 akaras431
Joined: 08 Jul 2011
Posts: 2
1.64 Dollars($)
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Posted: Fri Jul 08, 2011 10:15 pm Post subject: BK not reaffirmed, wish to sell to family and purchase new h
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Read a similar post here on this but our situation is more complicated. We filed BK7 in 2005. Did not reaffirm mortgage, still in property, and making scheduled payments. We wish to sell to family member with land contract until they can close in one to two years. We have set a price and they will pay us equity (price we agreed upon) and make current loan payment on balance. Our plan is to purchase a smaller home and the loan will be under 50k, considering what we have found available and want (downsizing). We had a broker looking for us and were pre-approved. After credit check/score, faxed docs, etc. everything looked fine until underwriter did not like that our current mortgage was listed on TU in accounts good standing, balance, and current payment history. Past years, our mortgage company has been listing the TL as IIB, 0. balance. EX and EQ is reporting IIB, 0. balance. So,,, now our application has been denied as they say that because there is a note, we cannot get a loan as we don't qualify for both properties . I called the current mortgage lender and they are updating the report but not sure what to yet. I do know that they are reporting incorrect information and this has been changed several times on the credit report in the past 7 years.
When we first contacted the broker, he was made aware of our entire situation. I did not want it to get this far into the process and then denied. He didn't see a problem and said to fax the contract with the family and we will work on rest when you find a property. Not happening now.
So here we are, wasting time and probably lowered credit score with the pulls and disputes. Not to mention our Realtor's time and effort. I tried to explain again to the broker that we are not liable for the note as it was IIB, but because the loan is there, we guess not qualified. I realize we have title interest, but our family member purchasing the home will not let it go to forclosure, knows our situation, and they could lose what they have invested, and we walk away.
I don't understand denial. Maybe our new loan would not be enough? I have heard most lenders won't work under 50k loans. Should we try another broker? We want to buy property that needs some work so we have to get a mortgage and use some of our savings for rehab.
Frustrated in IL.  |
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sara
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Joined: 05 Jul 2006
Posts: 2699
Location: New Brunswick, New Jersey
497.27 Dollars($)
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