REFINANCE OPTIONS -awarded house in divorce

[Anonymous]

Team , long story short. Divorce happenned and i was awarded house with 1 yr period to refinance 

loan type FHA

Underwater : No

late payments : 30 Days late for last 4 months as we were in court 

Current credit :523 

was awarded house in agreement but i need to refinance within 1 yr from Nov 25th .

Please advice is this possible?

can FHA Streamline apply if i am removing the other party

Several late payments in report and 1 collection and  few cards closed in collection status

Please help me

[trusty]

That score needs to be above at least 620 for a reasonable chance at an FHA loan.

Seems like there are more than one baddies.

Can you sell?

[ls2016]

Your lates must have not occurred within the last 12 months for the streamline program.

[JVille]

Do you have any family that can step in and save the house by refinancing in their name and you just make the pmts. Then after you get back in your feet and clean up your credit you can refi it again and put a new loan back on it in your name.
Basically they would be in title and not you. They would need to get a Non Owner Occupied Loan. Any family member in your life able to help? We have done this for our Adult daughter after her divorce so she and the kids didn’t lose their home. She has since taken her home back from us and went from stay at home Mom to successful realtor. It was a five yr process!
Good luck!

[VALoanMaster]

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@Anonymous wrote:

Team , long story short. Divorce happenned and i was awarded house with 1 yr period to refinance 

loan type FHA

Underwater : No

late payments : 30 Days late for last 4 months as we were in court 

Current credit :523 

was awarded house in agreement but i need to refinance within 1 yr from Nov 25th .

Please advice is this possible?

can FHA Streamline apply if i am removing the other party

Several late payments in report and 1 collection and  few cards closed in collection status

Please help me

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Hi Stevenson,

Unfortunately you cannot do a streamline refi if you're removing someone from the current loan.

You'll need to spend the next 12 months working on your scores in order to get yourself ready for the refi.

[Anonymous]

Thank you 

when exactly do i need to do in next 12 months

Scores  and

Baddies out 

[CreditInspired]

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@Anonymous wrote:

Thank you 

when exactly do i need to do in next 12 months

Scores  and

Baddies out 

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Hi,

I'm assuming you're asking exactly what do you need to do in the next 12 months. IMHO, I think --

1. Make sure that no mortgage payments are late.

2. Pay off all collections. See if it's possible to pay for delete.

3. Make sure that no other collections and/or late payment(s) show up on your credit report.

4. If you have other credit cards, make sure to always pay on time, even if this means putting on auto pay.

5. See if you can get goodwill letter(s) for late payments.

As others have said, you need to have a higher score (min 620) to qualify. Also, you didn't mention your income (DTI) so that's a major factor also because with a 620 score, your interest rate is probably going to be higher than it is at the present time causing your payments to be higher.

GL2U