Refinancing for a US Home from India with Indian income

[srikal]

I have an odd situation and this is something urgent:

Background :
I worked with an MNC in US and for many years (12+). We relocated to India about 2 years back. Our entire family has USC and we do have OCIs.

Now in India I am working for the same company and my income is in INRs and not USDs (obvious though).

Situation:
In the past 1 year I don't have any US wages (W-2s). We have a house in US. We gave it fora friend as a care taker. I never had any late payments either to my First Mortgage Lender or my HELOC owner. Both are up to date. So far things are going fine. The loan to value ratio (including first mortgage and HELOC) on the house would be somewhere between 70-80%. The Loan to Value Ration on first mortgage is around 50%

We finished the 7 years baloon fmortgage on my US home. (Total completed payment period on the house so far is 10 years).

The lender fior the first mortgage has now has issued a notice to either to repay the entirely loan balance OR request him for a conditional refinancing. The rates are high. The other alternative he suggested us to refinance.

I tried with one more NEW LENDERr whose rates are competitive. I gave him documents for all my reserves (both in US and India) that are with various Retirement Accounts, Bank Statements, Liquid assets. These assets are more than what the loan we asked for. (We are asking for a loan of 45% - 50% of the loan to value ratio).

The NEW LENDER told us that - my App may not go through his under writer approval becuase
a) I don't have US income and
b) if I don't return to US with a job, they have a risk of not able to recover their loan.

If my application needs to be considered I must obtain a letter, from my MNC company, that I will come back to US by so and so date (with in a year). It is not possible for me to get a letter as he requested.

So I am stuck with this refinance situation for my first mortgage refinance need.

Questions:
1) What the new lender requests - is it common? Will every lender be like that?
2) Do you know bankers insists that to refinance a loan you must have a US income?
3) Can someone with Indian Job, with comparable US equivalent income (along with a sound financial and credit status and sound US assets) can apply for a refinance for is US Home?

4) Even if my current lender agrees for the current situation, it might be only for 1 year. I believe I will hit the same situation next year. Is there any better way out for my current refinance situation.

Please share your experiences and knowledge in obtaining a refinance for mortgage in a similar situations.

I believe I am really in a hot spot and looking for ways to get out of it.

Highly appreciate your experiences, knowledge and experience that can help me to pass through this turmoil.

[rajuvvss]

hi srikal,

we may be getting into same situation as you had described here..
did you get any replies to your questions? since it is been 2 years, i hope you found a way around. please share with us..

thanks,
raju

[srikal]

Deskkp

Well, I have some updates here. Towards the end of April, my current lender has given me 2 months of time with the current loan.

Meanwhile He has given me an option for conditional refinance with a rate 0.25% more than my current mortgage rate. He sent me the conditional refinance application and asked me to attest it by a notary. (BTW, I mentioned my property as a primary residence. I didn't realise the real meaning of it, though. However, in the conditional reset app, for a yes/no answer option, I mentinoed that I may not be eligible for conditinoal refinance). Then he send me the re-set App.

I went to US consolate in India and got it signed and sent it back to him. It is more than 2 months now, as he received my docs. But no response so far. I have tried to contact him but no reply. They say contact after a week .. with the same message every week.

Meanwhile, my monthly mortgage payments I made went into a suspense account with my lender and that dept. contacted me. I explained the total "reset" situation to them and made it clear from my point that the payment are made by me and in their account.

They then shifted my payments from suspense account to my normal account, made it current and informed me that there is no problem with my account and it is in good standing.

My payments till date are being accepted by my lender. He has not asked for any additional documentation so far. If he charges me couple of point and issue me the reset, I am fine with that too.

I don't know what to do. I am hoping for the best by keeping the wick light in air. I am looking for independent mortgage consultant but could not get any hold onto them.

If you know or have experience with any please do provide me the contact/reference. That would be a great help.

Regards

Srikal

[srikal]

DesikP

Thought this may help you.

Finally, my current lender has finally accepted to retain my current loan with an enhanced Mortgage rate by about 0.125%. So all ended well so far.

Srikal