Posted by Darl on April 25, 2001 at 06:46:31:
You may want to sell it and have the buyer get a new mortgage. Take the cash from that and pay off your bills so your credit looks better and buy another house.
Caught in the middle - Posted by Dave Dowling
Posted by Dave Dowling on April 24, 2001 at 08:19:44:
Just recently purchased a distressed home with water damage bought it for 7500.00 cash. Put about 5000.00 into it (my own construction co. did the work) and it looks like a million bucks. it is located in a low to moderate income neighborhood.
I just applied for a new mortgage on the property to cash out 20,000.00 so I could pay down some debt on credit cards and so forth. Everything looked good but I was denied the loan because of my debt to income ratio, and the bank felt that there wasn’t enough equity in the property.I only needed 28,000.00 for an appraisal. My credit rating score was 660 and the property will show a positive cash flow of 208.00. I feel caught in the middle I can’t pull out the money to pay down some debt and I can’t refinance it seems, until I do. Also it was difficult to find a bank that would even be willing to loan less than 30,000.00 on a mortgage to begin with everyone I talked with (alot of them) only wanted to handle 60,000.00 and up loans.
How can I handle this situation. I have a lot of equity in my personal residence put don’t want to really use it unless necessary. Please help!
Thanks Dave Dowling