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     | Saturday, February 26, 2000 - 09:59 pm  Has anyone obtained a loan using lendingtree.com or priceline.com? If so, how was it? I'm trying to sell my house but in the meantime I need a home equity loan with minimal closing costs. However, my credit is not good. The best I was able to find was a co. that would loan me only 80% of the home value, but that is not enough for me to get the cash I need. Any suggestions out there for a co. that can give me a 100% loan? Thanks
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| | Sunday, March 12, 2000 - 08:39 am Without knowing what "not good means it would be hard to give you some direction. However, though the idea of using a web service may seem appealing as they advertise low commissions, you service is probably going to be limited. Most of these website lenders are looking for the slam dunk loans. You might be better off working with a mortgage broker who can work with your issues. Contact you states mortgage broker association for a list of lenders/brokers or check with a realtor for a list of 5. Then call the BBB on them and due you due dilligence. good luck
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| | Sunday, March 12, 2000 - 04:05 pm I agree with Don, but have to add my 2 cents on realtors and mortgage brokers associations. Having been a member of both, I learned that the Mortgage Brokers Association's Code of Ethics means absolutely nothing. When they refer, they look up PAYING members in your area. I personally know some real member scum bags. That doesn't mean that you'll NEVER get a good referral, but you might as well use the yellow pages. Realtors will usually refer whoever sends them business, and I have seen some of the worst incompetence by referred brokers. Details on my own experiences with realtors and mortgage brokers associations are at my http://www.bayhouse.com/define.html I really have NO idea how someone who doesn't know the biz can find a good broker/lender. Sadly, even with my extensive backgound I would HATE to have to find a competent and honest broker or bank employee. I'd say there are less than 2% who know what they're doing AND aren't going to fleece someone with "not so good" credit. Lots of luck to Alan!
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| | Tuesday, March 14, 2000 - 06:51 am The best way to find a competent brokerj/lender is word of mouth. Check with family, friends and neighbors. Nothing better than asking those who have actually been through the process with a particular broker or lender.
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| | Tuesday, March 14, 2000 - 10:00 am During my extensive experience brokering mortgages and working with borrowers in default I learned that: 1) Most people have no idea that they got screwed in the first place. 2) Many people get referral fees (money, dinner, limo ride, free loan next time...) I know it's illegal, but there is something called the "real world." Consumers can obviously recommend someone who will call back, show up on time and treat them with respect. But they never know whether they got the best available rate/program. And that's especially important for people with "not so good" credit. There are HUGE differences in the rates/fees and a good broker can often get a B borrower into an A- program.
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| | Wednesday, March 22, 2000 - 12:59 am Christine, in response to your post above. To determine the best available rates and programs, for someone with less than perfect credit, seems like there should be a way to research this info. But what sources would I use that would provide such info? What source would supply me current rates and available programs? I live in Az. Any reply would be greatly appreciated...
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| | Wednesday, March 22, 2000 - 05:26 pm Unfortunately there is no such source. You are at the mercy of the Broker/Lender. I could tell you to shop around but the problem is that you will get Loan officer that lie to you to get you in the door and then everything changes at the table. If you want to try this I may be able to help? Find out your Credit Score(s) and ask the lender what credit grade you are (A+,A,A-,B+,B,B-,C,D). Ask them what their total compensation including any origination fee, processing fees, YIELD SPEAD, and any other fees. Have them put it in writing using Christina forms foudn her in the website. Let me know what they say and I'll let you know if they'relying or if the offer seems fair. Also, be prepared to walk if they don't deliver. Get them to pay for the appraisal and take it out of the loan so if they don't deliver, your not out any dough.
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| | Saturday, March 25, 2000 - 03:41 pm Again, I agree with Don. There is no one source. Every lender has different guideline, and they frequently change. Every underwriter underwrites just a little different. Brokers rely on wholesale reps to provide accurate info. I've seen reps be wrong. It's a lot of work to shop a credit impaired loan. The use of Credit Scoring makes rate shopping almost impossible for consumers, since Credit Scores can change dramatically from day to day. A broker can put the loan package together and then get quotes from various wholesalers.
