How Would You Deal With This?
Hello,
I am posting this for my friend. Any creative insight would be much appriciated.
My friend is 23 years old. He is 3k in credit card (20% Interest rate) debt and has no job. However, his FICO score is around 760.
My question is: What would be the most efficient way to refinance the interest rate down untill he startes his real job in late August?
He is going to talk with a bank today but I was just wondering if anyone had any suggestions.
Thanks for the time -Robert
j995,
I cannot open your PM because I have not subscribed to this site yet. Could you reply here?
Thanks.
J995
I am sorry to hear about your money problems with the two mortgages, but I was wondering if you could give me some insight as to what mistakes you might have made (if any) so that I might be able to learn from them. My husband and I are looking to invest and this situation that you are in is his biggest nightmare. Do you think you over paid for the property? Or did you miscalculate the repairs/rehab? Bad location of rental unit or what? The more specific would be great and I appreciate any information you would give.
You said "upon getting into REI". I interpret that to mean after you are investing. From this I am assuming they are not lending you money. Are you asking where you should set up an account to run your properties? Please clarify.
sorry for being so vague.
Quote: Are you asking where you should set up an account to run your properties?
Yes, this is what i am asking. I guess it really doesnt matter that much, im just sick of how narrow minded my bank is about everything - buisness accounts, credit cards, personal loans, etc.. Thanks -Robert
[ Edited by SlickRob on Date 06/10/2005 ][ Edited by SlickRob on Date 06/10/2005 ]
Try this link:
http://www.thecreativeinvestor.com/residential/modules.php?name=LenderFinder&op=findlender&state=CO&all=1
Find an agent who is a top producer and can give you a reliable market analysis. Then put it on the market and offer to pay a bonus to selling agent and some closing costs for a buyer. I used that technique in Maryland about 10 years ago, when the market was awful. It worked really well. You get lots of showings and a buyer is short on cash will give your home a good look to see if they can buy it with the additonal help.
they cant take your primary residence though can they?
I assume you meant if you are foreclosed on. If there are no buyers at the foreclosure sale, the bank will wind up owning the house. Indiana has ( or at least had) the highest foreclosure rate in the country.
The bank will likely list the property with a real estate company who will sell it. If there is a short fall after the sale, the bank may or may not come after the borrower for the short fall. In some states if the loan was a purchase money loan and the property is/was a personal residence then the loan may be non-recourse -- meaning the bank must take the hit. I believe that to collect the short fall the bank must use a judicial foreclosure. In CA, most foreclosures are non-judicial because they are less expensive and there is a redemption period after the sale. This has the effect of lowering the amount received at the sale because no one wants to buy a house and then have it redeemed by the previous owner a few months later.
I hope that this is of some help.
Regards,
Ed
as far as risk to other assets, check out what the rules for deficiency judgements are and was the loan purchase money or non-purchase money.
See if you can short sell or do a deed in lieu rather than foreclosure.
Not having money or credit is a pretty important factor. I suggest finding out just how bad your credit is then deciding if borrowing is possible. Also, do you have an income currently, and if so is it a fair amount? If so, you may be able to borrow based on your income or assets...if you have any.
I have been told that only if your credit is pulled by a company that finances (car, credit card, etc) does it affect your credit score.
If you are pulling your own credit from organizations such as MyFico it will not have any impact on your credit scores. You can pull it as many times as you wish using services such as these!
Now if you start applying for loans then your score will began to decrease after a couple times and can become severely impacted if you apply for several lines of credit (ie could take 3-6 months to regain the original score depending on the type of finance you sought)
Hope you find this helpful...[ Edited by joel on Date 06/14/2005 ]