Mom is on the home loan with me, but she needs to re-fi her own house!!!! Please Help?

My mother signed on my home loan for me last year for me. My credit was not awful or perfect but it was ok I would say, maybe around the 630 range; but I needed a little more income and I couldn't use my husband because his credit was not as good at the time. So my mother did this for me and I am and will always be grateful to her for this, no matter what the outcome is. Anyway, I refinanced in January in order to get a lower rate. Okay, so now 6 months later, my mother wants to refinance her house. She has an 80/20 loan (if that makes sense), so she is making two payments. She wants to refinance so that she can have one payment that is a lower amount. My loan officer had told my mother that when I refinanced my house, she would do my mothers so that it would be at the same time and it would go through. Only when they did the appraisal for my moms house, the houses in her neighborhood that sold for 220,000 in 2006 are now selling for 180,000, so she told my mom that they had to wait 6 months and then they could use other properties outside of her neighborhood (A house was bought in the neighborhood in October and she told me that you have to wait 6 months when a house is sold to use outside appraisals, its been over 6 months and she hasn't called my mother despite calls to her) My mother is a retired teacher so she gets her retirement benefits from TRS every month and its about 2500 I would guess. Anyway, my mother decided to go to someone else today so that she could get this done ASAP so she would only have the one payment going forth. She called me all upset because the guy told her that she wouldn't be able to do it because of her being on my loan and that she would have to make about 2 or 3 thousand more dollars a month. She said that the guy told her that the reason my loan officer was not calling her back was because she knows that my mother won't be able to refinance since she is on my loan and even though she doesn't pay my note, it is on her credit and essentially she is responsible for it (my mother has never paid anything on my mortgage, Ive never been late on my mortgage, I actually give my mom money so that she can do extra things that she has a desire to do, I do this because she is paying an extra 500 per month to pay for her husbands funeral; he died last year and did not have any insurance...they had only been married 3 weeks and had not finalized insurance, medical, dental, etc). The new loan officer guy told my mother to tell me that I needed to do a streamline refinance without the appraisal in order to take her name off of it. I don't think I can do this because I won't qualify by myself and I know my credit is not the same as it was when I first got the house in June 2008. I did a streamline refinance in January when she refinance with me for the lower rate but someone did do an appraisal. I can't use my husband again because of his credit due to old blemishes and then 2 rental properties in his name...his income ON PAPER just wouldnt support it. I am seriously stressing out because I want my mother to be happy and I want to do whatever I can to make it easier for her. However I don't see how I can refinance by myself, it just wont work. I can afford my house perfectly and make enough money to make my payments and other bills comfortably...I know credit is a tricky thing when it comes to what things look like on paper. Can anyone help me with this in terms of what else we could do? I know that different loan officers and different companies do different things and what one can't do, another may be able to. What could I do to help my mom? I am sorry this is long and has so many details. I just wanted to give as much info as I could to help anyone understand the situation and give me some advice. Please help!!!

5 months ago - 4 answers