Home Mortgage Help for Disabled Veterans
by JL from Crawfordville, Florida USA
Ask Kate about home mortgage help for disabled veterans: Hi Kate, I am a disabled veteran. Although my 3 year ARM begins adjusting next month, the bank won't refinance their mortgage on my home. The loan officer said don't worry about it, you won't lose your home. But your interest rate will most likely go up. To me this would mean I will lose my home.
I have a manufactured home on land that is listed with the county as real property. Improvements have been made where the home cannot be moved.
The original loan with the bank was an ARM for 5 years. Prior to the end of that period, improvements were done and the loan was re-done on a 5 year ARM 8% interest. It appraised at that time for $65,000 (2003).
At the end of that period, a new 3 year ARM was written where basically no new documentation was needed. I was charged $50 for this refinance.
I did however do an appraisal on it myself because I had someone interested in purchasing it. That appraisal was a disappointing $51,000 due to the times.
Now to get the the current problem! The last payment of the ARM is due on March 11, 2012. I am current on the mortgage payments, including homeowner's insurance and property taxes. I have not made any late payments.
The payoff would be $23,600. I asked the bank to do what we had done three years previous, but they have refused and said that I will need to submit a completely new application with a new appraisal and mortgage closing cost fees.
I am a disabled veteran living on less than $1100 a month, and have gotten myself in a situation where, although I am quite disciplined and frugal so that all bills get paid on time, there is no way I am going to qualify for a new loan debt-to-income ratio.
I have searched vigilantly for companies that will refinance so that I could use my equity to pay off other bills and only have the one loan. But with only wanting to borrow about $50,000, there are no companies that are doing this loan amount including FHA and VA.
I would appreciate any advice and help you can give me.
Kate Answers: Home Mortgage Help for Disabled Veterans
I am troubled to hear of your difficulties.
I hope the following three steps will assist you in saving your home from mortgage foreclosure.
1: Contact Local Department of Veteran Affairs Representative
Go to your local Department of Veteran Affairs office. Ask for your VA representative and request to be accompanied to your local bank office. Their support while you re-open the discussion of your home mortgage refinance would be fantastic. (You have nothing to lose by asking.)
Call the regional Florida Department of Veterans Affairs at 727-319-7400 for local phone numbers, names, addresses, and driving directions.
2: Return to Your Local Mortgage Company
If at all possible, go in person to your bank. Ask for someone in authority at the mortgage company to go over the details of your home loan refinance. Be prepared to continue asking for a person of authority until you can talk with an individual who has enough power to make decisions.
Show that you are prepared by taking along the applicable paperwork. To know which items are important, refer to my Mortgage Information Checklist
Write a letter highlighting your purpose of refinance and why you are a good risk. You have done most of this in the letter to me.
- You are a disabled veteran who served in the defense of your country.
- You are a seasoned homeowner who has paid off mortgages.
- You have a stellar mortgage payment history.
- Your land and home have significant equity.
3: Take Advantage of Local Newspaper and TV Coverage
In the event that your refinancing attempts do not move forward, it's time to use your voice by enlisting the help of newspapers and television stations!
Contact your local newspapers and local TV stations to share about your situation and bring awareness to your community. Who knows how many disabled veterans and homeowners are struggling with similar challenges and could benefit by your story. Keep me updated, will you please?
Good luck and best wishes,
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