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Posts posted by bernsten69

  1. Thanks all.  I'm going to pass on this property and look to a conventional purchase more in my range in 2021. (I have my eye on something in the $550 range).  I'm not 26, I'm 40 and expect to make equity partner in a few years, which will more than double my income.  My down payment died in the markets earlier this year.  (yes yes, it should have been more conservatively invested, etc.) My wife also spends 1/2 of my damn income, so we can't save anything after taxes.  I need to cut her off.  (the plan was to recover the 5k she is spending every month on garbage, cut up her credit card, and use that to pay for the slightly increased house payment over what we are currently paying)  For a while I had her on a budget and limited her spending, but stupidly stuck her on my CC account.  It's actually closer to 6-7k wasted every month.  That's it.  I'm stopping it tomorrow.


    In any event, I would prefer not to take out the 401k loan.  Are conventionals with 10% down still available?  Any recommendations?  What are good sites to compare conventional rates with?  They all seem to want my information before quoting their best rates.


    Should I apply now or wait until 2021?


    (I'm not falling for the permanent increase in interest rate in lieu of PMI, where you end up paying 10x more than you would have in PMI.  Nice commissions for the brokers who sell you on that scam though!)



  2. I'm looking at a Jumbo mortgage, purchase price of 745k.  I have 50k, can take out 50k from a 401k loan.  Thus, I need either a jumbo loan or conventional + 2nd mortgage.  Credit scores of 800+.  Annual income of 350k+


    Can anyone recommend whether it is better to get a conventional + 2nd mortgage vs. a jumbo + PMI?  I am thinking I want a 15 year with a low rate, no points, minimal closing costs. 


    Also, can you please send me lender recommendations?  Bankrate is showing no jumbo mortgages with less than 20% down.  I'm not looking to get gouged with massive origination/broker fees, so please don't send if you are trying to earn a big commission.  (I'm a lawyer, licensed real estate agent, and former mortgage broker).


    Edit (this is in IL, 60010)





  3. I am looking at a foreclosure and need to do either a full 203k or hard money purchase. I have heard nightmares about the 203k approval process and wondering if anyone can share their experience.


    Also, please message me a recommendation for a 203k or hard money lender that you used for your foreclosure in Illinois. I am NOT interested in solicitations from mortgage brokers - I need customer recommendations because, apparently, 90% of the LOs who do 203ks don't know what they are doing and cause massive problems for everyone.


    This is for a house in a high value area, so we are talking probably around $450k purchase with $100k of repairs.


    FICOs 780+; DTI: <10%



  4. I am ready to buy and have Fico8s of EQ: 800+, TU:800+ EX: 714(refuses to remove over 7 year old settlement).


    I am being driven crazy by shopping for a mortgage. Are there any mortgage brokers out there that charge a fixed fee ?


    I've been on all of the websites, called up lenders for rates, and the ones that have the "best rates" all have an origination charge which is "set-off" against a lender credit. I really don't know if I trust these companies, which have been suggested by many of the "loan search engines" online.


    Here is what I am looking for:

    15 year, conventional, $424,100 loan ($50,000 down), no points, no or low origination fee. I want to write an offer, but I want to get my mortgage application started. This is for Illinois. W-2 Income of ~$270k, monthly debt payments of ~$1,400 (includes rental property mortgage), rental income of $8,000 a year from an investment property.


    Alternatively, I may get a jumbo loan with a likely purchase price of $550,000-$600,000, still with $50k down.


    I keep getting quoted 3%, 3.125%, 3.25%, 3.375%, and the ones with the higher rates claim that they have market rates, except there are other lenders with lower rates. The ones with the lowest rates won't give me a rate lock at all and have an origination fee. My question is, what is the chance of a bait and switch with the lowest rate companies? They claim the origination fee will be offset by a credit, but won't guaranty the credit and won't tell me how it is calculated.


    I don't want to go with one of the big banks, because they all seem to have MUCH higher interest rates.


    I know there are restrictions on advertising, but can someone please PM me a suggestion with your recent experience with a lender in IL?


    Are the lenders listed on the mortgage search engines that have the "best" rates all bait and switch companies with horrible customer service?


    Also, do the quoted rates basically mean NOTHING until all of my documentation is in, e.g., signed purchase agreement and appraisal, so that they can basically change the rate to whatever they want and I have no recourse other than switching lenders?



  5. OK, So I'm ready to buy - trying to get this charge off removed this month. I now have $45k, will be 50k by the time that I buy.


    Quick question - if I can get the 20k charge off removed (due to 7+ years on), will a mortgage company still pull the complete file and refuse to lend without paying it off? I am well past the SOL, and I am not paying it.


