Divorcing and need to refinance

Strana1 · Joined: 04 Oct 2008 Posts: 3 Location: NH

Hi,

I am hoping someone can point me in the right direction. I am in the process of divorcing and I am to assume the house and need to refinance. I contacted my current mortgage company - Countrywide and they said they would not be able to approve me given my circumstances. I do not need to take any cash out. I currently have a 1st & 2nd mortgage that I would like to consolidate with the refinance. I am looking for a 30yr fixed rate mortgage.

Here is my info

-total of current mortgages is 370,000, Located in the Seacoast area of NH
-Value of house in 2005 was 430,000, (home was refinanced then) when I spoke to Countrywide they said they did an online check of my homes value(?) and it is now approximately 395,000 because of the current market.
-My income is 89,000
-I have approximately $44,000 in debt
-My credit scores are Trans Union 731, Experian 690, Equifax 714
-I have been paying all my bill by myself & on time since my EX moved out 10/07
-I do have a non-occupant co-borrower available (Uncle) Countrywide said Loan to Value would have to be 70% to use him.

Thank you in advance for any help. Please let me know if you need more information.

m2c · Joined: 03 Aug 2005 Posts: 937

You can try elsewhere but I think you will have a hard time but not for the reason Country Wide gave you. I think they’re confusing the LTV for lack of credit history (VIII 204.01) with utilization of income (VI 101.03). Parenthetical references are to Fannie Guide which you can access in a back door fashion through efanniemae.com. Direct route is http://www.allregs.com/efnma/

Your real problem is that you are doing a cash-out refinance (unless 2nd mortgage was used to purchase the property – definition issue) with a LTV around 95%. This is a train wreck even before you come to debt ratios (PMI would add around $240/month to your payment!). You may be making the payments but it appears you’re living for your house. Only faaaaaaaaaaaaaaar out possibility I can imagine is to have your uncle pay off the 2nd probably by placing a lien on his home and then see how ratios work out either one yourself or with both of you. I’m not sure how this transaction by your uncle would be viewed though. That’s a very risky tacit and you might be just digging yourself further in a hole.

m2c · Joined: 03 Aug 2005 Posts: 937

I’m just getting back into FHA mortgages or this other avenue might have occurred to me before. Not sure if a 95% cash-out FHA refi with cosigner will work. Pricing might be a raunchy since conv-to-FHA I believe has to go under FHASecure. Check with someone locally to see if this might work. See references in 4155.1, 2-2 & 1-8B. http://search.aol.com/aol/search?query=4155.1&invocationType=msie70a

Whatever you do you’ll be burning up a lot of your income to support this house.

Strana1 · Joined: 04 Oct 2008 Posts: 3 Location: NH

Thank you for the information I will look into the FHA loans. I realize the cost is high, but I would give up to much to move. I have several horses and I would not be able to board them for less than the cost of this mortgage and I also have a distance requirement for work so I am limited on where I can go.

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Be advised the last poster has no track record on this forum. We don't know anything about this person.

mwindle, you should participate here, not just advertise your services.

punani · Joined: 12 Dec 2008 Posts: 6

To Destroyed by divorce: Why should we be responsible to bail you out of a bad marriage? It's sad what happened to you but it's "for richer or poorer, sickness or health" and it shouldn't be up to me to pay for you and your husband's mistakes.

berna · Joined: 04 Dec 2009 Posts: 1

I think you have to file for bankruptcy. This will help you keep your property and prevent the mortgage company from filing legal suit against you. This will also help you from paying the debts.

However, bankruptcy report has several backlash to your credit report. This may prevent you from getting another mortgage program, and you may find it hard to find job due to the bankruptcy report. Also, I advise you to get legal advice for this.