Banks love to say NOOOOOOOOOOO! (Full Version)

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pahunkboy -> Banks love to say NOOOOOOOOOOO! (1/30/2007 8:05:43 AM)

I just called the bank- per the Fannie mae "my community" mortgage. I been to the HUD site inside out.

IT doesnt sound good. 

I think I have to stand on my head and hoola hoop- while jugling bowling pins on fire. ;-0~



mnottertail -> RE: Banks love to say NOOOOOOOOOOO! (1/30/2007 8:06:59 AM)

But if you can do all the tricks, and get the mortgage, they will own your ass, something that should work into what you are looking for, I think.

Ron



pahunkboy -> RE: Banks love to say NOOOOOOOOOOO! (1/30/2007 8:08:11 AM)

it seems- i can pay cash if i buy a tear down. or a swamp. yikes. ;-0~



Mercnbeth -> RE: Banks love to say NOOOOOOOOOOO! (1/30/2007 9:12:20 AM)

Fannie Mae and HUD are not Banking policies they are government policies. Banks would define these as "bad loans" or  "under-collateralized" for a variety of reasons ranging from applicant's income to property value. Banks are the administrators and holders of these loans but they are backed by the government. In the event of default the taxpayers pay the Bank for any shortage. In effect, every taxpayer is your "co-signer".

The forms and process is designed as a disincentive for the common applicant.

Two things to remember about Banks and any lending institution. The first is common knowledge - The best way to get a loan is to apply when you don't need/want one. The other rule is less often considered - Banks don't make any money turning people down. Unless you go to a "broker" who will charge you thousands of dollars as part of the application process. Best way to determine you have a "legitimate" broker is that they don't ask for any or much, depending on the market, up front money.

The most important thing to keep in mind when searching for money is; "there is a seat for every ass". You may like like the price or conditions of approval but there are funds out there available for just about every situation. If the HUD and Fannie Mae programs fit your "ass" be prepared to exercise it by jumping through a lot of hoops.

Good luck!



pahunkboy -> RE: Banks love to say NOOOOOOOOOOO! (1/30/2007 10:16:49 AM)

Maybe the new owner here will be able to agree on a lease. in the mean time i will have to look up evition, squater rights. i did place a fire sale offer in on a foreclosure. i haavent heard back yet.



popeye1250 -> RE: Banks love to say NOOOOOOOOOOO! (1/30/2007 12:27:32 PM)

Pa Hunk, Banks are a pain in the ass!
If you missed a light bill payment in 1987 they'll deny you!
Use a Mortgage Co.
I have two mortgages with Countrywide and have never had any problems with them.
And they're always sending me letters asking if I need any money on a second mortgage too.



subfever -> RE: Banks love to say NOOOOOOOOOOO! (1/30/2007 2:12:40 PM)

Consider the fact that there were 50% more foreclosures in 2006 than in 2005, and an even greater increase is expected in 2007.

If you're not in a hurry, my guess is that your opportunities for bargains will only continue to increase over the next few years. You could use this time to improve your "credit worthiness."

But if you have a good reason to be in a hurry, you might consider a broker over a bank. Unless you have a good relationship with a bank, bank loans tend to be more difficult to qualify for. Brokers are also privy to current "fire sales" by certain lenders, and are in a postion to pass these savings along to you, if you negotiate well.

There are good brokers, and there are not-too-good brokers who seek to squeeze the maximum compensation out of you allowed by law... if you let them. But if you know what you're doing, you should do okay.

Merc is right. Rarely would you ever want to give a broker more than an appraisal fee and a credit report fee up front. The more upfront money you give them, the less negotiation power you leave yourself. For a SFR (single family residence) in the Midwest, expect to pay about $300. total for both. 

Some brokers will even provide you a Good Faith Estimate based upon your application and your assumed credit score (subject to future verification, of course) with very little or no upfront fees. This puts you in the best negotiation position possible. 

