Who is responsible for the fact that no bank will refinance our loan?

Posted on Mar 2, 2013 in HARP Refinance

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Question by followingmybliss: Who is responsible for the fact that no bank will refinance our loan?
What is causing every single bank to turn us down for any and every reason when my sister and I try to refinance our loan?? Obama?? What?
And both of us have credit scores in the high 700’s, cheapest so this is NOT about low credit scores.

Best answer:

Answer by Elmis
We’ve been in refinance hell for 18 months now. Twice we’ve been 3 days away from loosing the house.
What I’ve come to understand after dealing with banks on a weekly basis for all this time it the following;
1. The banks have absolutely no interest in what you think, salve what you feel, what your opinion are. None, zero, nada…
2. In many instances the banks stall the re-financing process because it will be more profitable for them to force you into foreclosure.
3. Regulations and Washington has had no effect and will never have any effect. Why? This is about saving banks, saving national institutions. They are not allowed to fail, so much is at stake. It’s like an ant (us) asking why the anthill has to be removed when building a free way. The individual homeowner is absolutely of no concern to the bank

There you have my experience.

All else is well.
/ Mats

Add your own answer in the comments!

5avg.rating 24 votes.


  1. You really think Obama or the government is responsible????????

    Get your FICA scores. Understand how credit works. Blaming the government (or anyone else) for your ignorance…….. shows a lack of understanding reality. A potential loan candidate must have a good past history, solid work and repayment history and certainly must be well rooted in reality.

    Ignorance and blaming others is something a good bank needs to avoid when lending money. It’s simply too risky for them.

  2. If I had to guess, I would say you and/or your sister have a poor credit rating, or no reliable income, or no collateral – basically some problem that makes the bank think you might have problems paying it back.

    If nothing much has changed in your lives, and you used to not have problems getting a loan or credit, then chalk that up to the financial crisis caused by the subprime mortgage meltdown… (which started before Obama came into office). One of the consequences of that event is that banks became much pickier about who they give loans to.

  3. You are responsible. You must a poor credit rating – credit card debts, unpaid bills?

    Look up your credit rating.


  4. Banks have a criteria to grant or decline a loan request. They do background checking on the person who’s requesting for the loan. They will base their decision on the information that they will gather on your capacity of repaying them. If they feel that you don’t have stable source of income, they will decline your request.

    The questions should be “What and Why” and not “Who”.
    “What is the reason why your loan is being declined?”