A Crazy scenario!

quick2close1 · #1 (**permalink**) 01-09-2008, 05:16 PM

What DO I DO?

My clients rate adjusted a while ago. Shes totally screwed

Heres her scenario

519 Mid score

1x30 on the second mortgage in may 2007

The loan amount is 224710.00

SFR

O/OC

And the home is worth $350,000.00

I dont know what LTV to go with out knowing if any lenders out there can even touch this loan she has no reserves.

I could really use the help and so could she.

Erik · #2 (**permalink**) 01-10-2008, 09:46 AM

Sounds like a potential casualty of the current situation, unfortunately. Hopefully you can find her something though.

quick2close1 · #3 (**permalink**) 01-10-2008, 10:32 AM

Do you think I should have her go to three cash advance places and get 1500 dollars then use bridge scoring to find out how much of that 1500 dollars she could use to pay off each certain credit card to raise her score high enough to refinance her house. Then rapid rescore her credit after she pays the bills and have the loan refied by the time the cash advance loans are due.

Erik · #4 (**permalink**) 01-10-2008, 10:42 PM

Personally I would never advise a client to do that, but that's just me.

quick2close1 · #5 (**permalink**) 01-11-2008, 09:51 AM

thanks, any other ideas?

Greg · #6 (**permalink**) 01-11-2008, 11:34 AM

FHA Secure? Was she clean before the rate adjusted on her?

quick2close1 · #7 (**permalink**) 01-11-2008, 11:44 AM

well yeah she wasn't clean because of a mistake first franklin had made with an escrow account which caused 7 30 day lates. It took me 4 weeks to get a letter from their insurance company saying there was a mistake and then i had to send that letter into my closing services to get them removed. She lives in Tucson AZ the max loan limit is 239850. And on top of that she owes 224710 and 15399 on the second plus she would have to pay off debt to meet DTI issues. I found this from fha.gov

Ø " Determine that the homeowner has the capacity to make future mortgage payments as well as pay all other obligations. The payment-to-income ratio and debt-to-income ratios remain 31 percent and 43 percent, respectively. Compensating factors are to be provided by the underwriter when the ratios are exceeded."

She makes 90 grand a year as the VP of operationsfor "spa one"

Ø

I think I can use the letter from first franklin plus a cry letter from her to show what happened. to go higher than her cities FHA loan limit. I dont know guys. She also has a late on her second mortgage before the loan reset.

Capanosa · #8 (**permalink**) 01-12-2008, 02:33 AM

dtodman@todmoney.com

Don · #9 (**permalink**) 01-13-2008, 07:09 AM

fha allows a non resident co-borrower and congress is believed to be passing a new deal that would raise the max fha loan amount to 417,000 (30-60 days) does she have a family member or close friend who would go on the loan with her?

quick2close1 · #10 (**permalink**) 01-14-2008, 10:42 AM

I also just got back a VOD from her bank and she has 2100 on the VOD if we can use that for reserves.

Call me and lets get this thing figured out.

480-353-2800

Randy James

American Mortgage Specialists.