Pay very close attention to the Good Faith Estimate. This is your best method of comparing one broker to another. But it's tricky, because cost-of-funds tend to change on a daily basis, and brokers are compensated in a number of ways. One such way is what is referred to as a Yield Spread Premium, typically abbreviated as YSP. This represents the difference between the wholesale (broker's) and retail (your) cost-of-funds. Your ultimate interest rate will determine your cost of funds, and hence, the broker's YSP.

Most brokers expect to earn around 1%-2% YSP, and even a little more if the loan is very difficult to place or if the loan amount is well below average.

Most brokers also expect to earn about 1/2% to 1% in non third-party fees. Third party fees are legitimate costs paid to outside vendors/entities, such as your appraiser, title insurance company, attorney, government, etc... that your broker doesn't get to keep.

You really don't want to pay points (loan origination fees) unless you are buying down the interest rate. Don't buy down your rate unless you plan to keep the loan for at least a length of time that will make-up for the extra money you spend upfront on points.  

Remember, everything is negotiable. If you know what you are doing, you should be able to negotiate a good deal for your given situation. 

Hit me up on the other side if you have specific questions which require disclosing personal info.



pahunkboy -> RE: Banks love to say NOOOOOOOOOOO! (1/30/2007 2:34:23 PM)

The sales agreement on the place i now live-- says tenant is to finish out his lease, which goes till 10-1-07. S0, i typed up a letter on word, "from the desk of"
indicating- items of importance. i took it into the atties office w the HUD lease to copy. [my lease is overseen by HUD][ie section 8]

I talked to the bank- they say my payment could be $375.00 a month- which has to include taxes and insurance.

i faxed some of the needed papers to get the process started. one problem... i have abit of mattress money. it has to be in a bank account in order to use it.

im disappointd in the section 8- supposedly i can go anywhere in the country and use that certificate. quite possibly i might be forced to vacate by march 12. however- since i informed the atty- w written documents, and faxed the same to sect 8, it sets a precendent for living here. such papers will come in handy should an eviction process ensue.

the hud.gov website ballyhoos all these wonderfull programs. well where are they?  i talked to maybe 12 people at HUD and they have no clue.  one kicker is- if evicted- i am not considered "displaced".

i think i want to sue.

in the meantime my siblings are so disfunctional- and condescending- more less calling me a looser.

thanks for listening.



subfever -> RE: Banks love to say NOOOOOOOOOOO! (1/30/2007 9:53:43 PM)

quote:

ORIGINAL: pahunkboy

The sales agreement on the place i now live-- says tenant is to finish out his lease, which goes till 10-1-07. S0, i typed up a letter on word, "from the desk of"
indicating- items of importance. i took it into the atties office w the HUD lease to copy. [my lease is overseen by HUD][ie section 8]



Help me to understand the situation here. Are you currently leasing the same home that you seek to purchase?

quote:

I talked to the bank- they say my payment could be $375.00 a month- which has to include taxes and insurance.


Okay, so then according to your potential lender, your income qualifies you for up to a maximum of a $375 monthy PITI (principle, interest, taxes, insurance) payment?

What is the agreed upon sales price of the home on your purchase contract?

How much are the property taxes?

How much is the insurance on the home?

quote:

i faxed some of the needed papers to get the process started. one problem... i have abit of mattress money. it has to be in a bank account in order to use it.


Yes, most lenders want down payment funds to be "seasoned" for at least 30 to 180 days, depending upon the lender and the loan program. Seasoned = funds deposited in a verifiable account under your name and Social Security number, or someone else's name along with a signed gift letter, certifying that the funds do not ever have to be repaid.  

Depending upon your overall situation, and the amount of your mattress money, buying a home through a seller-financed sale may be a better option for you.

quote:

im disappointd in the section 8- supposedly i can go anywhere in the country and use that certificate. quite possibly i might be forced to vacate by march 12.


For what reason?

quote:

the hud.gov website ballyhoos all these wonderfull programs. well where are they?  i talked to maybe 12 people at HUD and they have no clue. 


