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About luckyduck

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  1. I'm in the market for a home. Credit: 1. Scores - 603, 626, 636 2. Outstanding bads are from 2003 - total outstanding is $3600 for 3 bills ($749 is medical debt) - can settle for around $2000 and have cash . SOL will be up in 3 m, 6 m, and 7 m. - trying to removing from credit report, but willing to pay if needed. 3. Other bads from same year, all showing zero balance. 4. Recurring bills - $277 car payment, $20 - 2 credit cards. $217 student loans in deferment until 2012. 5. Renting for $679 monthly for 12 months, never late. Income: 1. Did not work from 2003-2007. 2. Returned to work August 2007, moved to new state in Feb 2008 and have had most recent job since Mar, 2008. 6. Still technically employed, but not working. Collecting unemployment. Will have descent W-2 for 2008 (11000), but crappy 2009 paystubs if any at all. 8. Self employed for 5 years. Profits for 2007 & 2008 only - ($12500 2 year average). Prior years showed loss. 9. Child support is regular and dependable ($15172 annual). Assets 1. Divorced October, 2008. Awarded half of 403( plan which I supposedly can't touch for 8 years, but may be able to get if I pay the 10% penalty - value between $5 & 8K, depends on what the market does. Also awarded $200 monthly pension, not to payout for 13 years. 2. Business raw materials and assets - sole proprietorship, already told these assets will not be counted. 3. Cash on hand this week - $2200 4. Tax refund expected in one month- $4800 Home 1. Seeking low priced home - around $40K whether straight purchase or combined purchase/construction loan. 2. Specifically interested in foreclosed home listed at $39900 three weeks ago, needs electrical and plumbing work. Intend to offer less and add a construction loan with total loan no more than $40-45K. total repairs and cosmetic work can be done for less than $10K. House will easily appraise at $110K after work is done. Comps are at $120-170K for nearly equal age/footage/acreage on same road. 1. Do I pay the bills on the credit report or wait for a lender to require it as a condition of the loan? Cap 1 SOL is up in about 4 months, offered to settle for $1000 and they are known to sue just before SOL. 2. Will the student loans count in DTI if they are in deferment for the next three years? 3. Will employment income mean anything? I am still employed, with written verification of employment and lack of hours due to "slowed work". Or should I expect to not count the employment at all? 4. Will there be any problems with counting the child support. I get it from two parents and it is regular and consistent with court orders. 5. Is self employment generally not a problem as long as the income can be verified with 2 years of schedule Cs? If income is used as expected - child support and self employment only, then total is around $27K annual - $2306 monthly. If student loans do not count while in a long deferral, then total monthly debt is $317 and can be brought down to $277 by paying off the credit cards, which I can do, bringing recurring DTI to 12% not counting housing. Using 29% Front-End DTI, I can afford $668 monthly, but don't want to. I want some excess padding, as that's the purpose of finding a low priced home. Using a low 38% back-end ratio I can afford total monthly bills of $830 - deducting the current $277 car payment, that leaves $553 that I can afford for PITI - around 40K-45K loan. - Do my numbers look right and are they on par with lenders? I am confused about construction loans. I understand the majority of the process but have questions. If I'm seeking a loan for $40-45K (including rehab costs) on a home with an after rehab value of $110K, then am I correct in assuming that once the construction is complete, the home will have a 63% equity, and PMI will not be required? Is it required up to the point of rehab completion? Does the after rehab valuation play a part in the lender's decision on making the loan / determining the interest rate? Oh, and what the heck should I do regarding the cash I have? Should I hold onto it, use it to get the loan and cover reserves/down payment/etc, or should I pay off the debt, increase my credit score, and lower my DTI, leaving less money to actually get into the house? Time is a factor. I have 11 weeks of unemployment left and need to have lower housing costs before it is gone. At what point should I seek pre-approval. I will have $2181 this Friday, and I will have another $4800 next month which are specifically reserved for getting a house. I should have a slight bit more from my sources of income, but this is the minimum cash I'll have. Do I need to wait until I actually have the money and can prove that I have it, or can I get pre-approved without having the cash on hand? Thanks for your patience with all my questions. I want to do this right and my banker simply was not informative enough.
