Refinancing a foreclosure sale
We are currently in the process of refinancing our home with a Homesavers Loan thru a mortgage co...before they will do the loan they want a $350.00 up front fee for transfer of the appraisal and transfer of deed...can that be rolled into the cost of the loan...{we are also asking for extra money above and beyond the refinancing amount}...our home has doubled in value in the last 2 years...is it possible to roll that up front amount in to the loan and then the mortgage co. can receive the $350.00 when the refinancing is complete? We don't have the $350.00 to give them at the moment but want the house to be refinanced...
Thank you.
ladybug55552001,
I would be very careful about handing over $350 to the mortgage company to do the refinance. I am in the process of refinancing my home and the only check I wrote was straight to the appraiser. I did not pay my mortgage company for the appraisal. I also used a mortgage broker, who can find the best interest rates for you.
If there is enough equity in the property, then the closing costs are usually wrapped into the loan and you don't have to pay much money for the refinance. If you wanted a cash-out refinance, then you get a check back at closing for some of your equity. You should ask them if you can pay the appraiser directly when they come out to appraise your home. If not, then consult a real estate attorney or hire a mortgage broker to find a cash-out refinance loan for you.
Tanya
Hi...thank you for your answer Tanya 1215...we are in the middle of a foreclosure right now...the sheriff's sale was June 18th.and no one bought the house...it reverted to the bank and we have 6 months to redeem it.....the lawyers office doing the foreclosure had an appraiser come out and the appraisal is already done...the appraiser recommended a lady that does mortgage refinancing for Guaranty Mortgage Co. here in Michigan...she says she has been doing mortgages for years and is working for this mortgage co. on the side...she wants $350.00 for a Transfer of Appraisal and Deed and $12.00 for a flood check...she wants the $350.00 up front before she will do the Homesavers-Cash out refinancing...can the up front fees...$350.00 and $12.00 be rolled into the cost of the loan and she will be paid out of that once the loan is approved and comes thr?...We don't want to give her money up front since we really don't have it at the moment...but our house value has doubled from 93,000.00 to high $180,000.00 in less than 2 yrs... we have gained over $80,000.00 in equity in less than 2 yrs...we have only owned the house for less than 2 yrs..we just want to make sure this person is being straight with us...and don't want to give her any money until the refinancing has come thru...thanks for your time...and please let us know asap...
Well, now that I have the whole story. Since the bank owns the property, then they had an appraisal done on it. But, how much did it appraise for? If the appraisal the bank got didn't show the new equity that you say there is, then the closing costs to refinance may have to be paid by you. You can ask her if you can have another appraisal done, which will cost you. Any appraisals you get will is usually an expense to you. So either way, if you transfer the bank's appraisal or get another one done yourself, you will have to pay for it.
You can borrow the $350 from a friend/family and tell them you'll give them back $400 after you refinance. Just make sure that the appraisal is what you say it is.
Tanya
Dear Tanya1215,
We know what the appraisal is because we got it straight from the appraisers mouth when he went thru and appraised the house last month...anyways thank you for your answer...we found out that we can roll all the up front costs into the loan...so everything is fine...and the house appraised for twice what we paid for it {in less than 2 years..} we have seen the appraisal on paper...
I guess I don't understand what is going on. I can see paying for the appraisal but what is this about the deed. Here in Michigan we have a 6 month redemption period. The bank does not own your house. You do. Now you might want to figure out what the 350 is going for. It shouldn't have anything to do with a deed. Maybe an appraisal. Just remember you still have the right to redeem the property and the bank does not own the house until after the redemption period. So this give you a lot of time to figure out what you are going to do. Take the time and don't rush into another loan until you figure out where all the the costs are going to.
Tom