Refinancing Help Needed

[Lara Gonzalez]

Hello BP family! I am hoping to get ideas on how I can refinance my property:

I bought my first property a little over two years ago using seller financing with a wrap around mortgage. It is a four bedroom home in which I house hack 2 of the rooms. The terms of the agreement were that I had to refinance the house in two years. The sellers have graciously extended the agreement to the end of March. Last year for 2019, I made more than enough to be able to refinance however this year my income has dropped due to COVID.

My first option would be to refinance with a traditional loan, however, due to a complicated tax situation, I had to amend my 2019 taxes and now I am at the mercy of the IRS to give me my return back. The IRS has said it can take up to 16 weeks or longer which would put me to mid-January. I would like to have a couple back up options on how I can refinance without a traditional loan in the case that I don't have my 2019 taxes back to meet the March deadline.

I currently owe $284,445.73 and the house is worth $380,000. I have thought about using a hard money lender but then I would be in the same position of needing to refinance again in 6-12 months. I am also weary of what the housing market may look like a year from now and whether I will have the same amount of equity as I do now.

I am located in Southern California, my next thought would be to go to small local banks to see if any of them will use my rental income from the two rooms in addition to my 2020 income. The only problem I can foresee is that they will also want my amended 2019 taxes which I am not certain for sure when I will get back. If anyone has recommendations for banks in So. Cal, I would appreciate that as well.

I am open to any and all ideas. Please keep in mind that the note holder (seller) WILL NOT go for another extension.

Thank you!