All Forum Posts by: Anna Dyal

Forbearance may restrict you from any CASH OUT government backed loan. It appears a better than a short sale. You need to have a payroll check to refinance. Can you show you have made past 24 months mortgages as agreed? You provide mortgage bill, past payments, forbearance agreement, and amount added on the back end. That back end amount gets paid with any refinance you might find. Do you know how much the payoff is?

I'm not licensed in NY but can give you a name of someone who could advise what rate might be available.

With your score you can get a loan but you will find the rate is VERY high.

Some NY state funds also limit you from cash out - read what you signed. Don't trip yourself there.

Lenders will not use the STR as it doesn't show on past two years IRS taxes, it's only a couple months. Be careful that you applied for funds if you didn't report this new income.

Hard money won't lend on primary residence.

Here are my solutions:

Start negotiating with hospital, physicians, medical bills for hardship relief- daily and in writing. Get the medical off your shoulders.

Get back to work. Be careful with your health and get better.

Don't get a hard money loan on the duplex it will only make your financial problems worse. Bumping the payment up short term is not a good plan.

Pay the highest credit card extra payments and everyone else on time. Get cards to under 69% of the available line.

Don't close accounts. DO NOT let anyone to pull your credit (can happen when you shop for insurance or any time you give someone your social and date of birth).

Move in with Mom to save more money. You need money in your checking account.

You say you don't want to sell and desire to buy more properties. Selling one property would solve the current stress. What can you and Mom make create sell on the side?

Do not withdraw 401k. Use tax refund to pay credit cards not the medical. Watch tax bills from programs.

I will keep you in my prayers.

Thank you so much for your response. Unfortunately I can't move in with my mom I have a family, 2 kids so I need the room and the second apartment is rented in my mother's house.

I don't plan to sell either houses. My 2 Family House that my mother is living in is currently up to date and also the Heloc on that house is up to date. It has been for months. It's rented and that rent is taking care of that mortgage and bills. So I don't want to sell that house just want to cash out refinance it.

My SFH is the one that is on forbearance. I have been approved for the NYS Homeowner fund. It's for about 50k but I don't know how much I will be receiving from it. Either its gonna be 50k or maybe less. It's still in the works and The NYS Homeowner fund already contacted my SFH Morgage company to let them know that I was approved for it but the process has been so long I wanted to see how I can refinance and get access to the cash to pay down my debts and look for my next investment property to live in for a year and brrr.

The forbearance is what is affecting my credit so once the Homeowner funds pays the morgage company I will become current on my SFH morgage. I wanted to see my options on how I could speed up the process by not having to depend on the Homeowner Fund and see if I can refinance this house without it. I have started an Airbnb on part of the SFH so it's now also producing income to help with my mortgage once I start paying it again. So any advice on that?

0 Votes

New York City, New York

Quote from @Minna Reid:

With a 565 credit score, lack of solid employment history, and currently in default on your mortgage, you will not be able to get a refinance, or a refinance with cash back. I don't see an HML touching this either.

I have some advice:

- Get payoff statements from all your lenders, and figure out the current as is values of all the properties so you know the true equity positions.

- Sell the house that makes the most sense to sell to get the cash you need.

- You need to start working with your lender on the one in default now, unless thats the one you need to sell. You will likely need to modify if you wish to keep it. The forbearance and current defaulted payments are due now and collecting interest and fees while we speak. They will quickly eat your equity. After 4 missed payments they can legally start foreclosure and the fees are going to pile on fast.

If you are going to modify, you are likely at least 3 years away from gaining new financing. You are currently at least 1 year away from financing (if you had the ability to bring everyone current today) , but if you keep the SFH you will now need a mod.

Also - in reading the numbers on these homes, quite honestly none of them sound like good long term investment pieces to hold on to from a rental standpoint. Not sure why you want to keep them. However it sounds as if (if your numbers and my math are accurate) you have $600k in equity. If that is the case, where is what I would do: Sell them all now before the declining market and loan fees eat away your equity, and pay cash for a SF and/or multi that will actually cash flow, and move in.

Hi thank you for your advice. I don't plan to sell either houses. My 2 Family House that my mother is living in is currently up to date and also the Heloc on that house is up to date. It has been for months. It's rented and that rent is taking care of that mortgage and bills. So I don't want to sell that house just want to cash out refinance it.

My SFH is the one that is on forbearance. I have been approved for the NYS Homeowner fund. It's for about 50k but I don't know how much I will be receiving from it. Either its gonna be 50k or maybe less. It's still in the works and The NYS Homeowner fund already contacted my SFH Morgage company to let them know that I was approved for it but the process has been so long I wanted to see how I can refinance and get access to the cash to pay down my debts and look for my next investment property to live in for a year and brrr.