Are you referring to loan programs?

quote:

i think i want to sue.


Under what grounds?




Termyn8or -> RE: Banks love to say NOOOOOOOOOOO! (1/31/2007 12:37:59 AM)

sorry to jumpthrough

pa, what is your credit like ? Subsidised loans usually rquire something akin to PMI which saps your money, money which should be going for principal. Or other things.

If you can go straight bank I suggest you try, then you can negotiate, because you ar not a recipient, you are a customer. Get it straight, banks only do one thing to make money, they rent money. The money they give to the guy that sold you the house is technically rented, but with a predetermined payback and "amortization", through which you (should) evntually own the property free and clear.

If land contract, get building credit, because most LCs require you to pay it off in 5 or 7 years, but by then you have had time to establish credit.

Personally I woulodn't do a LC, I would mortgage something else to pay cash. Of course some people can't do that and really, to do that would be difficult for me, but when it is worth it it is.

I'll give you a hint, first of all you know about the internet, so that goes without saying, but think of this. whether your credit score is average, very low or very high, you might consider walking into a real estate office instead of a bank.

If you got a credit score up around 780 or so, by all means go intio a bank, several banks. You are the customer, the only way they make money is to charge interest. they then want your business. But if you don't have good credit, go to the realtor.

Realtors only make money when you buy a house, it is in their best interest to know every friggin way possible for a customer to get financing.

I know a couple right now going through this, they literally were told, if you get your credit score up to zero we will do it. Zero. Only like a $30,000 house, but still a house. A start.

If your credit is not good, go to a realtor, and I mean one with a local office. Could be connected with ERA or whatever but you are looking for an office with 4-7 associates. One of then might specialize in low income or bad credit situations.

If you have good credit, it is still good to prequalify, then your offer is taken more seriously.

Last but not least, you make the offer contingent on finding acceptable financing. This not only insulates you from any tampering, it also indemnifies you if your credit is not good enough to get the property. Otherwise you are liable and it is actionable. When you make people take property off the market of this value, do not expect them to do it for free.

______


Of all the people I like and dislike, I love humanity. When people buy houses they start making them how they want them and then lose them. I hate to see anything like that. The home is a basic thing, and once you find it you are stuck, unless you want to lose alot of money.

Unless you get lucky, you have to stay there for 5-8 years to get anything out of it at all.If you are not lucky and the "values" go down it could be alot longer.

People who do not waste money get to taste money, sometimes.

T



pahunkboy -> RE: Banks love to say NOOOOOOOOOOO! (1/31/2007 5:36:44 AM)




quote:

ORIGINAL: pahunkboy

The sales agreement on the place i now live-- says tenant is to finish out his lease, which goes till 10-1-07. S0, i typed up a letter on word, "from the desk of"
indicating- items of importance. i took it into the atties office w the HUD lease to copy. [my lease is overseen by HUD][ie section 8]



Help me to understand the situation here. Are you currently leasing the same home that you seek to purchase? <i> No, tho I would now that I see the tear downs out there.</i>


quote:

I talked to the bank- they say my payment could be $375.00 a month- which has to include taxes and insurance.


Okay, so then according to your potential lender, your income qualifies you for up to a maximum of a $375 monthy PITI (principle, interest, taxes, insurance) payment? <i> yes, tho if I put 10k or 20k down, I can go higher</i>

What is the agreed upon sales price of the home on your purchase contract? <i> on another house, I put in a 12k cash offer on. It could be a money pit. I used an old bank form, and await a reply</i>

How much are the property taxes?

How much is the insurance on the home?


quote:

i faxed some of the needed papers to get the process started. one problem... i have abit of mattress money. it has to be in a bank account in order to use it.


Yes, most lenders want down payment funds to be "seasoned" for at least 30 to 180 days, depending upon the lender and the loan program. Seasoned = funds deposited in a verifiable account under your name and Social Security number, or someone else's name along with a signed gift letter, certifying that the funds do not ever have to be repaid.

