Question by zuesinhimer: Why is a refinanced home different than original mortgage ?
I refinanced last year to keep from losing the home..I am in Fl..I want to sell it but the realestate agents want so much..I would make NO profit..can I do it myself safely?I only want out at this point..from another answer I understand if its refinanced .they can even come after my Bank Account,,,
Answer by daeve930
You can sell the house yourself, but I would do that as a last resort. You’ll probably waste time on unqualified shoppers who look at homes for entertainment. Any time you’re not home, your house is basically off the market. You’ll be home when strangers come through your house. And you’ll be there, so they’ll be inhibited about looking in closets and stuff. You seldom save any money being a For Sale By Owner (we call that a FISBO). You don’t cut your own hair, I’ll bet, and that grows back in 6 weeks. Do you really want to trust the sale of your biggest asset to someone who doesn’t have a clue about the process?
What do you mean “I understand if its refinanced .they can even come after my Bank Account,,,”? There’s no difference between an original purchase money mortgage and a refinance that would mean they can’t get the money owed from somewhere other than the home. The lender has the same recourse on any real estate loan. A second mortgage holder would have to defer to the first. But a refi or purchase…they’re the same once the loan is closed.
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I think the other answer you got is wrong. The fact that you refinanced just means that you replaced the original loan with a new one. The selling process is the same.
As far as selling your home goes it really doesn’t make much difference whether the home was refinanced or not (I mean you will have no luck trying to get the bank to short sale a home you short refinanced a year ago – but that doesn’t seem like what you are talking about). Anyhow, agents usually want somewhere around 6% (may vary a little for different markets). You can sell the place yourself and avoid the 6% fee (only avoid about half the fee if the buyer has an agent) but there are alot of tricks and pitfalls to doing this, so be careful. Also, if you do decide to sell the place yourself there are some deep discount brokers that will take the listing for a set fee (like $ 500 or something) and for that fee they will list your house on the MLS and maybe be available for basic questions, but nothing else – the rest is all you (but what did you expect for a really low fee).
If you sell a place for less than you owe and the bank won’t short sell it then you will have to come up with the difference at closing. They won’t come after your bank account, you just can’t close without putting up the money.
But honestly in Florida, it will be really tough to sell your property right now.
Do you have a high interest rate? Have you thought about modifying your loan without the cost of refinancing? Email me if you want to keep your home and to possibly negotiate a lower payment with your mortgage company – email@example.com
You have more protection under the law when you have the original loan you used to purchase the house. You are treated as a “novice”. You wouldn’t be expected to know a lot about real estate or financing.
People who refinance have now gone thru the loan process twice. They are smarter and more bold. They have lowered their payment or “pulled-out” cash. They get less protection. The bank could come after them for any missing money in a foreclosure. It would take 18 months and get them nothing so they seldom do it. But they could./
Refinancing simply means getting a new loan in exchange of the original. You might choose refinancing for the following reasons:
# It can help you Lower Monthly Mortgage Payments by getting you a lower interest rate which can get you extra cash on hand.
# To Pay Off Your High Interest Debt through the cash-out option and lower interest rates.
# Avail the Cash Out option to pay off Medical bills, college tuition and for home improvements.
# Home refinance loans could offer tax relief.