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Guest

Hello -

I have a question/problem. Recently, I started a refi, and during the process, lost my job, so am now unemployed. However, the new mortgage company is not aware of my lack of employment, and everything is now ready to close at a much better rate with much lower monthly payments. The underwriter has signed off on all the terms, including a large HELOC that is already subordinated to the new mortgage company as is my homeowner's insurance. The problem I have right now is that the mortgage company cannot close for several weeks due to a backlog on their end.

My former place of employment is keeping me officially 'employed', at my request, but without pay or job duties to keep the refi from falling through. However, to back that up, I have not applied for unemployment compensation as of yet.

My problem at this point is that I would like to apply for unemployment benefits without waiting another three weeks of having to exist on my own resources, but am concerned that the new mortgage company will somehow find out about my current lack of employment if I do so, even though everything is set for the closing now except their backlog of work.

If I were to file for unemployment benefits now, could the new mortgage company find out, or or is it safe to go ahead with a state unemployment application without risking the refi?

Thanks much for any responses.[/u][/left]

Guest

I should reiterate that I am officially 'employed' at this time - just not being paid anything.

helping_user · Posted: Tue Feb 03, 2009 1:11 am Post subject:

Welcome doriantm.

It's good that your former employer has kept you officially "employed". But will you be able to make payments since you don't have the income. I mean are the unemployment benefits enough for the monthly payments and your daily expenses. It will take some time before you get a well paying job, isn't it? Oh, by the way, you can start off with a part time job and then later switch over to full time employment.

Thanks.

msnover92571 · Posted: Tue Feb 10, 2009 5:21 pm Post subject:

I dont think they will find out that youve been unemployed if you try to claim unemployment benefits. And like the other guy said will you be able to afford this being unemployed?

Guest

Keeping up with the refi payments is not a problem for a couple years, or even longer as long as I watch my expenses although I will eventually be dipping into my retirement savings and home equity and of course I don't want to do that.

IAC, I recently did close, but in the contract there is language about their checking on my employment status after the closing - this company sells the mortgage to third parties only. Let's suppose they found out that I'm actually unemployed a couple of weeks down the road - can they cancel the refi that late?

smithsussane · Posted: Mon Feb 23, 2009 9:54 pm Post subject:

Hi doriantm!

Welcome to forums!

Yes, if the lender checks your income before the closing and if he finds out that you are unemployed, then he can cancel your refinance.

Sussane

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