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I want to try to refinance my mortgage to try to lower my monthly payments but my LTV is questionable and I have no money to add. In addition, I have been gainfully employed for the last 5 years but for 4 years prior to that I was unemployed/underemployed and defaulted on a lot of credit card debt. Basically my credit is crap. I want to try to find out, if I approach my lender to refinance and they deny me, am I endangering my current mortgage? I am struggling to make the payments but I am not behind in my payments and I make too much for the government programs. I am just trying to get a little breathing room in my monthly payments.Thanks.

5 Thoughts on Can I lose my house if I try to refinance and am denied?
  1. Reply
    Go with the flow
    April 19, 2013 at 7:26 pm

    You cannot have items in collections.
    Clear this up first if you have this.

    Get your 3 reports once a year at
    Annual Credit Report.com https://www.annualcreditreport.com/cra/index.jsp
    No credit/ debit card required.
    See who you owe money to. And ask here how to negotiate settlements.
    (no you will not lose house just for trying).

  2. Reply
    Mike
    April 19, 2013 at 8:13 pm

    I think the worst case scenario is you will not get approved for the refinance. I don’t see them revoking your current mortgage because your credit got bad over time. As long as your keeping up on the payments no foul done. However, if you inform them that you’re struggling with the payments they might be willing to grant the refinance anyways. Wachovia was always trying to get me to refinance my car loan. They would call me and ask if I wanted to refinance like every 6 months. I don’t think my credit played an important role in the decision.

  3. Reply
    bdancer222
    April 19, 2013 at 8:51 pm

    If you application to refi is turned down, you still have your current mortgage. As long as you continue to make the payments, you will be fine. Apply for a refi does not cancel your existing mortgage.

  4. Reply
    M W
    April 19, 2013 at 9:40 pm

    You will probably be denied for a refi. But your original mortgage will stay in place unless you seriously default at a later date. They want call in your mortgage if you are turned down for a refi.

  5. Reply
    Bills.com
    April 19, 2013 at 10:23 pm

    Applying to refinance loan should not be considered a reason to trigger off a default clause on your current mortgage. The most important reason for a loan to be in default is untimely payments.However, for example, if you received your mortgage for a primary residency, and it is now a rental property, that could potentially cause a problem.

    If you have a high LTV (over 80%) and your loan is owned by either Fannie Mae or Freddie Mac (delivered before June 1, 2009), then you might be eligible for a HARP loan. Check with your current lender – there is no income (or Debt to Income ratio) requirement with your current lender.

    If you aren’t eligible for a refinance then ask about a loan modification. Explain to the lender that you are struggling to pay, but you want to keep current on your loan.

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