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Biscuit
Guest
0.10 Dollars($)
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 Posted: Thu May 03, 2007 1:59 pm Post subject: To be or not to be? |
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Hi,
I am facing a quite challenging situation at this time. As a single mother, I purchased a house two years ago with a good credit (717) but no savings at all. I thouhgt that I would make at least $150,000 two years later (for real!) but the market started acting up. Anyway, I ended up with two interest only mortgages that I could barely pay for every month on top of all my other bills and debts. I refinanced six months ago, thinking that I could still afford the new payment, but it seems even worse. I got a very high rate due to a quite low credit score (620 at that time). It helped me skip one payment, but only one...
I manage to pay all my bills on time and never had any late payment, but last month was extremely hard to face.
My house now needs some serious roof repair estimated at $7,000.
If I try to sell now, I may still owe on it due to high competition in the neighborhood and all the repairs, in addition to closings costs.
I am trying to refinance again, but with now about 636 my credit report, a high debt to income ratio, no savings at all, not to much equity, I do not seem to be very attractive to lenders. The mortgage alone represents 72% of my income.
Wow!
I am humbly looking for some sound advice, the one I did probably did not get in the first place.
Thank you. |
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 colin
Moderator
Joined: 30 Jun 2006
Posts: 602
Location: Waltham, Massachusetts
112.62 Dollars($)
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| Posted: Thu May 03, 2007 2:42 pm Post subject: |
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The situation sounds really bad to say the least. No savings, bad dti, low score, house in need of repairs, and bleak chances of sale.
| Quote: | | I refinanced six months ago, thinking that I could still afford the new payment, but it seems even worse. |
You refinanced the 1st mortgage or the 2nd or both into one? It seems you refinanced both into one..
You can look into the Foreclosure Assistance Program from ACORN, in this program your interest rate can be reduced so that you can afford the payments. For me it seems one viable option which can save your house. You go through this page for all the information about the program and then let me know what happens - http://acornhousing.org/TEXT/fap.php .
Colin |
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matthey
Guest
0.10 Dollars($)
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| Posted: Thu May 03, 2007 4:07 pm Post subject: |
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Neighborhood Assistance Corporation of America or NACA can also be contacted to see if they can help you out with reduction of the rate, go through the refinance page to read about the program:https://www.naca.com/refinance/refinanceCriteria.jsp
Matthey |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1532
Location: MASSACHUSETTS
135.74 Dollars($)
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| Posted: Thu May 03, 2007 10:25 pm Post subject: RE: Refinance with a no-ratio loan |
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Hi Biscuit,
Welcome to the forum.
I can understand your situation very well. But being a single mother, you have tried to handle the situation as best as possible.
Considering the fact that your debt to income ratio is higher, you can ask lenders for a no ratio loan. Such a loan does not take into account your debt-to-income ratio but you will have to provide details of your income. Lenders may also require you to have a good credit score but this depends. You can at least approach lenders and find out if they are willing to deal with you at your score and income level.
In case you need more details about a No-ratio loan, refer to our community discussion on this topic.
Hope this helps...
God bless you.
Samantha
_________________
Know how to compare lenders with mortgage booklet |
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holford
Guest
0.10 Dollars($)
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| Posted: Sat May 12, 2007 2:50 pm Post subject: |
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Hi,
You need to try and bring down your debt to income ratio. At present it is quite high. Sit down and check where you can make cuts on expenses so that some of the smaller debts can be paid off. |
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