Author Topic: FAILED REFINANCE  (Read 15226 times)

Offline Sweethearts Mom

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FAILED REFINANCE
« on: November 09, 2010, 07:53:28 PM »
I emailed this to Jack today but thought you might get a chuckle out of this. I was told today that my refinance was denied. There were 3 reasons given

1. I own 3 acres
2. I have only 2 of the required 3 municipality provided utilities
3. I OWN CHICKENS

I have a great credit score, make good money but....too funny

I wanted to ask "Are you from NYC?"

Offline TexDaddy

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Re: FAILED REFINANCE
« Reply #1 on: November 09, 2010, 08:04:49 PM »
I am glad you can laugh.

Was 3 acres not enough for them?

Chickens? CHICKENS!? What do chickens have to do with anything?

I might understand about the utility, depending on which of the 3 you don't have. Since they are obviously grasshoppers, they may be worried about being able to move it in case of foreclosure, but I don't understand what 3 acres or chickens have to do with refinancing. Did they give any kind of explanation?

Offline Sweethearts Mom

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Re: FAILED REFINANCE
« Reply #2 on: November 09, 2010, 08:09:29 PM »
Nope 3 acres was to much even though it was not used for ag I was "growing things".

Yep chickens.

I have electricity and water but don't have city sewer or natural gas. I have a septic and propane instead.

The loan officer said it was too close to agriculture.

Offline cohutt

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Re: FAILED REFINANCE
« Reply #3 on: November 09, 2010, 08:18:38 PM »
The loan officer probably fubar'd the app and came up with those reasons on his own.

Offline Sister Wolf

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Re: FAILED REFINANCE
« Reply #4 on: November 09, 2010, 08:22:14 PM »
See?  See what happens?  They counted your chickens before the cash.

:D

Seriously, what a fricking joke.  That's what you get for expecting a logical conversation with a corporate entity of any kind.

::)  <--- that is what I say to them.

Offline Sweethearts Mom

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Re: FAILED REFINANCE
« Reply #5 on: November 09, 2010, 08:28:23 PM »
this just gives me more of a reason to pay off my dang debt! I am so tired of this garbage. And he was reading the appraisers report.

Offline Sister Wolf

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Re: FAILED REFINANCE
« Reply #6 on: November 09, 2010, 08:29:54 PM »
this just gives me more of a reason to pay off my dang debt! I am so tired of this garbage. And he was reading the appraisers report.

*nods*  I look forward to seeing your small victories.  Being turned down (for anything) despite great credit and a decent income is depressing and frustrating.

Offline NWBowhunter

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Re: FAILED REFINANCE
« Reply #7 on: November 09, 2010, 09:10:23 PM »
Sorry to hear you got turned down. Pretty lame reasons.

Offline bartsdad

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Re: FAILED REFINANCE
« Reply #8 on: November 10, 2010, 12:45:53 AM »
I must ask, did you try through a small local institution, or large national chain type bank?

I know our local bank understands what the "norm" is for the area.

Were the chickens co-applicants, or just renters? ;D

Offline Sweethearts Mom

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Re: FAILED REFINANCE
« Reply #9 on: November 10, 2010, 04:37:47 AM »
Bartsdad it was through Quicken and they are still pretty small but I don't think they are local. Hey maybe that's it! I am not charging rent! (or am I and the chicks just don't know it yet?)

Offline Mastoo

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Re: FAILED REFINANCE
« Reply #10 on: November 10, 2010, 10:19:21 AM »
Maybe he thought you said "I owe chickens."  Someone that runs up a chicken debt in barter with neighbors would be a bad credit risk :-)

Offline Alpha Mike

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Re: FAILED REFINANCE
« Reply #11 on: November 10, 2010, 10:20:02 AM »
You should have told them you raise rabbits, not chickens.  Who could turn down a fuzzy bunny.  

Each lender has a different comfort level (or area of expertise) with various types of property.  You just need to search for a different one.  If you do deal with a "big lender" or online lender, make sure they have a local office.  THe local folks can explain what's what, like chickens aren't that bad and every property have only 2 of 3 utilities on it.

But, you should have told them about the fuzzy bunnies.  