    Also, can anyone recommend a lender that has reasonable requirements for a Jumbo loan? I am hoping to buy a place listed for $539k, but will probably get it down to $510k. That leaves me with a $460k non-conforming. I don't have reserves, but my income is $270k. I doubt I can get a seller second to make it conventional.


    This is for Illinois. Also, I'll be a RE broker by the time I close.



  6. I am looking to buy in 2016. I have ~$30k saved at the moment, intend on buying in the $350-$425k range.


    I have a 20k charge off outstanding from 2010 - lost my job at the time. I also have settled a $10k charge off from 2010 for less than the face amount.


    I also own a property that I am currently renting (owe $74k, worth around $100k). I have never missed a payment on it.


    My scores are in the 680-700 range.


    My wife had a chapter 7 in 2010 as well, but she has no current source of income (stay at home mom).


    I make $200k+ a year.


    I am basically looking for advice on the following:


    Should I wait until 2017 for the charge off to fall off of my reports? The SOL is 5 years, and I am NOT paying $20k that I have no legal obligation to pay. Even after it falls off, will it still show up somehow for a mortgage underwritter, so that they could still demand that it be paid?


    Are there specific mortgage companies that won't require charge-offs to be paid? An underwriter telling me that it must be paid is basically a non-starter for me.


    Should I sell my rental? I am not getting good income on it - management company can't keep a current tenant, so it is a cash drain at the moment. How would selling the rental affect my scores and prospects of qualifying for a mortgage? This home was originally my first home, but I moved and it is now a rental.


    One more thing: Equifax is still reporting the charge-off as open and it was recently re-reported to the credit bureaus, as a scumbag collection agency keeps calling me at work in violation of the FDCPA. Is it worth it to send in a letter to Equifax to try to get it reported as closed? It is showing horrible utilization because it is still being reported as 'open.'




  7. I'd really appreciate any help that you can give me.


    If you know a Lawyer in Chicago who handles collection negotiations and is very good, I would prefer to just pay somebody to deal with this, so I'd appreciate a referral.


    My situation:


    For the past year I have been unemployed and been unable to pay any of my debts. I stupidly did not file chapter 7. I had one CC debt of ~$20k and another of ~$17k. I also forgot to file for an additional deferment on my student loan a few months ago.


    Anyway, I haven't answered the phone when the creditors called and didn't respond to any of their 'validation' letters. (I got tired of saying I was unemployed and couldn't do anything about it)


    I recently got a job that pays very well (6 figures) and can start paying down my debts.


    However, I recently received a crazy validation letter claiming that I owe $28k on the debt that was $17k one year ago.


    If I can work out a settlement with these clowns, I'd like to do that, but in NO WAY do I want to pay the crazy 64%+ interest they are claiming that I owe them on my debts. (My rate was under 10% prior to last year)


    If you can point me to the right statutes, I can take a look (I'm an IL Lawyer), but I don't really have time to deal with this myself. I'd much rather pay somebody who does this to negotiate on my behalf.


    I tried finding the right threads, but I unfortunately don't have the time to go pouring through a ton of threads to find the right FDCPA refrences (nor the time to read them in the entirety).


    I suppose I can just file against them if I find that they are doing something illegal, but I'd much rather have somebody handle this for me.


    Any idea on what type of discount I could get if I make an offer to pay?


    What I REALLY want to avoid is having to go to court if they decide to try to get a judgment and garnish my wages.


    Is there any way to talk with the original creditor and have them pull back the debt and get a payment plan with them?


    Is that a bad idea?


    I know that they paid MUCH less than even the face amount of the debt, so I really don't want to start paying without a settlement.


    I'm not sending them a cent until we have a written agreement setting for all fees and costs, but I was hoping that somebody could just refer me to a Chicago Lawyer who can handle this for me.



  8. I have a well paying job ($160k/year), but after getting out of lawschool, I was saddled with: $40,000 in credit card debts and around $55,000 in student loans. I never consolidated my student loans. I have a Penfed CC at around $19k (and around 5.99-10.99 fixed APR), a horrible MBNA CC with $14k on it at 28%, an Elan CC at around 22% with 4k on it, and an Amex card at 19% with 2k on it. My utilization is basically 100%. I stupidly got an expensive apartment, which costs $1700 per month, and I own a vacant house that needs around $3k of work done on it to get it into condition to rent out (the house is worth $120k, I have a 1st mortgage of $90k and a 2nd of $10k on it). (Car of $164/mo, Cell phone of $100/mo, and a ton of other expenses) I just can't seem to save any money at all.


