Refinance After Foreclosure

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
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San Diego, California
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Sorry for the error, you're correct the B2W program only applies to purchases. The two-year waiting period is standard conventional financing under Fannie Mae guidelines (which the majority of lenders follow).

You'd think some lenders would say "We do one year waits" just to drum up business for themselves.
This is the reason some portfolio loan products hit the market, enabling creditworthy borrowers to re-enter the market shortly after a foreclosure, short sale or BK.
 

miked2023

LoanSafe Member
Mar 15, 2009
153
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18
Hey, Jon - if you see this I'd like to get in touch with you about trying for a refinance. Please let me know how to get in touch - I tried emailing the 'contact us' section but haven't heard back yet and don't see PM option. THANKS!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
Hey Miked,
I'm sure Jon will chime in here at some point but if you need a second pair of eyes to take a look at your scenario to see if it would make sense refinancing now rather than waiting 18 months before you're eligible I can help with that.

"In the end, I think it's going to come down to dollars. If I can do the refi and save enough money with it over the next 18 months to justify to cost of the new loan (I have no idea what it will cost - my loan is around 470K) then I think I would maybe do it. But if the loan is basically going to cost me 10 grand say, and I only save 10 or so grand over that time period, it's just probably not worth it."

You're very correct in your statement above and really only want to refinance if it saves you money and you can recover the closing costs during the duration of the 18 months. Another thing to think about is what will interest rates be in 18 months? They may be much higher than they are now but at this stage you're only eligible for a portfolio loan because of the previous history.

There are no 30YR Options going the portfolio direction that doesn't have the seasoning met after short sale/foreclosure...etc besides the FHA Back to Work program (for purchases only). They are typically 5/1, 7/1 & 10/1 ARM's, the interest rates are very favorable but if you were beyond the seasoning period obviously conventional options would be more beneficial. We can go over costs of the new loan, what to expect with interest rates, if you don't have the 30% equity they can leverage your assets to meet that benchmark.

Feel free to reach out anytime, my contact information is below or again I'm sure Jon will respond to the post at some point.