Haplo
Joined: 20 Jan 2005
Posts: 2422
Location: Springfield, IL
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| Posted: Thu Mar 24, 2005 5:50 pm Post subject: A word of advice...if you are a borrower or potential |
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I'd like to just give you a scenario, if I could.
I've been working with a gentleman for a little over a year now. Last year at this time he purchased 3 rental properties, bringing him up to 9-10 total properties (and 14-15 loans.) He has never had a late payment, was maybe a little bit extended, but nothing too bad. No derogs whatsoever.
Mid last year I mentioned it was probably a good idea for us to refinance the 2nds and 3rds(!) on the properties he had into one loan, or at least a better loan for him (depending on the prop). Some of them were in the teens for their %'s. He hemmed and hawed and decided to wait.
9 months later it's finally time for him to refi. I got his credit pulled, only to find that this stellar borrower has suddenly stopped paying his bills. The reason? The company he was contracted with dropped his income by 20%, or roughly pretty close to the amount he would have saved each month had he refi'd when I recommended he do so.
He's sub 500 on scores now and there's nothing I can do for him that will save him money.
Basically what I'm trying to say is that if you have an option to be able to save money, don't just sit back and wait for things to go south before you fix something like this. I really feel sorry for the guy, and I'm not looking forward to this phone call.
Don't put your LO's through this!!!! Especially if you know you're coming up on a hardship, it will only help you in the long run if you are proactive as a borrower. Remember, it's your money! |
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