  2. BUSTED!!!!! I called today to get the status of the release, and was transferred through five people before I finally got the answer, which i expected anyway. You haven't paid for the house. You aren't getting a release. You know you haven't paid this. Why are you trying to get the lien off. What are you planning to do, sell it? Why, yes, of course. I called several times trying to take care of this matter, and was told repeatedly that I owed you nothing, and eventually was sent the request form. So, I filled it out, and sent it in. If you won't give me the release, can I just do a voluntary foreclosure? NO!! They won't foreclose on my house. She wants me to list it with a realtor and do a short sale. Now, darn it, that's what I offered to do in the first place when I was told repeatedly that I was insane and didn't owe anything on the house. Golly Gee Whiz. Now, if only I'd have waited it out nine more years. Oh well. I don't care. Didn't really expect it. Just hoped like crazy. Time to call some investors and realtors and get this sucker listed and sold and out of my hair. Got bigger fish to fry. Sorry about the big fat let down.
  3. I sent him an email last night asking to take $400 off the total closing costs. He wants me to call and discuss it. That response was better than a no. Also asked if he would guarantee no changes in those fees once I hit the table. Thanks for everything.
  4. I asked them who would be servicing my loan, and he insisted that they were the lender and nobody else would be servicing the loan, but then on the TILA and attached papers, it said they transfer 75-100% of the loans. Yes, I know this is a tactic. So, are you saying that these closing costs are typical, and I should live with it. Or do you think I should try to at least get the appraisal review fee cut in half? I ask because I know that a desk review by a licensed appraiser generally only runs $175. Why would I pay $350? That's one charge that Really bothers me, as well as the $300 funding fee. Thanks for the input. I just wanted to make sure we aren't getting completely ripped off.
  5. This is a loan for a home in MI. I live in IN, and the lender is in CA. This is a "direct lender" that I am dealing with. A MI broker told me there is a 7% cap on closing costs, but I can't find it. Don't have a clue what law she was referring to, whether state or fed. Can someone tell me if there is a cap, and if so, where the law is? Also, do any of these fees seem a little extraordinary ($350 for an appraisal review fee), ($66 for tax certification, when the house is being sold by HUD, and HUD, a fed agency is paying the prorated taxes.), (300 Funding fee). How much of this should I fight off? Loan amount $42,565 No down payment Origination $851.30 (2%) Appraisal $275.00 (paying at the door) Processing $350 Underwriting $550 Appraisal Review $350 Funding Fee $300 Flood Certification $9.50 Tax Service $66.00 Interest Accrued $24.46 (or whatever actual will be) Settlement/Closing $550 (not worried, HUD pays their own closing agent) Closing Agent/Attorney Doc $50 Demand Fee $75 (what is that) Closing/Attorney Courier $45 Recording Fee - Deed/Mortgage $60 Total 3556.28 (8.35% of the loan amount), and this is "NOT" a broker, but a "direct lender". Liars, they sell 100% of their lians. I know they're technically a broker, but whatever. Can someone tell me if we are being robbed? Thanks
  6. No licensed contractors in the family. I planned on hiring people to do the heating/ac, and the siding. DH is a journeyman electrician, but no contractor's license. Brother does roofing, and will help me with drywalling. Stepfather paints. Of course, I will pay someone to do carpeting as well. We all have years of experience in gutting and remodeling old homes, so this isn't just an off the wall dream or anything. There have already been a few windows replaced, and the kitchen flooring is done. The home is old and has fallen apart due to natural consequences of aging (mostly plaster cracking, and the electrical and heating was never updated). There has been no maintenance or upkeep. I looked into construction or 203K loans. They want contractors. For the price of contractors to do all the work it would defeat the purpose. There is a lot that I can do myself for thousands cheaper. I plan on refinancing using the current appraised value, not a new value. HUD appraisal was $55K. As you may know HUD appraises