Need Advice On Best Path Of 2 Poor Choices.
I need to purchase (job relo.) another home and get a mortgage of 95% on a $180,000 (approx) purchase. My FICO is terrible at about 605. I have an even bigger problem, I think,: I have a rental property (couldn’t sell it even at a minor loss..) that is in the foreclosure process. It will cost me about $8,000 to reinstate the loan and I have now got the cash to do just that. Or I could just hold my breath that there will be no deficiency judgment etc etc. – or at least not until after I buy the new home.
Which way would a loan broker want me to go? Keep the cash for the new home - by not bringing the defaulted loan current and then I would have another 5% down on a home and only 90% LTV - damaging my FICO to below 600. OR bring the rental property mortgage current – and saving further FICO damage.?
Thanks for all input in advance.
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