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Can a disabled person get approved for mortgage refinancing?

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Welcome to the forums.

You can refinance and lower your monthly payments. But you should replace your current mortgage with that having a 2% lower rate; otherwise you won't benefit from refinancing. Our resources on Refinance can give you a complete knowledge of the process.

I would also like to mention that in order to pay off the mortgage, you can also use Mortgage Disability Insurance provided you have earlier applied for the policy.

Thanks,

Caron.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Need to refinance now. Seven months before I was placed on total permanent disability had refinanced my house to a 15 year loan. My monthly payment is $2926. My gross monthly income is now $5200. My home's value is $375,000 at the low end and the low $400,000's at the high. Have tried to survive, but is getting much harder. Any suggestions?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

You can go for a loan modification program. It will lower your monthly payments so you can afford them. Discuss this with your lender and let us know what they have to say.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have been put on permanent disability from my job. I am getting my disability payments. But that it is not enough to manage the high interest rates on my mortgage along with other necessary expenses. Can you let me know if I can refinance my existing mortgage though I am on disability?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You should note here that if your monthly income with your disability payments is high enough so that your total monthly debt, including your new mortgage payment, is less than 36% of your monthly income, you can qualify for a standard refinance.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

skyden.dredge's picture
skyden.dredge | Joined: July 22, 2011 01:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you are permanenly disabled, then the income that you earn from Social Security Disability, is factored into your income by the lender while approving your refinancing request. Apart from income, if you meet other criteria, then your request is granted.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am on permanent disability 3 years ss and ssi with a prior bankruptcy 6 years ago. The court did not reafferm the mortgage with citi bank but i have made my payments to them as I agreed to do with citibank. Citybank will not refinance and threaten me not to be late on even 1 payment. I contacted another mortgage co, I was denied for lack of income income disability doesn't count (they said). what can I do. my credit rate is about 700 and I am 1 payment ahead on the house. I have just enough to make payments with no extra for any emergency. What can I do?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi hjp sr.,

As the court haven't reaffirmed the loan, you're not liable for it personally anymore. Moreover this is one of the reasons why the lender is not refinancing your home loan. If you wish, you can walkaway from the property.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am on permanent disability and my monthly mortgage payment of $1,000.00 takes most of my income.
My lender said they would refinance
my mortgage but I would have to pay $3,000.00 to do this.
I don't have that kind of money, so I am wondering if I have any
other options open to me.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi ggs,

I don't think there is any other way apart from refinance. You will have to somehow manage that amount and go for refinancing.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

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