A native Californian transplanted in southern Illinois.I hope that everyone who celebrated had a wonderful holiday with their friends and loved ones.
I received a phone call on Wednesday afternoon that my lender will not be able to write me a new note at all. The issue has to do with the lender being a licensed mortgage broker in California, but not in Illinois. When my current note was written, the rules allowed one out-of-state note per year. Since then, the rules have changed. Now the lender would have to become licensed in Illinois in order to write the note. The lender is unwilling to do that.
So here I am in the exact predicament I had hoped to avoid. My note was due in full today and I have NOTHING lined up. So, what to do?
I hopped on to Reddit and searched through r/debt to see if there is a lender people are generally happy with. I saw some names I had already tried, but I also noticed one I had not tried before. I read several posts praising Upstart for their fast online process and reasonable fees. I went to their website and applied. Here are the details:
They will lend me 26k (minimum they will do) on a HELOC for a 2.25% funding fee ($585) at 6.017%. No appraisal fee, no title fees. This is far better than any other lender was willing to do. Well, yes please. I hit a snag almost immediately. They want me to upload a document proving that the loan taken against my house in 2006 has been paid in full. Obviously I do not have any such document having bought the house in 2023. I called and eventually reached a live person, but they informed me there wasn't anyone available today who could help with that so I will need to call back on Monday.
That made me nervous because I do not have time for snags. So I thought, if I drain my savings I just need another 11k. I should be able to quickly get a personal loan. I applied for one today online with Wells Fargo. The rate is 16.43% (ouch!) but there are no fees and no prepayment penalty. It would enable me to pay off the current note and it wouldn't stop me from taking out a better loan if I can get one. I should know in a day or two if I am approved.
I have a bit of a grace period, but I want this done ASAP.
November 29th, 2025 at 05:28 am 1764394102
Since the lender is so late giving you this information, are they likely to foreclose quickly?
Are there any options to borrow against your 401k/IRA?
Do you have space on credit cards should you encounter an emergency in the next few months?
Do you have any capacity to pick up part time work for a few weeks/months to create an Emergency fund?
Holding good thoughts for you.
November 29th, 2025 at 09:19 am 1764407966
November 29th, 2025 at 03:58 pm 1764431914
November 29th, 2025 at 04:44 pm 1764434674
November 29th, 2025 at 05:40 pm 1764438047
November 29th, 2025 at 06:37 pm 1764441447
I do not have a 401k to borrow against. I do have a lot of available credit cards. If I absolutely HAD to, I could solve this situation with a cash advance. That would be more expensive than a personal loan, so I am not rushing into that.
Thank you for the good thoughts.
Tabs - it sure is a ridiculous rate.
Foscavista - every penny left in my Roth is growth. I took all of my contributions when I moved across the country and bought this house.
Dido- I do think I am going to find a solution that will work.
Jp- I may do a 0% balance transfer to pay off the 11k personal loan, assuming I get it. I don't want to wait weeks for a balance transfer to be approved and processed while my mortgage note is outstanding. I need something quicker.