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GLW

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  1. Centex - thank you very much. Totally agree ... this is a marathon.
  2. Thank you CB; your advice is pointed and fair. Folks might now like it but it's always reliable. I'm posting this in hopes that someone might find my story useful. Backtrack to late 2016 ... my credit score was in the low 400s ... I was renting a home that I barely qualified for and had my wife and two kids living well below what I wanted for them. I spent hours on CB and the light bulb clicked. I kicked myself in the a$$ and put together a long-term plan. The saddest part is that mine wasn't a money problem. It was a discipline and lack of planning problem. Within 9 months I had cleaned up all negatives from my credit report ... and my score moved into the looooow 600's. I used myfico.com to track my scores daily (I know this is overkill) but I still do it to this day. I saved, invested, monitored, remained disciplined. within 18 months I was in the mid 700's. Put a contract on a new construction home this past December, closed last Wed, and am sitting in it now typing this post. I paid 20% down on a conventional mortgage for $460K @ a 3.8% rate for 30 year fixed. I'm a big, stocky, bald, black guy and I sat at the settlement table in tears. The poor notary thought that she had offended me when she handed me the keys. It meant everything for me to put my family back into an excellent neighborhood with great schools in a beautiful home. Moral of the story - no matter where you start from ... you can get it done. Plan, plan, plan, research, research, research, ask, ask, ask ... then DO IT. CB is not always fun and games but the seasoned contributors and admins are the real deal. Much appreciated and God bless.
  3. UPDATE: Thanks very much for the advice all around. I closed on 8/28 ... 3.9% rate ... Eagle Home Mortgage was a nightmare to work with.
  4. Thanks LoanX … Eagle Home Mortgage is the lender that the builder prefers. My LO is not very responsive.
  5. Hi - 1) The builder is offering $15K in "Seller Credits" 2) Yes; I can come up with the additional 1.5% 3) No sure of the exact # but the ratio is excellent per my last discussion with my LO. Thanks
  6. Hi Folks - I'm scheduled to close on a new construction home 8/30. The kids start school here in MD on 9/3. They enroll in new schools and I want to get them settled as much as possible. That background might come in handy for the scenario that I'm seeking advice on. Here's the scenario: purchase price is $439,540. I'm currently doing an FHA loan with 3.5% down. My mortgage credit score is 726. The loan estimate has me paying $300 month in PMI. The issue is that in October I get my yearly sales bonus; at that time I can put down the ~$90K needed to cover the 20% down payment to remove PMI. Questions for those experienced in the industry: 1. Should / can I delay closing for two months? If so should I go conventional? 2. Should I move forward with the FHA loan and refinance quickly? How soon can one refinance? 3. Should I move forward with the FHA loan and simply pay $90K on the principal of the loan and reduce the amount to have PMI removed? Thanks for your help in advance.
  7. Thank you very much; excellent advice. I chopped it down and focused on the savings aspect Hit Man … there really is meat to that story. Here is the updated LOE: RE: “Provide explanation for all derogatory accounts on your credit report (BK 7, BK 13 and Foreclosure) and how borrower will prevent those occurrences from happening in the future.” To Whom It May Concern: This is to explain the Chapter 7 bankruptcy (discharged 2010), Chapter 13 bankruptcy (dismissed 2012), and foreclosure (2012). I owned a primary residence and purchased two rental properties. The 2008 economic recession hit, and the rentals sat vacant. For months I used my work income and spent my savings to sustain the three mortgages. The housing market collapsed, and property values declined 40-50%. This prevented refinancing. Both rentals sold on short sale in 2009. The note on my primary residence sold several times to different lenders; the final lender threatened foreclosure in 2010. I had exhausted all savings and my liquid holdings were nearly $0. In the middle of this in 2010, I suffered a life-threatening health crisis -- bilateral pulmonary embolism (multiple blood clots in both lungs). I was rushed to the emergency room, stayed in intensive care for two weeks, required nearly 14 follow-up surgical procedures, and required vocational rehabilitation and home care. I was on long-term disability for nearly seven months and had a 40% decrease in salary during that period. In 2010 I filed for Chapter 7 relief. Just after that discharged, I suffered the health crisis. Between 2010 – 2012 I made several attempts to modify financing on my primary residence – all unsuccessful. In 2012 I filed for Chapter 13 relief to protect that property. The situation was unhealthy, stressful, and hindered my recovery. Consequently, later in 2012, I dismissed the Chapter 13 and let the lender take ownership of the primary residence. Coming out of that situation I re-organized my financial life to ensure that it never happens again. The recession and health crisis were very unfortunate, but the root cause of the default was not having enough emergency savings. As such I focus intently on saving. In 2018 for example I maintained no less than 5 months of savings to cover all expenses; this is outside of voluntary contributions to my company’s 401K plan and the 6% annual company match that they pay. My goal by end of 2019 is to reach 12 months in saved expenses. I enjoy a successful career with 50% increase in salary now from 2012. I invest much more deliberately and use the lessons learned from that experience to guide decision-making. I carry nearly $0 credit card debt, monitor accounts daily, and adhere to a very solid budget. ----- Thanks for the assistance folks!
