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Looking to Refi my mortgage but have a HELOC charge-off. Who can help?

Hello. I have two home mortgages, one for my primary residence and one for a home that we converted into a rental. 2 years ago, our renter got behind on their payments and we eventually had to have them move out. However, we had to do a lot of expensive refurbishment before it could be rented again. As a result, I became several months behind in payments on the primary mortgage of my main residence as well as the rental property. Around the same time, BofA sold my loans to Ditech. I was able to get caught up and for the past year, I have been on-time with both my primary residence and rental property mortgage (yeah!) However, I stupidly did not realize that when my loans were sold to Ditech, the HELOC on my primary residence was not consolidated with my primary mortgage and was charged off by BofA. I went to refi my primary mortgage last week (wanted to get a lower rate=lower payments) but found out that my HELOC was changed off and the lender would not refi with a charge off on my credit that is less than 3 years old. I'm looking for a lender that can work with me so I can take case out of my primary (plenty of equity) pay off the heloc and obtain a lower rate. Any suggestions? by robert.hill321 from , California. Jul 28th 2017 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Much more info needed to properly advise you. But in general, and based on the limited info you provided, you have several issues that need to be dealt with.. First is you said you were a "several months behind",,,, What number is "Several"? 2, 3, 4, 10? When you are 90 plus days delinquent on a mortgage, some lenders make you wait 3 or more years of "On-Time" payments before they will consider you for a refinance. But you were delinquent on 2 mortgages.. even worse.. The 2nd issue is your looking to pull cash out.. Cash out transactions are more risky than a rate and term refinance, so they are priced accordingly.. and with multiple major derogatory events, it's going to be difficult, if near impossible to find you any type of conforming loan without meeting the mandatory waiting periods.. So, Is there a loan for you right now? Possibly, but at a lower rate? No way! We have portfolio lenders who will lend merely on your equity position.. but again, I have no idea with "Plenty of equity" means? For lending purposes.. we look at percentages, not dollars.. For example: If you have a home with $200K equity, but the home is worth $2M.. then 10% equity is not sufficient.. but with a home that's worth $300K and you have $200K equity, then It's possible you can borrow up to 60% LTV, or $180K on a $300K home. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Jul 31st 2017
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