at current as is market value, and deducts the costs it estimates in repairs. The house should easily appraise at 75K or more AS IS. Debt isn't that high, only around $13,000, so the current equity would pay that and leave leftover to pay for renovation and updates. Credit is fine. TU has no negs. EX has 3 negs, a judgment and collection, both paid, and 2 late pays on an auto loan. EQ has 3 negs, all three collections, all paid. Not sure of mid score. All reports have gone up since last true FICO check. Our biggest problem has been getting past the unemployment in 2003, and no rent history. Credit hasn't been so much of an issue. I've taken into account cost of refinance, and it's really not that bad for what we get back. 1% prepay penalty ($440). No origination fees, and as long as we do it quick enough, they can use the same appraisal from the original loan. There were no plans on looking for a different appraised value. It'll have equity from day one, so there's nothing to explain. They can get us into a 4-5% interest only loan, but only on a refi, and only with a mid score of 640 or better, which it may already be, but will definitely be once the credit card payments hit (I just sent in enough to bring 3 cards under 50%). It was already close to 640 before we started. TU will probably hit close to 700. It's EQ and EX that hurt him. Regarding the tapping of the equity, here's the situation: DH works union construction. Any time you are in construction, there are no guarantees of a job tomorrow. As it stands, I know we can afford all his debt, and a descent house payment, but I refuse to rely on his employment, because having this reliance on him in the past ruined my life. He was without work for a year and a half. I had already stopped working, and my credit got ruined, because I relied on his constantly unkept promises that there would be work next week. We used the unemployment compensation to keep up with his bills, and I let mine go, since he was the only one with income, and it was his credit we'd have to use in the future. I plan on going back to work as soon as we move. My work is stable, and I know what to expect every week. So, even though we are using his credit, and his current income, it will be my income making the house payment. I need to make sure that it is within my budget, and disregard his income as even a possibility of being there. That is why I'm looking at a HUD home. Now, he has $450 a month in high interest debt, $529 a month auto payment, and we are going to add a house payment to that. Yes, we can afford more than that on his income, but not on mine, and I'm relying only on mine. The reason for tapping the equity is because I need to move the high interest debt into a lower interest loan so that I know that no matter what happens to his job, we can afford it. Plus, the rate we are looking at now is 8%. Once we refi, it should be at or below 5%. Lenders want to qualify us for over $150K. They think we can afford it. I know we can't, and I refuse to get anything that we can't afford. By the time all is said and done, we'll have the cost of the home, the cost of renovation, and all his high interest debt, rolled into one payment equalling no more than what the high interest debt alone is now. Of course, having the credit cards and personal loan paid off will increase the credit score, and we can refi his truck for a lower payment as well. On top of that, once the renovations are done, we'll have another $30K in equity built up. That means a home for my family with affordable payments, elimination of high interest debt, an improvement to the community, and more equity set aside after renovating, to help us get into a better house when that time comes. The cost of refinancing right after we get into the house is definitely worth it. It will pay itself off within six months. Now, if there was some way to get a 5% interest only loan for the full value of the house (not the purchase price), upon initial purchase, I would do that. But since that isn't a possibility, I will do the next best thing I can find. There's absolutely no sense in sitting on $35K equity in a house when you have $13,000 in high interest credit cards and personal loans, and a $25,000 auto debt at $15% interest, is there? It's a matter of obtaining the resource, and using it to it's fullest advantage. Nothing wrong with that, and everything smart about it, as far as I see.
