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    Option 'One' (splat) Option 'Two' (splat)...

    That's what Option One did to us. Three weeks ago we were accepted. Then the debt to income ratio came into play, so our lender told our realtor that our loan was dead in the water. Hey--thanks for the Lacy Peterson image during my pregnancy you frikking b*tch. So we were done with that lender.

    Another lender is recommended (friend of the realtor) and up until this morning I thought the guy was a miracle maker. LOL I called him up on MONDAY and said to check back w/ Option One...... (no return call...) It wasn't until yesterday that he contacted them and they again accepted us. I asked the guy, "at 100% financing" and he said "YES!" and "if it was 110% deal" and he said "100%". Sounds pretty solid to me! He told us he was getting the info in, as things could change in the morning. My husband and I thought it could be another joke played on us and that we'd let this lender figure things out and more than likely, we knew it would all crash and burn.

    And so it did. I get the call from the stuttering lender that "guess what, I just received an email that Option One no longer accepts 100% financing". He then goes into this 'great offer that he only does 1-2 times a year' and that's to buy the home for us (yeah, you creep, because you know you are getting it for $30K less than the homes go for around here--that's why WE wanted this home), but of course "with some sort of a deposit" (not saying how much). I told him our landlord wants us to do that w/o a deposit and he was quick to say then we should do that. NO, I do not think so. He doesn't know our home would be locked in at $325K, when we are only looking to spend $255K. Two years from now, the payments and location of the house are not enough for us to want to buy our 'luxury rental home'.

    Is it actually possible for Option One to accept someone 3 wks. ago, then the lender let it fall thru, then to be accepted again yesterday, and then the email that they no longer accept 100% financing!? What is going on? What a joke! The lender said that it doesn't matter if he called them on Mon, we would have had to close by today (which we could have had confirmed 3 wks ago).

    So it wasn't meant to be. I definitely feel burned by the whole process now--for sure. Not sure what we'll do next. I hardly have the energy to try again in a few months. And our lease is up in June. I think it's too soon. Even if we get our score up to 620, who knows if in June these companies will be accepting 100% financing. At best, we can try again next year, but I feel so disgusted by the market that why in the hell would I want to spend way more money on the same house. No thanks.

    That's our story. Thanks for those who have been replying and providing advice.


    #2
    Good things come to those who wait

    Sorry to hear that this didn't work out for you moneytree and you've gone through so much aggrivation. I will say this though, at least you know where you stand and you know what you've gotta do.

    Remain diligent and patient moneytree. Your dreams of owning a home again will come true. And I believe me, when that when that happens, you'll be much happier because it will be the right deal and the right financing.......you'll appreciate it more.
    Bankruptcy History:
    Chapter 7 filed - 10/12/2005 - Asset
    Discharged - 02/16/2006
    Case Closed - 11/08/2007

    A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

    All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

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      #3
      You are buying in an unsteady time of the market as far as subprime lenders go. Option one has dropped their 100% program on tuesday I believe. It still probably cacn be done though. It will take some research on the brokers part. Lenders are chainging their guidelines daily. Things I used to know several months ago I feel I am starting out in this business again as I did not know anything. It will all settle down within the next 6 months.
      Nick Kusan

      Comment


        #4
        We were going to go with Option One also, but then came up with 5% down and are getting a better rate with another lender. We are going by my husbands income and credit scores which are around 600. Anyway, our broker forwarded us the Option One guidelines as posted below. If anyone needs a good broker in Minnesota, let me know and I will send you his info. I'm not sure if he works in other states or not. We have been pretty happy with him.

        OPTION ONE (Effective 03/09/07)

        All loans with scores less than 660 and CLTVs over 90% will require the following:
        1. Qualifying rate is start rate plus 1.5%.
        2. $3000 minimum disposable income.
        3. FTHBs require 2 months PITI reserves.

        Legacy: non-score driven product - max LTV reduced to 90%.

        Lattitude Advanatge:
        Full Doc - 80/20 minimum score 640
        Full Doc - 100% minimum score 620
        Full Doc - 95% LTV minimum score 600
        Stated BFS - 80/20 minimum score 660
        Stated BFS - 100% minimum score 660
        Stated BFS - 95% LTV minimum score 640

        BK7 Filed: 05/11/06, Discharged: 08/31/06, Closed: 09/14/06
        03/07/07 TrueCredit: EQ 603, TU 591, EX 596
        Credit: $1000 Hooters MC, $200 Target Red, $750 Victoria's Secret (Authorized User), $500 AirTran Visa
        Denied: Wal-Mart, CareCredit, WaMu

        Comment


          #5
          our solution...

          Instead of purchasing the home we wanted, there are 4 new rentals to choose from. I am heading out shortly to take a look. We'll only lose 150 sq. ft (closet & a bit of the bonus room) but we'll be able to pay $1450/mo. like we've been paying in our luxury home now w/ a huge yard. We also won't have much of a yard, but our son will be able to go to the school of our choice. I think it will make all the difference with having more of a friendly neighbhorhood w/ kids and parks, vs. our stagnant one loop neighbhorhood. And I think my wake up call at 5:45am today with the neighbors barking dog (which carried on for 45min) was a good sign to get the heck out of here!

          So we'll have to move..again and again. I think I'll wait until Feb. 2009 to buy (unless we catch the buying bug again and don't mind moving sooner).

          So as you see, I have been (sort of) level headed from the beginning! I haven't had time to reply, but some of the past replies have been just funny...like HHM's "buyer frenzy" remark. lolllllll

          Anyone have some boxes to spare? haha

          Comment


            #6
            Originally posted by moneytree View Post

            Anyone have some boxes to spare? haha

            I know you were joking, but check your local freecycle group. In case you don't know what that is, there is a Yahoo group called Freecycle and I believe there's probably one in every major city. This group recycles things instead of sending them to the landfills and there are always "Wanted: Moving Boxes" posts followed by "Received: Moving Boxes" Apparently, moving boxes get recycled a lot.
            I used to have a life, now I have grandkids.

            Comment

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