still trying to refinance

anyone with any advice?

before your boss hired you as a independent contractor what were you doing? did you work for him as a w-2 employee? if so than you will still be treated as a w-2 employee not self employed. the 120 days on the mortgage should be fine as long as you have not been late in the past 12 months.

I have worked in the same field for 15 years, with 1 year time off when I moved from one state to another. I was always a W2 employee until I moved here and started working for my new boss. So I was working in the same field doing the same thing, but now for a different boss.

i know the bank i work for says as long as you were a w-2 employee before you went to contract work in the same line of business then you are still treated as a w-2 employee

how do I explain that to the mortgage person who I am working with now? I just don't understand how something which seems so simple to me is SUCH a big deal with Mortgage people? I understand with the economy and everything, but this has been going on for the past year BEFORE the lending industry tightened up so much!

ask them " i understand that you have to treat me as self employeed but since i was a w-2 in the same line of work prior to me becoming a contract employee you should be able to use my w-2 work to make up the 2 years of self employeed work that you need" this is a guidline that changed about a year ago so basically the 2 years of self employeed job time can be made up of your w-2 and the contract work. the thing that they should need is your contacts and tax returns. i hope this makes since

thank you very much for the advice, I'll give him a call now and see what he has to say with this info.

let me know how it goes. if it does not work out let me know what state you are in and i can probably find a bank to do it

he is still giving me the runaround, nothing drives me crazier than someone who doesn't call me back. The last I heard was Friday was an email that said "I am meeting with the senior lender tomorrow to discuss the loan request and I will be back in touch with you later tomorrow or on Saturday." So I called him today to see what happened Friday, and he said the lender asked him a couple of questions in an email Monday and that he's been "too busy" with month-end stuff. My application was submitted January 23, and it is February 25 now ... am I wrong to be annoyed? I know that mine is not the easiest case, but he will make money off of me! And now if I go to another lender, yet ANOTHER inquiry! GRrrrrrrr!

what state are u in? keep in mind that a mortgage inquiry is a soft hit. i have seen where 5 banks have pulled infront of me and the scores were all the same

also it sounds like you are going through a broker if it were me i would go straight to the bank and cut the middle man out. i have worked on both sides and going straight to the bank is much easier

I am in Missouri. Each inquiry any new company orders is a "hard" pull, unless they are within a 30-45 day period, then only the first one counts.

I went directly to a bank this time rather than a broker, this guy is the vice president of real estate lending for the bank, and he said they are looking "in house"... whatever that means?

in house means that they are trying to do one of there own loans that will be held at the bank and not sold to fannie mae or fha the the in house do take longer to approve. dont be fooled by vice president just about everybody at a bank is. instead of us getting raises they give us a job title.

oh okay thanks, I am crossing my fingers and toes hoping that he'll be able to pull through with something after all this time!

Yeah, I'm a VP at a bank... it doesn't take much to earn that title. My brother, who works at a different bank, was given an Assistant VP title after 9 months of working in the industry, after just graduating college. Don't let the title mislead you...

smo65d11-

did you get your loan closed?

No. I could scream. I applied online January 23, have had a couple of emails with him that I instigated, a couple of phone calls that I also instigated, and nothing... no "sorry, we can't help you", not even a "screw you, you 2 year ago late paying loser" ... where is customer service in the lending industry? What a joke. :evil:

I'm really sorry your going through this. I work in the industry and I know some of the us aren't the best at returning calls or having a since of urgency. I don't think this is something that we do here where I work but I'm scanning through guidelines to see if there is another company that will do it.

well thank you Brandy, I would appreciate that! I have a property in Missouri that I live in, and a rental (family member) in Nevada ... both desperately needed to be refinanced!

I work in customer service, and wouldn't have a JOB if I didn't call people back!

Brandy have you been able to see anything that might be of use to me regarding my loan problems?

Hi...I'm sorry for the late reply. I am still checking on this. So far I'm not coming up with anything. Have you checking with your local bank? Sometimes they will do this stuff. Otherwise, your not that far away from being within guidelines.....lol

Hang in there.

what do I need to do to be within guidelines? Where are my problems, and are they fixable?

The only issue I see is self employment less than 2 years. Everything else looks fine.

one person said that I have to show a profit ... is that true? Because with write-offs, depreciation etc with both my self employment and rental property, I showed a loss last year ... is that going to be an issue even after my 2 year self employment is dealt with?

*sigh* This is correct. Another hurdle you will have to overcome. I'm really sorry you're going through all of this. Back in the day you could just do a STATED loan and be done with that. But then again, I'm sure STATED loans have contributed to the foreclosure melt down.

Refresh my memory. What is it that you are trying to accomplish by refinancing?

I have 2 properties, the one I live in has a $70,000 loan at 10.025% interest, and my rental home has a $150,000 loan at 8.25% interest ... The high interest rates are the BIGGEST reasons I need to refinance. But my FICO's are in the 700-715 range now, which is why I thought I would have no problem refinancing!

Ok. I'm digging further for you.

thank you so much Brandy, I do appreciate all of the help!

So you are an Independent Contractor. Are you 1099 or w-2?

Independent Contractor - 1099, but it is in the same field (Insurance Agent) that I have been in for 15 years

What is the approximate value of your house?

The one I live in is about $115,000, the rental home is maybe $400,000 now and dropping, it was over $600,000 2 years ago

I'm sorry but I don't think you have any options. You could do a loan mod on the home you live in. With the rate being that high it shouldn't be a problem. You might have to use an attorney to do this or I would start with your existing lender.

Also, have you contacted the lender that has it? They might be able to do something since they already have the loan.

As far as the non owner occ, you might want to check with the original lender on that one as well.

I hate to say it, but you don't really have alot of options. I have sorted through over 200 lenders and I cant find one that will do this. You have to be profitable for 2 years and make enough for you to qualify.

jeez are you serious??? That is so depressing! So is my big problem the lack of profit?

I'm sorry. I really do hate this for you. Problem is 2 things, self employed less than 2 years and no profit. We would use the profit to calculate your income. Since most self employed folks want to write off as much as possible on their taxes it leaves you with little to know profit. Example, you bring in 100,000 after all the write offs and such your profit is 4000. We would then take 4000 divide by 12. This would give us income of 333 per month. Obviously we couldn't do the loan based on only making 333 per month.

So to sum it up, self employed less than 2 years and lack of profit are the issues. You will need to show enough profit for you to qualify before you can do the loan. So you could actually be anouther 2 years away from being able to refinance. This is why I suggest trying to get something done with the lenders that have the loan now.

You have a better shot at that then going someplace else. You could also try your local bank or the bank you have checking and savings with.

This is considered an out of the box loan.

I'm sorry I don't have good news.

I tried to do loan modifications on both loans 6 months ago and was rejected on both because they said I did not make enough money ...

I appreciate your candor and honesty and desire to try and help me!

*sigh* Bless your heart. I really am sorry for you. With you being self employed now it's going to be difficult. But keep in mind, it's not forever and guidelines are changing all the time.

Please feel free to ask many anything else. I just wish I had more pleasant news for you.

if I could sell the rental house I would, but it is so far below valued right now and is in a town where the foreclosures dominate the market ... that would solve my problems though, thats for sure!

Thanks again for your advice and guidance!