Need some refi if I can't sell..

Well, I got a HML to rehab a home. It was our first. In the meantime we’ve done another one that is refi’d and L/O’d now. But this first one, it’s been on the market for a couple of months. Lots of interested people, no one with good enough credit to buy it. We want 110k. It will take 72.5 to pay off the HML.

Here is the problem. My credit is not great, and our finance guy said it was a miracle the first one got refi’d. He said don’t even try it on this one. I need to get it sold. But if I can’t what other options do I have to refi? I’ve been thinking private money but haven’t developed those types of contacts yet. I’d also like to get 10-15k cash out along with paying the HML, to pay us back our expenses. holding costs etc. Any creative ideas?

What is your credit score?

It’s complicated. My FICO is around 672 or more. But hubby is the main breadwinner. His is high 500s. But he has a major negative on his FICO, re: a foreclosure we went through. We went stated income last time (for me).

You can take it off the market, wait six months to “season” it, and then refinance it. However, if you’re just looking to sell it quickly, think about doing seller carryback for a portion of it to make it easier for the buyer.

Homecomings will refi it with 90 days seasoning.

It sounds like you don’t the luxury of time to take it off the MLS and wait the necessary time to season it for a conventional cash out refi—there are hard money LTV lenders that will entertain this type of scenerio while you are trying to sell your property.

It might not be the most cost effective solution, but when you are facing down the barrel of another hard money loan due to balloon, it could be your only solution.

Good luck and do keep us posted on your progress.


Scott Miller

SIDEBAR: I assume you have already made an appeal to your current lender for an extension—most rehab lenders will entertain the notion, and that might the lowest cost solution for a person in your situation.

How about a no seasoning, recently off the mls cash out refinance up to 75% from a conventional lender.

Only concern I have immediately is whether or not a “stated” income program would really be work. Is just your income enough to cover all the debts.

This could work too—in the absense of knowing credit scores, I assumed a worst case scenario position…

The moral of this thread is that you have options—fill in the blanks and one of us can bring this into focus for you.


Scott Miller