Don't Know what to do?????

ozzy866 · Posted: Sun Jul 17, 2005 1:41 am Post subject: Don't Know what to do?????

:shock:
Hello I am located in Indiana.
My wife and I have applied for an FHA mortgage.
A local mortgage broker said we would not have a problem getting an FHA mortgage.
Here are the details
My FICO 595
Wifes FICO 570
Total household income $70K
5+ years each at same job
I had a bankruptcy 8 yrs ago
Wife had banruptcy 4 yrs ago
I have 3 collections to take care of...total of $800.00 which will be taken care of by the end of the week.
I have been in Consumer Credit Counseling for 2 years making a payment of almost $500 a month. I have never been late making these payments.....We have just sold our mobile home and owe nothing on the home. We have been on time with the mortgage payment for the last 66 months.
We are looking at a home for $150,000.
The mortgage broker we are working with does not seem to be spending much time on our search for a mortgage.
I have sent her everything she has asked for and when I call her or email her she says she needs something I have already gave her.
I asked her if she has looked over my file lately and she says oh yes I am taking it home this weekend to work on it.
The only thing I have left to do for her is pay off the 3 collections....one of which I took care of today.
I feel like she is not working for me.
I explained to her what I expect......FHA....she says she will prequalify me for an 80/20 type mortgage and send a prequalification letter to my builder to get started.
It has been 3 weeks......I asked her if I should seek help from a different mortgage person she said it would not be in my best interest.
This forum seems very informative...any help would be appreciated..
Am I asking too much from this broker?
Should I get a different broker?
This is getting to be a terrible experience.
I know my wife and I have made some mistakes in the past but we are very responsible people today.
Thanks....OZ

Haplo · Joined: 20 Jan 2005 Posts: 2406 Location: Springfield, IL

Sounds to me like you're with someone who makes promises that they can't keep. I would work with someone else if i was in your position. I know we have a few people (Like Chow) that are from Indiana, or if you'd like you can send me a message via private messages.

It sounds like this has been going on for a while. It shouldn't take very long to at least get a pre-approval on an fha. So if she's sent it off she's probably trying to get it through as a manual underwrite (which is what I would assume) and that she's stalling because perhaps the first lender she spoke to said no and she's hoping another will say yes.

chow · Posted: Mon Jul 25, 2005 5:10 pm Post subject:

I read this post when it was posted and called Haplo. told him to take your loan if he could do it.

Your problem is JUST A FEW.

#1. You have a credit score of less than 580-620. Those are some magic numbers in the credit score world to BUY your loan on the secondary market.

#2. You both filed BK and have collections after the BK's. This tells me- you either haven't established the right credit, or you haven't reformed your paying habits to make your score rise further.

#3. Paying off your collections is one thing. But don't go out and sign up for the department store accounts, the home improvement accounts. Most of them are going right back to Financial Companies that act as "loan Sharks" on your credit bureau status.

Going to CCC after a BK didn't help either. Going to CCC before a BK doesn't help. :? CCC is just another chapter 13 in most investor's eyes.

Sad, but true.

ozzy866 · Posted: Sat Aug 27, 2005 12:13 am Post subject: I have changed Mortgage Cmp.....

We have paid all 3 collections and have proof of this.
We have a 2 letters of explanation.
When I got involved in the debt management
company they paid several of my bills late for 4-6 months, I have paid off all but 3 of the items that were in my debt management program.
We have started paying our bills ourselves and stay current with everything at any cost.
We are so with this budgeting thing we have a color coded excel program we budget with.
We are bound and determined to get our credit in order.
We are willing to do what it takes to do the right thing.
The owner of the company my wife and I work with has written 2 vey good reference letters.
we have submitted so many documents.
We gave our new mortgage company---Countrywide Home Loans the paperwork over a week ago.
I talked to the mortgage person about locking in and they said they would lock ASAP.
I asked what it was going to take last week he said 1%.
I wrote him a check for the 1% lat week and he said we locked in at 5.8 something for 120 days with a 60 day float.
His underwriter has been working on this for a week and I have been emailing him for updates.
He just left a message on my cell that he had talked to the underwriter and she still didnt have an answer.
He said she wants to make sure HUD will insure this loan.
He said it is not looking good but it is not a NO yet .
He says if we dont get the FHA he will get us a nonconforming loan which we can refinance in 12 months.
This guy seems very honest all the way through this stressful process, However my wife and I dont want to go backwards when it is not necesary.
He said his underwriter will have an answer by noon monday.
We are gettmg a little anxious.....
Any suggestions????
From the history we have written about and the FICO scores are we looking for the impossible?
What are my options on the 1% I have already given them in a check?
Thank you.......

ozzy866 · Posted: Sat Aug 27, 2005 12:28 am Post subject: One more thing

He called the 1% check I wrote him a builder rate cap and told me to write that in the memo section.
Thank you for all and any suggestions.
If the cant get me an FHA should I just settle with a non conform?

chow · Posted: Mon Aug 29, 2005 8:44 pm Post subject:

You both filed BK, then you both had collections after the bk-and you went with ccc, that is just like staying in collections-it doesn't help you. 99% of the time I have seen ccc type companies actually hurt a consumer because they call up and ask the coollection area or the company-to MODIFY the terms of the debt.

This is when you move the amount you're behind to the back of of the amount due now-and just play catch up on payments.

(You must understand as creditors-we need to keep your loans on the books as long as possible-that's how we make money)

And Just becuz I'm a betting broker.....I'm saying Centex is the "Lender" on this loan.

ozzy866 · Posted: Wed Sep 07, 2005 12:26 pm Post subject: Need some suggestions

Thank you for the previous help. This mortgage stuff is very stressful.
Ok just to recap we have been to 2 different mortgage companies.
The first was a disaster....no other way to put it.
The second Countrywide has been a good experience so far.
My wife and I really were seeking an FHA loan but with our credit history
countrywide could not underwrite it.
Here is the offer they have made us:
Home sale price $163,000
30 year 80% first mortgage $130,400 and an interest rate of 6.75 with a 3 year prepay penalty payment is $845/Month
or
Payment at 7.375 with a 12 month prepay penalty = $900/Month

Second mortgage 20% would be 11.75 % for 20 years and payment would be $353/Month

Total payment for 3yr prepay=$1,198/Month
Total payment for 1yr prepay=$1,253/Month
Our plan if we accept this mortgage is to refinance in 12 months and be able to qualify for an FHA 30 fixed.
We are working hard on all of our credit issues. Everything is paid on time and now we need to create some good history.
Is the above offer the best that you think I can get with the history I have stated? We want to move forward with our finances and need some advice.
Great forum with great info.
Thankyou for all the wonderful money saving info.......OZ

Haplo · Joined: 20 Jan 2005 Posts: 2406 Location: Springfield, IL

ozzy,

you had mentioned that your CCC was 2 years ago that you entered into it. How recent are the collections that you are having paid off? What is your credit history like in the last two years?

Quote: The second Countrywide has been a good experience so far
That is not a statement I hear very often ;)

In 1 year you're not going to have your principle down far enough to do an FHA refinance. You're going to be stuck in that 80/20 for longer than you'd like to think unless you're going to be making principle only payments each and every month.

Oz if you want to give me a call so I can help you figure out if there are any other options send me a private message and I'll give you my 800 number. It may be the best option, but there are a ton of questions to ask about besides simply just your credit history that should be brought up.