The forbearance is what is affecting my credit so once the Homeowner funds pays the morgage company I will become current on my SFH morgage. I wanted to see my options on how I could speed up the process by not having to depend on the Homeowner Fund and see if I can refinance this house without it. I have started an Airbnb on part of the SFH so it's now also producing income to help with my mortgage once I start paying it again. So any advice on that?

0 Votes

New York City, New York

Quote from @Steven Goldman:

Hi Anna, I would sell the SFH and use the proceeds to straighten out the house your mother is living in. It is a universal banking requirement that you can not have mortgage lates for 24 months prior to applying for a refinance. You will also need a much higher credit score. Your best option is to sell the SFH and use the cash to bring the 2 family current. No pain, no gain. Good luck.

Hi Steven thank you for your advice. I don't plan to sell either houses. My 2 Family House that my mother is living in is currently up to date and also the Heloc on that house is up to date. It has been for months. It's rented and that rent is taking care of that mortgage and bills. So I don't want to sell that house just want to cash out refinance it.

My SFH is the one that is on forbearance. I have been approved for the NYS Homeowner fund. It's for about 50k but I don't know how much I will be receiving from it. Either its gonna be 50k or maybe less. It's still in the works and The NYS Homeowner fund already contacted my SFH Morgage company to let them know that I was approved for it but the process has been so long I wanted to see how I can refinance and get access to the cash to pay down my debts and look for my next investment property to live in for a year and brrr.

The forbearance is what is affecting my credit so once the Homeowner funds pays the morgage company I will become current on my SFH morgage. I wanted to see my options on how I could speed up the process by not having to depend on the Homeowner Fund and see if I can refinance this house without it. I have started an Airbnb on part of the SFH so it's now also producing income to help with my mortgage once I start paying it again. So any advice on that?

0 Votes

New York City, New York

Quote from @Kerry Baird:

With the lenders I have used, it would be very difficult to get a reasonable-on-a-monthly payment solution with that credit score. If you haven't done it already, call your creditors and tell them you have a medical issue that has caused you hardship and ask them to reduce your interest rates. I'd want to be paying off those credit cards, doing the debt snowball, and improving your credit score, if I were in a similar situation.

Other options: selling the one house if you have occupied for at least 2 years, so you don't have a tax hit on the capital gains. Pay off some or all of the debt and look for another owner occupied house (not the one where your mom lives). Coming forward into the new year, you may want to see if you are maximizing your taxes.

The STR income is active income, which means that it is a proper business. Watch some of Mark J Kohler videos and see if you can deduct more of your expenses, such as cell phone or home office. Your electrical bill and WiFi will be used partly for the vacation rental business, which means you may be able to deduct a portion of those expenses. Sheets, towels, consumable items such as toilet paper, paper towels and so forth, when used for your business are deductible. LTR income is passive income, which is in a different tax bucket. You might have larger than expected benefits from that choice to run a STR business.

I don't plan on selling the SFH. I plan on converting it to a Multifamily which would put its worth at 900k. After refinancing I will be looking for a new Primary either a SFH or Multifamily depends on the deal I find.

Thank you. You gave me some solid info. 😊

0 Votes

New York City, New York

Quote from @Miranda Holland:

So with 2 homes, you live in one and your mother lives in the other?

Yes I have a family and needed the space.

0 Votes

New York City, New York

Quote from @Wesley Sherow:

Anna, you'll find that refinancing properties is actually a relatively inflexible field. That's at least the case in my experience. You have a few items to play with here; LTV, Interest rates, Term of the loan, and the impact your credit score and PFS might play.

The most equity you can pull out is often going to be with Private lending, which on hard money rates can go from 75% as a standard LTV to a maximum of 90% in certain circumstances. The interest rates you pay for this will range anywhere from 7% to 13% in most cases where you're getting asset backed secured funds.

Some hard money lenders go much higher on rates, but most that underwrite with the property to secure the loans won't. I recommend Lev Capital as a broker to explore this with. They take 1% but in my experience it's well earned on their part.

Best of luck!

Thank you so much. My plan is to buy another primary after refinancing since I have lived in this one for 3 years and to convert the SFH into a two family which would put its value at 900k.

I will be looking into your recommendation.

1 Vote

New York City, New York

Thank you

0 Votes

New York City, New York

Hey I am in desperate need for some advice/getting pointed in the right direction for refinancing my Single Family House(Located in Queens NY) and 2 Family house ( Also located in Queens ,NY)

My situation is a bit complex. I will try to give you a clear picture.

During the pandemic I was injured at my job and been out of work for 2 Years. I was getting paid $3000 per month via Workers comp plus my job still paid me for Holidays since I am still employed so I have those holiday paystubs and W2 from that. I will be returning to work full time next week.

