Am trying to do a non cash out refi and I lost my job

[Jestin Sorenson]

I lost my job before finishing a refinance and I would like to know what my options are? I haven't told the lending company yet, but they are asking for my employment verification. I had  a job when they asked for the employment verification and thought it was completed, but it wasn't. I wasn't trying to lose my job. I put a lot of time into the rehab of the house where I was working 90 hours a week between the day job and the house. I couldn't keep up on both. I bought the house for 145k from a hard money lender, actually the wholesaler. I put 15k into the property and it appraised at 213k. We have it rented with a lease for $1500 per month. I was making 140k/year as a contracted software developer. I didn't tell them I was contracted but w-2 since it's much more complicated when you contract or so I hear. Does anyone have any advice or options? I am not doing a cash out refinance. If I told the lender I am a contractor, would it matter if I had a job or not as long as my average income for the last two years was a certain amount? I could prob get another job in the next week or two. Do I wait till I get another job? What's the best way to approach this? Thanks in advance for any advice you can give!

[JD Martin]

Ouch. This is going to be painful for you. My guess is that you will have to find another lender, and your short time in service at your job is going to work against you, as is your lack of assets. Frankly, I'm shocked that anyone would underwrite this deal based on your financials; I would guess they gave you benefit of the doubt because of your income. 

I wish I could be more positive. Best advice I could give is to get another job and try again after you have some time in. Just curious, it sounds as if you lost your job because your performance was suffering from working 90 hours between the job and house? If that is the case, I think it's a good lesson for future readers: understand where your bread is buttered. Losing a $140k job over, at best, a couple hundred dollars in cash flow, probably wasn't the best strategy.