Well, we didn't know at the time of closing that the lender we were dealing with was considered "sub-prime" - this was back in 2003 and had never heard of the term before. Plus we were naive and stupid, lol.
So, we were burned - the company didn't tell us crucial information about many many things and as a result we ended up selling our home in 2006 after repeated adjustable rate increases that resulted in a 12% mortgage! We are in the midst of a class action lawsuit now and our lawyer feels good about it.
As a result of getting burned, I am having anxiety attacks about applying for a new mortgage. We make excellent money, have a little negative credit from 2003, (besides the 2 year old issue with the mortgage because we became late the last few months before the sale - but weren't foreclosed on or bankrupted.) We have an extremely low DTI ratio. Our monthly gross income is approx $7750 and our expenses are $340.
We are looking to find a house for about $150000. Financially, we can well afford the mortgage, I'm just afraid to apply for one. Can anyone offer any encouragement?