How does starting eviction Affect Re-Fi

Question

Want to refi and am on the verge of starting evitcion. How does me starting eviction affect re-fi? Income from the property might be considered for qualifying.

Nicole Collins · Answer

My lender required me to have 6 months of the mortage in my savings to qualify for the refi. So it doesnt matter if you are evicting. Where I could see it being an issue is with timing. They will ask for a lease and if you dont have a tenant than that may be an issue. They may require you to get a new tenant before closing (have a signed lease and security deposit).

Nicole A. · Answer

I guess it depends how in the weeds your lender gets. If they simply ask for a copy of the current lease, just give them the copy. Do you also have a healthy savings account? I think lenders expect there to be vacancies, which is why it also comes down to your overall financial picture.

I suggest just simply move forward with the refi, and perhaps don't offer up more details than is asked. Once you file for eviction, perhaps your tenant will see the situation is serious and pay up. Do not delay on either starting the eviction nor starting the refi (if the refi will help of course). I assume you have not received July rent and here we are less than a week away from August? Get started. Good luck!

Kevin Breslin · Answer

Thanks Nicole(s),

That is good info. I have the 6 mo. I will move forward with the refi now. If I am out of tenant at the time needed it will just be a delay and likely get a higher rent.

Any more gotchas? Pro moves?

Thanks Again.

Kevin Breslin · Answer

Thanks Nicole,

I was intending to proceed as you suggest but am looking for gotchas. I'm printing the late notices. Ya I know they are late.

If anyone in CA or who has had issues with re-fi would chime in that would be great.

Thanks