are out there.. and you won't have to wait 6 months.
0 votes Thank Flag Link Mon Jan 31, 2011
I agree with your agent.
You shouldn't have difficulty finding a mortgage broker who can place he loan.
0 votes Thank Flag Link Thu Jan 27, 2011
Yes, but your your question and comment was that you changed your mind and intend to stay. And I agree with Monir that you will have to convince the bank that you had a change of heart and decided to stay. I have never heard of a six month waiting period to do so.

I would like to add that two months is not very long for a home to be on the market these days and my busiest time has always been in the fall and winter months. Many sellers take their homes off the market through the winter and holiday months which sometimes creates a different spin on the market. The buyers who have to buy have much less to choose from which gives you selling power. If you are financially able to hold out, I would suggest that you give a few more months.

On the other hand, if you have been in your home for a long time and have a good amount of equity built up, you may be better to refinance and wait it out. Not knowing the details of your situation it is difficult to advise.

Best of luck to you.
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Fri Oct 22, 2010
Thanks! I agree that 2 months isn't terribly long, but with the holidays/New England winter coming I'm just thinking since we haven't received an offer yet, it's probably not going to happen. We plan to keep it on for another 5-6 weeks. Linda, I had never heard of this before either, but both Bank of America as well as an independent mortgage broker told me that it is common practice because the lenders or at least the investors who buy the loan expect you to be in a loan for a certain amount of time and don't want to fund the loan and then have you sell it shortly thereafter? I didn't realize that FHA loans didn't require this - thanks so much that's helpful!!!
0 votes Thank Flag Link Fri Oct 22, 2010

Unless this is a law peculiar to MA, this doesn't sound right to me. Your home being on MLS has nothing to do with your refinance. You need to look at the contract verbiage that you have with the listing agent. He/she may have a protection clause that states the names of the people who have viewed your property during the listing. The reason for this is simply that if one of those people listed comes back within a certain period of time (and this time differs from state to state) then that listing agent would have what's called procuring cause.

This was originally put in place to keep sellers from listing with an agent and then making deals on the side. I am not familiar with MA law, so I would suggest you contact a real estate attorney for the legal answer. But my first response is that something was misunderstood.
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Fri Oct 22, 2010
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