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mortgage bailout

Discussion in 'Members' Lounge' started by nootrac22, May 10, 2009.

  1. nootrac22

    nootrac22 Well-Known Member VIP

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    call me retarded if you want, but I'm considering it. I currently have no problem making my mortgage payments, but if everyone else is getting help I might as well try. I was thinking of calling up my lender and telling them that I'm starting to have problems, just to see if I can work myself a deal. I've actually been contemplating skipping a mortgage payment or two if I have to. I know it will effect my credit score, but I just got a new car and have all the credit cards I could want. So by the time that I should need new credit these things should be off or so far in the past that they won't hurt much. My cousin lives in vegas and got caught with his pants down in the housing crunch, the bank has recently offered him 30 year fixed at 3%. If I could get something similar I could save myself a couple hundred a month. Oh my mortgage was just sold to B of A, one of the banks to fail the stress test. Looking for feed back and opinions on this crazy idea. Yes, I know I'm stupid for considering this, but I'm tired of people who made dumb decisions getting rewarded for it. So I'm looking to get in on the band wagon.
     
  2. CRX-YEM

    CRX-YEM Super Moderator Moderator VIP

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    In some states bankruptcies stay on file for 10+ yrs and van be renewed and they can appear on your records for ever you really need to do your research about your state laws before you decide to do anything
     
  3. Drake

    Drake Well-Known Member VIP

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    I fail to see how this could be beneficial in anyway shape or form. If you are looking to save a couple hundred of bucks a month there are several ways to make up for it. If you can comfortably afford your lifestyle just be great full you have what you have. Hell look at some of the shit some members on this forum are going through. Now if you can just call them up and get it readjusted free and clear jump on it. But don't lapse on your mortgage payment in the hopes of them giving you a sweet deal. If you have a job and are white they will just throw some sand in your crack and go to town on your ass.
     
  4. Briansol

    Briansol Admins Admin VIP

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    Like i said on SVT, it's tough being honest sometimes.

    It's really a bad idea, but I fell you.

    Why work at all? You could go on welfare and with your son, you'll get a ton of credits and food stamps too and probably live at just a bit under your current standard of living for doing nothing (and taking out day care expenses, and you'll probably end up ahead).

    If you have 15-20% equity in your house VS value, you can easily re-finance to a better rate.
     
  5. jamesA

    jamesA Well known pissed off telephone guy VIP

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    There are other ways to go about this that won't fuck with your credit. I wish I could refinance, but my credit is horrible (stupid debt to income ratio). My mortgage is through chase, though I'm up to date and have never been late, even they won't touch on a refinancing option with me.
     
  6. nootrac22

    nootrac22 Well-Known Member VIP

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    my point exactly. Why are those of us paying on time putting up with this shit. Some douche bag making 35k a year should not own a 250k home, shit even a 100k home should be out of that persons reach. I'm tired of sitting buy and watching stupidity get rewarded. Maybe if I withhold payments they will reward my dumb ass. Any way I am going to call up B of A and try telling them a sob story and that they need to readjust my mortgage so I don't default.
     
  7. jeffie7

    jeffie7 Wrong Whole! VIP

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    Anyone looking at buying a house, get an FHA loan, they're harder to get due to stricter rules, however when you go to refi, there's nothing to it.

    What do you need to do in order to refi an FHA loan? not have a late payment for 1 year, and pull a 620 or higher credit score, you DO NOT have to show any income, as long as you can meet the two things 620 and 1 year no late payments, you're done.
     
  8. 90 accord

    90 accord Chicks dig the box Moderator VIP

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    is that with the fha streamline? i got something in the mail saying i can go to 5% (down .87%) with little to no out of pocket cost.. i'm still skeptical about it but it seems interesting..

    currently i owe about 2k more then its worth, so, yeah..
     
  9. jamesA

    jamesA Well known pissed off telephone guy VIP

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    You're a new homeowner, relax there chico. Let the mortgage ride for a year or so before trying to refinance.
     
  10. jeffie7

    jeffie7 Wrong Whole! VIP

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    Why? That could be really bad advice, it all depends on his current loan. it could be a no brainer. to streamline you must have your home for 4 months again with on late payments.

    I had my house for 4 months, I went from 2230 a month down to 1980. What did it cost me? $1550 to close.

