Mortgage Payoff
This question is similar to the last one about debt-payoff lagtime. I am closing on selling a rehab next week. I have a mortgage on this property. Once I close and payoff the mortgage, how long will it take before the payoff is reported to the credit agencies and my credit score goes up as a result of this? I am curious becuase I pla on applying for another loan ASAP and I will wait to do so, if the mortgage payoff will be reported and reflected on my credit score if within 1-2 weeks, if it takes longer I will just apply now since it will not make any difference. Your thoughts and knowledge would be vvery much appreciated.
Thank you.
Broker told me 2 months...
Ebellis,
There are so many other reasons your score went down by four points. Paying off your mortgage was not the likely culprit. Generally, having or not having one more secured credit account, such as a mortgage, has no impact on your credit score. Your payment history against your secured credit accounts is another matter.
Instead, see if your credit balances on your open trade lines was a little higher, or whether you had recent credit inquiries for a new credit card.
If you are looking to get a new mortgage ... mortgage companies will look at debt to income and paying off the existing mortgage will lower your debt. You can simply write a letter with your loan application, include a copy of the deed, and say that the mortgage has been paid off.
Brenda
NewKid--Actually I subscribe to a credit watch service thru Myfico and it alerts me every time there is a "score band change and the notice on this one said--you credit score was lowered on a day when no other activity took place. I have 6 mortgages, each has never been late and credit cards have never been late and the balance was lower than the previous month, so I had to assume it was from one mortgage being paid off---Just my observation, and I could be wrong-EB
Here is an idea that has worked recently for me and we are looking to do it more often in the future as part of our mainstream business plan.
I offer 10-15K non refundable down on the property with the balance due in 120 days. For relatively little I get in the property, rehab in 30 days and have it on the market and sold doing a double closing in <120 days.
I can use investor money at 15-20% ($125-250 month). For extremely low holding costs. Generally this is how I contribute to my parents retirement fund
I average 10-15K in repairs on a card or two mainly and this works well for leveraging your $$. I am still trying to raise another 500K this year to come to a million on top of my own 200-250K. Using this texnique I can do 5 properties plus at a time in addition to the other ones that may require more funding or cash.
The key is to rehab quickly, average selling time is 60-70 days in this market if you sell at market. Otherwise you have to finance out or get money from somewhere else to protect your investment.
THis is similar to a lease purchase, I find that people that think 6 months is too long will agree to 120 days.
[addsig]
So your typical Rehab is just a little face lift correct? you paint the place inside out maybe change some windows and make it look nice inside.
so you saying you get investors to put a % down?
let me know thanks[ Edited by knsv on Date 07/26/2005 ]
Quote:
On 2005-04-29 10:21, Stockpro99 wrote:
Here is an idea that has worked recently for me and we are looking to do it more often in the future as part of our mainstream business plan.
I offer 10-15K non refundable down on the property with the balance due in 120 days. For relatively little I get in the property, rehab in 30 days and have it on the market and sold doing a double closing in <120 days.
I can use investor money at 15-20% ($125-250 month). For extremely low holding costs. Generally this is how I contribute to my parents retirement fund
I average 10-15K in repairs on a card or two mainly and this works well for leveraging your $$. I am still trying to raise another 500K this year to come to a million on top of my own 200-250K. Using this texnique I can do 5 properties plus at a time in addition to the other ones that may require more funding or cash.
The key is to rehab quickly, average selling time is 60-70 days in this market if you sell at market. Otherwise you have to finance out or get money from somewhere else to protect your investment.
THis is similar to a lease purchase, I find that people that think 6 months is too long will agree to 120 days.
What kinda rehab do you do?
Quote:
On 2005-04-29 10:21, Stockpro99 wrote:
Here is an idea that has worked recently for me and we are looking to do it more often in the future as part of our mainstream business plan.
I offer 10-15K non refundable down on the property with the balance due in 120 days. For relatively little I get in the property, rehab in 30 days and have it on the market and sold doing a double closing in <120 days.
I can use investor money at 15-20% ($125-250 month). For extremely low holding costs. Generally this is how I contribute to my parents retirement fund
I average 10-15K in repairs on a card or two mainly and this works well for leveraging your $$. I am still trying to raise another 500K this year to come to a million on top of my own 200-250K. Using this texnique I can do 5 properties plus at a time in addition to the other ones that may require more funding or cash.
The key is to rehab quickly, average selling time is 60-70 days in this market if you sell at market. Otherwise you have to finance out or get money from somewhere else to protect your investment.
THis is similar to a lease purchase, I find that people that think 6 months is too long will agree to 120 days.
What kinda rehab do you do?