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420 strikes again....

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Mortgage and Lending with The best place EVER!

So I had another client the other day wanting to buy this little commercial property.  He seemed to be a very intelligent, well-spoken guy who knew the car repair business.  He's been doing it for over a decade and has decided to open his own shop.  Now we all know commercial is a little different from residential.  For starters he would need a minimum of 10% down and decent credit.  He said he's got the cash for a down payment (about $20,000) and his credit was good.  So I take a loan app and pull the credit.   .......428

Now I felt like saying...."dude, you know good and damn well you don't pay any bills on time if you even ever pay them at all!!"  I mean really, its almost like you have to intentionally screw up to have a score that low.  NO current up to date payments and over 20 charge-offs and collections.  3 judgements and a bankruptcy in the past.  What the hell is wrong with some people?????

Sorry, I just felt like venting a little today.  *sigh*

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Show All Comments
John Occhi
AZ Veteran Notary Services - Marana, AZ
Mobile Notary Public/Certified Loan Signing Agent
If you ever saw the movei Glen Carry - Glen Ross there is a scene when one of thes salemen have their bubble popped by the boss telling him that the couple he had written just liked to talk to salespeople and that they were incolvent or something.  Great movie if you never saw it - a boiler room selling Florida swamp land to New Yorkers or some urban city in the north east - great movie thoug.
Jun 28, 2007 04:42 AM
Jonathan Vetter
Mercury Lending - San Francisco, CA
I hear you Tony, sometimes people need to be real with themselves.  So be it, at least you realized he/she was a pain right up front, instead of spending a bunch of time on it!
Jun 28, 2007 04:49 AM
Bradley Cohen
Keller Williams Concord/Kannapolis Market Center - Concord, NC
ABR,GRI
I know where you are coming from.  I just had some clients move up to NC from another state.  They told me they had a few credit problems from the past.  They also mentioned they had a hefty down payment.  I took them to a lender and the middle score was 448.  That was a huge blow.  That shows you never know.
Jun 28, 2007 04:54 AM
Tony D. Howell
The best place EVER! - Wilmington, NC
Yup, anything in the 400's is impossible.  Contrary to popular belief, there is still a hefty sub-prime market out there.  It has tightened up a lot, but its still possible to get a loan with a score as low as 500.  They will need money down, of course, but it can be done.  100% still needs 620, I don't care what lender you use! 
Jun 28, 2007 05:18 AM
» Bill Burress Nationwide Mortgage Originator
» Bill Burress Nationwide Mortgage Originator - Fort Myers, FL

Hey! If their were a contest for low score of the day, You are a shoe in!  ;)

Thanks to this prospect, you are one more prospect closer to a good one. 

Keep on Keepin on!

Bill Burress

http://www.cincinnatisouth.com

 

Jun 28, 2007 06:01 AM
Jason Price
Mortgage Financial Group, Inc (NMLS 219650) - Tavares, FL
The Mortgage Rider

Tony,

I just had a similar story, but it was residential.  I just don't understand why they lie when they know we are going to check anyways.

By the way, I would recommend making this a member's only post.

Jun 29, 2007 03:36 PM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Hello Tony,
Do you have a special talent for attracting these guys?  Some people evidently do not understand the system.  It is a bummer to find out what you're working with, right?
Jul 01, 2007 11:22 AM
Tony D. Howell
The best place EVER! - Wilmington, NC
Cynthia, sometimes I feel that way!  LOL  I'm the in-house lender for a local real estate company and I get several leads from rookie realtors that don't know how to pre-qualify their prospects yet.  In time, they will learn...I hope! 
Jul 02, 2007 03:06 AM
Steven Shewell
Primary Residential Mortgage, Inc. - Ephrata, PA
The Mortgage Maverick

It's a shame that people don't understand the credit scoring model.  It's even sadder that most lenders have no clue how it works, either.  I constantly get calls from agents whose "lender of choice" told them it can't be done and I end up closing the loan.

For someone with a 428, they know what the deal is.  I used to soft pedal the news, but now I hit them right between the eyes with it.  I don't have time to waste with people who aren't remotely able to qualify for a mortgage.

However, for these people I usually put them into my credit repair workshop and I will work with them until they are able to buy a home, provided they show me some initiative to clean things up.

Jul 03, 2007 01:52 AM
Tony D. Howell
The best place EVER! - Wilmington, NC
Steven, you're exactly right!  I have counseled some people about credit and tried to get them on the road to repairing it.  But with someone who has no desire or any discipline whatsoever, it just doesn't work.  The old saying is true here...you can lead a horse to water, but you can't make him drink it.
Jul 03, 2007 02:47 AM
Chet Payne
team rein - Apalachin, NY
That is absolutely histaricle!
Jul 03, 2007 06:51 AM
Ann Guy
NA - Allentown, PA

Hey, vent away, dont be sorry.

I am curious to know what he thinks bad credit is. 

Jul 03, 2007 08:07 AM
Tony D. Howell
The best place EVER! - Wilmington, NC
lol...good point Ann
Jul 04, 2007 11:05 AM
Angela Harrington
PCM Mortgage Solutions - Swartz Creek, MI
Loan Officer Mid- Michigan

Tony we all need to vent a bit.  That's how my first 6 months in the business went.  My boss couldn't beleive the JUNK I was bringing in.   I ask alot better questions now.  My favorite is car payment nawh I don't have a car payment I gave it back last week.   ARGH!!!   I'm getting better sometimes I actually see a 600+  :)

 

Jul 05, 2007 01:32 AM
Tony D. Howell
The best place EVER! - Wilmington, NC
LMAO....good one Angela!  I've actually had that happen before too.  I had to put on my education cap and school them a little on the defintion of "repo". 
Jul 05, 2007 09:54 AM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Tony,

I met his cousin a couple of years ago.  The feller wanted to rent a condo from me.

He mentioned he had a "couple of credit dings from when he was younger."

Yep.  Two months younger.  That summer he had two apartment complex judgements and two cell phone judgements, and a longer record of dinging anyone who offered hem credit. 

Very sincere and convincing guy, who just never bothered about little things like financial obligations.

Jul 05, 2007 10:52 PM
Angela Harrington
PCM Mortgage Solutions - Swartz Creek, MI
Loan Officer Mid- Michigan

Ah the good old days (2 months ago) 

For a while I was getting such crap I just out and out started asking when was your last BK  when was your last repo  when did you last get evicted ?  Doesn't work well with the higher credit apps (yikes)  But most understood it's the way of the economy here.

Jul 05, 2007 11:56 PM
J.R. Quarles
Mortgage Executives LLC - Memphis, TN
The Mortgage Innovator
lol... I never seen a score that low as 428... you really have to try hard to get a score that low..
Jul 06, 2007 02:38 AM
Tony D. Howell
The best place EVER! - Wilmington, NC
JR....I've seen them in the 3's...YIKES!
Jul 10, 2007 09:46 AM
Ebony Griffin
Higher Heights Real Estate Services LLC - Raleigh, NC
Tony, I can relate...It's always the ones that say " my credit is ok".....they are the ones with 6 judgements, a pending foreclosure, and 400 FICO.
Jul 11, 2007 02:28 AM
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