    That means I'll recap ALL of my closing cost within 7-8 months. on top of that the closing cost worked like a payment so didn't have to pay that months payment. So if anything I was able to save 700 on a payment, then continue with a lower payment.

    This is my payment history. 2230, 2230, 2230, 2230, 1550, 1980, 1980, 1980....

    If I waited a year, I would have been paying 250 extra a month then at the end of the year if rates were not .5% or lower then the rate on the loan doing a refi would make ZERO sense. Losing any chance to save any money.....

    If rates drop another point, I will WITH OUT A DOUBT refi again in 3 months.


    P.S F the people who are sending you letter after letter, I'm getting about 2 of those f-ing letters a day. Find yourself a local guy you can trust, go to him, don't let him come to you. Who can you trust? no idea, you have to ask around and find friends or family who have used someone and felt like they did a good job.

    You would have to contact a broker about that, who says what it's worth? how do you know what it's worth? When doing a streamline they DO NOT appraise your house. 620 score or higher plus no record of late payments over 1 year is what you're looking for. Hopefully they base the value of the house off the last appraisal, the one that allowed you to get the loan in the first place.
     
    Last edited: May 11, 2009
  11. jamesA

    jamesA Well known pissed off telephone guy VIP

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    Last I checked they run your credit for ever refinance you do. Constantly refinancing or having people check your credit isn't good for it.
     
  12. jeffie7

    jeffie7 Wrong Whole! VIP

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    Yes they check it, even for a stream line, but. who cares. unless you're boarderline on credit where every single digit counts, it really shouldn't matter.

    My credit when pulled to buy the house was 802 (all 3 avg together)

    I have a 13K limit on my discover card, when I bought this house I gutted it, I put everything I could on my discover card (cash back FTMFW!!!!!) so I'd charge around 5-10K on any given weekend then paid it off, did this up to around 35K, Even though after 3 months my discover card balance is at zero, when they averaged out the months it showed an avg balance of around 8K

    It's not good to have a credit card in use to more then 50% of the limit it starts to look like a risky account.

    I pulled my credit twice since buying the house, once for a car and once for the refi.

    My credit score is now flagged with too many credit inquiries, and too high of a balance on a credit card, even though its currently has a zero balance (fuckers)

    I went from 802 down to 784. My guess is too much credit in use (credit card at 50% + use) makes up the most of the drop. the too many credit pulls is maybe 5-10 points.

    are you willing to lose 5-10 points knowing that you'll gain them back over the next few months if it means saving $50-$100-$150-$200-$250-$300 a month?
    How much faster could someone build credit back up if they had an extra hundred or two of spending/bill money in their pocket every month?

    its a win win.
     
  13. totalburnout

    totalburnout Well-Known Member VIP

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    When they pull your credit for a transaction, like a car loan or a mortgage, multiple inquiries are lumped as a single inquiry. Your credit score should not be substantially effected if you have one or two inquiries a year.

    As to the original poster, you can refinance legally in most cases. There's no need to lie, cheat, steal and then have black marks on your record as a result. Shop around, there's going to be an estimated 20,000,000 refinances over the next year or two.
     
  14. jamesA

    jamesA Well known pissed off telephone guy VIP

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    *sigh* fine, refinance and have everyone pull your credit. lol

    Borderline or not, I'd rather have every last single digit of score on mine.
     
  15. Briansol

    Briansol Admins Admin VIP

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    This is a common misconception. SOLID INSTITUTIONS PULLING your credit does NOT effect your score.
     
  16. jeffie7

    jeffie7 Wrong Whole! VIP

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    Even if it means having an extra hundred bucks to put towards bills every month?
     
  17. jamesA

    jamesA Well known pissed off telephone guy VIP

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    The biggest problem you have is you can't relate that not everyone is in the same situation as you are.

    You go into these huge posts about how your credit score is this, or your rate is that, and if you refinance this way then you can save this amount of money. Its not all fun and games for everyone else, possibly including the OP. Your examples are mathematical and represent the overall picture, but not everything is going to be roses for him if he takes your advice.

    I can get my credit report and look at the hundreds of companies that have pulled my credit. I've had a reputable company tell me they wouldn't finance me when my credit was 760 because I'd had it pulled so many times.

    Just because you have good credit doesn't mean you should try to use it every possible chance you get.