  7. Thanks. It didn't make sense to me why it would matter what type of financing I had. After digging for a while, I found that it doesn't. House is only $44K. Problem now is finding a lender to go that low with the loan amount, and other problem is going to be getting the home approved by a lender. I needs complete renovation. I'm getting it because it's likely to appraise at $80-$90K as is. So, as soon as we get in, I'm going to suck the equity out and pay off all high interest debt, and renovate it to bring it to the neighborhood average of $110,000. I'm not worried about concessions. We can cover most of those on our own. I'm also not worried about inspection. I already know it needs complete renovation. My family and I are all costruction buffs, so we can get it done pretty cheaply, and turn a good profit. We need a house with instant equity, or we aren't going to be able to afford a house payment at all. That was the only house that met that need and the other needs we have. It's risky and a pain, I know, but as long as it gets lender approval, it'll work out perfectly for us.
  8. I've been working with an originator, got DH pre-approved, found a home, and the home fell through. Looked at more houses yesterday, found a HUD home, and want to get it. LO said she didn't think she could lend on a HUD home because she thinks HUD homes require FHA loans, which they aren't licensed to do. Can anyone advise. I'm ready to place my bid, but need to know if I have to start the lending process over again, and find an FHA lender.
  9. First letter I listed each inquiry I wanted removed and stated: None of these inquiries were initiated by me. The are either fraudulent or have been marked as an incorrect inquiry type For the ones they didn't remove I sent a second letter: "I am requesting that you send me a description of the method used to verify each of the following pieces of information as well as the name and contact information of the furnishers of information." and I listed the remaining inquiries. (That was the entire letter) That did it for mine. ________________________________________ For DH this worked the first time: Fraudulent or Miscategorized inquiries – please delete or place in correct category – I never had business with these people, or these people did not have a permissible purpose for a “hard” inquiry. then I listed each inquiry. For the second set I did it online. I listed the account name as "Inquiry", the account number as the business name, and the reason as "I have never had dealings with this company." I never had to ask for a procedural request for DH because they removed them the first time. The ones they didn't remove for me got removed with the procedural request. I am down to one inquiry done last month, and he is down to only those inquiries from last month which I haven't disputed for him. I constantly hear/read that TU is the hardest. They have been the absolute easiest for our reports. Try to vary your wording. Key words/disputes are: Never dealt with the business, fraudulent, no permissible purpose, miscategorized. I did not dispute each individual inquiry. I disputed them all with one sentence, and listed them all out. 4-5 at a time for DH and 7 at once on mine. Plus I pull PG everyday, and I think a few extras fell off from that. No promises though, since I was disputing a lot too. EDIT: I did not dispute anything older than six months. I started with those from 3-6 months old, and worked to those within the past three months. I only hit those that mattered the most. I think bumpage took care of the rest. And it may have helped with mine that most of them WERE account reviews, since I stopped applying for credit in 2003.
  10. anyone notice the new providian site, AND the new addition to the FICO page? They give you a chart showing the score for the past year. That's pretty cool.
  11. Thanks Sky. That may be enough to do a better search on. I'll let ya know if I find the specific law.
  12. This is a lawyer from Edelman, Combs. He wanted me to find out, and I told him this isn't a community property state. He said it didn't matter if it was community property. In some non-community property states, spouses are responsible for the necessities and debts of other spouses. It is ALWAYS that way in community property, and sometimes that way in other states. He said he thinks IN is one of those states, but i don't think it is. It's not a huge deal, I just wondered. If he really needs to know, he should be able to find out. As you know though, whatever the client can do to help, makes everyone's job a little easier. I'm not gonna kill myself over it though.
  13. Does anyone know where I can find out if spouses are responsible for one another's debts, and under what circumstances they would be reponsible? I searched IN code, and couldn't find anything there. I don't think we have spousal responsibility. We don't even have alimony. IL attorney wanted me to find out, and I can't find anything. Just wondering if anyone knows, so I don't look like a big when I tell him what I find. Thanks.
