Bump and update!
I called my present Mortgage company today (WaMu) and they were very pleasant and helpful. I'm hopeful they'll be able to resolve the issue of the small old lien on my title. They even offered--before I asked--to remove the one late 30 payment on my report.
So, here's my question: since my husband can't do the refi alone unless I put him on the title and wait 6 months, what are our chances of getting a joint loan with my current credit? 568 TU, 621 EQ, and 595 EX. I have some baddies (3 paid CO's, 1 current collection under dispute, and lots of old lates.) I told the loan processor I can explain most of the baddies, (was out of work in 2002-2003, but everything except $170 disputed collection is paid off or current) but I'm just not sure they'll touch me.
Any advice please! Thanks so much....
Hi Bob,
We asked about doing it as a purchase, but the loan processor advised us not to do it that way. She said it would "open a can of worms." I asked her what she meant, and she said we couldn't get cash out to pay off bills (one of our reasons for wanting to refi) and said the house would have to go through an inspection, etc. She also said it would take 4 months! I'm not sure exactly why she was so against it, but we dropped the subject. It's so frustrating, because DH has the good credit, I have the house title. 
If only we could work it out!
If only we could work it out!They haven't called back yet about my credit---said they'd review and let us know--but I think they'll reject me. We don't really have to refi, we're making it okay, but I hate paying all this credit card interest that could be turned into tax-deductible mortgage interest.
Is there anything we can do or say to convince the processor/underwriter to take a chance?
thanks for the advice!
@BIRDWRITER wrote:They haven't called back yet about my credit---said they'd review and let us know--but I think they'll reject me. We don't really have to refi, we're making it okay, but I hate paying all this credit card interest that could be turned into tax-deductible mortgage interest.Is there anything we can do or say to convince the processor/underwriter to take a chance?thanks for the advice!
Yikes. Do you really want to roll credit card debt into your house loan? That means you could be paying it off for the next 30 years or so. And if you miss a few CC payments, it hits your credit scores but they don't take your house! Can you get a part time job or cut back on expenses to work on the CCs for awhile? Perhaps as your score improves you can get some good balance transfer offers..
Rmily, I know what you're saying---initially, I thought it would be crazy to use equity in the house to pay off CC---but it was actually our accountant who recommended it. We have lots of equity, and an old original mortgage at 9.5%! Refi at 6.75% would save us a ton of interest. We're not behind on any bills now, we're making it okay, but we also have very few tax deductions---we're DINKs. 
We figured rolling it all into the mortgage would allow us a lot of breathing room (we could get by on one salary if either of us got laid off or disabled), the interest we would initially be charged would help as a tax deduction, and we could hopefully save enough to pay the mortgage in full in ten years. Right now, we're always paying on time, but kinda living from paycheck to paycheck.
Sigh...it sounds like a good plan on paper! Now if only I could convince the underwriter...
Message Edited by BIRDWRITER on 09-18-2008 06:59 PM
Hi Dallas, my FICO's are 568 TU, 621 EQ, and 595 EX. If we pull out the CC money and closing costs, we'll be financing about 76% of current value--- but house has lost $65K in the past year of crashing home values, although it's starting to creep up a tiny bit now. We're in a suburb of Chicago with traditionally steady home prices and fast home sales (neighbor recently sold house in less than a week) so I feel pretty safe that it will regain value pretty quickly when (if?) economy starts to improve. If we get this loan and pay off CC's, our total monthly payments (cars and mortgage) will be less than 35% of our take-home pay. I feel like a leper when lenders look at my credit report though. DH's CU already informed us they wouldn't take me, but Chase is at least taking a look.
Message Edited by BIRDWRITER on 09-18-2008 08:39 PM