Horror Story

[IONEGARM]

[quote=Diego Mamani][quote=IONEGARM]I dont have a huge problem with 3.5% down as a buyer as long as its full doc and there is something significant coming from the buyers side. That prevents a lot of the games from being played. [/quote]

With all due respect… I do have a huge problem with tiny (i.e., less than 5%) down payments. These buyers will be underwater in no time, especially if the down payment money was a “gift” and closing costs were paid buy the seller.

We need a real, market-driven economy, not a make believe, commie-style fantasy where govt institutions make decisions instead of private parties.
[/quote]

The biggest issue I have with 3.5% down (as long as it comes from the buyers side) is valuation of the property. Valuation isn’t the laser pinpoint accuracy that loan underwriting makes them out to be. There is a wide range. The lower the down the more conservative the appraisal should be. FHA is implementing dual appraisals for some things now, I like that idea.

But full doc undwritten income isn’t a fantasy economy. I have more of a problem with the 31% front end ratio than 3.5% down with a conservative appraisal.

[SD Realtor]

Not a bad idea IONE, I like that as well. Is the double evaluation a lender overlay or is it actually the FHA?

[SD Realtor]

Not a bad idea IONE, I like that as well. Is the double evaluation a lender overlay or is it actually the FHA?

[SD Realtor]

Not a bad idea IONE, I like that as well. Is the double evaluation a lender overlay or is it actually the FHA?

[SD Realtor]

Not a bad idea IONE, I like that as well. Is the double evaluation a lender overlay or is it actually the FHA?

[SD Realtor]

Not a bad idea IONE, I like that as well. Is the double evaluation a lender overlay or is it actually the FHA?

[Coronita]

[quote=SD Realtor]
Also with regards to the spouses score. So the spouses credit score is checked BUT does not have bearing on the loan. HOWEVER if the spouse is carrying debt that debt will indeed be used for the qualifying ratios for the loan.

[/quote]

So is then is the correct translation of the above scenario…

1. Husband buys first property completely in his name (qualifies with relaxed lending guidelines, factoring in any debt that spouse is carrying). Loan was completely in his name…

2. Husband does a short sell, and maybe does some damage to his credit.. Wife’s credit intact.

3. Wife now purchases home in her name, qualifies factoring in debt from her husband (which is none from the short sell since the short sale difference was forgiven).

Interesting……
Next question. What happens if you initially took out a loan as husband and wife…What would allow one spouse to take out a second loan and/or refinance.

I’m trying to figure out what my neighbor is doing. I swear the initial loan was taken out with husband+wife+relative. Then on the first refinance, it was just husband/wife. Then on the next refinance it was just the husband. Then on the next refinance and and/or second loan, i was just the wife….

Can you enlighten me on the mortgage fraud games people play, that you alluded to in your second comment?.. I’m just curious how this works.

[Coronita]

[quote=SD Realtor]
Also with regards to the spouses score. So the spouses credit score is checked BUT does not have bearing on the loan. HOWEVER if the spouse is carrying debt that debt will indeed be used for the qualifying ratios for the loan.

[/quote]

So is then is the correct translation of the above scenario…

1. Husband buys first property completely in his name (qualifies with relaxed lending guidelines, factoring in any debt that spouse is carrying). Loan was completely in his name…

2. Husband does a short sell, and maybe does some damage to his credit.. Wife’s credit intact.

3. Wife now purchases home in her name, qualifies factoring in debt from her husband (which is none from the short sell since the short sale difference was forgiven).

Interesting……
Next question. What happens if you initially took out a loan as husband and wife…What would allow one spouse to take out a second loan and/or refinance.

I’m trying to figure out what my neighbor is doing. I swear the initial loan was taken out with husband+wife+relative. Then on the first refinance, it was just husband/wife. Then on the next refinance it was just the husband. Then on the next refinance and and/or second loan, i was just the wife….

Can you enlighten me on the mortgage fraud games people play, that you alluded to in your second comment?.. I’m just curious how this works.

[Coronita]

[quote=SD Realtor]
Also with regards to the spouses score. So the spouses credit score is checked BUT does not have bearing on the loan. HOWEVER if the spouse is carrying debt that debt will indeed be used for the qualifying ratios for the loan.

[/quote]

So is then is the correct translation of the above scenario…

1. Husband buys first property completely in his name (qualifies with relaxed lending guidelines, factoring in any debt that spouse is carrying). Loan was completely in his name…

2. Husband does a short sell, and maybe does some damage to his credit.. Wife’s credit intact.

3. Wife now purchases home in her name, qualifies factoring in debt from her husband (which is none from the short sell since the short sale difference was forgiven).

