Repairs before can refinance

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Icon Mini Profile lenorats





Joined: 21 Dec 2009

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Post Posted: Mon Dec 21, 2009 8:27 pm    Post subject: Repairs before can refinance
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I am trying to refinance, but appraiser say I need to spend over $5,ooo.oo on repairs before I can. I just spent $750.oo on roof repair, but appraiser says it is not enough. So I have lost the $750.00, Is there any way to get it back if I cannot refinance?I am 71 and on a fixed income, and have no interest in moving because, for one thing I live alone except for 2 cats and 1 dog.If someone could give me a solution, it would be muchly appreciated. Thank you.Seems as if what the appraiser did is illegal. I haver missed a payment, or been late on a payment.
Icon Mini Profile jenkin7
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Post Posted: Mon Dec 21, 2009 10:47 pm    Post subject:
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Hi lenorats,

You will have to complete the required repair work in order to refinance the property. You cannot get back $750 which you spent for repairing the roof. How much equity is there in your property? Have you thought of the option of reverse mortgage? One needs to be at least 62 years old and has to use the property as a primary residence to qualify for a reverse mortgage. Since you are 71 and have no intention of moving away from the property, I believe a reverse mortgage could be a good option for you. The best part of this type of mortgage is, you do not have to make any monthly payments. Instead, you can receive money in lump sum or in monthly installments. If your property needs repairs, you can pay for the repair expenses out of the reverse mortgage proceeds. Some repairs can also be done after closing on the reverse mortgage.
Icon Mini Profile jameshogg
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Post Posted: Tue Dec 22, 2009 12:26 am    Post subject:
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Hi lenorats,

You have already spend the money on the roof repair. In that case, you will not be able to get back the money if you are unable to refinance the mortgage. I don't think the appraiser did anything illegal. Getting the home improvements done would have increased the value of your property and it would have been easier for you to refinance. As suggested by Jenkin, you can definitely think about the option of reverse home loan provided you have equity in the property.

Thanks
Icon Mini Profile hecmrev





Joined: 10 Oct 2009

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Post Posted: Tue Dec 22, 2009 12:36 am    Post subject: Using a reverse mortgage for home repairs
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As someone mentioned above a reverse mortgage could be a great solution to get home repairs done to your home. As long as you have enough equity in your home a reverse mortgage could provide you with funds to repair you home.

In addition you would be able to say bye to your mortgage payments for life. This in turn would allow you to keep the payments you were making to your mortgage company. If you can find something better to do with your money than pay it to a mortgage company, a reverse mortgage may be a great solution.

In order to determine if you would qualify, a bit more information would be needed.

~ Estimated Home Value
~ Esitmated Mortgage Balance
~ Age of all parties on title
~ State you live in
~ Property Type

Hope this helps!

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Anthony
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Icon Mini Profile gmakerley
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Post Posted: Tue Dec 22, 2009 2:15 pm    Post subject:
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so am i to understand that with a reverse mortgage, a borrower could get repair funds? that the $5000 needed to allow our borrower to qualify for the mortgage that he had hoped to get would not be needed in order for him to get a reverse? that strikes me as incorrect, but i welcome the opportunity to learn how it works. please clarify this.
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Icon Mini Profile hecmrev





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Post Posted: Tue Dec 22, 2009 2:25 pm    Post subject:
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If a borrower needs repairs on his home, a reverse mortgage would allow him a couple of options depending on the program he goes with.

With a line of credit reverse mortgage a homeowner could escrow most repairs with funds from the reverse mortgage. If the repairs are considered health hazards, the repairs would be required before closing. In that case most contractors will be ok doing repairs and getting paid after closing.

With the new fixed rate option, all repairs would have to be done prior to closing and the contractors could be paid at funding in most cases.

If the repairs are excessive, the home may not qualify depending on the estimated cost for repairs vs the amount the homeowner qualifies for.

So, yes a reverse mortgage can be used to pay for repairs.

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Icon Mini Profile gmakerley
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Post Posted: Tue Dec 22, 2009 2:38 pm    Post subject:
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thanks anthony.

$5000 wouldn't seem to be "excessive" in any case, so that ought to settle lenorats' nerves a bit. i hope so.

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Icon Mini Profile hecmrev





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Post Posted: Tue Dec 22, 2009 2:40 pm    Post subject:
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We still don't know if he has enough equity to do a reverse mortgage at this point since he didn't post that information.

Your Welcome

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