Can we refinanace loan when it is listed on MLS

[Sanjay Gupta]

We have hard money loan and house is fixed , however we don't have buyer yet so would like to refinance from Hard Money Lender to conventional lender. 

When we talked to WellsFargo, they said you can't refinance, if it is listed on MLS so what are our options.

[Andrew Postell]

@Sanjay Gupta first, under no circumstances use that lender for investment property lending.  While some people may have lucked out and had a decent experience that lender has misled and mistreated so many investors with loans that many realtors have stopped accepting their prequalification letters.  They have too many overlays for us investors.

To answer your question, technically you CANNOT refinance with a conventional loan while the home is on the market.  The normal parameter is to remove it from the listing for one day, so they can validate it was removed, and then continue on.  You can start your application, go through the entire process, and then take it off the market, and then relist.  That's the way "around" that requirement.

HOWEVER, in order for you to refinance you are going to have some costs related to the transaction.  Usually, those costs equate to about 2 months of hard money payments.  I'm not sure what market you are in but 30 days to complete the refinance, then 2 months just to break even....that's 3 months.  Do you think it will take you 3 more months to sell this home?