    Monthly Cash Flow:


    Income: $7.2k per month (friggen government takes almost 50% of my paycheck away)



    Rent $1,700

    1st mortgage $780

    2nd mortgage $105

    Student loans $600

    Penfed $500

    MBNA $500

    Elan $200

    Amex $100

    Food $300

    Car $164

    Cell $100

    I should have $2151 left over each month, but it always disappears


    I want to at least consolidate my CC debt, but both Penfed and Patelco rejected me for an increase to balance transfer or a new consolidation.


    I don't really want a new second mortgage, since the closing costs will outweigh the value and I intend on selling the place in around two years.


    Is there anywhere I can get a consolidation loan for my Credit Cards? Maybe I should refinance my 2nd mortgage, consolidate debt, take out a little cash to fix up the place, and get it rented out asap, but I have 0 time free.


    As of 3/20:


    Transunion: 731

    Equifax: 693


    No Missed payments


    Any suggestions?

  9. What I did was put together a packet for prospective lenders and talk directly to the underwriter if I could. I printed out copies of my credit reports from Myfico.com. I also included Cashflow statements, Income statements, and a balance sheet. I additionally included proof of income(paystubs), proof of assets etc. I stuck this all together in a nice packet at Kinkos with tabs and bound in a nice little binder with page numbers and a table of contents. I made 10 copies, walked into 10 different local big branch lenders, and dropped it off. I made them sign confidentiality waviers as well as a "i will not run a credit check until you give me written authorization since I have a fresh copy right here. I got a bunch of real responses back. I let them know that, if they gave me a teaser rate and that if the loan comes back at a higher rate, I wouldn't work with them. Period. I ended up with a 5.5 NOTE, 5.53 APR, 30 yr fixed, with $200 in closing costs + appraisal etc. I made sure to get "truth in lending disclosures" and "good faith estimates" from all of them. Some of them were even helpful and told me that a different bank in town had better rates. I threw this all together in 2 days(10 hours of work!) But, I believe that it saved me a TON of money. There is no need to use a broker in these situations if you are willing to do a little work. You'll know you're getting the best deal in town. This is a bit of work, but it saves a lot of time and effort. BTW, they had all the docs they needed. All I had to do was sign a few docs when they ran my final credit check. It went so smooth and I even had a cosigner!


    Hope that Helps,




    Loan Origination Fee $5,600.00


    rediculously high from my perspective

  10. I just bought a house in IL, and I'll be going to law school this year. I qualified for the ~$18,000 in federal loans for "qualified education expenses," ie room & board etc. It's a 3/1, and I'm renting out 2 of the rooms(I'm living in the 3rd). I have a full scholarship, so all of the money should be earmarked for living expenses, rent, etc. My question is, can I use some of the procedes from the student subsidized and unsubsisized loan to pay down the 2nd mortgage? (subsidized loans don't accrue interest until I am out of school) How should I disclose this? Does anydbody have any experience doing this? I will only owe $11,390 on the 2nd mortgage, so technically, I could pay it off with cash, and keep the student loan? Is this possible/legal?


    Sam B

  11. I recently went to a mortgage broker and they suggested the following program:

    They would attempt to get a mortgage for me with the highest rate(the points above par would goto them as commission). Then, they would refund me a portion of their comission(probably 50%) in a check at closing. Then, 6 months later, I would refinance and do the same thing again and again, keeping monthly costs very low. They also said that they would pay closing costs every time I refinanced after the first. They claimed that this was a way to lower payments. IE, say I have a 7% interest only mtg. (but i could get 5%) on a 100k mortgage, thats $1000 (1%)that they refund to me. Then, they added the extra skipped pmt on the house due to the refi 583.33. SO, they claimed to have saved me 1583.33 in 6 months, yielding a savings of 263.88/mo. Then, comparing to a 5% mortgage pmt of $416.66, they said that my actual pmt was $319.45 with this program(3.83%). However, I countered that the interest of 583.33 was added to the principal b/c when I refied I missed 1 pmt. SO, I didn't save that money. But, with savings then of 166.66, my actual payment becomes $416.66, AND the balance has increased by one payment. Doing this over and over again would keep increasing the balance of the mortgage and not really save me any money. It would also overexpose me to interest rate risk. However, they "claimed" that this was a new and ingenious investment program. My question: Isn't this illegal? Getting people to refi over and over again while they keep paying the broker's fees doesn't seem to make sense. However, I noticed that if they refunded their entire comission, it would be profitable if you did it every 6 months? Has anybody used this program or idea before? Is it illegal? It seems that it would be a good idea if interest rates were going down. However, they are going up now. (I'm in IL btw)

    Thank you


  12. No, I had an offer that I thought would be accepted. The only thing I have against brokers is extra fees and massive numbers of credit pulls.


