The final frustration..

[horseymen]

I haven't posted in about a month, that's mostly because my loan issues have caused me to contemplate suicide.

 

My wife did sometihng we weren't supposed to do - she fell in love with a house.

 

We put an offer down in Early March - they counteroffered the same price, but accepted 3500 in closing costs. We counteroffered a later close date with the same price figuring it would save us 1500 dollars and give us longer to get credit in order.

 

On April 2nd, I had a credit report pulled with a 723 midscore.

 

On April 5th, I had a bogus collection hit. It took 30 days to get it removed. I will be suing them for damages, but it may be too late.

 

After the credit was cleared, and a co-signer car loan (that I co-signed for someone else) randomly appeared on two credit reports even though it had been opened for 2 years, my midscore after all the issues was a 675.

 

Since I am self-employed and have a 30k chargeoff (and a 30 day late in the last 12 months with the co-signed loan), it has been extremely hard to get financing. My mortgage broker ran through underwriting at 5 different places and got rejections at all 5 even after getting preapprovals at them all. The last one hurt the worst, as they strung us along for 10 days and then would not accept that my student loans were still deferred for 4 1/2 more years - they wanted to include them in DTI per the program immediately, and that bumped me over the 50% threshold, and they would not compromise on that.

 

Finally, he said I will have to accept a 9%+ interest rate with First Franklin if I wanted to get the deal done.

 

The close date was supposed to be the 17th, I got a 2 week extension through the 31st - but I was told this is a drop dead extension because the owners are tired of having their house off the market. (It has been since early March)

 

On Thursday, they give a conditional approval finally, but require some "extreme" conditions. I had to go to the social security office and get validation and then get cancelled checks for the person I had set up to lease my current house and source where their money came from.

 

I got all of this done on Friday, but 2 1/2 hours at the SSA (they wouldn't accept a copy of my social security card) put me getting all the stuff to my broker after 5pm. Bad time to miss that - since it was Memorial Day weekend. He sends it to them today and cleared all the conditions, but now they want to order an extended desk review appraisal which, if they can't get it cleared, will take 48-72 hours. The sellers refuse to extend because it has been off the market since early March.

 

So now I'm 48 hours until I'm supposed to close, and I have to deal with that - and a 9.5% rate, and a mortgage broker that I can tell via the GFE is making almost 2 points on a 185,900 house in up front costs, no telling what the backend is - and it may fall through as it is.

 

House buying at 100% is hard out there for a subprime, self-employed pimp these days. For those who are in the conforming market, even with MI, it's a much safer place to be.

Edited May 30, 2007 by horseymen

[liverichly]

Well I really hope your appraisal review is finished quickly, a few weeks ago I had one that took 3 days there, but another loan at the same time only took 1. That's the difference between a cookie cutter home with comparables with a mile and a custom home with comparables over a mile. Your loan officer can ask his account executive at First Franklin to give the seller's agent a call to reassure them that your loan is in the final stages, that has bought some time in the past. Fingers are crossed for ya!

[cedski]

Was this a stated income loan? Or full doc?

[horseymen]

Well I really hope your appraisal review is finished quickly, a few weeks ago I had one that took 3 days there, but another loan at the same time only took 1. That's the difference between a cookie cutter home with comparables with a mile and a custom home with comparables over a mile. Your loan officer can ask his account executive at First Franklin to give the seller's agent a call to reassure them that your loan is in the final stages, that has bought some time in the past. Fingers are crossed for ya!

 

That's the problem, we think. The house backs into a major street, and they want comps for that situation, and there are none within a mile or even two miles. There are only eight houses in a 2 mile area that backs into the major street, and the house I am buying is one of them. None of the other ones have been sold. There were only 3 good comps as it was, because most of the other houses in that area are high dollar houses, and a mile the other way, the houses are 1950's houses. This was a very small subdivision built in 1995 that is completely different from every other house in the area.

[horseymen]

Was this a stated income loan? Or full doc?

 

I'm not sure, honestly. I think it's a full doc loan using bank statements as verification, but I also had to write a letter of explanation and had to have a CPA letter. With all the hoops we are jumping through, I imagine it's a full doc bank statement loan.