When is keeping the house the right answer?
Sometimes the best answer is not to sell. If the problem is temporary and you can qualify, a refinance can lower the payment and keep the house and its equity in your name. We refer you to a lender at no fee to you, and we make nothing on this path.
The trade-off: you have to qualify on credit, income and equity, and you keep a mortgage payment. Ryan will tell you honestly whether it looks realistic before you spend time on an application.
Why would a cash buyer tell you to keep your house?
Because it’s the right answer for some people, and saying so is how a local business earns trust. If you had a rough six months, you’re back at work, and you have real equity, selling at a discount to fix a temporary problem can cost you tens of thousands of dollars. We’d rather tell you that and have you send your neighbor to us later.
This is path 4 of our four ways to sell or keep your Twin Cities house. You’ll hear about it on the first call if it fits.
What do lenders look at?
| Factor | What lenders want | What hurts |
|---|---|---|
| Recent payment history | 12 months on time is the common bar | Late payments in the last year, a foreclosure in progress |
| Credit score | Varies by loan type | Recent collections, maxed-out cards |
| Debt-to-income ratio (DTI) | Your total debts vs. gross income within lender limits | New car loan, medical debt payments |
| Loan-to-value (LTV) | Enough equity after the new loan, often 20% for a cash-out | Falling value, second mortgage or HELOC balance |
| Income documentation | Two years of steady income, pay stubs, tax returns | Recent job change, gaps, unreported income |
If two or more of these are weak, a new refinance is a long shot. That doesn’t mean you’re out of options. It means the answer is probably with your current servicer. Read can you qualify to refinance when you’re behind.
What are the keep-the-house options besides a refinance?
Loan modification. Your current servicer changes the rate, term or balance after reviewing your hardship. Often more realistic than a refinance when you’re behind.
Forbearance. A temporary pause or reduction in payments, with a plan to catch up later.
Reinstatement. Paying all the arrears and fees at once to bring the loan current. In Minnesota this is generally possible before the sheriff’s sale.
Repayment plan. Spreading the missed amount over several months on top of your regular payment.
The side-by-side comparison is in refinance vs. loan modification vs. forbearance. The Minnesota Homeownership Center can connect you with a free HUD-approved housing counselor for help with your servicer. We recommend calling them early.
What does a refinance cost?
Our referral costs you nothing. The refinance itself has lender closing costs: an appraisal, title work, origination and recording fees. The lender discloses those in writing. A cash-out refinance that pays off a HELOC or arrears might still lower your monthly cost if the rate and term work in your favor. Ask the lender for a side-by-side of your current payment and the new one.
What if a foreclosure date is already set?
Then the plan works backward from that date. A refinance takes weeks, and a declined application late in the process can cost you the house. In Minnesota, you can reinstate before the sheriff’s sale and, in most cases, sell during the redemption period after it, which is usually six months. Ryan maps each option to your timeline so a “no” from a lender doesn’t leave you with no time. Start with facing foreclosure if a notice has arrived.
What happens if you can’t qualify?
You’ll already know your next best move. Ryan will have laid out what a cash sale, a listing or a creative financing structure would net, and how fast each can close. A subject-to deal, for example, can take over your payments without a new loan. You pick.
