Spoke with our lender again yesterday, and she re-ran the numbers just based on my wife. Since we were looking at new construction, we wouldn't close until December, just about the time the late's in her name fell off. We were then pre-approved for $243K based on her income alone, but we are going to hang tight and re-apply when we both can be used towards our "Forever Home."
I plan on writing a few GW letters this coming weekend, and then from there I am going to just wait it out until February of '13 when we will have more saved up, and we will be in a better spot to buy.
A word for the wise, never ever take advice over the phone in terms of short-selling. A year and a half ago I talked to someone in regards to short-selling. He recommended that I go at least 30 days late on our mortgage and create a hardship by being late on a card or two. I followed his advice, but declined following through on shirt-selling as my conscience wouldn't allow me to do it....The big problem is, that advice cost us a chance at moving this year and now I have to deal and live with it.
All I can say is, thank you to everyone here for advice on how to best correct my situation moving forward. Hearing real advice, from real people is the best way to move forward. THANKS!
Starting Score:5/22/10 590