I want to cash out refinance my homes, that is my end goal. But I have quite a bit of debt from my my surgeries etc and personal credit cards etc. I would say it's about $80k. My credit score is about: 565.

Here is my house Information

■ Single Family House is worth about $700k (or more) I bought it in 2019 for $521k I had put down 20% so about 105k. During the pandemic I was on a forbearance plan. I was apporved for NY Homeowner fund but they did not release the funds as yet. So this Single family home is now delinquent and i havent paid anything on it since my forbearance ended I was not working but i am returning in a week as i meantioned. Right now the morgage balance of that is about 480k.

■ I recently started to rent out part of the Single Family House as an STR( Airbnb) for about 2 months now and I have been averaging about $1500 per month but that is because it's been a bit slow.

■ My 2 Family House I had claimed on my taxes as a rental for the past few years. My mother is also on the mortgage with me for both houses. During the pandemic my mother has been living on one of the floor there. I average about $2800 rent per month from that house. The house is worth about 800k or more. Remaining mortgage is about $290k.

I have a Heloc on this 2 family house And remaining is $ 113k. ( I used this HELOC as a downpayment for my Single Family House. I had this house on a forbearance during the pandemic also but my paments is up to date for this house and also the HELOC.

■ I was waiting to get the NY state Home fund but its just taking forever and I need the cash now. I would love to consolidate my debts so i want to cash out starting with my Single Family home but my credit is so bad. I feed so hopeless right now.

What advice can you guys give me? Any lenders who will work with me right now? I don't know how to proceed. Do I wait to refinance? Slowly keep paying my debts down until my scores get better? Wait for my tax refund to pay down a bit more debts? My credit payments are so large they are drowning me. Would an asset base or hard money lender help? How would you get your self out of this? All my cash is tied up in these houses and I feel so stuck. 😩

Also I forgot to add - from my job I make about $35 an hour plus tips (35-40 hours per week)

Please point me in the right direction, any advice is appreciated. Thanks in advance 😊

0 Votes

New York City, New York

Thank you all so much for replying to me.

I'm trying to do a cash out refinance, to consolidate the mortgage & Heloc line, I spoke to a few lenders and they said the cash out is more risky that's why it's more expensive.

Here is a break down of my morgages, so you can get a better idea of what I'm trying to do.

•Two Family House - Mortgage Balance is $270k (Worth at least 800k) Monthly Mortgage is $2000

•Heloc 120k (Used as 20% downpayment for 1 Family House) Monthly payment is $800

•One Family House - Mortgage Balance is 418k (Worth around 580k, I bought it for 525k in August 2019)

These properties are located in NY.

I wanted to combine The two family & Heloc, Which should be about close to 400k, The lender told me the fees added on after the cash out refinance will bring it close to 420k, and my payment with the new mortgage will be $2600, which doesn't seem like a good idea to me since it will be close to what I'm paying now but with 25k added on to the loan & I'm not trying to tap into the 2 family equity just consolidate.

Then I was going to reapply for the Heloc & Use that to buy my next investment property.

Any recommendations for lenders with low cash out refinance fees or any input on a better way I can proceed will be really helpful.

Thanks again

0 Votes

I own a 2 family house in NY, I took out a HELOC and bought a one family home 6 months ago. I figured I would refinance the two family and clear my HELOC line so I could use that to invest.

I spoke to a lender to refinance my 2 family and I found out that it would cost atleast 25k fees to consolidate my Heloc & 2 family mortgage. Plus the payment for that new mortgage will not be that much less than what I'm paying now. So I feel kind of lost now. I am thinking about getting a Heloc on my single family house (also my primary residence), and use that line to invest since I used up practically all my savings to buy this house and my credit score has gone way down because of technically 3 mortgages under me now.

I am open to any type of advice and input on what or how I can proceed in this situation.

Thanks in advance.

0 Votes

All Forum Posts by: Anna Dyal

Anna Dyal has started 4 posts and replied 20 times.

Post: Desperately Need help/advice with refinancing my 2 New York Homes

Post: Desperately Need help/advice with refinancing my 2 New York Homes

Post: Desperately Need help/advice with refinancing my 2 New York Homes

Post: Desperately Need help/advice with refinancing my 2 New York Homes

Post: Desperately Need help/advice with refinancing my 2 New York Homes

Post: Desperately Need help/advice with refinancing my 2 New York Homes

Post: Desperately Need help/advice with refinancing my 2 New York Homes

Post: Desperately Need help/advice with refinancing my 2 New York Homes

Post: Newbie Investor needs help with refinancing

Post: Newbie Investor needs help with refinancing