    Sorry for not being really clear. Agent thought my offer would be accepted too. But, some big cat who loved the property put in a huge bid.



    Sam B

  13. DOH! I didn't read the FAQ. Sorry guys! The seller had a person overbid me by leaps and bounds, so I am off of the hook. However, are there any good resources out there on where to find some place that can do Rapid Rescoring? Or am I back to making a list of lenders and calling on down the list? I'm making offers on properties, so I need to get the process started...


    Sam B.

  14. I'm in the process of purchasing a $91,000 property in Urbana IL. I have signed the sales contract as "myself and/or assignee". I need to cosign on the loan with my father. My income(proveable) is $24,000 and my father's income(proveable) surpasses $200,000. He has $15,000 left on his 1st mortgage that is on his ~$700,000 house. His scores are in the mid 700's and mine are(were ~640, but just paid of credit cards so it should be ~700). Due to the purchase document, I must be on the mortgage application, or otherwise I am in default(People have recommended having my father be the sole morgagee). I will post more exact scores as soon as I order my scores again. Please post or email me if you are a lender in IL (Champaign county preferably) and have the ability to do a rapid rescore(My CC 0 balances won't update with the bureau's till the 1st, so I need a rapid rescore - I MUST APPLY BY THE 19th). Also, please post/email me rates/points/origionation fees/closing costs etc. (I was mtg. appointed with a company before, so I'd like to see a truth in lending statement as well as a good faith estimate after you run the credit checks and determine what we qualify for). Please send me your contact information. Please, Broker's need not apply.


    Thank you,

    Sam Bernstein


  15. Help! I need to apply for a mortgage, and I just paid off my CC balances(I was maxed out). I had the CC companies fax me statements on their letterhead with my account numbers. Does anybody have a way for me to get my CC balances updated on my credit reports? They don't update until the first and I am required to submit an application next week due to a Real Estate Purchase Contract. Does anybody have fax numbers that I could fax this info to or numbers to call up the credit bureau's?





    Thank you,

    Sam Bernstein

  16. I know this isn't a REI forum, but this is the first time I am going to buy a house. I am going down to Champaign, IL this sunday to look at two houses. I'm taking a friend who worked in construction for years, so he should be able to point out any major defects. However, I wanted to ask if anybody has a really good house inspection checklist for me to run over when I look at the houses. (i'll put a contingent house inspection clause in the offer.. and hire a real inspector after the seller accepts) Also, does anybody know if I need a termite inspection in the middle of IL?


    Thank you. I know this is an REI question, but everybody here seems to knowledgable. Also, I'll be asking about qualifying for a mortgage and where to go in the near future.



    Sam B

  17. Patelco and Penfed did pull EQ. I understand that it matters where you live for which reports they pull. I live in IL, so they pulled EQ. I dont' know about anywhere else. Anyway, I declined the counter offer. I'm going to pay off my debts in 3 weeks. Any suggestions on how to get my credit up as fast as possible?



    Sam B

  18. Well, I just came into a windfall of money and I'll be able to pay off both of my Credit cards in 3 weeks. However, I was wondering how best to improve my credit rating given this. I am in the process of looking at a $51k house that I want to buy. I have enough cash to put 5% down, even after I pay off my debts. How do I get my tradelines and credit reports to update after I payoff my cc's as fast as possible? Also, are there any temporary ways to boost my score when I apply for a mortgage(I'll be looking in the mortgage forum soon). Anyway, my income is around $2166/mo after tax, so I hope that I will get approved. Any suggestions on how to best improve my credit rating? I intend on closing in July.


    Sam B.

  19. By the way, if Primerica Bank is a real company, I am sure it is not part of Primerica, Member of Citigroup. There is a lot of bad mouth information about Primerica because there was a huge insurance battle a number of years ago(they sell only term insurance, and other companies didnt' like that) that caused a lot of bad mouthing going back and forth. The second link you provided seemed like a false post. I am sure Primerica is not offering credit cards. That would be in direct conflict with our mission statement, and contrary to their beliefs. However, there may be a company called Primerica Bank, owned independantly(not related to citigroup). As I posted above, when I get home tonight, I'll give you the customer service number. You should ask them about how you heard there was some company impersonating Primerica, and is this that company.


    Thank you,

    Sam B,

  20. That's strange. Those references seem legitimate. I'll post the home office number when I get home. You can call them and ask them about it. Although, if what that says is true, Primerica Bank is not affiliated with Primerica, Primerica Financial Services, Primerica Home Mortgages.. etc... As I recall, the scam was occuring in Canada. I have no idea if there really is a Primerica Bank CC comapny. However, I bet the Primerica home office can at least point you in the right direction. I'll post the number. They are located in GA.

    Thank you,

    Sam B.

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