HELP! CASH OUT REFI DISASTER!

17 Replies

I have been in process of doing cash out refi with a national bank lender and the process has been dragged on for 6+ months, the lender reps are unresponsive except when they ask for additional docs and would not give me ETA for closing, although I was supposedly in closing for the past 2-3months. Does this mean they don't want to do the loan? What recourses do I have? Can I just go to another lender or do I have to notify current lender to withdraw my application? All suggestions and assistance are welcomed! Thank you!

It sounds like they do not want to do your loan or that you may be borderline qualifying in their eyes.

Are you self employed? What state are you looking to do this cash out Refi in? 

I would suggest just visiting another lender. Why keep beating on a dead horse? 

Move on to another lender. It's evident they don't care about your business.  There are plenty who will.  

@George C. who is this lender? 

You paid an up front fee to lock a rate? Something seems terribly off.. I hope you didn’t get taken for a ride. 

Usually they’ll just deny your loan. I would just go about finding a new lender. Maybe you can send them an email stating to please withdraw your application.

@George C.

That’s the problem!! It’s terrible right now.

Worse, what happens now is everything you’ve been submitting is too old to use.

We could scrap half of the laws in place and utilize technology so much better to help customers as an industry (speaking as a direct lender).

I’m doing almost all of my company’s closings without external appraisals because it’s taking months to get them back.

Good luck man.

@George C.

I’m in the same situation. I just changed lenders. I’m supposed to close on a new home July 2. My new lender said he could close within 45 days. Possibly 30 days. PM me if you want his contact number. He’s a RE investor like us so he gets it.

@Raymond J. Rodrigues Valley National, and I have an existing loan with them thought that would've helped but guess not! it's supposed to be refundable at closing but unclear if that's going to happen, I thought they would just let me know they don't want to do the loan instead of keeping me in the dark, I will send an email and figure out next steps, thank you for your input!

@Dustin Lauer thank you for your feedback, interesting to hear from a lender side, appraisal was actually done couple months ago and all requested docs were submitted, so it's unclear what's delaying other than them not wanting to do the loan, great point about using tech to improve the process, hopefully that's where we are headed

@John Morgan how long did you wait previously? ok great I'll PM you thank you!

I hate hearing stories like this, but there are so many variables that can be at play that I won't totally slam the lender, but it seems as if you just need to take the loss and move on at this point

@George C. Same thing happened to me on a refi on a apartment building I rehabbed. The frustrating part was the existing mortgage was with this local bank as well.

Kept asking for more documentation stating “we just need this one thing and we will issue commitment letter, tomorrow.”

They strung me along for 4 months until they finally said “they weren’t comfortable doing the loan.”

Thankfully the new lender I placed it with was agreeable to accepting the appraisal I had already paid for.

Refi closed with much better terms in the end. But it was very stressful.

Bottom line. The writings on the wall. Dump them!

@George C.

Mine took 4 months no cash out. Lenders esp large ones are swamped. Appraisers are booked out for months. Did your appraisal get done? They typically will honor rate lock since it’s not your delay. But small portfolio bank might do it faster and/or have in house appraiser? Rate might be a bump higher but worth asking.

@George C. I'm closing yet another rental loan with a bank that lends its own funds thus are easier and faster to do under writing. Poke on there website fir someone to work with swbc dot com. I've done about 6 Fannie loans with them and had some problems elsewhere, idiots in the back end, and swbc closed that liN in 3 weeks...

Yes a problem today with us investors and rental houses!

Not all lenders are the same by 1000x.

@Matthew Drouin yeah you would think it'd go smoother if you have prior history with them but guess not, glad it worked out better for you in the end, hopefully I'll have similar ending lol thank you for sharing!

@Joseph Hummel agreed, got that sense too but it was tough to gauge since there was limited communication, the appraisal was done couple months ago, hopefully they won't want another one, my original application actually expired and they gave me a better rate, if I need a new rate it's gonna be higher hoping that won't be the case! I definitely plan to explore other options soon, thank you for commenting!

@George C. No swbc is a "bank" or "fannie" lender. And portfolio AKA a DSCR loan are 10x easier to qualify for peronsally AND reserves wise. Just they are somewhat higher interest rates, still under 5% for a rental loan, and lower LTV, often 70%. But a fannie cash out REFI is 75%.. I have several DSCR loans and those rentals cash flow great. Its in how well you bought.

Of course if you are squeeky clean, high income, low debt buy or refi your rental loan with a bank/fannie loan. But if you can't get through underwriting, then check out DSCR lenders. Ask in your local REIA. Find local REIAs in meetup.org or googling; city REIA. I have a loan through Lima One. But local Credit Unions do DSCR loans too. A few friends have gotten both FANNIE and DSCR loans from financeofamerica.com . But SWBC is best for FANNIE and possibly finance of america is up tehre for DSCR loans.