Our credit was destroyed in 2013 and 2014 due to the fraud of a commercial landlord and our blind trust in him. Long story.
We have been renting from my Sister for 5 years and have an option to purchase but would have to do so by next July or August. This is a townhome that we have been rehabbing. Sale price will be around $135K, (what they owe) value is close to $185K +/-. We will have $40K in escrow for a downpayment but could scrape up more. Combined income from our LLC (payroll) will be $75k next year. We have been taking much less for years and live very frugally... used beater cars, no trips etc..
Credit me: 8 CO's and 3 CA's, all out of SOL and due to come off reports Spring of 2021.
Credit DW: 3 CO's, 3 CA's same time frame as above.
Scores Today Me: FICO Mortgage 570 - 590 FICO08's 626-650
Scores Today DW: FICO Mortgage 650-665 FICO08's 629-639
We were both at a FICO09 of 400 16 months ago and have perfect credit history during last 36 months.
Our scores will be higher then but many of the above derogs will remain. We will not be paying off CO's and CA's and please don't lecture. I would rather get a 1-2 year ARM or short term loan or take a loan repayment from our company and purchase the townhouse with cash. (we emptied all savings and investments trying to stay afloat and pay debt until that ran out and are owed $200k or so.)
Where might we look? Not sure a CU is an option. We have NFCU and run 800k per year through them with our LLC. Loan shark?
Any thoughts appreciated. TY
I used the term "escrow" loosely I guess. We have an agreement and a shared bank acct at a local CU where we have been depositing funds. It will have $40k in it by Spring. She does not have the same last name.
As for derogs, we likely should have declared BK. Several accounts were paid off and report with xero lates after selling our above water "nice" cars, buying beaters and trying to remain solvent back in early 2014. We never had a late until the event that began our downfall. Our company took off in 2016 and is now more than a little mom and pop. Perfect biz credit though that doesn't matter but do have business banking we could move from NFCU to a CU that held their own mortgages if that still happens. We could also likely cure what was a long and perfect relationship with BCU.
Here are my derogs. DW's are not quite as severe.
Charge Offs
Alliant - Out of SOL No Collection Reporting
Status: Closed – C/O
Balance: $4,597.00
DOFD: 5-2014
Baxter CU - Within SOL No Collection Reporting
Status: Closed – C/O
Balance: $10,072.00
Credit Limit: $10,000.00
DOFD: 9-2014
Capital One – Out of SOL, No Collection Reporting
Status: Closed – C/O
Balance: $10,072.00
Credit Limit: $10,000.00
DOFD: 5-2014
MACYS / DSNB – Out of SOL, No Collection Reporting
Status: Closed – C/O
Balance: $518.00
Credit Limit: $400.00
DOFD: 5-2014
__________________
Peoples Trust CU – Out of SOL, No Collection Reporting
Status: Closed – C/O
Balance: $1,803.00
Balance Updated: 8-2019
Credit Limit: $1,100.00
DOFD: 5-2014
PNC Bank – Out of SOL, No Collection Reporting
Account: CC
Balance: $0
Credit Limit: $2,800.00
DOFD: 6-2014
SYNCB / LOWES – Out of SOL, Sold - Midland Collection Reporting
Original Creditor: GEBank
Balance: $0
Credit Limit: $6,030.00
Comments: Sold to Midland
DOFD: 5-2014
SYNCB / SAMS – Out of SOL, SOLD - Midland Collection Reporting
Updated: 8-2015
Balance: $0
Balance Updated: 8-2015
Credit Limit: $10,000.00
Comments: Sold to Midland
DOFD: 4-2014
TDBANK / TARGETCRED – Out of SOL, No Collection Reporting
Updated: 12-2014
Balance: $812.00
Credit Limit: $600.00
DOFD: 6-2014
USAA SAVINGS BANK – Out of SOL, No Collection Reporting
Balance: $16,008.00
Credit Limit: $1,500.00
Past Due Amount: $16,008
DOFD: 6-2014
Collections
CREDIT MANAGEMENT - Status: Comcast marked account paid after DW showed receipt for returned equip last week. This may shortly report as paid.
OC: Comcast Cable
Open Date: 2-2017
Open Balance: $306.00
MIDLAND FUNDING - Status: Received flurry of letters and calls months prior to SOL expiration, then they went away.
OC: LOWES
Open Date: 11-2015
Open Balance: $7,039.00
MIDLAND FUNDING - Status: Received flurry of letters and calls months prior to SOL expiration, then they went away.
OC: SAMS CLUB
Open Date: 7-2015
Open Balance: $11,047.00
OAC - Status: Never received bill or Dunning as far as I know. They did bill insurance and am following up on that. - Reported on TU only.
OC: Local Radiologist
Date of Service: 5-2014
Open Date: 1-2015
Open Balance: $537.00
Thank you. That is reassuring. Could that theoretical mortgage be refinanced in a year or two? We will be in high 700's by then at least.
I guess LTV of about 60% helps?
@Mortgage-Specialist wrote:For sure
Skin in the game matters. It would be a studid move on our part not to move forward with this.