PLEASE HELP, CAN'T REFINANCE

luksi · Joined: 23 Dec 2007 Posts: 1 Location: florida

I am posting for my parens who do not speak english well. They have a 165,000$ home and have had it for about a year and a half to two years now. My mother recently had heart surgery and has not been able to work much. She works about 20 hours a week and my father works full time at one job and part time at another. They still can't make ends meet. They have more debt than their earnings.

They haven't been late with any mortgage payments but they haven't been able to refinance. No one will take them. My mother has a bankruptcy from a few years ago. They are thinking of either filing for another bankruptcy or giving it up for foreclosure because no one will take them for refinancing. I have never owned a home and I do not understand much about it but I am looking for any means to help them. I'd hate for them to have to walk out of the house.

Please help me in any way possible, anything.

uptight mortgage guy · Joined: 23 Nov 2007 Posts: 30 Location: WV

You say your Mother filed a few months ago. That puts her out of the picture for most lenders for 18 months to two years for seasoning.

If your family did not put much down on the initial purchase, they might not have the required equity.

I would have to guess your Father's credit went down while your Mother was not fully employed.

If your Father's ratios are in line, you might try an FHA refinance which will allow you 95% Loan to value, take your Mom off the loan.

I would have to look more into that scenario because I can't remember if it can be done with her originally on the note and deed.

Jason Hall · Joined: 07 May 2008 Posts: 10

Luksi has your parents situation improved?