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wildstorm_films · Joined: 22 Aug 2007 Posts: 130 8.74 Dollars($)

As some of you may know, I own one acre of property with two houses on it. Wouldn't that be considered a multifamily residence?

livinginnky · Posted: Sun Sep 30, 2007 11:39 am Post subject:

Does it have 2 addresses? Or does the mail just come to one?

Do you currently have mortgages on both?

Most of the time if you want to finance 1 or the other or both you need to spit the acre into 2 parcels.

wildstorm_films · Joined: 22 Aug 2007 Posts: 130 8.74 Dollars($)

livinginnky · Posted: Sun Sep 30, 2007 6:47 pm Post subject:

Interesting question. I guess it depends who you talk to. And I could definitely argue for either side.

Most definitions hover around something like this... It is a single building made up of more than 1 living unit. But most definitions don't say anything about a single building. Most simply say more than 1 living unit on 1 piece of land.

So yes I think it could be considered a multifamily.

An interesting thing is that it may also depend if you say "multifamily dwelling" or "residence". And since you said residence then I think it could be.

Did you have any trouble when you got your loan?

wildstorm_films · Joined: 22 Aug 2007 Posts: 130 8.74 Dollars($)

livinginnky · Posted: Sun Sep 30, 2007 7:25 pm Post subject:

Sure, why not?

I bet they will want you to split the land though.

wildstorm_films · Joined: 22 Aug 2007 Posts: 130 8.74 Dollars($)

I guess its worth a try though. I'm trying to find a reputable lender on the internet that will work with those with bad credit.

evolovik26 · Posted: Mon Oct 01, 2007 6:36 am Post subject:

Reputable lender that works with bad credit? Nowdays? Tough. How bad is the credit?

wildstorm_films · Joined: 22 Aug 2007 Posts: 130 8.74 Dollars($)

My credit most likely 500 or below that. Back in April of this year my scores were:

Equifax: 556
Transunion: 617
Experian: 564

and I still couldn't qualify for a business loan or a personal loan. So yeah its been extremely frustrating to say the least. I had an idea that could potentially raise my credit scores again. Since the 1st house has a 1st and 2nd mortgage on it, well obviously the equity is maxed out. Appraised value is $65k. If there was some way that I could get a loan to repair the roof, get new vinyl siding and repaint the interior walls and ceiling of the house, that should bring the value up to at least $73k or $75k depending on current housing conditions. Then I would be able to do a refiance and kill off the 1st and 2nd mortgage and bring my scores up to maybe a 540 or something??

I also had really genius idea of using the 2nd house as collateral to secure a personal loan or business loan but since I found out that may be impossible to do and stuff, I don't know. Just frustration is what I'm feeling.

livinginnky · Posted: Mon Oct 01, 2007 3:02 pm Post subject:

You could use the 2nd house as collateral for its own loan. You will probably have to split your property into 2. If you own the 2nd free and clear then it will be like qualifying for a real low ltv loan. If your scores are sub 500 your gonna have trouble. And the lenders that do them (which I won't work with) are shady at best and charge very high fees. Not to say it can't be done though.

By the way are you being denied because of the scores? Or is it something else?

wildstorm_films · Joined: 22 Aug 2007 Posts: 130 8.74 Dollars($)

And the lenders that do them (which I won't work with) are shady at best and charge very high fees. Not to say it can't be done though.

Do you know any of these lenders? Are the fee's upfront or included in the loan? At most if I can't do the plan that I sort of outlined in my last post, I'd like a $15k loan secured by the 2nd home to get my business back up and running again.

By the way are you being denied because of the scores? Or is it something else?

The credit scores at most. There are lates on the account as well. This year, 2007 is the only time that my scores have taken a crapper. For the past 7 years I've kept my credit in good standing. 9 months outweighs 7 years of good standing credit. Go figure.

adonis · Posted: Mon Oct 01, 2007 9:40 pm Post subject:

Hey Wildstorm,

If 9 months outweighs 7 years of good credit, then that's bad actually. have you started taking any steps to improve your credit?

wildstorm_films · Joined: 22 Aug 2007 Posts: 130 8.74 Dollars($)

jameshogg · Posted: Tue Oct 02, 2007 4:54 am Post subject: RE: loan to pay off credit card

Hi Wildstorm,

That seems to be a good idea but what type of loan would you prefer to pay off 3 credit cards and 2 mortgages? It will be a good amount i believe? what's your score like? i doubt whether you'll be getting a loan of such big amount at a low score now that credit standards are a bit stricter than the previous days.

wildstorm_films · Joined: 22 Aug 2007 Posts: 130 8.74 Dollars($)

Well there are 3 ways that I can do this. I can do way number 1 as described in my 9th post from the top. Or I can do way number 2 as described in my last post. Or I could do it this way:

There are currently 4 credit cards that need to be paid off. All totaling to around $22,000. I could request a $28,000 loan that can be secured by using the 2nd house as collateral to pay off the 4 credit cards which would leave me around $5k to do remodeling the house as described in my 9th post in this thread i.e. new roof, new vinyl siding and interior painting to bring the value of my home up tp $75k. SO instead of 6 credit payments I would now have 3. The 1st and 2nd mortgage and the new loan that paid off 4 credit cards and remodeled the house.

Paying off the 4 credit cards would significantly improve my credit scores. Maybe bring it up into the 500's again. But if I could get the proposed remodeling done on the house, I can get a refi to pay off the high interest rate 1st and 2nd mortgage. That'll leave me with 2 credit payments. New mortgage and the loan used to pay off the 4 credit cards and remodel the house. Getting rid of the 2 mortgages would also increase my credit score. I don't know by how much but it would be alot better than where I'm at now.

Or the last thing is to somehwow use the 2nd home as collateral for a secured loan or business loan to get funding for my business. Then I can start paying off my credit bills slowly. There are 2 ways I can go about this. One way is to make enough money with my business to be able to put a % back into the business and a % into paying my bills. It can be done but would be difficult. The other way is to do the business part time and get either a part time or maybe even a full time job to help add to the income. Some may say well why don't you get just a job for right now and once your back on your feet, then go and reactivate your business. Yes I could do that but a measley $284 and now with the new tax increase that has been approved by my favorite govenor in the world, I would bring home less income. $284 or the lack there of would sort of be enough to pay my utility bills but wouldn't even make a dent in my credit bills.

I like the prospect of making a $400 or up to a $1200 sale on an item or items within a week. And I fi can combine the 2, maintaining the business and having either a part time/ful time job that'll help things out.

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