Great deal/bad credit - Posted by Mary (PA)

Posted by Charles Clark on January 19, 2003 at 13:44:52:

HI Michaela,
Thanks for the confirmation from you and James Strange. I am a mortgage broker, and we sometimes have to treat people in Credit counseling as if they were in a Chapter 13 BK.
While on that subject, It is sad that the better/more honest way (in my opinion) of going BK is chapter 13. Yet, for your ongoing credit/ability to buy a home etc, people are better off going into Chapter 7.
Thanks again,

Great deal/bad credit - Posted by Mary ¶

Posted by Mary ¶ on January 18, 2003 at 21:39:13:

OK I am trying very hard to keep my head up but boy has it been difficult. I finally found a house that is great for me and my family, its affordable and could be the beginning of some great things to come. However, I have some past credit problems and the banks just won’t even consider giving us a loan. My husband has a great Job(2yrs), and I am a successful RE agent in training. This is the deal…house is 5br 1 bath…needs some cosmetic work (especially in the kitchen) could use some new windows. Asking price is 38500. It is a bank owned property in a fairly nice area where the comps are from 69,900 and up. I think with a little elbow grease we could surely increase the value of the home. There are grants available for owner occupants in this area as it is a historic home to help us fix it up so repair funds would not be necessary. My median credit score is 589 high is 605 however I have some medical bills and a car repossesion in the past that is still on my report and it is keeping me from getting approved. I am considering credit counseling to help me get these things paid off but from what the banks tell me I am better off filing bankruptcy and starting over again try for a house in about 2yrs. But I need to do something fairly soon and cant see myself losing what I have worked so hard to achieve only to start over again. Any solutions for me ??

please Help!! it will be greatly appreciated.

Re: Great deal/bad credit - Posted by Sandy (NY)

Posted by Sandy (NY) on February 01, 2003 at 02:57:00:

Find a mortgage broker familiar with the latest products. I read a few months back that banks were going to offer a new mortgage product where your interest rate might be a bit higher due to your credit, but with a year or two of on-time payments the rate would go down for the remainder of the loan.


Re: Great deal/bad credit - Posted by Mike

Posted by Mike on January 22, 2003 at 14:21:09:

There are lenders that will lend 100%ltv based on the information you presented.
-Make sure your Debt to Income is below 50% (including homeloan)
-Can you prove a rental history for the past two years, and is this a 3rd party unbiased source? (Management Company)
If so you could find a loan. You will have to pay some closing cost unless you can get the bank to pay. (up to 6% of loan amount)
Good luck!

Re: Great deal/bad credit - Posted by Ken (ILL)

Posted by Ken (ILL) on January 20, 2003 at 14:55:01:

Like everyone else says … keep avay from credit councelors ALSO… be careful of the mortgage broker you pick. Some do so much shopping of your application, that your score will drop like a rock (It will drop 10 points each time your credit is accessed). I had a customer that dropped over 250 points because of shopping! Go for a reputable company.

You didn’t say anything about the sellers. - Posted by Shawn J. Dostie

Posted by Shawn J. Dostie on January 20, 2003 at 13:39:33:

Would they help you out by taking back the mortgage with a 2 year balloon? Enough time to have the repairs completed and to refinance at appraised value rather than selling price? Have you approached your broker for financial help? I think you probably could get help through a mortgage broker, although when I was younger I paid one $3500.00 or so in origination fee’s and that is not always the least expensive way to go.

Good Luck,

Re: Great deal/bad credit - Posted by Mary ¶

Posted by Mary ¶ on January 19, 2003 at 23:47:50:

thanks for all of your responses, as well as the warnings about credit counseling agencies. I know there are others in similar situations so if I find the solution I will post in efforts to help others.

Re: Great deal/bad credit - Posted by William Hurndon

Posted by William Hurndon on January 19, 2003 at 22:27:12:

Hi Mary,
I have used the home study course by Carlton Sheets,
there are several ways of useing creative financing.
Try going to an Investment Mortgage Broker,they may be able to help you,instead of a Bank.

Re: Great deal/bad credit - Posted by michaela-ATL

Posted by michaela-ATL on January 19, 2003 at 08:30:26:

Yes, i third that - stay away from credit counseling. i’ve heard horror stories, where someone’s credit got worse, because of the notation on the report and by them making late payments, even though you paid them in time.

Check out and You might be able to improve your score with debt validation or other tools.

Also, don’t go to a bank, go to a mortgage broker. They will have a whole collection of lenders, that they work with. The banks usually just have products for the A borrower.


Stay away from credit counseling - Posted by James Strange

Posted by James Strange on January 19, 2003 at 06:14:45:

If at all possibloe stay away from credit counseling.

Re: Great deal/bad credit - Posted by Charles Clark

Posted by Charles Clark on January 18, 2003 at 22:09:36:

You will be able to get a sub-prime loan with no problem, for about 95% LTV of the sales price. It sounds like the grants to repair the home will take care of that problem. There are sub-prime lenders that will over look medical bills.
Be very careful about the Credit Counceling places. Some of them put a note (or the creditors put a note) on your report that you are in credit counceling, and that is very bad. If you will send me an email sometime, I would be glad to discuss what you might do on your medical bills, depends on how high they are.
Good luck, and you can indeed get into your home.
Charles Clark