Loans, Debt & Credit - View Single Post - Running Ahead of the Deluge for how long?

03-05-2008, 09:42 AM

Given the balances on the Credit Cards and the fact that they are so minimal, CCC is not the answer....however, you are paying cards off, how is the house payment, current? The car is not a CCC item, they do not do secured debt. CCC would not allow 2 cards to become so minimum with the fact that you are lump sum paying them off in the fashion that you are, the best that they could do on these two cards is lower the payment and freeze them for you, and the payment that they would be lowered to would most likely be right around were you are at on minimum payments today.

If you are able to pay the cards down in chunks of 1,000.00 or 2000.00 in a short period of time...then my question is how is the house payment such an issue to tame? I would be more prone with cards that are this low to make the minimum payment, put the funds from the E-Bay sales in the bank and get a modification on the loan with Citi...

The problem is that this is your first payment...I am horribly confused if at the time of signing the payment was outside of the realm of manageability...then you do not sign. You are to soon into the loan to get a modification and the fact of the matter is that they will not modify on a loan that is this new, they are relying on the validation of the income documentation that they gathered in the loan approval process initially. You refinanced out a "new" loan with Citi, "sad to see it go"....so that was a new loan too.

They have full doc qualified you and apparently had enough income in the loan package to support the request at the time the loan was approved. There are a lot of issues here that appear contradictory, what has changed since you signed for the loan 30-45 days ago?

At this early point in the loan they will not accept a Hardship, they still have docs from the loan approval that prove that the loan was affordable, those doc have a shelf life of 90 to 120 days depending on the underwriting model that they are using. The loan was obtained with full documentation and in their eyes viable at the income that was used to support the request and since it is a fixed rate....this is the loan that they expect the repayment on as they have verified through their sources that it was viable.

At this juncture I would set money aside from the E-bay sales and make the minimum payment to the CC's that are left and cash flow the sale from e-bay like a business to allow the house payment to be affordable in lieu of paying off the CC's, make minimum payments to the CC's and flow the income from the business until it gets on it's feet to allow the CC's to be paid in full. Also close out the CC's and do not charge to them any more....this will also assist in helping to tame the debt issues.

If the wolves are at the door, set the funds aside from the E-Bay sales and hold them off until your business gets on it's feet.

03-05-2008, 09:42 AM	#6 (permalink)
Mary Salzer Guest Posts: n/a	Re: Running Ahead of the Deluge for how long? Given the balances on the Credit Cards and the fact that they are so minimal, CCC is not the answer....however, you are paying cards off, how is the house payment, current? The car is not a CCC item, they do not do secured debt. CCC would not allow 2 cards to become so minimum with the fact that you are lump sum paying them off in the fashion that you are, the best that they could do on these two cards is lower the payment and freeze them for you, and the payment that they would be lowered to would most likely be right around were you are at on minimum payments today. If you are able to pay the cards down in chunks of 1,000.00 or 2000.00 in a short period of time...then my question is how is the house payment such an issue to tame? I would be more prone with cards that are this low to make the minimum payment, put the funds from the E-Bay sales in the bank and get a modification on the loan with Citi... The problem is that this is your first payment...I am horribly confused if at the time of signing the payment was outside of the realm of manageability...then you do not sign. You are to soon into the loan to get a modification and the fact of the matter is that they will not modify on a loan that is this new, they are relying on the validation of the income documentation that they gathered in the loan approval process initially. You refinanced out a "new" loan with Citi, "sad to see it go"....so that was a new loan too. They have full doc qualified you and apparently had enough income in the loan package to support the request at the time the loan was approved. There are a lot of issues here that appear contradictory, what has changed since you signed for the loan 30-45 days ago? At this early point in the loan they will not accept a Hardship, they still have docs from the loan approval that prove that the loan was affordable, those doc have a shelf life of 90 to 120 days depending on the underwriting model that they are using. The loan was obtained with full documentation and in their eyes viable at the income that was used to support the request and since it is a fixed rate....this is the loan that they expect the repayment on as they have verified through their sources that it was viable. At this juncture I would set money aside from the E-bay sales and make the minimum payment to the CC's that are left and cash flow the sale from e-bay like a business to allow the house payment to be affordable in lieu of paying off the CC's, make minimum payments to the CC's and flow the income from the business until it gets on it's feet to allow the CC's to be paid in full. Also close out the CC's and do not charge to them any more....this will also assist in helping to tame the debt issues. If the wolves are at the door, set the funds aside from the E-Bay sales and hold them off until your business gets on it's feet.