Financing in 19083>Question Details

raj, Real Estate Pro in 19083

I need HELP with financing! I have collateral but not the greatest credit and my debt/income does not look great on paper. However, if I could speak..

Asked by raj, 19083 Sun Feb 10, 2013

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Helaurin, thanks for the reference
0 votes Thank Flag Link Mon Feb 11, 2013
Debbie, I agree and respect the business aspect of the review process. However, since my debt-to-income ratio plays a significant role in my approval status I need to ensure that the decision makers understand what I am doing here. And that is to absorb a good portion of my debt which is unsecured (3-Credit Cards and 1-Personal Loan) with the loan I am looking to obtain. If possible, I would like authorize them to pay those debts directly from the loan I am looking to obtain.
Thanks for your time at looking over my situation.


Board Members, I look forward to a solution to my situation.

Thanks
-Raj
0 votes Thank Flag Link Mon Feb 11, 2013
Your situation is complicated and lenders who want to be able to package their loans on the market need the lending guidelines of the loans to match the lending guidelines for the packages the loans are sold in.

Your best bet may be finding a lending institution that keeps some of the loans in their own portfolio. I was in that kind of situation a few years back. No lender was willing to lend to me - except one - Citadel Federal Credit Union. It helped that I was already a member there and was direct-depositing my paycheck, but where everyone else kindly told me not to even bother doing a formal application based on my numbers at the time, Citadel looked long and hard at my numbers and took a chance. I was in a situation where my original mortgage from another lender had been designed for a two-income family, my spouse at the time had left & remarried, and suddenly I was a single-income person with not great scores and a boatload of credit card debt. But, my income would support a lower-rate mortgage, even with the credit card debt thrown in. They gave me the loan when no one else did, which enabled me to keep my house.
0 votes Thank Flag Link Mon Feb 11, 2013
Thanks for the info!
Flag Mon Feb 11, 2013
raj, I am at a loss - your situation is certainly complicated by many factors, and I honestly don't know where else you can turn if you have already been turned down twice for a loan.

I do not think "speaking" with anyone, or trying to explain why you're in the position you are in will make a difference to any underwriter........the banks make business decisions based on what they see on paper, not emotions.

I do wish you luck, and perhaps someone will come along who is better versed in creative financing than I am!
0 votes Thank Flag Link Sun Feb 10, 2013
Debbie, I agree and respect the business aspect of the review process. However, since my debt-to-income ratio plays a significant role in my approval status I need to ensure that the decision makers understand what I am doing here. And that is to absorb a good portion of my debt which is unsecured (3-Credit Cards and 1-Personal Loan) with the loan I am looking to obtain. If possible, I would like authorize them to pay those debts directly from the loan I am looking to obtain.
Thanks for your time at looking over my situation.


Board Members, I look forward to a solution to my situation.

Thanks
-Raj
Flag Sun Feb 10, 2013
Debbie,

Thanks for taking the time to respond here. Problem, the 2 local Institution I've turned to have denied me.
1) My Primary Bank - Currently carries 4 mortgages for me (Primary + 3 Rentals)
2) Credit Union - Recently obtained a small Personal Loan. .

Quick Snapshot:
1) 4 Mortgages - 1-Primary and 3-Rentals
2) 3 Credit Cards - Maxed Out
3) 1 Personal Loan from Credit Union
4) Credit Score = 660
5) 3-Rentals (in addition to the ones stated in #1) but these are Free & Clear
6) Credit Score Problem - I dipped below 700 because:
***I made a horrible investment within the last 2-years which set me back up until recently. This led to maxing out my credit cards and obtaining the Personal Loan from the Credit Union.
***A $50 parking ticket hit my credit because of an irresponsible "friend".

I have the income to support a payment on the $50K HELOC (70% LTV on a F&C from #4) I am trying to obtain.
*Note - A portion of this loan is going towards consolidating all 4 Credit Cards stated in #2.

This situation is HIGHLY frustrating because the loan is going towards to clean up and organize my financial profile which is the very thing causing me so much trouble to obtain one.

I need an opportunity to explain this situation in person to an underwriter/powers to be (with the last 2yrs of tax returns on hand of course) .

Who can I go to that will approve this but not bleed me out with fees/interest rates?
0 votes Thank Flag Link Sun Feb 10, 2013
yes, most likely, you do need help.

and yes, you do need to speak.......with a local mortgage rep.

Find one (try your bank or ask a local agent for a recommendation)...........once they analyze your specific financial position - they can tell you if obtaining a loan is possible.

best wishes........
0 votes Thank Flag Link Sun Feb 10, 2013
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