Odds of owner in preFC being able to refi - Posted by Mike G

Posted by Mike G on September 15, 2003 at 15:05:02:

Thanks…those are the general guidelines I was looking for. Very helpful.

Odds of owner in preFC being able to refi - Posted by Mike G

Posted by Mike G on September 15, 2003 at 12:12:19:

Just for my own personal edification, what chance does a homeowner who’s in preforclosure have of being able to refinance his defaulted loan w/ another lender? Obviously, this varies on case by case basis and I’m sure having considerable equity is a prerequisite.

I’m just trying to more fully understand the options available to the sellers I talk to…and how I can grab more pieces of the pie (i.e. getting referral fees from mtg brokers when someone may be a legitimate candidate for a refi, etc.).

Re: Odds of owner in preFC being able to refi - Posted by Nate(DC)

Posted by Nate(DC) on September 15, 2003 at 13:16:51:

If the foreclosure has been filed, but the property has not been sold yet (I’m assuming that’s what you mean by “preforeclosure” - I mean, technically, if they have missed one payment they might be on the road to foreclosure, but that is not what I think you mean here): generally, if LTV is under 65% AND there is a good reason why payments weren’t being made (which is no longer the case, i.e. there is a good reason why payments can NOW be made), then you have a shot.

If both of those things are not true, it is not worth a mortgage broker’s time because they won’t likely be able to find a lender.

NT