I have posted periodically here, when both time and internet connection allows! Recap of our story is as follows: Denied last January due to credit issues. Approved marginally in June, but by the time UW got done with us, we were denied. Banker was family friend who strung us out thinking that the late payments last year, would be fine after 6-8 mos of clean credit. I even brought up what FHA had on their website about 12 mos clean credit, but still went forward until UW confirmed. We also ran into a problem with old septic and well records-couldn't find them, but that was just a sidebar on the credit denial. The day after the formal FHA denial came through, we were referred to a consumer mortgage department of same bank. He worked with us and was direct in telling us he has seen better, but he had also seen way worse. He plunged straight in and for the next three weeks, we were busy pulling documents and confirming savings/retirement accounts, assets, etc. We were qualified for a conventional loan, the only problem was the downpayment. We had pulled enough of a retirement account to cover the FHA, but with the conventional, we were about 8K short. We were buying from parents and required additional funds. We successfully got over each hurdle-pulling old well reports to show compliance with property, appraisal was still good as long as we closed w/in 90 days, secured additional funds. Five days before closing, title company called and had issues with getting payoff letters. Sellers had refinanced several times over the course of 30 years. At least two of the refi's were done with internet financing and were never cleared/satisfied on the title. For the next 3 days, our banker and myself were in hot pursuit with two companies over getting the "paid in full" letters. Sad to say my 75 yr old father in law was given the complete run around or hung up on every time he tried. The morning of closing the title company received the final "paid in full" letter so that we could close by 10. We closed the 29th. January 1, we will be back in to go through the FHA refinance process as we will then have a complete 13 mos of clean credit, and additional monies available to pay off/down debt. What have I learned during this last 8 months? Too much to mention here, but the short list is watching my credit report and going back to basics-what are needs and what are wants? What took me 5 yrs to achieve in debt will take me more than 3 months to clean up this mess!! I was also exposed to some of the shady practices of some internet lenders as we tried hard to get the PIF letters. Something to be said having a face to face with someone when you need answers, as opposed to the "hold and transfer" routine we went through. Also the value of follow through and keeping important documents until all the t's have been crossed and i's dotted. I have learned plenty through these boards and continue to work the process improving our credit and to work our way up out of the gutter!! Better days a'comin!!
Wow.... I'm very glad to hear that you've finally closed!
I am going through a refinance right now. Isn't the title company supposed to make sure that the title lien is properly reported?
Starting Score: 08/29/2011 TU 671 EQ 674 Current Score: TU 754 EQ 694 EX 697 Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when? MyFICO Fitness Goal: 800s Club!
Starting Score: 722 Current Score: Now 687 what the hockey sticks...from a 784 (Aug 12 EX 751 EQ Fico) Goal Score: 800 If your outGo is more than your INcome than your UpKeep will become your downFALL.
Starting Score: 504 July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013 Goal Score: All Scores 760+, Newest goal 800+ Take the myFICO Fitness Challenge Current scores after adding $81K in CLs and 2 new cars since July 2013 EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.