It sounds like you’re going to need to rent for a while longer. Is that really the worst thing? Find another room mate situation. Do it now. You have plenty of time for that if you work fast. It sure beats being homeless.
It sounds like you’re going to need to rent for a while longer. Is that really the worst thing? Find another room mate situation. Do it now. You have plenty of time for that if you work fast. It sure beats being homeless.
Buy a trailer. Bunch of Sunnyvale’s out your way.
In reply to mtn :
That had occurred to me.
STM317 said:frenchyd said:In reply to EastCoastMojo :
Housing works the same way as stock. You haven’t lost until you sell.
Worst case when you lose in real estate: the lender forecloses and you lose your property, you lose all of the money invested (equity + utilities paid while owned + taxes paid while owned + insurance paid while owned) and your credit gets trashed.
Worst case when you lose with stocks: you lose all of the money invested, but it stops there. No far reaching ripple effects on the rest of your life.
One does not follow the other. Real estate is the home you live in. To have that foreclosed on means you are over 90 days late then they file the required papers to foreclose which can easily take 30-45 days If the bank rushes to the court house. From the date of the sheriffs sale you have 6 months to redeem the property before you are evicted.
That’s over 10 months since you made a payment. If you have any equity the bank would rather modify the loan than spend the legal costs of foreclosing.
Since people need three things, food clothing, and shelter Assuming you didn’t make payments for 10 + months and you have no equity to modify the loan, you would now need to rent. Rent for similar is going to be at least 20% more than your house payment was ( or you can move into 20% less home.
In reply to Appleseed : please don’t buy a trailer. You need to rent a place to park it. The place you park it is Real estate and will appreciate about with inflation.
The trailer ( the part you own) depreciates faster than a car.
This is GRM. I'll buy one at the bottom of the curve. 
Earlier it was mentioned to refi the car loan. I don't know if that will actually help but it is actually possible to do. Here is a link to PenFed and their rates for car refi.
In the past, we have talked extensively about PenFed and I could not recommend them more.
Any recommendation of PenFed gets my vote. I'm actually a member of two credit unions (PenFed and a local one). If/when we move again, I'll probably skip joining a local one and will do all the day to day stuff with PenFed.
In reply to Appleseed :
Too many are telling you no. Here’s how to fix that. It’s also a way around a poor credit score.
First do you have a down payment ? ( or are you a Vet?) If so just go find the house you want.
If not, you can still buy a house, you just need accept your choices will be limited. Plus you have to do a lot of the work a realtor normally does.
What you need to do is find a home about to be foreclosed on and offer to buy it so the owner won’t get a foreclosure on their credit rating.
There is no listing of these, you need to work with a loan officer at a bank that handles mortgages. Not all banks do, some just sell the mortgage. You can either ask bankers or ask a realtor. There is no real incentive for a realtor to help you so that would be my last choice. However you may have a friend that cares more about helping you than eating a paycheck.
Dont just go to one bank, go to every bank that handles mortgages. The incentive for a banker to help you is a foreclosure costs money, it just legal fees but also people being foreclosed on don’t leave the house in nice clean move in ready condition. They may not cut or water the lawn and neglect it in every other way.
The bank will have to pay a realtor to sell it and the time a non performing loan is on their books is also when funds are reduced from availability.
Different people in a bank have different motivations to work with someone ready to assume the mortgage. So if one banker says no talk to others( unless only one handles a banks mortgage portfolio.
SWMBO a wife or girlfriend? Doesn’t matter don’t list her. Instead download a rental agreement and fill out what she is willing to pay in rent. But don’t date it. Now go have it notarized. Bankers love things notarized and look suspiciously at things that aren’t.
Now you have a 805 score which will get you a loan on a house. That’s what you’re going to do. Assume the mortgage in your name. Not take out a new mortgage.
More later
Finding a, about to be foreclosed home. Banks might help, maybe not. Talk also to hair dressers, barbers, bar tenders. The clergy. Some people will help you while others want s little spiff. Typically those who work on tips will want a spiff the rest will do it if they think you will help others .
Upside down property. There is a good chance that a lot of what you find will be upside down. How far upside down? Not every deal will be a good deal.
Do you know how to find property values? A good start is Zillow but it’s not the final answer. Only your judgement will answer that.
Some property will have equity. You can offer to pay the owner X$ a month until you paid it off. Or a lump sum if you have it.
Or deal with Karma.
I have not tried but Pen Fed does Mortgages too!?
Car has already been refinanced.
I like the idea of SWMBO (girlfriend ) as a "renter" with a notarized document. We have an agent, family member, who is working with us. Foreclosures are definitely in the running.
Probably do well to cut costs and save up some money for awhile. Why not totally re-think the idea of what "home" is? Maybe pick up a nice mid-70's Chevy Van and park it down by the river?
Penfed is awesome, I love them.
frenchyd said:STM317 said:frenchyd said:In reply to EastCoastMojo :
Housing works the same way as stock. You haven’t lost until you sell.
