Refinancing- difficult situation
Good Day Allison,
My name is Isabelle B. Jones. I am in need of some advice. My husband and I filed bankruptcy in 2012 which included our primary home. We completed the bankruptcy in January of 2018. Our story is complicated but basically, I was a business owner who came down with breast cancer and whose mom was also diagnosed with terminal liver cancer. I had to close my business to care for my mom and care for myself. I lost everything in the meantime. My husband and I were two income earners. I made (past tense) 85K and he currently makes 106K with a 15-20K bonus per year.
OUr mortgage is with Suntrust. We tried to work with them over the last five years but they would not budge. We tried to refinance, make partial payments, do a HARP loan, work with NACA, and on and on and on over the last five years. Nothing has worked. Suntrust would not accept our partial payments during bankruptcy. We had an adjustable rate loan and it adjusted from 1700 to well over 3K at the time and we could not afford to pay it any longer. So, long story short, we have currently been trying to work with Suntrust (who claims they cannot refi with us because of a private lender who we found out is NY Bank). They pulled the house out of the bankruptcy a year ago and since we have asked them to just take the house, they have not. So, we have been trying to short sale the home (beautiful home in great neighborhood in GA). Nothing has worked. We have a new realtor and have had several offers but the bank takes so long to come back to us that the buyers walk.
At this point, our financial picture is changing for the better and I have just been hired with a new job. I start on July 18th and they are hiring me part time at 40K but are looking to make me full time asap at 75K. With all this being said, we have been told by a few friends to try a hard money lender to see if we can buy back our home; pay the loan on time and then refinance it for a 30 year fixed.
Thanks for writing in. I’m so sorry to hear about your and your family’s health and financial issues and am happy to hear that things have turned around for the better. It can be difficult to short sale a home because everyone’s on the bank’s timeline and often buyers don’t want to be that patient, especially if they’re first time home buyers. Some realtors have a short sale specialist at their office that works as a liaison between you, your agent and the bank. It may be a good idea to look into a brokerage that specializes in short sales and is familiar with the process. Personally, I’m not sure if a hard money lender would be able to help you out with the situation, most lenders only loan on investment properties, but it may be worth a try to contact a few and explain your situation. Typically, a hard money loan is a short term interest only loan and the exit strategy in your case would be refinancing into a permanent loan. Here’s our hard money lenders guide with the contact information for each lender in the article. I hope everything works out for you.