Depending upon your overall situation, and the amount of your mattress money, buying a home through a seller-financed sale may be a better option for you.

<i> have a chapter 7, just over 2 years old </i>

quote:

im disappointd in the section 8- supposedly i can go anywhere in the country and use that certificate. quite possibly i might be forced to vacate by march 12.


For what reason? <i> the new owner might have family- as this is sorta related living set up. the closing date is no later then 3-12. </i>


quote:

the hud.gov website ballyhoos all these wonderfull programs. well where are they? i talked to maybe 12 people at HUD and they have no clue.


Are you referring to loan programs? Loans, grants, communitry developemnet, homeless programs.
Housing in the USA has never been better!!

quote:

i think i want to sue.


Under what grounds? A HUD lease is suppose to overrule all other leases.



pahunkboy -> RE: Banks love to say NOOOOOOOOOOO! (1/31/2007 5:44:00 AM)

quote:

ORIGINAL: Termyn8or
sorry to jumpthrough

pa, what is your credit like ? Subsidised loans usually rquire something akin to PMI which saps your money, money which should be going for principal. Or other things.

If you can go straight bank I suggest you try, then you can negotiate, because you ar not a recipient, you are a customer. Get it straight, banks only do one thing to make money, they rent money. The money they give to the guy that sold you the house is technically rented, but with a predetermined payback and "amortization", through which you (should) evntually own the property free and clear.

If land contract, get building credit, because most LCs require you to pay it off in 5 or 7 years, but by then you have had time to establish credit.

Personally I woulodn't do a LC, I would mortgage something else to pay cash. Of course some people can't do that and really, to do that would be difficult for me, but when it is worth it it is.

I'll give you a hint, first of all you know about the internet, so that goes without saying, but think of this. whether your credit score is average, very low or very high, you might consider walking into a real estate office instead of a bank.

If you got a credit score up around 780 or so, by all means go intio a bank, several banks. You are the customer, the only way they make money is to charge interest. they then want your business. But if you don't have good credit, go to the realtor.

Realtors only make money when you buy a house, it is in their best interest to know every friggin way possible for a customer to get financing.

I know a couple right now going through this, they literally were told, if you get your credit score up to zero we will do it. Zero. Only like a $30,000 house, but still a house. A start.

If your credit is not good, go to a realtor, and I mean one with a local office. Could be connected with ERA or whatever but you are looking for an office with 4-7 associates. One of then might specialize in low income or bad credit situations.

If you have good credit, it is still good to prequalify, then your offer is taken more seriously.

Last but not least, you make the offer contingent on finding acceptable financing. This not only insulates you from any tampering, it also indemnifies you if your credit is not good enough to get the property. Otherwise you are liable and it is actionable. When you make people take property off the market of this value, do not expect them to do it for free.

T


I filed banruptsy  just over 2 years ago.  30k-40k could actually buy something locally here. If I go to western PA, the prices are even lower. There is no job base. So Im looking for a quiet small town in PA. I manage to get most everything I own for pennies on the dollar,  Ild like to do so with housing. Since 1. I dont need to be near the job base, and 2. I dont rush to keep up with the jones- i have a chance.

the jones live in 300k houses, but the bank owns their azzz and they work 80 hours a week to make ends meat.

i have it good now which is why im putting up a fight.



calamitysandra -> RE: Banks love to say NOOOOOOOOOOO! (1/31/2007 6:08:52 AM)

Total highjack, sorry.
But could somebody please give me an overview about how the US credit rating works?

Thanks.



pahunkboy -> RE: Banks love to say NOOOOOOOOOOO! (1/31/2007 6:25:23 AM)

quote:

ORIGINAL: calamitysandra

Total highjack, sorry.
But could somebody please give me an overview about how the US credit rating works?