    I was financing shit left and right, credit cards, my first laptop, my desktop, tv, surround sound, car, I've had 4 loans, including 2 consolidation loans and my credit was above average. Including my debt:income ratio, this is part of the reason my credit went to shit. I used it too much and got into trouble in using it. Its hard as fuck to get it up into the 700s, but it takes ONE bill being 2-3 months past due to put it 6 feet under.

    Just take my advice and use your credit sparingly, have it pulled sparingly. If you can have it pulled and get something refinanced... great. But think long and hard of the repercussions it'll have 2-5 years down the road, not just at the short term problem you're looking at.

    Take a look at my signature. I have 8 lines of credit with 7 that are open. I'm not even going to guess at how many I'd finally gotten closed before these 8 came along. I've had 8 years of awesome credit and now I'm trying to keep my head above the water line. Jeffie on the other hand is making more than I am and can sit there with a credit score of 0 and still be able to live extremely comfortably. Listen to him because he makes more money, I don't really care.
     
    Last edited: May 12, 2009
  18. totalburnout

    totalburnout Well-Known Member VIP

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    This advice isn't founded based on the amount of money you make.

    Simple mathematical formulas determine your fixed expenses. If you can shave a percentage off of a 30year loan, you can show that you will save $x.xx amount.

    There's nothing wrong with the refi or researching the idea. One credit pull will not dump your credit score more than 10points.

    If 10 points hurts you exponentially then more than likely you are completely over leveraged and haven't successfully managed your debt in the past.

    Credit isn't put in place so that no inquiries are ever run. In fact its healthy and certainly not frowned upon when you have your credit score pulled when shopping for a car/mortgage. Banks look at this as 1) You using your line of credit, which they see as beneficial 2) You understanding your finances and putting yourself in a better financial position, making you a less risky investment for the bank.
     
  19. Briansol

    Briansol Admins Admin VIP

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    credit isn't about using it sparingly...

    it's about using it properly.
     
  20. jeffie7

    jeffie7 Wrong Whole! VIP

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    I only pointed out that anyone looking to get into the housing market should try to get an FHA loan since it allows for some nice options, main one being stream line refis, everything else was directed to 90 accord who asked about stream lines, you told him not not think about it for at least a year, I disagree 100% with that. If he is in a place to get it, he could save money now that might not be an option to save later.

    you're talking about hundreds of times? I'm talking about 2-3 times in 1 year, IF the rates keep falling. that's counting the first pull for the first loan on the house. Lets get something straight here. your credit isn't bad because you pulled it too many times,
    a 760 score puts you in a great credit bracket, however if your debt to income ratio sucks. that means jack shit. So you ran up x many loans, missed a few payments, one of them maybe 90 days past due? do you really think your credit score went down because of too many credit pulls?

    So its better to pay off your bills over a longer time then it is to save more money and pay the bills down faster? even if it means pulling your credit ONCE for a stream line refi?

    And you still think your credit went down because of too many pulls? You're a very high risk account to any credit company because you clearly have too much debt.

    Most of everything I said in this thread was pointed out to 90 accord who might qualify for a stream line. He would be dumb to not at least look into his options.

    James, I don't understand why you seem to look at me like I'm making big bucks and I have all this money to piss around because of my job. and that's the only reason I'm where I'm at.... I work at a PIZZA PLACE. I make about 20 cents a week at handsonkitchen.com and haven't had time to make any money music wise due to the house remodding. I started looking into ways to make money work for me when I was around 16, I NEVER spent money on something if I didn't have a plan to have it paid off with whatever terms I set for myself. How is it I'm able to have what I have? I'm smart with my money. I will sit and look at 5 different angles as to how I should use it. If I'm able to save 100 bucks a month by dropping a point on a refi with very low closing cost, its a no brainer, if I can get more on my paychecks and have less of a tax return so I can use the money during the year to invest, I do it. If I had out standing bills, every extra cent would go towards it. You are in the spot that you're in for a reason. If I were in your shoes, I would have never bought a house, I would have rented a cheap apartment, sold off any non needed things, picked up an extra job and busted my ass until my bills at the end of the month were at ZERO with money to set aside. Only at that point would I look at moving forward into bigger investments like a house.

    Anyways, credit means jack shit if its used in the wrong way. It's a tool, if used right, it will carry you far. if used wrong.... you'll have little things in your sig showing how deep you're in.
     
    Last edited: May 12, 2009
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