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| | Monday, June 12, 2000 - 09:50 pm I can't recall how I came to this site, but it's certainly interesting and enlightening. I'm a mortgage broker working in LaPalma, CA. I'm what you would call an "Upfront Mortgage Broker;" that is, I quote wholesale rates (including lender fees and yield spread premium) and then add my fee. Of course, my fee can be paid by the borrower, the lender or the seller (or a combination thereof). I do a lot of work for credit impaired borrowers to bring them from sub-prime to prime. However, I will NOT do this work while the borrower is in escrow. If a borrower comes to me and desires a prime loan but has impaired credit, I have strategies to help you improve your credit but, after many years of banging my head against a wall (because it feels so good when I stop?), I've learned that life is too short to drive you, me and everyone else crazy trying to turn a sow's ear into a silk purse in 30-45 days. What took months, even years to create (a bad credit report) cannot be rectified in the middle of a real estate transaction. On the first Saturday of every month, I hold a credit repair workshop for borrowers who will commit the time and effort to fix their credit themselves, with my guidance and coaching. Prospective borrowers can return month after month until the job is completed. Some have commented here that some brokers behave as if they will "consider" working with a certain borrower. I, too, make a determination, based upon a thorough interview, whether I'll pour my blood, sweat and tears into a loan transaction. Not all prospective borrowers merit the total devotion and significant resources and talent that I bring to each loan package. I try to determine how motivated and determined the borrower is to make the deal happen. Sometimes I'm right; sometimes I'm dead wrong. Sometimes I'm reasonably and adequately compensated for my time and talent; sometimes I work for minimum wage based upon the hours and hours I unwittingly end up devoting to a file. It must be said that mortgage brokers are business people, not social workers. We must be compensated for our consulting effort as any other skilled consultant. Since being paid by the hour is not practical, we must predict, as best we can, how long and how difficult it may ultimately prove to be to get approved for the loan program that the borrower wants (within reason). Obviously, someone just a year out of bankruptcy cannot--I repeat, cannot--obtain a prime paper, 100% financing loan unless and until he gets his credit cleaned up. So to suggest that a mortgage broker should spend hours upon hours to secure a prime paper loan for this type of borrower for the same fees that a slam dunk borrower would pay is simply unrealistic.
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| | Tuesday, June 13, 2000 - 10:11 am I totally agree, the lack of compensation for mortgage brokers is a huge problem. It's extremely difficult to decide who to work with. Even when the borrower has the very best intentions and is 100% loyal, stuff happens and when they don't buy you don't get paid. It's not fair to the broker, and it's not fair to the next borrower who has to pay twice the fee. I have no solution.
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| | Friday, September 01, 2000 - 09:12 pm Needing Advice.... My husband and I would love to buy a house. He works in the high-tech feild and we have gone from being homeless five years ago to be somewhat stable thanks to stocks! We are at a loss, I have spent days on the internet reading all that I can and I have found the information on this site very informing. To make a long story short we have many charge offs on many credit cards from 5 years ago & misc things that was never paid due to circumstances leaving us homeless. So all in all, we have $17,000 total owed (100%) of the bad marks total. We want to buy a house in June of next year and have the opportunity to pay off all our debts due to stocks. But we won't have enough to pay off all debts at 100% and have enough for a down payment. I am confused by all the different information provided, one is where people with bad credit ARE able to obtain loans with higher % rate etc. I was told by my bank that NO lender would approve us while we had outstanding charge offs etc. So does that mean that if we want to buy a house next year that we need to get on the ball and get this stuff taken care of? Ok next what would be the best thing for us, pay off our debt now, or wait for more time till next year right before we buy a house? Also what if we do this will it hinder us futher? And is there someone a service that will help us and where can I find one... most of the services that I see available is for Debt Consoladation and we are totally debt free except for rent, food etc. I am at a loss at trying to find help and I am sorry for making this so long, but any and all information would help!!! Thanks! Roxane
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| | Sunday, September 03, 2000 - 02:42 pm If all these things happened 5 years ago you may want to consider renting for a couple more years. After the 7 year mark the charge-offs etc will have to be removed from your credit report. Also, if you don't have any credit cards you should try to get a couple secured credit cards. In two years you might have a great credit rating. What you don't want to do is reset the clock on any of these debts. That could happen by making partial payments with some 'Debt Consolodation' service.
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| | Tuesday, September 05, 2000 - 07:59 pm Roxanne, There area couple of way to go. Though erik is partially right that they may fall off your report, that doesn't mean they will go away. If the creditors find out you own a home, they can just renew their judgements and attach your property. There are loans that will ignore the bad debt and you don't have to pay them off. Generally called "Mortgage Only" products. Rates are higher 11-12% and LTV limited to 80-85% percent of the purchase price. 2nd choice is to payoff the old bills at a discount, say 50-60%. Make sure your rent is paid on time. Don't wory about opening new accounts, just keep what you have. You would most likely then qualify for FHA at up to 97% LTV with rates in the 8's%. Since these account are old, as long as they are paid and with a solid explanation they deal should go through. If you would like to know more either post here or for quicker response, send me and email.
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| | Wednesday, September 06, 2000 - 04:32 am "If the creditors find out you own a home, they can just renew their judgements and attach your property." Wouldn't the statute of limitations prevent this? In most states I think the statute of limitations is 4 years on these things. I didn't see anything in her post about any judgements associated with her charge-offs.
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| | Thursday, September 07, 2000 - 02:20 am If a creditor has a "charge off" and they wanted to collect because they now find out the borrower has an asset to attach, all they have to do is go to court for the judgement. If the balances are less than $5k it probably isn't worth it. I do not know the SOL for a collection or charge off but i can tell you that a judgement is good for 7 years(in California) and then you can renew it for another 7.
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| | Monday, September 18, 2000 - 01:45 am It all depends on the State and the kind of debt. However, once the SOL for a charge off has expired, the creditor can NOT get a judgment. It's about time I start offering consulting services again. Somebody needs to look at Roxane's credit report and talk to her and then help her decide whether to negotiate the debts. There's so much we don't know about their finances ...
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