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I am in the process of re-financing my mortgage and just received an email from the mortgage broker saying that, because I had just taken my place off the market, I would have to use GMAC. Here's what he said:
"Given the property is recently off the market I have to slot the loan for servicing to GMAC as they allow for your scenario. Late last week I quoted 4.375 no points and was still going there this evening even though the pricing worsened a bit. Then I was told I had to follow GMAC pricing and for 45 days it is 4.50 vs 4.375, still with no points."
What "scenario" is he talking about? I don't see why previously having my place listed has anything to do with re-financing.
Some financial institutions don't allow you to refinance your house if it has recently been on the market (e.g., in the last 6 months). (I think the reasoning is, they don't want you to refinance, then put it right back on the market.) It sounds like that is your "scenario." GMAC must allow it but many other financial institutions won't.
Some financial institutions don't allow you to refinance your house if it has recently been on the market (e.g., in the last 6 months). (I think the reasoning is, they don't want you to refinance, then put it right back on the market.) It sounds like that is your "scenario." GMAC must allow it but many other financial institutions won't.
I agree but it's probably most not some institutions.
Is this your primary residence now? Is it going to stay your primary residence?
I'm actually going to put it back on the market after I re-finance. I figured out that I can recoup my costs in 4 months or so with what I'm saving (lower interest + no PMI). Plus, I may decide to rent it out for awhile if it doesn't sell.
My agent said a lot of banks figure that they won't make any money if you re-fi and then sell it soon after. So I guess it does sort of make sense.
I'm actually going to put it back on the market after I re-finance. I figured out that I can recoup my costs in 4 months or so with what I'm saving (lower interest + no PMI). Plus, I may decide to rent it out for awhile if it doesn't sell.
My agent said a lot of banks figure that they won't make any money if you re-fi and then sell it soon after. So I guess it does sort of make sense.
This is exactly why no one wants your mortgage. Either it's a sign of financial trouble, home can't be sold, or a risk of owner occupancy. Pay very close attention to any occupancy riders or statements you are required to sign. I'm willing to bet there may be some strong language about you agreeing to live there as your primary residence for a year.
That's a good question to ask him. I don't plan to stay a year if I get a good enough offer. He did tell me that Wells Fargo also does re-fi's on properties just off the market but GMAC had the better rate.
Your deed of trust states you are intending to occupy the home for 12 months...by signing that and doing the opposit you are giving them the option to call the loan due....although not to the level you may think it is mortgage fraud. Another reason the industry is in a mess...borrowers who sign things and then say "oh I didnt understand that"....they lender is pricing your home based on what your telling them the occupancy will be...
Do all/most loans have that stipulation? What if someone had to move (job change, health issue, death in family)? If you sell your house in less than a year, how would that be any different than just paying it off in less than a year if you could? Wouldn't you just pay it off as soon as it sells and be done with it?
the lenders invest money into the refinance process and want to get that money back and make a profit via interest or selling the loan into the secondary market.... its not just about getting their money back.
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