Mortgage refi can make or break me...

[Onthevergeofruin]

I've been on the DIS for a few years now but, for obvious reasons, can't post this under my username....

I'm about to lose my job. Verified. To prepare, I'm refinancing my mortgage and throwing all my debt into one bill. If the refi doesn't go through I will either lose my house or have to cash in a 401K to pay off either the mortgage or equity loan. If the refi does go through, I can survive decently on unemployment.

I don't know why this refi is taking so long. It's been more than 5 weeks now. My appraisal's come through and supports my refi amount. According to the processor, I've cleared underwriting and my loan has been approved.

According to my original application/loan docs, closing is to be next week. I got an email from the processor that they're really busy - "is the 1st ok to close?" I'm losing my job on the 28th.

I'm in full-blown panic mode about to be sick! Talk to me - am I sunk?

 

[delmar411]

Tell them you have to close on the 26th. They call your employer like a day or so before closing to verify you are still employed, so you have to close before then.

If they won't close you before you lose your job then you will be out of luck on the refi.

 

[Onthevergeofruin]

Tell them you have to close on the 26th. They call your employer like a day or so before closing to verify you are still employed, so you have to close before then.

If they won't close you before you lose your job then you will be out of luck on the refi.

That's what I'm so afraid of!

The internet is such a double-edged sword! I was googling this scenario and I read that the bank can call AFTER the closing to verify continued employment. Is this standard?!?!

 

[delmar411]

That's what I'm so afraid of!

The internet is such a double-edged sword! I was googling this scenario and I read that the bank can call AFTER the closing to verify continued employment. Is this standard?!?!

Never heard of that but who knows these days.

 

[Darcy03231]

A refinance has a three day right of recision so technically your loan isn't closed until three days after you sign all the paperwork. If your last day is the 28th you really should close on the 24th.

 

[ilovemk76]

What chance is there the company will tell them you are being laid off?

 

[mandy14]

In my experience your chances are low. We started our refi in July and finally closed in March. Our original closing date was in October. They told us they were busy and there was nothing more to do. The rate was so low we stuck with them. Although we sat down to closing expecting to owe nothing and they asked us to write a check for over $6000. They originally told us we would come to the table with nothing. We read the paper that they sent us a few hours before closing and it said we would owe $6000. That was the first time we had heard of this. We paid the amount and are done with the deal.

FYI, we are both employed and have been with the same company's for over 10 years. Our credit score is over 800.

 

[teacup princess]

We started the process of trying to refinance some property we own in February. They originally told us it would take 60 days. We are still waiting. They've called to verify my husbands employment at least 6 times and have to keep repeating it because they keep doing it wrong. Seriously, how hard can that be? My husband does call and email them at least twice a week to try to keep it moving along. I think that does help. I'd hate to think how slow this process would be if we weren't constantly trying to light a fire under them.

 

[Kellydelly]

Our recent refi started loan application process 12/31/12 and we closed the last week in February. This was with the HARP program. Great credit history, no appraisals or anything. Only hiccup was them figuring out how to add me to the title (our processor was a bit inept). I would push for an earlier closing. I hope that you get it done before your job loss. Good luck!!

 

[Hofmanns4]

I really think these cases are extreme where it took so long. I have 2 friends that just did refi's at a large bank and started the process in Feb and both closed end the March. Employment was verified and the process all complete a few days before closing since they have to have it all done ahead of time to schedule the closing, print the docs etc. I would however, push for a closing before your last day at work.

 

[kathie859]

You must close prior to losing your job. Lenders can (and do) reverify employment prior to closing. No job = no loan. Also, depending on your lender, there may be an income document for you to sign saying that you haven't taken on any addition debt or have had an change in your financial position in the period between application and closing.

This is a case where you need to become "unavailable" for a closing past your drop dead date. Be gentle, but firm, and ask for a supervisor, if need be, to get your file moved over to the closing department.

Best wishes. This must be a stressful time for you.

 

[peekinglemer]

We refinanced our existing loan with Well's Fargo last year and it took forever. We started in June and closed in December. They just kept telling us they were very backed up. It was so frustrating.

They called to verify my employment so many times that my boss was starting to get a little miffed. Once the closing date was firm, they called one last time, 3 days prior to closing.

Wishing you good luck.

 

[auralia]

My stream lined refi with usaa took about 4 weeks start to finish

 

[Lilliputian]

They don't always take that long. We refinanced a little over a year ago, and it took less than 6 weeks. I think it was about 4. And then we moved unexpectedly this spring (we wouldn't have done the refi if we'd thought we were moving), and we closed in 5 weeks. That was just 2 weeks ago.

I'd call them and tell them that you absolutely have to close by the 24th or it's off and you're going with someone else. They may get serious about getting it done if they think they'll lose you.

 

[Onthevergeofruin]

Thanks for the good wishes. This is just killing me. Two other people I work with and who are losing their jobs at the same time refi'd their mortgages. Both told me it took only a few weeks. I thought it'd be all said and done before now - this past week at the latest.

I've requested a date before the end of June. I'll keep requesting it and keep my fingers crossed. There's no way I'll be able to afford the monthly bills if the refi doesn't go through. The mortgage and equity loan would take up almost half of the unemployment payments.

 

[disneylove69]

I did HARP with Chase and it took a few months. The longest part was getting the appt to sign. They postponed 3 times until I said "This is the last time I am going to rearrange my life for you." They didn't cancel. The reason it took so long is that so many people are re-fi that they are taking them in order. I owed nothing and got a $.46 check in the mail.

 

[HsvTeacher]

We refinanced our home recently, and it only took about five weeks. It was a regular refinance, no HARP or other loan modification program. We had to have an appraisal and one item removed from our credit reports because it was listed twice. Other than that, it was a pretty quick and painless process.

 

[DawnM]

I haven't been able to close in 4 weeks. For whatever reason there is always a hold up.

 

[dhardawa]

I've refinanced a few times now and none of them took over a month.

 

[sweetdana]

I've been on the DIS for a few years now but, for obvious reasons, can't post this under my username....

I'm about to lose my job. Verified. To prepare, I'm refinancing my mortgage and throwing all my debt into one bill. If the refi doesn't go through I will either lose my house or have to cash in a 401K to pay off either the mortgage or equity loan. If the refi does go through, I can survive decently on unemployment.

I don't know why this refi is taking so long. It's been more than 5 weeks now. My appraisal's come through and supports my refi amount. According to the processor, I've cleared underwriting and my loan has been approved.

According to my original application/loan docs, closing is to be next week. I got an email from the processor that they're really busy - "is the 1st ok to close?" I'm losing my job on the 28th.

I'm in full-blown panic mode about to be sick! Talk to me - am I sunk?

You are actually committing fraud. The mortgage company I work for if found out would prosecute to the max law. If you actually closed and then found out, would call your loan due, as well as looking for max jail time. Please realize underwriters are paid to find this, and if they do will send to security. .