  8. Do you have experience with Lennar's in-house lender - Eagle Home Mortgage? Working with them now and reaching out for experience or advice that other have? Thanks
  9. Underwriting advice needed -- Contract signed but house will not be built until August. Signed a purchase contract for new Lennar Home; went with their mortgage company Eagle Home Mortgage. I received a conditional approval through "Pre-Underwriting." The document person (forget the formal name) came back to me with a list of other docs they need to run back through underwriting. The issue that I have is that the house isnt scheduled to be finished until August 2019. All the information I've provided and will provide expires in April ... and then again in July. My question is can I tell the loan company to hold on all this data collection until we get closer in to the final loan closing? I'm concerned that I'm getting questioned waaaay too early about things that will be of no consequence in August (or the three preceding months) prior to final closing. Question - can / should I tell the mortgage company to hold until we get closer to the closing date? I appreciate any advice. Thanks
  10. Advice Needed - is this LOE too much; should I skinny it down? I've plowed through several thoughts on the topic of LOEs and finally came up with the one attached below. Please let me know if this is too long/lengthy. This all took place back during the recession and during a crazy health scare. Your advice/feedback is greatly appreciated. RE: “Provide explanation for all derogatory accounts on your credit report (BK 7, BK 13 and Foreclosure) and how borrower will prevent those occurrences from happening in the future.” To Whom It May Concern: This is to explain my Chapter 7 bankruptcy (discharged 2010), Chapter 13 bankruptcy (dismissed 2012), and foreclosure (2012). At the end of 2007 I purchased two residential properties with the intent on renting them. These were in addition to my primary residence. There was little equity in the properties. Moving into 2008 the recession was in full swing and the properties experienced significant vacancy. For several months I used my personal income and savings to sustain the mortgages on all three properties. With the collapse of the housing market, the properties values declined significantly. This prevented refinance or re-structuring of the debt on the properties. Both rental properties were sold on short sale in 2009. Unfortunately, the note on my primary residence was sold several times and was threatened with foreclosure in 2010. At that point, I had exhausted all savings and my liquid holdings were reduced to nearly $0. In the middle of this “property” emergency in 2010, I suffered from a serious “health” crisis -- bilateral pulmonary embolism (multiple blood clots in both lungs) -- that nearly killed me. I was rushed to the emergency room, stayed in intensive care for two weeks, required nearly 14 follow-up surgical procedures, and required vocational rehabilitation and home care. I was on long-term disability for nearly seven months and had a 40% decrease in salary during that period. At the advice of legal counsel, I filed for Chapter 7 relief in 2010. Just after the Chapter 7 was discharged, I suffered from the crisis described above. Between 2010 – 2012 I made several unsuccessful attempts to modify financing on my primary home with the myriad vendors that bought and sold the note. In 2012, at the advice of legal counsel, I filed for Chapter 13 relief to protect my primary residence. The situation was very stressful and hindering my recovery. As a result, later in that same year and still recovering from my health crisis, I dismissed the Chapter 13 and let the lender take ownership of the primary residence. Coming out of this situation I organized my financial life to ensure that this never happens again. I have enjoyed several promotions and positions with increasingly more responsibility and pay. I invest much more carefully and use the lessons learned from that experience to be much more careful with my money. I consistently save both through my company’s 401K plan as well as through personal investment accounts. I carry nearly $0 credit card debt intentionally, monitor accounts daily and adhere to a very careful budget.

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