In 2014 I inherited a small home from my father. The home had 8 years left on a 10 year mortgage @4% with escrows from Chase. I paid the mortgage for 3 years and Chase would hold the payment in an "unapplied" reserve until the legal (estate) department would process it so my payment history looked TERRIBLE. During this time I completed all the requirements to add my name to the account and remove my father's name from the account but it was never successfully completed so in January 2017 I started trying to get a mortgage to payoff my father's mortgage. My credit was low 600's and I have a BK7 Discharge from 7/2013. in February the first lender denied my FHA loan due to appraisal issues (exterior repairs required in Michigan...too cold). In April the second lender denied my loan due to DTI issues caused by my student loan payments which were IBR reporting but the full payment being way too high and title issues (my father was still showing on the title). At this point Chase had finally starting working on the modification/assumption... very slowly. Frustrated I decided to chill and let Chase figure it out. The Modification Rep advised me that my loan being "late" would actually support the payment modification and encourage the UW to reduce the 1220.00 payment to a more manageable payment amoritized over 30 years. After what seemed like forever I decided to give it one more shot with another online lender LoanDepot. I applied on 6/28 and received an immediate call from the loan officer. The loan officer ran my information and my credit report reflected the my BK date as 4/2013 and he came back with a CONVENTIONAL approve/eligible. When the loan officer realized my discharge was 7/2013 he advised me to either go FHA (impossible with my student loans) or wait a few days. On 7/7 I reapplied and was approved for a conventional cash out refinance. I was able to pay off my car, some credit cards and get cash out for renovations. Best yet, the findings waived my appraisal!!! I closed in less than 30 days and on August 2nd my loan funded at 4.25% with a payment less than 1/3 of the existing payment and escrows were waived.
For me the challenge of trying to assume the mortgage on the home I inherited was so tough because there is very little information about it online, I was able to maintain the loan but it was at times a struggle. My new mortgage completes the process of closing this chapter...