Offline bartsdad

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Re: FAILED REFINANCE
« Reply #12 on: November 10, 2010, 10:23:10 AM »
Was there a line asking about chickens on the application or was that voluntary information?


Offline Sister Wolf

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Re: FAILED REFINANCE
« Reply #13 on: November 10, 2010, 10:31:29 AM »
She mentioned that he read the appraiser's report.  Maybe the chickens were mentioned there.

Offline ncjeeper

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Re: FAILED REFINANCE
« Reply #14 on: November 10, 2010, 10:59:45 AM »
gee whiz.
 

Offline I.L.W.

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Re: FAILED REFINANCE
« Reply #15 on: November 10, 2010, 11:56:09 AM »
My understanding of the Chicken issue is this:  Coccidia can remain dormant in the soil for up to 30 years.  If you have a well, or septic system with a flood plane the land can become biologically contaminated. As such, it can affect the value of the property and one's liability, hence the rates of a refinance aren't as good as they would be without chickens.  This was meant to be applied to large scale commercial poultry farms, but now, for whatever reason it's being used to screw rural homeowners.  It also hurts your property value significantly if you try to sell the home (so kill the flock, and get rid of the coops before talking to a Realtor, and if they ask, you never had any chickens). 

This is based on a potential health risk with coccidiosis, but anyone who owns a small flock would sooner cull all their birds if that was suspected than risk a larger infection.  Feeds are medicated, and it's a relatively small problem.  The fact is, even with a dozen infected birds, the odds of contamination are still very small.  There is a legitimate reason behind their logic, the value of the land is depreciated once you have chickens on it (there's no real logic as to why it's devalued, just that people accept that as fact and insist on paying less). But there is an over reaction with Realtors, banks, and insurance companies who have to meet an additional burden if sale or foreclosure happens.


Offline irish

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Re: FAILED REFINANCE
« Reply #16 on: November 10, 2010, 01:35:20 PM »
We had been turned down by the evil B of A for a property here in AR. Applied to Quicken, got a loan. But then within a month or two we were being transferred to Chase. So I wonder if Quicken approves or denies based on what they think another lender will accept and then resells the loan to one of the bigger boys. Think Quicken is part of Intuit or something like that, the company that does TurboTax.

Offline cohutt

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Re: FAILED REFINANCE
« Reply #17 on: November 10, 2010, 05:17:48 PM »
Most fixed loans are originated and then sold and aggregated .  Quicken or Intuit was the originator and Chase probably services the pool your mortgage now is a part of.

Offline Nadir_E

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Re: FAILED REFINANCE
« Reply #18 on: November 10, 2010, 05:49:26 PM »
Just an anecdote about loans being sold.  My beautiful bride and I bought a house here in California back in June.  It was financed by a bank out of Kansas City who specialize in originating and then selling loans.  Within a month they sold it to Wells Fargo.  Within a month of that Wells sold it to Fannie Mae, though Wells still processes everything (our bills say "wells fargo" on them).  Not complaining, just letting you know what may happen after the loan closes (when it finally does). 

Good luck with the next try, Sweethearts Mom!
-N

Offline Sweethearts Mom

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Re: FAILED REFINANCE
« Reply #19 on: November 10, 2010, 07:00:56 PM »
It is agrivating. Insane it's bull shit thinking like that that make "city folk" shy away from the country. My opinion of course but since most of our country had farms on it at one time then most of the dirt in this world is contaminated and why event try.

And if what you say is true my property is basically now toxic and worthless because my chickens got a treatable intestinal pest.

Offline Morgan96

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Re: FAILED REFINANCE
« Reply #20 on: November 10, 2010, 08:20:48 PM »
Don't feel so bad, we got recently got turned down by two banks, Midfirst and Arvest, for financing on our rural property.  Reasons given for the rejection varied, one that it was agricultural property and that the value of the land would be greater than the value house (it wasn't), another being that the house is in "poor" condition (it's not).  In the end, we had to use a mix of cash and alternate financing (not involving large men in velour jogging suits), and are glad for it.  The loan would have ended up with either of those two insolvent penny-stock companies, Fannie Mae and Freddie Mac.

