need advise help!

[joycemwest]

i own a home worth appx 270000. with a mortgage bal of 127000. i own two rental houses that make money (most of the time) i have appx 70000. in unsecured cc and line accounts. my husband and i own a construction business so most expences are declared through s corp tax basis. we show very little income so our debt to income is very high, i am paying more in cc payments than my mortgage how should i proceed, refinance? bankruptcy? please help

[Moe Bedard]

Hi Joyce,

Welcome to the forum and thank you for joining.......

If your debt to income is that high you will not be able to qualify for a refi.......
and you won't need to file for a bk right now...........
what you can do first to get your finances in order is to meet with a counselor from CCCS (Consumer Credit Counseling Services) and make sure that it is this group as they are a non profit. They will be able to help you lower the credit card debt and get the payments lower as well......and work with you on a budget plan.......this will help.......and it isn't looked upon badly by a lender like a BK would be....

Give them a call as soon as you can.........
Please let us know how it goes......

[joycemwest]

*** did talk to a ccc and they sugested bk then i talked to( name removed) and they stated they would refinance so confused

[Moe Bedard]

Joyce........the non profit CCCS would not suggest a BK if a good majority of the debt is credit card.......as unsecured credit card debt is all that they deal with......they don't deal with auto loans or anything like that.

The other place you mentioned is not a direct lender they do payday loans and cash advances on the side.........not a good place to obtain a refi..that would be just like a hard money loan..and will cause nothing but problems further down the road.........

What we do here at LoanSafe is offer advice on how to get a modification on a your mortgage from your lender.........
It sounds like the debt is what is the issue and not the mortgage itself.......with equity of over 143k..........if you could get the debt down you might be able to qualify for a refi depending on your credit.......

If you are sure that it was CCCS that you talked with........then you would need to consult with an attorney for this matter........

This decision is a personal one and only you can make the decision as to whether to file BK or not.......

[joycemwest]

thanks for the info i contacted the refin co this morning and ask to be removed from all contact, this is just cc unsecured debt , i emailed you a couple of details hope to here some kind of good advise any ffa or govm programs that would be able to help us? fico over 700 and no lates thanks joycemwest

[joycemwest]

*** i would really like some advise on how i can get things going. if all possable i would like to try for ffa loan please review and get back with me thanks joycemwest

[Moe Bedard]

Joyce,


Who is your lender now?

For FHA your debt to income would need to qualify and you need to be able to show the income in the tax returns and pay stubs and such..........

The best thing you can do to see if you qualify for an FHA loan is to go to a direct lender........such as a bank or a credit union........they will have the best rates and fees........

Just don't go through a broker.....

[joycemwest]

*** i am with us bank also 25000. os unsecured is with them i work there i really didnt want to go with them angain but if you think it is best i can try thanks joyce m west

[Moe Bedard]

You need to see if you can qualify for the FHA loan.........it is better to go directly to the large banks or a credit union..........they won't jack you around with fees like a broker would.....since they are the ones lending the money.........not charging you a fee to use someone elses' money.
If you belong to a credit union you can try that too........

[joycemwest]

*** i will talk to my boss at us bank tomorrow to see what and if anything can be done any more advise? thanks joyce m west

[joycemwest]

*** i talked to countrywide they can get me in on a fannie mae 5.875 5 with 2.625 points 214000.00 for fixed 30 years at 1365.00 month what do you think? please reply thanks joycemwest

[Moe Bedard]

Joyce,

Did the CW rep give you a Good Faith Estimate and a TIL regarding this information? Does the 2.625 in points cover all hard costs or is it just discount and origation fees?

Please find out this information........

[joycemwest]

*** he quoted me fannie mae loan 5.875% with 2.625 points all close costs covered except i had to give him a credit card number for a $495.00 charge for appraisal and this could be refunded , he also wants me to fax401 k statement and the copy of my whole life ins statement showing cash value

[joycemwest]

*** im so confused i dont know what to do! shoul i just file bk, would i loose my house , what about my rentals? two cars and my husbands work truck? help

[Moe Bedard]

Joyce,,



You have equity in your house...if you file a bk you will ruin your chances of refinancing for the next 5 years.......and it sounds like you are taking some out to pay off that 70k debt..........correct?

If it includes all closing costs then that is good.......
I am sure 5.875 is much lower than the debt you will be paying off......

Just make sure they give you a Good Faith Estimate...and a Truth in Lending Statement....that will have a breakdown of what he is telling you........

[joycemwest]

he told me the loan was approved but as he hasn't given me good faith estimate or truth in lending statement, just took money for appraisal, does this mean it could still not go through?

[Moe Bedard]

If you made the application then he has to give you those disclosures..........they are RESPA required by law disclosures........so you can see everything that he is telling you.

Good Faith Estimate (GFE) Required to be given to applicant within 3 days after receipt of application. This form will show you all of the closing costs and fees that you are paying up front...........so you can ask questions if you need to.

Truth in Lending Statement (TIL) Required to be given to applicant within 3 business days after receiving the written application. This form will show the Interest Rate and the Amortized Payment Schedule.

