How do I refinance my home in Miami, Fl… MY INTEREST RATE IS TOO HIGH?
by Mortgage Rates on Tuesday, October 5th, 2010 | 3 Comments
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Well im pretty sure that as long as they have been paying on time for at least 5 years than they will b able to get a new loan with any big bank like country wide or wells fargo.
Their best bet is to try and get an FHA loan.
The good news is they are not upside down. The bad news will be what their agi will be because most self employed people write off so much on their taxes that they end up not qualifying.
Let me know if you need more info
you’re parents have about 10% equity which is decent for an owner occupied home. you’ll need to have them talk to a mortgage broker to see what loan products might be available for them. self employed people are having a very tough time getting financing.
one option that might want to consider is an extended right of rescission. most adjustable rate mortgages didn’t accurately disclose all of the lender information required by the truth in lending act and so the borrower has an extended right of rescission (give the loan back). when this happens the lender must refund all payments made by the borrower and the borrower must tender reasonable value to the lender (through cash pay-out or give the lender the property).
while that is what the law technically says the practical application of the law is somewhat different. usually the lender and borrower renegotiate new loan terms that are more favorable to the borrower. the catch is that the lender could refund all the money and your parents wouldn’t be able to get a new loan and would have to find a new home. not likely but it is a real possibility.
if you have more questions you’ll need to contact my attorney who specializes in rescissions and is licensed to practice law in florida.