Offline TwoBluesMama

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Re: FAILED REFINANCE
« Reply #21 on: November 11, 2010, 07:15:24 AM »
My understanding of the Chicken issue is this:  Coccidia can remain dormant in the soil for up to 30 years.  If you have a well, or septic system with a flood plane the land can become biologically contaminated. As such, it can affect the value of the property and one's liability, hence the rates of a refinance aren't as good as they would be without chickens.  This was meant to be applied to large scale commercial poultry farms, but now, for whatever reason it's being used to screw rural homeowners.  It also hurts your property value significantly if you try to sell the home (so kill the flock, and get rid of the coops before talking to a Realtor, and if they ask, you never had any chickens). 

This is based on a potential health risk with coccidiosis, but anyone who owns a small flock would sooner cull all their birds if that was suspected than risk a larger infection.  Feeds are medicated, and it's a relatively small problem.  The fact is, even with a dozen infected birds, the odds of contamination are still very small.  There is a legitimate reason behind their logic, the value of the land is depreciated once you have chickens on it (there's no real logic as to why it's devalued, just that people accept that as fact and insist on paying less). But there is an over reaction with Realtors, banks, and insurance companies who have to meet an additional burden if sale or foreclosure happens.



The things I learn on this forum are amazing. Thanks ILW for the great info - +1.  As a chicken owner I didn't know this.  Mmm - things to ponder (not that I'd consider killing my chickens because of it).

So Sweethearts Mom - did you ever refinance? Did I miss that part?

Offline Sweethearts Mom

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Re: FAILED REFINANCE
« Reply #22 on: November 11, 2010, 06:24:03 PM »
I was turned down Twobluesmama for these reasons
1. I have 3 acres
2. I don't have at least 3 of the 5 municipal provided utilies
3. and I have chickens...thus the comment on chicken diseases staying in the soil for 30 years and devaluing our property.

Offline Morning Sunshine

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Re: FAILED REFINANCE
« Reply #23 on: November 11, 2010, 06:32:40 PM »
2. I don't have at least 3 of the 5 municipal provided utilities

that is just silly.  a city water main is as likely to go down as a private well.  I just don't get grasshoppers.  either the ones making loan decisions or the ones who won't buy a more self-sufficient home....

Offline Sweethearts Mom

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Re: FAILED REFINANCE
« Reply #24 on: November 11, 2010, 06:52:37 PM »
I have water and electric...I guess they were afraid I might poop on the ground in one of my 3 acres.

Offline Chief_919

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Re: FAILED REFINANCE
« Reply #25 on: November 15, 2010, 11:39:10 AM »
If I was you I would open an account at a local credit union, keep some money in there for a while, and then try with them.

You will be dealing with a real person, who lives locally, face to face. They will be used to doing nothing but loans in your area, and used to what the norms for property ownership and use are in your area.

The Quicken guy was just plugging your data into a fllowchart that told him yes or no, no actual thinking on his part.


Offline Maddog

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Re: FAILED REFINANCE
« Reply #26 on: November 15, 2010, 06:17:45 PM »

Offline Sweethearts Mom

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Re: FAILED REFINANCE
« Reply #27 on: November 15, 2010, 08:22:45 PM »
Thank you Dan. I will probably wait until after the holidays to try again (if then). It's worse than job hunting. Even with good credit they try to make you feel like you are at the bottom of the bucket.

Offline johngalt

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Re: FAILED REFINANCE
« Reply #28 on: November 15, 2010, 08:40:15 PM »
Have you tried refinancing with the institution that already services your current mortgage?  They will have more incentive to refinance you....make sure you mention the "Homeowner stabilty act" also known as "Obama Money".  Seriously though, they will  be more likely to work with you since they already have incurred the risk with your "dirty chicken land"  ;)

Offline Sweethearts Mom

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Re: FAILED REFINANCE
« Reply #29 on: November 16, 2010, 04:24:46 AM »
My mortgage is with B of A and more than anything I want to get away from them. I am not happy with the fact that they were one of the companies that not only received that "stimulus" money but that paid executive bonuses with it...unless I misread