Giving those that don't give up, all the credit in the world. I hate when I speak to a client that is trying their hardest to stay above water. Trust me, I am a firm believer that good things do come to those that are good, true to themselves and others, and help others. But there are just sometimes when you act good, being a good person in general, that bad things will just happen to you.
I spoke to a client yesterday that had to file a Chapter 13 bankruptcy around May 2007 because their pizza store went out of business. They happen to live in a very good town, have 2 kids, and seem to be hard workers. They filed bankruptcy to save their home and to try to get out from under a bad situation. What's even sadder is that they have an adjustable rate mortgage at 9.87% which is adjusting in 2 moths. Knowing some of their situation when they got their last mortgage, it seems that they could have received a rate about 1 1/2% less, especially since they had plenty of equity back then and good credit then.
This couple is struggling and I might not be able to help them. One main reason is because their current mortgage is about $30,000 higher than the maximum FHA loan amount for their area. Hopefully this wil change sooner than later. At this time, we have debt to income ratio issues also. But this couple has proven to me that they are trying and deserve another chance. The husband is not only working full time at a restaurant, about 60 hours a week, but working part-time on the side. The wife, besides taking care of two kids, works part-time as a supervisor, 20 to 30 hours a week. She also delivers a paper once a day in the mornings, just to help out with their bills.
As I talked to her on the phone, I could sense that she was frustrated and I could hear tears over the phone. It was just her voice. I felt angry and frustrated as I listened, even though I couldn't relate 110% to her story. I have heard many stories like this one in the 15 years that I have been in the mortgage business and these are the type of people that I certainly love to help. But I am not sure what I will be able to do and we are looking into a few options.
Overall, I just wanted to share this story with everyone out there. Just letting you know that if you are going through some of the same issues mentioned above, that you aren't the only one. I don't want to place fear into the minds of so many out there, but just do your homework when working with a loan officer, no matter if you are purchasing or refinancing a home. Not dealing with a true mortgage professional could come back to haunt you down the road.
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For more information on FHA loans, please go to this link. The FHA Expert You can also go to this group : The FHA Mortgage Group
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
Copyright © 2008 by Jeff Belonger
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Jeff: I feel for your clients; and, I do agree wholeheartedly that you MUST chose your lender wisely. Thanks for sharing...I hope that find a way out of this very soon.