Worst case when you lose in real estate: the lender forecloses and you lose your property, you lose all of the money invested (equity + utilities paid while owned + taxes paid while owned + insurance paid while owned) and your credit gets trashed.
Worst case when you lose with stocks: you lose all of the money invested, but it stops there. No far reaching ripple effects on the rest of your life.
One does not follow the other. Real estate is the home you live in. To have that foreclosed on means you are over 90 days late then they file the required papers to foreclose which can easily take 30-45 days If the bank rushes to the court house. From the date of the sheriffs sale you have 6 months to redeem the property before you are evicted.
That’s over 10 months since you made a payment. If you have any equity the bank would rather modify the loan than spend the legal costs of foreclosing.
Since people need three things, food clothing, and shelter Assuming you didn’t make payments for 10 + months and you have no equity to modify the loan, you would now need to rent. Rent for similar is going to be at least 20% more than your house payment was ( or you can move into 20% less home.
Bruh, stop lol
In reply to frenchyd :
Creative idea but he'll still need financing to purchase the forclosure or soon to be foreclosed on house. That's a very competitive market where banks usually don't have an issue with finding buyers (investors) willing to pop the cash and make the bank life easy.
His problem is he has a great score but his car payment is considered too high in regards to his DTI. Which isn't an issue for him because his lady income can supplement. But, his lady credit score hurts the lending side of things when including her on the app. So, either increase his lady score and apply together or lower his DTI and apply on his own. Or increase her score and lower his DTI and apply together.
In reply to yupididit :
That's almost everything in a nutshell.
yupididit said:In reply to frenchyd :
Creative idea but he'll still need financing to purchase the forclosure or soon to be foreclosed on house. That's a very competitive market where banks usually don't have an issue with finding buyers (investors) willing to pop the cash and make the bank life easy.
His problem is he has a great score but his car payment is considered too high in regards to his DTI. Which isn't an issue for him because his lady income can supplement. But, his lady credit score hurts the lending side of things when including her on the app. So, either increase his lady score and apply together or lower his DTI and apply on his own. Or increase her score and lower his DTI and apply together.
Assuming a loan about to go into default is a relatively common occurrence. Actual situation determines if the bank will look favorably on it or not. Factors like market value to debt, interest rate, and credit rating are prime.
Offering to pay for an appraisal helps the bank understand that the cash they will sell it for imay not be as good an option for the bank as letting someone assume the loan. Banks know that they will be lucky to get 90% of its actual market value once all costs are factored in.
If there is serious equity banks will gladly market it but a house that is upside down is very attractive to allow acquisition especially if the mortgage is at or above current interest rates.
As far as it being a good deal for the person to assume the loan, That gets complicated in this situation. As you know most real estate is appreciating at well above the rate of inflation. Even if he could improve the credit rating enough in only a year ( difficult) that property might be 10% higher price and higher interest rates could easily drive it out of reach
He wouldn’t be the first person priced out of the housing market waiting for his credit score to improve. However doing things this way is very much like diving into a lake hoping to teach yourself how to swim before you drown. A trusted friend or relative with experience buying houses would be a really good thing.
The reality of being priced out of the market isn't lost on me. The housing market hasn't caught up to demand, in my area especially. The crash in 08 squashed so much new home construction. Two years ago, I found houses for $35,000. Total cracker boxes, but, still. Those prices are long gone. Sub-$100,000 is difficult. There is hope. And what hope won't solve, proper motivation will.
Doesn't seem like there's a quick, easy answer here. If it were me, I'd take some time off before getting serious about buying. Use that time to:
Continue to save up a downpayment- this will mean a lender would have to lend less, or your price range goes up and gives you more options
Continue to pay down debt- this improves your debt to income ratio and keeps your credit rating strong
Wait it out while SWMBO's late payments get further in the rear view
Continue to watch your local market so that you have a good idea about what you want, what that will cost, and whether that will be affordable or not.
Then, after a year or so reapproach some lenders with a bigger downpayment, less debt, and SWMBO's income added to yours.
There's always the option of asking for less money too. Smaller loan, means smaller monthly payment, which means your monthly income is less strapped.
In reply to frenchyd :
I much rather wait until my finances and credit situation is in order before I acquire a mortgage especially if I'm in the situation of the OP. The rate in which real estate is appreciating (which purely depends on location, the house, economy, and when) doesn't really encourage me to buy now vs a year later. Especially when there are times when homes depreciate as well, taxes increase, insurance cost increase, and E36 M3 happens. You often leave those type of things out of your post when it comes to home purchasing subjects. Buying a home isn't always a win/win situation.
I waited a year to buy when i got here in September 2017. Now that September 2018 is close, we might still wait another year. I can afford it and my credit is worthy. We're just not ready and nothing I want to commit to has come up.