Thanks.



to those who jump in- i am totally ok with that! 

it seems to be a FICO score 500-850? the banks sorta keep it a secret. one gets 1 free credit report a year, if you ask. there are 3 credit bureaus. you can dispute incorrect data on it- they have 30 days to confirm the debt- if it cant be confirmed it must be removed.

credit bureaus can make mistakes. lending has an ebb and flow- at times the conditions are stirck- other times it is lenient.

one must avoid payday loans and rent to own stores...

credit cards have run amuck- the other day congress warned the industry to regulate itself- as amount made on interest and "fees" increased alot in 10 years.

i might add- bushes new bankruptsy law- is great if you own a 22 million $ home in texas. but terrible on us peons.



Termyn8or -> RE: Banks love to say NOOOOOOOOOOO! (1/31/2007 1:44:57 PM)

Even under the old bankrupcy law you could get credit, they know you can't file for X years. Under these conditions if you tried even after the seven year period, the court would not let you keep the house, you would have to reaffirm.

Bankrupcy lawyers do it "with most attorney fees deferred", because they got at least seven years to collect.

Remember that even in an old discharge bankrupcy, you still owe. A bankrupcy simply puts a stop to collection efforts. It is still on your record. Now I am not sure about the new law, but under the old law you are vulnerable for seven years. If you filed two years ago, they know they got five years. So it is not the end of the world.

In fact I intend to file bankrupcy after a certain person dies and things are fixed paperwork wise. It is not time yet. Right now I could buy a house on a credit card, but that is all going to end. When it does I will have control of a house and three or four cars, well, one of them a truck. Tons of machinery and pretty much everything else.

Like I said before, find the right real estate agent, if you are on section 8 you must be somehow disabled and that income is steady. They like that. You can't file bankrupcy for five years, they like that. They might not give you a new car and bigscreen TV, but they will give you a house. It is too hard to disappear with a house. The standards are lower.

A good real estate agent knows the ins and outs, in fact I knew a guy who almost bought a business while on welfare, but he did forge a few documents. He got scared and didn't go through with it, but it was all set.

Anyone, I mean anyone who knows what they're doing can forge their way into getting a loan they really do not qualify for, but I warn you not to do this. See, if you lie to the bank it is not prejury, and if you get a loan you shouldn't get, as long as you pay the payments you get away with it. The danger comes if you can't pay it. Then fraud is still hard to prove because they have a lien and can foreclose. The problem is this wrecks your credit worse than a bankruptcy.

To the poster who wanted to know how this magic number of a credit score is generated, there are too many factors to list. Income vs debt load is a big one. Every time you get a loan it goes down. It also goes down every time anyone checks your credit. If you have a low credit score, print a copy and walk around with it. Tell them, this is my credit report, don't check it unless you are pretty much willing to give me a loan based on this information.

You are telling this to a realtor. A bank has to check, this couple I mentioned, they actually do have a score of like 300 something, even with all their problems, but each time some bank or loan company checked their credit, it went down.

If you do a land contract, those five years or whatever will go by, and once you go to get real financing to pay the owner off, first of all you will have reestablished some credit. What's more you will probably be able to again file bankruptcy. They will know this.

Again, you mentioned section 8. If you are on it then you must be disabled in some way. That means a government check, but most people have direct deposit now. Depending on your ambitions, after a time you might want to take yourself off of direct deposit and again get it in check form. See they can't touch your check, but they can certainlky touch your bank account, mainly by having it frozen.

If you go down the tubes, you can go to a check cashing place, but not if you have direct deposit.

Personally I would not buy anything except to make money. I am pretty tight with what I have left in the way of resources. They are not infinite. My last few moves will probably be the most important. Buying any property is a big step. It is a different world.

Hunky, if you can buy a nice big place, how about making a fetish party place out of it ? I've been planning it for some time. There is alot of unused commecial and industrial space around me. Thing is, if we can get kinky friends to come.

I will say this much, no matter what you do with the property, it is better than having money if you do not need it. Money is poison, every day it is worth a bit less.

Banks know this, and that is why they would like to say yes.

T



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