Whats the Deal?

needaloan · Joined: 03 Jun 2007 Posts: 13

About 6 months ago I contacted a mortgage company to refinance our mortgage. At the time I asked if they could help us because we had not been in our home but 6 months. They said Oh yeah, they could help. That wouldnt be an issue at all. At the time our credit scores were both around 615. Issue after issue popped up. I had a judgement against me which in turn generated a lien against my home. Well I borrowed the money and took care of that. Then everything didnt go fast enough for the guy that has appraised our home so we had to give him $300 for the appraisal. Our home appraised @ $103,000, we only owe $93,000. We have been put off and put off but the mortgage company. The finally said they couldnt help us until we had been in our home for 1 year. Well on May 22nd our 1 year anniversary rolls around and now they are saying the 5 lenders they sent our stats to are all back logged...what the heck?
Our current rates are 8.37% on 1 st mortgage and 11.75% on 2nd. Our scores have dropped tremendously because we were late on our mortgage 1 month out of the 12. Both our scores are now around 560.

If theres anyone out there that can help us let me know. Our annual income is around $55,000. We have about 4 credit accounts with less than $100 owed on each one. We also have a loan where we consolidated some debt that we owe about $7000 on and thats it other than our house loan that is $832/month...which includes escrow for insurance & taxes.

chow · Posted: Sun Jun 03, 2007 10:00 pm Post subject:

You can still get the deal done, but the rate and terms have changed to a totaly different animal in the last few months.

:roll: You can refi for a short term teaser rate that looks and feels pretty with your stellar credit, and CLTV. :roll:

You are surfing the net and finding offers, that really don't make your socks jump up and down.

Welcome to Reality 101.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

If you can explain your derogatory history, you may yet be able to do an FHA loan (assuming your property qualifies) and wrap both of those loans into a considerably lower rate.

Other than that, you're probably looking at exactly what Chow had mentioned.

needaloan · Joined: 03 Jun 2007 Posts: 13

My credit score has went up to 599 since I last posted this.

Where can I get more info on FHA loans?

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

www.hud.gov

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

needaloan wrote: My credit score has went up to 599 since I last posted this.

Where can I get more info on FHA loans?

ask a frien/colleague/coworker/family member for a referral to a loan officer. submit an application and see what they come up with.

i would not recommend a traditional bank.... but, rather, a broker in this case.

with that said.... haplo and some other bankers can do some real GOOD with a file like this.,

needaloan · Joined: 03 Jun 2007 Posts: 13

Well You say that haplo and some others on here can do GOOD with a file like mine? Chow said welcome to reality 101, no help at all and Haplo suggested I go to HUD.

Is that GOOD? :shock:

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

You probably should re-read what we had to say.

Chow said that the market has changed, and that you are running around looking for a deal from the places that are going to simply feed on you with their rates and costs. Hence, welcome to Reality 101.

My initial response was that you should look into FHA lending, as that would be the best area for you. You then asked where you find information on FHA loans, and I pointed you at the exact location for FHA information.

So, yes. You ask a question, you get an answer. A good answer I might add, since your initial scenario pointed you towards having some credit issues and having talked with apparently the wrong company.

If you don't want a 7% or lower fixed rate mortgage then contact someone and ask them about a sub-prime loan. Probably doesn't matter at that point who you call, they're all going to be about the same. (You may want to do your homework on the company prior to, just to make sure you don't get ripped off too badly.)

More than likely you'd have to put forth some documentation and letters of explanation to do an FHA loan, which means you have to do some work to make it happen.

Good luck.

MPutnam · Joined: 05 Jul 2007 Posts: 6 Location: Huntsville, AL

needaloan wrote: About 6 months ago I contacted a mortgage company to refinance our mortgage. At the time I asked if they could help us because we had not been in our home but 6 months. They said Oh yeah, they could help. That wouldnt be an issue at all. At the time our credit scores were both around 615. Issue after issue popped up. I had a judgement against me which in turn generated a lien against my home. Well I borrowed the money and took care of that. Then everything didnt go fast enough for the guy that has appraised our home so we had to give him $300 for the appraisal. Our home appraised @ $103,000, we only owe $93,000. We have been put off and put off but the mortgage company. The finally said they couldnt help us until we had been in our home for 1 year. Well on May 22nd our 1 year anniversary rolls around and now they are saying the 5 lenders they sent our stats to are all back logged...what the heck?
Our current rates are 8.37% on 1 st mortgage and 11.75% on 2nd. Our scores have dropped tremendously because we were late on our mortgage 1 month out of the 12. Both our scores are now around 560.