Interesting……
Next question. What happens if you initially took out a loan as husband and wife…What would allow one spouse to take out a second loan and/or refinance.

I’m trying to figure out what my neighbor is doing. I swear the initial loan was taken out with husband+wife+relative. Then on the first refinance, it was just husband/wife. Then on the next refinance it was just the husband. Then on the next refinance and and/or second loan, i was just the wife….

Can you enlighten me on the mortgage fraud games people play, that you alluded to in your second comment?.. I’m just curious how this works.

[Coronita]

[quote=SD Realtor]
Also with regards to the spouses score. So the spouses credit score is checked BUT does not have bearing on the loan. HOWEVER if the spouse is carrying debt that debt will indeed be used for the qualifying ratios for the loan.

[/quote]

So is then is the correct translation of the above scenario…

1. Husband buys first property completely in his name (qualifies with relaxed lending guidelines, factoring in any debt that spouse is carrying). Loan was completely in his name…

2. Husband does a short sell, and maybe does some damage to his credit.. Wife’s credit intact.

3. Wife now purchases home in her name, qualifies factoring in debt from her husband (which is none from the short sell since the short sale difference was forgiven).

Interesting……
Next question. What happens if you initially took out a loan as husband and wife…What would allow one spouse to take out a second loan and/or refinance.

I’m trying to figure out what my neighbor is doing. I swear the initial loan was taken out with husband+wife+relative. Then on the first refinance, it was just husband/wife. Then on the next refinance it was just the husband. Then on the next refinance and and/or second loan, i was just the wife….

Can you enlighten me on the mortgage fraud games people play, that you alluded to in your second comment?.. I’m just curious how this works.

[Coronita]

[quote=SD Realtor]
Also with regards to the spouses score. So the spouses credit score is checked BUT does not have bearing on the loan. HOWEVER if the spouse is carrying debt that debt will indeed be used for the qualifying ratios for the loan.

[/quote]

So is then is the correct translation of the above scenario…

1. Husband buys first property completely in his name (qualifies with relaxed lending guidelines, factoring in any debt that spouse is carrying). Loan was completely in his name…

2. Husband does a short sell, and maybe does some damage to his credit.. Wife’s credit intact.

3. Wife now purchases home in her name, qualifies factoring in debt from her husband (which is none from the short sell since the short sale difference was forgiven).

Interesting……
Next question. What happens if you initially took out a loan as husband and wife…What would allow one spouse to take out a second loan and/or refinance.

I’m trying to figure out what my neighbor is doing. I swear the initial loan was taken out with husband+wife+relative. Then on the first refinance, it was just husband/wife. Then on the next refinance it was just the husband. Then on the next refinance and and/or second loan, i was just the wife….

Can you enlighten me on the mortgage fraud games people play, that you alluded to in your second comment?.. I’m just curious how this works.

[Coronita]

[quote=peterb]It’s kind of funny, but I was talking to a couple of friends who’ve never had much money and always wanted a house. Now that there’s 3% down and a much higher limit, they both are going to buy a house. When I told them of the horrible fundementals, they both said, “At 3% down, if the crap hits the fan, we just stay in it until they evict us.”

So here’s the future speaking. I give them 18 months, tops.[/quote]

It only works until china decides to stop lending us money.

[Coronita]

[quote=peterb]It’s kind of funny, but I was talking to a couple of friends who’ve never had much money and always wanted a house. Now that there’s 3% down and a much higher limit, they both are going to buy a house. When I told them of the horrible fundementals, they both said, “At 3% down, if the crap hits the fan, we just stay in it until they evict us.”

So here’s the future speaking. I give them 18 months, tops.[/quote]

It only works until china decides to stop lending us money.

[Coronita]

[quote=peterb]It’s kind of funny, but I was talking to a couple of friends who’ve never had much money and always wanted a house. Now that there’s 3% down and a much higher limit, they both are going to buy a house. When I told them of the horrible fundementals, they both said, “At 3% down, if the crap hits the fan, we just stay in it until they evict us.”

So here’s the future speaking. I give them 18 months, tops.[/quote]

It only works until china decides to stop lending us money.

[Coronita]

[quote=peterb]It’s kind of funny, but I was talking to a couple of friends who’ve never had much money and always wanted a house. Now that there’s 3% down and a much higher limit, they both are going to buy a house. When I told them of the horrible fundementals, they both said, “At 3% down, if the crap hits the fan, we just stay in it until they evict us.”

So here’s the future speaking. I give them 18 months, tops.[/quote]

It only works until china decides to stop lending us money.

[Author]

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