If you have done the application, just make sure that you get these disclosures within that time frame..........if Monday is the deadline then ask him for them.........it is within your rights to have them.

And also keep in mind that this is a refinance and at the closing you should have a copy of the 3 day right to rescission notice........
This means that you can change your mind within 3 days of the closing and rescind the loan.

[joycemwest]

im still not sure if i understand if this loan is going to close, and if this info given to me means that it will close if i sign. please reply

[joycemwest]

i guess what im asking is does this mean i do have a loan with them (cw) right now? please reply

[Moe Bedard]

The loan still has to go through a verification process of the information that you have given. But with your good credit you most likely qualified for CW's Fast and Easy Loan product which requires minimal paperwork and documentation.

Though I am not sure that is what you are being given............You will have to ask the lender these questions on the approval and the timeframe that it is going to take.

Hi Joyce,

*** and I discussed your scenario on the phone yesterday, and I believe I can shed some more light on the process.

In the post above *** writes "...you most likely qualified for..." That is important to understand, and she is exactly right. Let me explain further about the approval process.

This is how the origination and process works, in order.

1. Homeowner talked with lender representative, give information over the phone. has credit pulled by lender. Lender's rep listens to what you want to accomplish, then gives a recommendation as to their loan product that seems most appropriate for your needs. A rate, closing costs, points, payments are discussed at that time. They also tell you what documentation you need to send them. The interest rate may or may not be actually locked at this time. be sure to ask.
2. At the time that #1 is accomplished, the rep tells you that you are "approved" or "qualified", or similar words for that loan program based on what you have dissussed. IT DOES NOT MEAN THAT THE LOAN IS UNDERWRITTEN OR APPROVED AND THAT THE LOAN WILL CLOSE AS DISCUSSED. IT only means that based on the information provided, and the product requirements, it looks like you will be approved. They have some very sophisticated software that is helping them make this decision and recommendations
3. #1 & #2 are accomplished in the same phone call. The lender is now required by law to send you a completed Good Faith Estimate (GFE) and a completed Truth in Lending (TIL) within 72 hours. These documents are also estimates of costs, rates, payments and should reflect exactly what you discussed on the phone. IF they do not appear accurate or you do not understand them, it is important that you call the representative to get clarification. Basically, this is the lender's OFFER to you based on the phone call.
4. Now, you need to send in any paperwork that they are requesting, and there is probably an appraisal being scheduled. IT is very important that you send in the requested paperwork in a timely manner, and get the appraisal accomplished.
5. Once the lender receives your paperwork, they will open escrow, order title, and get the process moving towards a closing date. They are also possibly waiting for the appraisal at this point to be submitted to them.
6. At this point, the loan is still not actually approved by an underwriter.
7. Once all of your paperwork, the appraisal, title has been reviewed by the loan processor, and any necessary clarifications, letters, bank or employer verifications are received, the loan is submitted for actual underwriting. This underwriting approval takes 2-4 days depending on the lender.
8. Once an underwritten approval is issued, the borrower is notified, all aspects of the loan are re-verified, and a closing date is set.
9. On a refinance loan, you are allowed to cancel the loan within 3 days after your signing, if you want to. You do not need any reason.

During this entire process, the loan officer and the borrower may have seeveral conversations, during which the loan program may change, the loan amount, the rate, virtually anything may change. If there are changes, they MUST redisclose the GFE and the TIL documents to you immediately.

They lender must also disclose the estimated settlement statement to you within 24 hours of your closing date. This settlement statement should look like the last Good Faith Estimate you received, in terms of any costs, fees, points, etc. The final settlement statement should look like the estimated settlement when you sign.

Joyce, I know this is a long, drawn out post about the approval of a loan. The point of all this is that the loan is not actually approved for closing until all your paperwork is in and reviewed, the appraisal is in and the title is in. The loan officer guy, or representative, or even his manager does not have the power to approve a loan. Period.

Not trying to frighten you, but as *** wrote eariler, it is very important that you get a Good Faith Estimate (GFE), and a Truth in Lending (TIL) right away from your loan guy. Ask if the loan interest rate is locked.

If there is anything you are not understanding, ask the CW representative and ask us.

Hope this helps...

Originally Posted by joycemwest

i guess what im asking is does this mean i do have a loan with them (cw) right now? please reply

[joycemwest]

steve thanks so much for the info , *** and yourself have been very helpful in this stressful time. i am still wondering if i am stupid for getting refinanced for such a large unsecured debt,, or if i should bk? sorry i am so confused but im scared to do the wrong thing. thanks so much and if you can advise on refinance or someother way out of large unsecurded debt thanks joycemwest

Joyce,

Have you calculated how much money you are going to save every month by paying off the consumer debt? It is probably a huge amount! That, in and of itself might be a great reason.

The loan officer at countrywide can easily show you what the monthly savings would be. He had software that can do this I guarantee you.

You're doing OK, keep on asking questions like you are doing. At some point though, you have to make a decision.

[joycemwest]

just received email from russ2154942673 how can i view this?

[Moe Bedard]

Joyce it was a scammer