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Mortgage Advice

A

Armitage

Banned
Well I've got to pay off the x :|
Problem is, there is a large, unfinished addition on the house, and no lenders will touch it because of that. I've talked to 3 different brokers, and none have come up with anything so far.

Even with the 1st, 2nd and payoff to X, I'm still only about 85% LTV with respect to the latest appraisal. And the appraisal treats the space in the addition as if it doesn't exist. I get no credit for it on the appraisal, and in fact the value takes somewhat of a hit due to the potential difficulty selling a home that's under construction. There is no construction ongoing in the existing livable part of the house ... the wall has not been knocked down between the two yet.

My credit is excellent ... low score was about 710 last time I checked a few months ago. And my debt to income ratio is fine. Everybody tells me that the only thing holding this up is the fact that it is under construction, and the underwriters won't touch it.

Any ideas?
If I can't make this work soon, I will lose my house 🙁
 
Originally posted by: Bryophyte
What's left to do on it?
Click to expand...

Have to run a new gas line from the meter
Most of the heating system
Insulation
Drywall
bathroom fixtures
electrical fixtures
interior trim & finish
flooring

I guestimate at least another $10K to $15K if I do it myself. $20-$40K if I contract all of it.
 
I suggest you consult the bank of Family and Friends, as they are likely the only ones that will loan you money under those circumstances.
 
Originally posted by: rahvin
I suggest you consult the bank of Family and Friends, as they are likely the only ones that will loan you money under those circumstances.
Click to expand...

Yea, well the bank of family & friends doesn't make loans in that amount. At least not my local branch. I could get enough to pay of the x that way without much trouble. But I have to refinance the whole thing to get her off the deed & existing mortgage.
 
What's the square footage of the unfinished addition? How about the rest of the house?
 
Originally posted by: Vic
What's the square footage of the unfinished addition? How about the rest of the house?
Click to expand...


Original House: 1600 ft^2
Unfinished Addition: 1400 ft^2

Yea, I know it's absurdly big. That's a whole nother story.
 
Originally posted by: Armitage
Originally posted by: Vic
What's the square footage of the unfinished addition? How about the rest of the house?
Click to expand...
Original House: 1600 ft^2
Unfinished Addition: 1400 ft^2

Yea, I know it's absurdly big. That's a whole nother story.
Click to expand...
You got a problem (as I'm sure you know).

Does the unfinished part show from the front of the house?
 
You don't have to refinance entirely to take your ex off the deed. She can quit-claim at the title company. Her name will still be on the mortgage, but you can have your lawyer send the lender a notice regarding the divorce and how she is no longer financial responsible.
Do a new 2nd mortgage with a drive-by appraisal requirement only. Even better, look for one that will use your tax assessed value or an instant market analysis, and no appraiser will come out to your home at all. Use the new 2nd to pay off your existing 2nd and your ex, plus squeeze as much cash out as you can to finish that addition. That's my advice.
 
Originally posted by: Vic
Originally posted by: Armitage
Originally posted by: Vic
What's the square footage of the unfinished addition? How about the rest of the house?
Click to expand...
Original House: 1600 ft^2
Unfinished Addition: 1400 ft^2

Yea, I know it's absurdly big. That's a whole nother story.
Click to expand...
You got a problem (as I'm sure you know).

Does the unfinished part show from the front of the house?
Click to expand...

As you can see from the photos, the unfinished part shows. But it doesn't really look unfinished from the ourtside, except for stuff like lights, electrical outlets, etc. (which could be taken care of quickly). and landscaping of course, but I don't think thats an issue.
 
Originally posted by: Vic
You don't have to refinance entirely to take your ex off the deed. She can quit-claim at the title company. Her name will still be on the mortgage, but you can have your lawyer send the lender a notice regarding the divorce and how she is no longer financial responsible.
Do a new 2nd mortgage with a drive-by appraisal requirement only. Even better, look for one that will use your tax assessed value or an instant market analysis, and no appraiser will come out to your home at all. Use the new 2nd to pay off your existing 2nd and your ex, plus squeeze as much cash out as you can to finish that addition. That's my advice.
Click to expand...


I have a company that will do a second at a good rate already, based on the full, under construction appraisal. But I'm under the impression that my x has to come off the first. Just a quit-claim is not enough. Not true??

I suspect she won't agree to that though, because if her name is still on the first, she won't be able to qualify for her own mortgage, right?
 
Originally posted by: Armitage
I have a company that will do a second at a good rate already, based on the full, under construction appraisal. But I'm under the impression that my x has to come off the first. Just a quit-claim is not enough. Not true??

I suspect she won't agree to that though, because if her name is still on the first, she won't be able to qualify for her own mortgage, right?
Click to expand...
She would have to agree to it and the mortgage will probably remain on her credit report. But the divorce decree says that you get the house and are responsible for the mortgages, correct? That's all she would have to show to any lender in order to qualify for her own mortgage (provided all her other qualifications were in line). The underwriter would see the divorce decree (she would have to provide a complete copy), see that she is not responsible for the mortgage payments on the old house, and would remove those payments from her debt ratios.
 
Well, she said tonight that she would accept that plan, but I'm not really convinced she understood it. She's not to bright on stuff like that. But we'll see.
I've got a lender that will give me prime + 1/4 to cover my 2nd, the settlement, and maybe a few K toward finishing hte work.
 
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