Mortgage refi can make or break me...

[sweetdana]

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?!?!

Yes, and even if they find out 30 days. Or 90 days later and you knew, you will Be guilty of fraud.

 

[njmom47]

We are doing a refi as well, and it is taking forever. They keep wanting us to write letter as to why this and why that. We are not in danger of losing our home or losing our jobs, but things can get tight and it would be so much of a financial relief if it would just be done already! (We started in early April...)

 

[MinnieLovesMickey12]

My husband refinanced our home loan about a year ago and I don't know if we have a great banker or what the deal was but from the day my DH called the bank and told them we wanted to refinance until the day he went to the bank and signed the papers was less than 4 weeks. That is even with the bank having to arrange a home appraisal. Nobody at DH's workplace ever mentioned anybody calling to verify his employment. So I can't say for sure if they ever did that or not. We didn't have to pay anything for closing that I know of. Or if we did they added it into the refi. There was no money changing hands for it.

 

[Scornelius]

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. .

That's exactly what I was thinking. OP, I'm very sorry you're losing your job and I hope you find a new, great position right away.

 

[Shelly F - Ohio]

My husband works at a bank but not in the mortgage dept, and the refi's are taking longer because so many people are refing and they are slammed with trying to process them. Infact we refied and were due to close in 60 days but they came to us and explained how backed up they were and asked if it was okay if we closed in 70days . And this was in Feb. As of now they have caught up and are no longer working overtime to catch up.


OP I would tell them NO you can not close on the 1st and like someone said ask them if you can close on the 24! Ask now so that gives them time to try and help meet the 24 closing date.

 

[wide awake]

I found the posts on fraud mean spirited. The OP has figured out how to cover her bills and mortgage, she isn't trying to rip off the bank. Given what has happened w/ mortgage companies and banks I would imagine most of us are on the OP's side and hoping all works well for her. Good luck!!!

 

[elgerber]

I found the posts on fraud mean spirited. The OP has figured out how to cover her bills and mortgage, she isn't trying to rip off the bank. Given what has happened w/ mortgage companies and banks I would imagine most of us are on the OP's side and hoping all works well for her. Good luck!!!

They may sound mean sprited but it is true. I work in mortgage, and if you know you will no longer be employed right away, that is fraud. Companies do often re-verify the employment after closing, during audits. The audits are to make sure we did the proper verifications, but can end up finding other issues, such as the fact that they are now unemployed.
As far as turn times we have been incredibly busy for a good year now, we used to be able to do a refi in a few weeks, but not any more. 30 days is a very quick closing now, most are more like 45 days.

 

[Disneybuckeye]

Last time we refinanced was a few years ago. I can say that at the closing they asked us both if we were still employed and that nothing had changed with our employment. We both said yes, which was true. Two weeks later my hours were cut in half and three months later I left for a new job. They never called to check.

For the record I did not know at the time of closing what was happening, but there would be no way for them to really prove that.

Good luck OP and I hope it works out. I am sure the bank would much rather someone refi so they can keep paying them become a foreclosure.

 

[crisi]

I found the posts on fraud mean spirited. The OP has figured out how to cover her bills and mortgage, she isn't trying to rip off the bank. Given what has happened w/ mortgage companies and banks I would imagine most of us are on the OP's side and hoping all works well for her. Good luck!!!

It would be worse for her to loose her job, her house, and face prosecution and have fraud on her record. That would make finding a new job much harder.

I am certainly on her side, but getting caught committing fraud would make her situation MUCH worse than it already is. Personally, I think under the circumstances that bank would WANT to refinance her out to a longer term, but that isn't the way it works.

We did a mortgage three years ago and it took three weeks longer than they said it would, including one "show up to close and be told that they weren't going to do it today." We ended up paying cash for the house because we had a hard stop on getting out of an apartment and then using the mortgage to pay off the 401k loan

 

[HM]

Our refi took much longer than we anticipated. We had the OK right away, but it was stuck in the underwriters forever. We went in thinking 6 weeks tops and it took three months. Good luck OP.

 

[goingtowdwwithkiddos]

OP have you called your current mortgage and let them know??? They will have programs in their loss mitigation dept. they may be able to set up a plan defermentetc until you find a new job using the money you are getting on unemployment. They may request you list at fair market value if it looks like you will not soon be able to afford it, but again if you really can not afford your home this still makes sense. I am way more for working with the company who I have debt with during life changes than taking on new debt. If your unemployment covers first I would pay that after trying to work something else out. My bills go food mortgage elctricity car payment/insurance then credit cards as we work down the list the endmay have to go but better to lose my car then house. If you ever skip a mortgage payment short offinding money or something changing you will have a domino effect. One last thing the same way you called the mortgage company I would call ALL other bills including utilities for any and all help.

