Entries from Searchlight Crusade tagged with 'credit'

When You Should Not Buy Real Estate

Okay, I did an article called Why Renting Really Is For Suckers (And What To Do About It). Fairness demands that I do a companion article on situations where buying is not a good idea. There actually are some. First...

The "We'll Keep You In Your Property" Scam

This is a pure scam throughout, but it's legal as far as I know. I'm not going to go into more details than I can avoid. The universe knows there's enough people pulling this right now, but the bad guys...

Student Loans and Real Estate Loans: Default, Repayment vs. Nonpayment and Consolidation

This is one of those things that trips up people to buy a house or refinance it: student loans. First off, Form 1003, the Federal Uniform Residential Loan Application has the following relevant questions on page 4, among the...

Can Someone Be Added to an Existing Mortgage?

Got a search for that, and it occurred to me that it is a valid question. The answer is yes. The degree varies. You can simply contact the bank to make yourself responsible for payment. They are usually happy to...

Avoiding Foreclosure in Bankruptcy

How do I keep my home after filing bankruptcy. The Mortgage company wants to foreclose? I want to know if there is anyway to keep the home even after filing chapter 7 bankruptcy. I want to know if there...

Loan Qualification Standards - Loan to Value Ratio

Many folks have no idea how qualified they are as borrowers. There are two ratios that, together with credit score, tell how qualified you are for a loan. The more important of these two ratios is Debt-to-Income ratio, usually abbreviated...

Listing Agents and Pre-Approvals or Pre-Qualifications

It has become very trendy to ask for pre-approvals on loans, because so many escrows are falling through. Unfortunately, as I have explained in the past, Loan Pre-Approval Means Nothing, and prequalification means even less. Both are literally wasted paper....

Negative Amortization Loans - More Unfortunate Details

(This is a reprint originally from December 2005. I have reasons for reprinting it even though these loans are not currently available) My article on Option ARM and Pick a Pay - Negative Amortization Loans is one of my most...

One Spouse Qualifying For A Loan on Their Own

"I am married but want to refinance my house only in my name. What do I have to do?" Refinancing in one name only is actually pretty easy, and there are at least two ways to potentially accomplish this,...

What Can A Real Estate Seller Do To Find Out if A Potential Buyer Is Qualified

A high percentage of buyers out there have no idea of how qualified they really are themselves. They have no clue as to any of the major factors in determining credit-worthiness. To be fair, there are dozens, if not hundreds,...

Loan Cosigners in Real Estate - A Lot of Risk For Not Much Gain

Every so often I get questions about loan cosigners. The main borrowers do not qualify on their own, so they get someone - most often mom and dad - to cosign. Cosigners are a different thing, or so I understand,...

RESPA Forbids Steering - Even "Just For Prequalification"

Agents rationalize this in all sorts of interesting ways, so let's just start by quoting the cold hard federal law. It's pretty damned clear: RESPA no person shall give and no person shall accept any fee, kickback, or thing of...

Having your Credit Run

As of July 1, 2005, mortgage providers have to have explicit written authorization to run credit. I am not certain of the political forces that made this bill, and it is still not clear to me whether this extends to...

Zero Interest Credit Cards versus Home Equity Line Of Credit

Once upon a time, I received an email about the virtues of zero interest credit cards as opposed to Home Equity Lines of Credit. I've organized both the email and my response in order to facilitate understanding: You raise a...

Adding Someone to An Existing Mortgage

Got a search for that, and it occurred to me that it is a valid question. The answer is yes. The degree varies. You can simply contact the bank to make yourself responsible for payment. They are usually happy to...

Qualifying For A Mortgage When One Spouse Has A Low Credit Score

There are several possible options to deal with this issue, depending upon the exact situation. Keep in mind that the only difference between married spouses and unmarried partners is that unmarried partners have to fill out their own mortgage application...

With The Tightening of Loan Standards, Will You Qualify For The Loan To Buy Real Estate?

With a lot of people running around like Chicken Little screaming about the sky falling, a lot of folks who would like to buy property due to the much-lowered prices are wondering if there is any way they can...

When Loan Modification Will Not Help, or Is Not Appropriate

In talking about loan modification, I have said it is not a panacea. Let's look at why not, and situations where it just flat out is not going to work. Loan modification is a strategy for the lender to...

How to Build Credit So You Qualify for a Home Loan

My husband and I are completely debt free right now. However, we are wanting to buy a house in the future and I see that as quite probably requiring a loan. What should I do to make sure that...

Seller Carrybacks

A seller carryback is when the seller agrees to "carry back" at least part of the purchase price themselves. In other words, instead of getting the full sales price of the property (less outstanding liens), the seller accepts a...