All Forum Posts by: Account Closed

You're right. Sallie Mae loans do survive BK, but not private student loans.

Here's what's tricky about this situation. Fannie Mae and Freddie Mac have 2 out of every 3 mortgages in the US. So, when they see delinquency on their sister's loans (Sallie Mae) it makes it more difficult to obtain financing. Lease option to purchase is probably the best angle or owner finance. Also, if you have ever been late on a Sallie Mae loan you cannot obtain an SBA loan. I believe there are caveats to that but not many. Same thing applies with a USDA loan. Kinda off topic. Sorry.

Bryan,

In my experience, the way credit repair people get the inquiries off your report is they contact the bureaus (Equifax, Experian, and TransUnion). They usually know someone on the inside that can perform this for them. All you have to do is show the right documentation. I used to send my clients over to this guy because he was able to get people's credit scores where they needed to be to qualify. I believe that's how this game works.

I agree with Wheeler. When I was a mortgage banker the highest I saw was 815. Mine is currently 720.

I wrote this on a duck hunting forum I am on:

"For those seeking a car loan and/or mortgage. Read this and let's discuss. I will admit I am more careful with my credit history now than I ever was.

http://finance.yahoo.com/loans/article/111025/what-it-takes-to-get-a-loan?mod=loans-home

Here's a story that might or might not be applicable to your situation. First, let me preface by saying a credit report is based on a bunch of algorithms or formulas that weight how important a particular factor is in relation to your total available credit. For example, more weight is emphasized on a home mortgage because usually that is the biggest loan an average person will ever repay in his/her lifetime. I pull my credit report at least once a year sometimes two times to check for stuff that looks funny. I pulled it in 2006 and noticed that I had a collection or money owed on there for $354 to a medical collections company. I was outraged. I then started getting calls from the collections company. It was apparently from medical bills that I allegedly did not pay that the insurance didn't cover back in 2004. I never once got a bill from them. Well I paid the balance off thinking that this would come off the credit report. WRONG. I pulled the credit report again and noticed it was still on there. According to the Fair Credit Reporting Act, collections report to your credit file for seven years. Now here's the grey area part. For some people this can affect your score a lot and for some it might be one point. For someone like me who does not have a lot of credit history being that I am 26 it would affect my score more than if it was someone in their 40's or 50's who has solid repayment history and tons of credit availability. The reason is simple. To the credit reporting agencies I am more risky because I am younger and do not have the credit history that older people have. So, for all you young duck hunters like me two lessons can be learned here.

1. Even though you think your medical bills have been paid. CHECK AGAIN. Call the hospital and get something in writing if you can that states no further balance is due. I have friends that this same thing happened to them.

2. If you do have a collection on your credit report, PAY IT, UNLESS you have proof that you do not owe that money. If that's the case I would hire a credit repair guy to fix this collection for you. More times than not they know someone that works in Equifax, TransUnion, or Experian that would rather just take it off than to have to deal with you or them. Also, this does not apply to just health care. It also applies to rent from a landlord that you skipped out on, damages in an apartment or rent house, unpaid cell phone bills, unpaid electricity bills, unpaid water bills, unpaid gym memberships, or unpaid work performed on your house/car/equipment (which are called mechanics liens). There are probably more but those are the ones I saw when I was looking at 10 credit reports a day as a banker.

I know this is probably stuff you older guys know already but for someone looking to finance a house and start a family this could be the determining factor. Typically mortgage lenders are looking for a credit score of above 620. Bottom line is always CYA. Good luck and watch out for those identity thieves."

I didn't see this thread until now. Next time you are in San Antonio shoot me a PM.

Bryan hit the nail on the head. When I was a lender I cared more about appraised value more than anything else. If an appraisal is not required I would get a broker's opinion or find comparable sales in the neighborhood hopefully. Assessed value and asking price means nothing. When times were good it used to be that assessed value was usually less than the appraised value. Not the case nowadays. Another reason a lender would not use assessed value is because homeowners are constantly disputing their tax assessed value on their homes which does not reflect a reasonable evaluation of real estate. If anything contract sales price would be behind appraised value. Some appraisers will use contract sales price to further justify their appraisals.

Comps look good. The property is located next to an Air Force that employs over 60,000 people. I'd say the overall San Antonio market is stable as I mentioned before according to the data on Texas A&M Real Estate Research Center.

Tenants have been there a year and have signed for another year. General neighboordhood is fair and is appreciating at about 1.5% per Texas A&M Real Estate Research Center. The duplex also comes with W/D hookups. Do ya'll recommend purchasing all the appliances?

I am looking at duplex that grosses $1,450 per month and the sales price is $73,600. I am looking at approximately $8,700 in annualized expenses using the 50% rule. My monthly mortgage payment would be assuming a 20 year fixed rate loan at 7% with a 20% down payment roughly $456/mo. That brings me to a net positive cash flow for the year of $3,228. Is this a good deal for my first property? Definitely better than the other one, however, this property is older and needs some repairs (about $5-10K worth). The other duplex I posted is turn-key. Let me know what you guys think. Thanks.