Hi! New here. I have 609 FICO and MUST refinance by August 1st.

[WannaHouse]

Your first post does say your last late was 1 yr 11 months ago. Once that hits the magic 2 year mark, you should gain some points.

I really have no comment on whether you should take their offer or not. That is more of a Dallasloanguy area. 

[DallasLoanGuy]

Wonderin,

Here is the deal.

many loan fees are flat fees. not a %

we cant roll all of the fees into the rate(the rate sheet doesnt go that high) and there are other "section 32" (high cost loans) requirements if fees are charged 'up front'. = long story

bottom line. the loan originator would be lucky to make $200 and my client would get a crappy loan.

i typically send the client to my 2nd lien lender(taking me out of loop) if they cannot get financing at a bank

a BANK will have the best total price on this deal. especially a portfolio lender.

can a broker/banker do it? sure. but the best thing for the client is for the broker/banker to refer it out.



sometimes the simple answer is best. (a dead man once told me)

[cobaltnv]

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AHeavyBalloon wrote: 

But then she balked, and said no, you need a first.  She ran some numbers for a first, ( I haven't run amorttization schedules for myself. )  She was happy to show me how much I would save by paying $150 a month for 30 years, versus the higher payments on the Home equity loan. (Silly me!  I thought the way to save money on interest was to not pay a loan for 30 years!)  And frankly, if I was in a situation where I couldn't make a $300 monthy payment, I doubt thay I could make a $150 payment.  So I will need to run those amortiization schedules, to see what makes sense.

---

Keep in mind you can always pay more and get the loan paid off faster. Maybe you can get a 15 year mortgage (refi) for whatever the min they will give you ($50k or something). You could basically hand back the initial cash out to pay down the mortgage principle to what you currently owe and pay it off over the next couple of years. There has got to be a way for you to do this, as it just seems silly since you have a huge amount of equity in your home.

[DallasLoanGuy]

heavy:

try another loan officer at bank of america or call wamu or wells fargo.

have you tried a 2nd lien? people with paid off mortgages get helocs all of the time. you may be able to get a heloc and use it to pay off the first.

[Watchmann]

The Mortgage Professor always has pretty good advice.  Here is a short article on the problems of small mortgages

http://www.mtgprofessor.com/A%20-%20Options/the_small_loan_problem.htm

[Anonymous]

Thanks Watchman,

But everytime I ask for a second, I am told I can't have one, because I need a first mortgage! Or because it will be too expensive. 

Who knows?  Perhaps they realize that this saves me money, and they get scared, because it seems counterintuitive, and so it seems like I am trying to scam them.

[fishbjc]

If you dig deep and come up with $17,000, you're still short $8,000.  Do you have a family member to help you get a small personal loan?  A cc perhaps?  Something to sell? 

Before you give yourself a headache, sit down and call HSBC.  Find out what your options are.  They're there to provide service to you so let them do their job.  After collecting the information, you'll know better where to start.

Start sending your late accounts goodwill letters to see if they will remove the late for you. 

[Anonymous]

Sorry for the confusion.  Sometimes I try to be vague so I say about 25K.  It is actually 22K outstanding balance on the loan.  I have 5K in my checking account.   So right now, I need  another 17K.

I think I have found a safety net.  It required eating crow, but hey! I can live with it!.  My ex-BF has excellent credit. ( I asked, and he is at 720.)  He has been living on zero interest  balance transfers, and now is chagrined that he has to pay 8%, when he was paying zero.  But he used this money to pay off a 10% mortgage, from a private party.

Anyway, he will allow me to use a cash advance from one of his accounts.  He thinks it is a 20 % rate, and no fee for the advance.   The cost to me?  He wants a note saying that if I default he gets my house.  He will be amused by gloating over his control.  Actually, he would probably  describe it as a lesson in not being "flaky." He will derive great satisfaction and amusment through this

In his value system, "flakiness" is the worst human behavior.  And he would construe my credit score as a result of 'flakiness."  However, he is no hypocrite, so if he comes back and tells me the credit is there, and I can use it, he will not try to back out, or change his mind.

And as for the HSBC loan, I would rather use his credit cards.  But I will explain in another post.

[Watchmann]

OP, be very very careful in what you are doing.  At the minimum you need to have a legal document drawn up with all the stipulations.  Your ex-BF sounds like trouble and you could wind up financially damaged if it goes wrong.  Beware.

[Anonymous]

That has to be one of the most creative solutions to your problem anyone could have conceived!  

Who would ultimately pay that 20% interest rate, him, or you?  In other words, is he willing to eat 20% rates for the potential reward of owning your home, or does your pay-back entail you ultimately covering that 20% to satisfy your debt?  I would imagine it does.

I also wonder how tricky it is to put a contract/agreement such as this into writing to protect all parties' interests.  I would imagine that he stands more to lose from a poorly written contract, as he could be out the money and end up not having a legally binding right to the property if the contract is not viable in the eyes of a court, so I guess that's less your concern than his.  Still, please think carefully through the ways that this situation could backfire for both you and for him before taking this course of action.  It can be so hard to know the potential outcomes of these kinds of agreements, there are so many unforseables, not to mention that you create a risk of losing your home over $8k.

Anyway, if you go this route, kudos to you for finding such a creative solution to your problem.

Message Edited by annointedWRX on 01-18-2009 10:45 PM