Oh do i ever need help / advice....

[Anonymous]

I have been buying my house on contract for the past 8 years,  this is the year to obtain my own financing and get out from the original owners wing.  I have a legal contract with the owner and i make payments to the bank, but they arent reported to the CRA's.  My scores were worse than being in the toliet (stupidity, ignornance ets..) but i have brought them up to the toliet classification in the past few months, so now all ficos are in the low 500's with potential, if CRA's have some mercy, to bump up alittle more in the next few weeks.   Now here is the most confusing part to me,  this must be called a refinance??   I only have til Sept to show that a lender is willing to work with me.  Now I know that I will have to take a Sub-prime lender / loan and I will just willingly have to accept that-- I did this to myself as a strugling single mom and actually, bottom line is that  I will be grateful to get some kind of financing!  I have no lates for my payments of my house -- which i love dearly -- and I do not want to throw away this opportunity.  The kids are all grown now, and I want this investment.....etc.

So my question is,  WHO do i try and contact,  does anyone know of the least painful way to go about this.  I still have a couple of CO's and a couple of lates awhile back on student loans, so i know a FHA is out.   Please anyone been thru this?  any mortgage people who can see a positive in this -- i would gladly like to hear your words of wisdom.  thank you ! 

[Anonymous]

Forgot to mention that I signed on to buy my house after renting and the owner was in a bind.  But the price i bought was what he owed at  57,000.00.   I now owe 30,000.00 and 3 years ago it appraised at 77,000.00.  It is in a prime area and can do nothing but go up they told me.

[Anonymous]

Why do you think FHA is out of the window?  It seems to me that FHA may be your only option.  FHA is very lienent with regards to late pays and CO's.  Many times they will allow you to do a letter of explanation for all derrogatory accounts.  One thing for sure is, you will be required to pay off the charge off's.

[Anonymous]

The past lates on student loans aren't a deal-breaker, so long as you are now current.

[Anonymous]

Thanks that was good news -- not a deal breaker !--anything to keep me in the game.  Sorry to admit my scores were in the low 400's about 6 months ago,  now the 500's and i hope to have some disputes settled and removed, plus a few PFD and GW's sent giving me a decent boost.  Recovering from a 'kicked my financial butt' relationship i never thought i'd get my scores in the required 500's,  but I owe it to this forum and the real people in it.  I have read and read and read --- and sure wish i would have learned and been as conscientious along time ago and i'd be 'prime' today  but....i will be someday !  Thanks again.  Any refinance lenders suggestions?

[Anonymous]

Hey Ceannie... if you've made all your "Contract for Deed" payments on time, especially for the past 12-24 months, go talk to a lender and ask them about a special loan program that will basically "convert" the current owner's loan to you. I heard something about this a while back, and I think it's something like a "Contract for Deed refinance" or something like that.

And with the amount of equity you seem to have, you'd be surprised at how many lenders just might JUMP at the chance to take your loan even with scores in the 500's. Go get em and let us know how you do!

[Anonymous]

Some additional thoughts. Until Sept is not a lot of time to get a sub-prime loan in today's market. Start right away and don't depend on one mortgage broker. many of them make promises their lenders won't keep. Also ask your seller/lender if they will extend the deal. That way you have an additional option if a bank loan is not available. If all else fails look into a hard money loan. (private money mortgage) They are expensive 3-10 points and probably around 15% interest, but since you got a good price it might be worth it for 6 months if you can afford the interest. Ask at any RE investor's club.Note that this is a doomsday strategy. Try everything else first as hard money loans only take two weeks. Depending on your state laws this might not be an available alternative. Make sure with any privately held mortgage that you can substantiate your timely payments. (pay by check)

[Anonymous]

Ok, that makes sense 'contract for deed'  refinance.....I do have alot of equity,dont I ?!  never thought of it that way.  I think i have my courage up, just hated the thought of 'rejection' ...lol.  Think i will call Citifinancial and see what they say first and then go on from there.     

  Thank you very much for your advice and encouragement. 

[Anonymous]

Ok,  I am getting ready to do this !  official application in tomorrow,  guess they will pull my scores then??    You were right about the equity being a plus.  Also they are taking the total mortgage payment history, so that will be absolutely perfect even if i am not !   They have the copy of my contract,  owner/lender did a quick-claim (?),  so all they need is the app. -- course i am dragging my feet,  my scores keep bouncing around.  I do have a few things that should be removed.....

Doesnt the mortgage co pull the scores again at the end.    I am hearing the guidelines and the required lowest score is being raised soon???