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Refinancing to somewhere else before end of foreclosure
 

Sorry about the misspelling of the title. I was in a hurry typing this. I meant to type “end of forbearance.”

Not entirely sure if this is the best place to post this, but I’ll keep my fingers crossed and hope it is since I saw this forum has to do with real estate.

Not to mention there’s a lot of great and wise life hackers here.

For a tiny bit of background, my mortgage is with Mr. Cooper and I am being financially affected by the corona virus. They are only offering forbearance for 3 months as relief where no credit reporting is implemented. However as most of you know, after the final month they would require a lump sum or modification upon approval. And even if you are approved, you still get late credit reporting for every month missed if you don’t choose the lump sum option.

So my question is, if I was to take their forbearance deal, will I be able to refinance to a different mortgage company or bank on the 2nd or 3rd month?

Re: Refinancing to somewhere else before end of foreclosure
 

Ah... Luckily real estate and mortgages happen to be my forte so this seems like the perfect way to introduce myself to Aspkin.

The answer to your question is somewhat complicated and frankly, the current situation is somewhat unprecedented so nothing is guaranteed and things can change overnight.

The core question is if you are not in the position to repay your current mortgage how do you intend to go through underwriting on a refinance? If you lack the cash reserves to make mortgage payments right now, it's unlikely that you will qualify for a refinance.

Now... Assuming you were to qualify for the refinance in the first place, then the answer is *maybe*. It really depends on your luck, what Mr. Cooper shares on their payoff quote, and if the underwriter asks/notices that the loan is not current/is forbeared when they review the file.

Technically, however you can refinance at any point. Hard money lenders (loanshark) will HAPPILY lend you the money if you have equity in your home.. Hell, they'll refinance you even if you are within hours of a foreclosure sale date. But it doesn't make financial sense to go hard money unless you are in a truly, truly desperate situation (you're going to pay ~10% interest and 5-8% in 'points' if you go hard money).

Who is the owner of your loan? Is it Fannie/Freddie, FHA, or is it part of a mortgage-backed security? Realistically, if you foresee this being a long-term hardship then either consider selling or start gathering the docs for a loan mod.

Hope this helps and if you have other questions, don't hesitate to ask here or PM me.

Re: Refinancing to somewhere else before end of foreclosure
 

Welcome to the forum HolaAmigo - all the best as you master stealth :thumb:

Re: Refinancing to somewhere else before end of foreclosure
 

Thank you! :hs:

I look forward to honing my stealth skills (and figuring how to get Amazon SP to read their emails.)

Re: Refinancing to somewhere else before end of foreclosure
 

hah :) just a friendly introduction.