  14. No big updates at the moment. I did get the request for lien release in the mail. I did fill it out, and I did send it in a few days ago. It said I was supposed to include documentation, showing that there was an account with them, and I was supposed to send title work. What she actually sent was a form used for property conveyance. I don't know why they need title work, or proof that there is an account with them. They're the ones with the information in their systems. Maybe they need proof that there is a lien on the property. I don't know. Since i haven't the slightest clue what sort of title work they wanted, I didn't send it, but I did send a copy of the 3B report with them showing as settled in full on all three. The paper just said if it wasn't sent in, it would take longer than 30 days, because they'd have to get the title work, and research the payment history. Well, I don't mind them getting the title work at their expense, but I'd rather they not research the payment history. I swear someone's going to lose their job over this, if the company realizes what happened. And NO, they never sent a 1099. I think what might have happened is that they mixed up my account with someone else's. When I called the Recorder last time, I was told that they had tried to release the lien, but had the wrong property number (and my address). My account showed as suddenly paid off about the same time. So, that's a possibility. What the mortgage CSR said sounded to me like they showed it as though I made arrangements to settle the debt, and fulfilled my obligations, and got it settled. Strange that she asked me if I was working with someone. Nope, not me, I ignored every phone call and every letter. The last time they sent a letter, the UPS guy didn't get my signature, and I never heard anything since. Anyway, if everything goes through it doesn't matter how or why (even though the curiosity is killing me). All that matters is that I'll be rid of this house, and will be able to move on to bigger and better things. Oh, and the CA that sent that letter, hasn't sent anything else yet. They have a contract keeping them from reporting, so suing me is the only means they have of causing damage. Maybe I'll just mail the OC a check today and be done with it. I want to pay all my medical bills, I just don't want to do it until after we get the new house. I'd rather pay old bills with leftover money, than try to buy a house with leftover money. I will definitely keep everyone updated on everything that happens. This is my little vent blog. You guys (ya'll for those southern folks out there) are always the first or second to know everything. I promise.
  15. I agree with that. And I do wonder if that information is supposed to remain even after the account is closed. I don't think it is. I think all that is supposed to remain is the high balance/loan amount/credit limit, the type of account, and possibly the terms of the account (60 month, revolving, etc). The only purpose of monthly payment is so the the lenders can determine what your current monthly obligations are so that they can figure your current debt:income ratio. The information is supposed to be a "credit snapshot", showing your current financial/credit status. If an account is closed, and there is no balance, then there also is no monthly obligation. Take for example, credit cards. The monthly obligation changes as your balance changes. They can't just report what the highest payment obligation was. They have to show what it currently is. Why would it be any different for installment loans? It simply makes no sense why a CRA can "catch" a seven year TL, and it stops reporting, but they don't "catch" revolving accounts without credit limits, or high balances lower than current balances. It's not necessarily about removing negs now. It's about obtaining a complete and accurate report from all three CRAs. Negs are being removed. Crap 1 and others still show no credit limit, and several TLs show current balances but a high balance of zero. I don't know the impact on the score, but I know it's not accurate, and I know it's a simple fix. What's worse is when you dispute the credit limit on an otherwise good account, and they remove it altogether. It shouldn't need to be disputed in the first place. It's impossible to have a revolving account without a credit limit. I agree with this also. But, I don't have time to sue anybody right now, because I'm dealing with moving out of state, buying a house, selling a house, getting a job, and going through two custody battles, etc... For me, at this very point in time, suing is impractical, or next to impossible. However, once other things settle down in other areas, I do intend on going after a few furnishers, and CRAs. Those things are just stupid, and there's no sense in people having to dispute them. We all know missing credit limits have a high impact on scores. And regardless of the impact, we all know a high balance can't be lower than the current balance. Someone else has sued (EX, Cap1, and Target), is still suing, and going pro se. I don't know of any progress yet because well, as you can see, they are still reporting this way. This is one of those things that may need to be spoken in volume, not just by a few individuals here and there. The FTC only takes action when they receive a lot of complaints. But they do take action. Court action is not necessarily as fast as people like to believe. Lawyers have a way of dragging things out for years when they want to. But courts cost money, and take a lot of time. Those are two things I simply don't have right now, and don't expect to have right away.