Buy a house when you have your E36 M3 together and you're ready. Not because they're only getting more expensive.
yupididit said:In reply to frenchyd :
I much rather wait until my finances and credit situation is in order before I acquire a mortgage especially if I'm in the situation of the OP. The rate in which real estate is appreciating (which purely depends on location, the house, economy, and when) doesn't really encourage me to buy now vs a year later. Especially when there are times when homes depreciate as well, taxes increase, insurance cost increase, and E36 M3 happens. You often leave those type of things out of your post when it comes to home purchasing subjects. Buying a home isn't always a win/win situation.
I waited a year to buy when i got here in September 2017. Now that September 2018 is close, we might still wait another year. I can afford it and my credit is worthy. We're just not ready and nothing I want to commit to has come up.
Buy a house when you have your E36 M3 together and you're ready. Not because they're only getting more expensive.
Your last statement is right on the money, however it sounds like the OP is at that point. You are correct in that home values go up and down. However buying a home isn’t only for rate of return
People vary. I bought my first house when my job situation was stable but not everything financial was.
In fact I bought it GI nothing down and even borrowed the earnest money from the realtor. It turned into an extremely good deal. But there is nothing that says every such situation will work for everyone
In 9 years the house more than tripled. Which put me in this place and in the 35 years I’ve owned this place it’s appreciated 15 times it’s original purchase price.
A home is both realestate and a home. Treating it like a well timed investment denies you the advantages of a home.
If you have reason to believe prices are going down then a delay may be the smart move. On the other hand a delay denies you the good stuff like lower income tax, a delay in paying off the mortgage, and a delay in making the new place into your home.
I just hope you don’t delay so long because the exact right place doesn’t come along. A friend of mine took more than 10 years to buy a house that Met is specifications. I was paying $108 a month while he struggled to come up with the $546
In reply to frenchyd :
You got lucky. I'd bet that statistically the number of people that lose their homes is much higher when the buyer enters with a small down payment and little cash on hand.
For most people, a home is the largest purchase they'll make. That's not a situation to gamble with if you ask me. Buying a home that's going to cause budgets to be tight, or strongly relying on future appreciation to outpace inflation is a recipe for stress and likely financial ruin. Make sure that your housing cost is no more than 25% of your monthly take home pay, and you'll be able to weather just about anything. Your margin for error starts to shrink the larger that percentage gets. People are free to do as they wish with their lives and their finances, but I'm not one to gamble with the roof over my head. I think it's irresponsible to advise anyone differently. Sure, for some it may work out, but if it doesn't, I don't want somebody else's housing and financial security riding on my risky advice.
STM317 said:There's always the option of asking for less money too. Smaller loan, means smaller monthly payment, which means your monthly income is less strapped.
Around here getting a mortgage that is under $100k is damned near impossible.
STM317 said:In reply to frenchyd :
You got lucky. I'd bet that statistically the number of people that lose their homes is much higher when the buyer enters with a small down payment and little cash on hand.
For most people, a home is the largest purchase they'll make. That's not a situation to gamble with if you ask me. Buying a home that's going to cause budgets to be tight, or strongly relying on future appreciation to outpace inflation is a recipe for stress and likely financial ruin. Make sure that your housing cost is no more than 25% of your monthly take home pay, and you'll be able to weather just about anything. Your margin for error starts to shrink the larger that percentage gets. People are free to do as they wish with their lives and their finances, but I'm not one to gamble with the roof over my head. I think it's irresponsible to advise anyone differently. Sure, for some it may work out, but if it doesn't, I don't want somebody else's housing and financial security riding on my risky advice.
I’m sorry but when the GI bill allowed zero down after WW 2 that was the expected result.
Check it out, you’ll find that foreclosure of zero down homes was lower than traditional 20% down payment loans.
It remains that way to-now!
Remember up to when the banks got greedy during the housing boom. people had to prove income and credit rating.
As for getting lucky, why do you say that? Don’t you think I carefully checked things out? I had several income streams. And the payments were pretty trivial compared to my income.
Maybe you’re right I was lucky. None of us knew how to fly in combat situations. We weren’t trained . All we knew was how to hunt submarines. Gunfire spotting and coastal interdiction was new to all of us. Almost have of the crews we’re shot down during the first 1/2 of our combat tour.
I was a replacement and the XO took me under his wing and taught me how to survive. As a result I was alive to take advantage of the GI bill.
Minnesota had a usury interest rate law capped at i think 4% and since prime was over 7&1/2 nobody could get a mortgage. Except Vets. We borrowed money at 4 % . Not only that but the VA appraisal was very tough. I made 23 offers on lakeshore property with the stipulation that if the property failed to pass inspection the homeowner had to refund me $125 appraisal fee.
Since I was the only game in town those who wanted to sell had to agree. The one I finally bought needed over $3000 worth of repairs and they appraised it at $27,800 almost $4000 less than asking price. She effectively took $7000 less than her asking price
My last income stream at the time came from my job, The GI bill and Navy reserve pay. Any one of them was enough to cover my payment.
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