If theres anyone out there that can help us let me know. Our annual income is around $55,000. We have about 4 credit accounts with less than $100 owed on each one. We also have a loan where we consolidated some debt that we owe about $7000 on and thats it other than our house loan that is $832/month...which includes escrow for insurance & taxes.

MPutnam · Joined: 05 Jul 2007 Posts: 6 Location: Huntsville, AL

needaloan wrote: About 6 months ago I contacted a mortgage company to refinance our mortgage. At the time I asked if they could help us because we had not been in our home but 6 months. They said Oh yeah, they could help. That wouldnt be an issue at all. At the time our credit scores were both around 615. Issue after issue popped up. I had a judgement against me which in turn generated a lien against my home. Well I borrowed the money and took care of that. Then everything didnt go fast enough for the guy that has appraised our home so we had to give him $300 for the appraisal. Our home appraised @ $103,000, we only owe $93,000. We have been put off and put off but the mortgage company. The finally said they couldnt help us until we had been in our home for 1 year. Well on May 22nd our 1 year anniversary rolls around and now they are saying the 5 lenders they sent our stats to are all back logged...what the heck?
Our current rates are 8.37% on 1 st mortgage and 11.75% on 2nd. Our scores have dropped tremendously because we were late on our mortgage 1 month out of the 12. Both our scores are now around 560.

If theres anyone out there that can help us let me know. Our annual income is around $55,000. We have about 4 credit accounts with less than $100 owed on each one. We also have a loan where we consolidated some debt that we owe about $7000 on and thats it other than our house loan that is $832/month...which includes escrow for insurance & taxes.

As an underwriter, I would have to say that there are other issues with your credit that you are not disclosing. The sudden drop in credit score could be associated with your judgement as well.

As for the loan officer you have been dealing with putting you off. It's probably because he knows he can't help you AND make a tidy commission, therefore, why bother. The good news is definitely in YOUR favor, he was probably a lousy loan officer. Any reputable LO would keep you informed at all steps through the loan process.

Anyone who truly WANTS your business, will earn it.

And to be quite honest with you, your costs associated with a new loan and your credit score of 560 combined with the best interest rates around...you're probably better off just keeping the loan you're with. UNLESS, you are in anything other than a 30 year Fixed Rate loan. With your income and debt, you should be able to make your payments on time.

The only other piece of advice I can give you: Make 1 extra payment per year. Your current mortgage requires 1 payment per month, 12 per year. A bi-monthly mortgage requires 1/2 of your regular payment twice per month, 24 payments. This means you are reducing principal twice per month instead of once and saves you in interest and a couple of years on the term of your loan. A bi-weekly mortgage requires 1/2 of your regular payment every 2 weeks for a total of 26 payments per year or the equivalent of 13 months payments per year, or 1 extra payment per year. It usually costs, as with Wells Fargo, a fee (correct me if I'm wrong, but I think Wells Fargo charges about $375 to set up your account for bi-monthly/weekly payments). But the benefit can reduce a 30 year mortgage by 7-9 years! Or, you can submit an extra payment (make sure you let your lender know it's a principal payment) say at tax time when you get a refund, if you do. You may also want to make sure that your extra principal payment does not incur a prepayment penalty if you have one. Typical California prepayment penalty is 6 months interest on the amount prepaid in 12 months greater than 20% of the original loan amount. Check your Note or Prepayment Penalty Rider to be sure.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: It usually costs, as with Wells Fargo, a fee (correct me if I'm wrong, but I think Wells Fargo charges about $375 to set up your account for bi-monthly/weekly payments).

This used to be the case, but there is no longer a fee involved with setting up a bi-weekly payment. You do, however, have to pay one payment in advance to setting up the bi-weekly, so as to keep your payments on time with the nature of bi-weekly payments.