Is anybody doing a Fannie Mae refi with extenuating circumstances?

Vandervecken

LoanSafe Member
Jun 11, 2020
2
0
1
Happy Friday!

I need to refinance my house, and have a question. Here's my long story broken up into bullet points ;):
  • 2016 - ugly divorce. Wife maliciously left me strangled with debt, and I had to file bankruptcy to bring it under control. I was able to qualify for a Chapter 7 "on paper" without losing my house or car. I also owned two rental houses at the time, and I kept them as well. Mortgages for all the houses were reaffirmed, along with the car. No payments ever missed.
  • 2017 - bankruptcy discharge was granted.
  • 2017-2019 - credit re-established. Sold off the rental houses for nice profits. All payments on time, two credit cards (paid off in full each month) with 10k limit.
  • 2019 - due to the divorce settlement I chose to refinance my house and get the ex off of it. At the time FHA was the easiest to work with, and the house was refinanced.
  • 2020 - due to the declining health of my elderly mother, I need to move 60 miles away to be close and take care of her. My job lets me telework, so no problem there. Due to personalities ;) I need a separate house.
  • 2020 - big increase in equity in the current house (about 30%).
  • I can't list my current house for sale until I've moved out. Due to COVID, I can't let strangers come into my house (COVID would be hard on me, but if my mother caught it, it would prove fatal to her.) So I need to own both houses at the same time for a couple of months.
  • I cannot use FHA to buy the new house because my present house is too less than 100 miles.
  • While there's a lot of equity in my current house, I do not have 30% cash to put down for a hard-money lender.
So there's my conundrum: I need to buy a new house before selling the old one. And of course, COVID has certainly disrupted the mortgage market.

Fannie Mae and Freddie Mac have a four-year wait after a bankruptcy discharge, but Fannie Mae also has a paragraph for extenuating circumstances (B3-5.3-07) that can bypass the four year wait. I've asked around, and none of my friends in the mortgage market have ever used this and don't know how. I've reached out to Wells Fargo and Bank of America, and right now they're not doing extenuating, either.

So at this point, I thought I'd ask: does anybody know a mortgage company that I could call and work with?

Thanks!
 

OneHugeMess

LoanSafe Member
May 30, 2016
575
51
28
Give this guy a call -- if he can't help you, he will find someone who can.

With that said, are you sure you want to buy a new home? With the way the market is going, I would consider selling -- and than waiting maybe a year or two before jumping back in. Home Prices are starting to fall and Home Loan Defaults have hit a record high. It's just something, to think about.
 

Vandervecken

LoanSafe Member
Jun 11, 2020
2
0
1
With that said, are you sure you want to buy a new home? With the way the market is going, I would consider selling -- and than waiting maybe a year or two before jumping back in. Home Prices are starting to fall and Home Loan Defaults have hit a record high. It's just something, to think about.
It's certainly worth thinking about, the main issue is that where my mother lives, there are no rental homes available. And I'm too old for a tiny apartment ;).

Thank you!