 

[angwill]

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?

Tell the processor you are sorry but they will have to find a time to fit you in over the next week that the 1st is not ok to close. Good luck.

 

[Mad4Mickey]

We are in the middle of a Refi on our home we bought almost 5 yrs ago . It is with Wells Fargo and that is who we have the loan with already . They did call to verify both of our employment( that was a chore since my Dh is a firefighter with 3 extra jobs ) .
We started June first and got our " at home " closing docs yesterday . They sent it same day for some reason and sent us a pre paid Fed Ex to send it back overnight . Our new payment starts the 1st . So all within 30 days , not sure why or how this is going so fast but I can ask my Dh when he comes home from shift Wends .

It was so easy and cost us nothing that I am going to ReFi the other house .

 

[Tigger1]

Is this a lay off that you expect to go back to the same company or will you be looking for a new job? If your looking for a new job, what if your unemployment runs out before you find one? I would call the mortgage company and tell them whats going on. They are more likely to work with you on a plan. If they know you have a 401 to back you up to pay off house they may work even help you out more.

 

[GrnMtnMan]

Another voice here for honesty.

Signing a document that says you've disclosed everything important, when you know about this is dishonest. I refi'd in January (3.0% on a 30 year fixed rate mortgage....yes, I am super awesome) and I had to sign several documents at closing related to my financial position *AS OF THAT MOMENT*.

I'd call the originator/broker/loan officer, and tell him/her the situation, and do what s/he says. Aside from the honesty part of it, you might have more leeway with them should you need it in the future, them knowing the whole story.

 

[sweetdana]

I found the posts on fraud mean spirited. The OP has figured out how to cover her bills and mortgage, she isn't trying to rip off the bank. Given what has happened w/ mortgage companies and banks I would imagine most of us are on the OP's side and hoping all works well for her. Good luck!!!

I am so sorry you found it this way. I am an uw. I am paid thousands of dollars a yr to look for this situation.

There are very few if no peeps put there that refi to save$$ and Plan on foreclosing.... But it happens .

Not all banks do bad things. ... And even if they did 2 wrongs do not make a right ?????

I do not wish her or anyone else ill will. She is looking for help/ advice and seeing that I do this 50 hours a week, my knowledge seemed relevant.

Life happens ... And if situations become tough n she tries to forecloses in 2 yrs, loss mitigation will look into the loan, she will ( not maybe). Will be sued without recourse for this. She will not be able to walk away and start over if needed.

When you close (if) you sign documents clearly stating the info is all true. And you know you will not be employed in a month you are committing fraud. Not maybe.

To be clear if a bank is going to lose 40k on a loan say a foreclosure. They research why.... They will 100% do verifications of employments and when the date is 10 days post closing.... You'd better believe they will follow up to see if info was bogus. ..... Not may. Loss mitigation dept often work on a commission. That is what this dept does..

I am so sorry op, it sucks but do not take advise of pushing it closed. You may feel better today and in 6 months, But it may also catch up to you. ... And the risk is not worth the reward.

 

[sweetdana]

Last time we refinanced was a few years ago.

For the record I did not know at the time of closing what was happening, but there would be no way for them to really prove that.

.

Actually it can be verified. They can ask your employer if you knew. ,.. If they say no... They proved it. ... And yes they can ask. Your borrowers cert and auth you signed at initial loan app says they are allowed to ask.

 

[Pamlur]

One of my employees refinanced his house this year. After he had left the office for closing, I got a call to verify his employment.

 

[OklahomaTourist]

I found the posts on fraud mean spirited. The OP has figured out how to cover her bills and mortgage, she isn't trying to rip off the bank. Given what has happened w/ mortgage companies and banks I would imagine most of us are on the OP's side and hoping all works well for her. Good luck!!!

What's "mean spirited" about advising the OP about the possible legal risks associated with what's being undertaken?? And how does what other banks/institutions have done justify someone else engaging in a potentially illegal process??

I'm no lawyer, so I cannot address the specifics of the fraud issue others have discussed here, but the idea that providing a valid warning about possible legal issues is *anything* but mean spirited. It could be life-changing advice. Would it be better not to offer the caution and let the OP fly blindly into a possible legal maelstrom, just for the sake of not being called "mean spirited?"

Don't mean to rant, but to me, not relaying this kind of info is like not telling a kid when they've gotten a math problem wrong because we don't want to injure their self esteem. Sometimes the machinations of the real world are ugly and unpleasant. Warning folks in that regard isn't mean-spirited.

OP, please know I hope everything works out for you, and you get all this in your rear-view mirror ASAP.

 

[DawnM]

OP hasn't even been on this forum for 4 days.....