If your home is currently listed, or was previously listed in the last six months you may experience trouble refinancing your mortgage.
Many banks and mortgage lenders shy away from offering financing to borrowers who were unable to sell their home on the open market. It really makes perfect sense. Why would a bank or lender want to finance your home at a certain value if no one is willing to buy it at that price in the real world?
Before you list your home, plan for the worst. Make sure you have enough cash reserves to make your mortgage payment each month in the case that your home doesn’t sell. After all, you may be stuck with an unsold home and an adjustable-rate mortgage that’s due to rise.
If you do hit dire straits, there’s likely a lender out there willing to refinance your current loan, but it will likely be at a premium. If you must refinance, ask your bank, lender, or mortgage broker to grant an exception to get the deal done.