Originally posted by hereforinfo
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A little clarification that my shed some light on how we got our loan (just for the fun of it):
As stated previously, we did a NINA (No Income No Asset documentation) We actually did document DH's income and his employment of about 15 years with the same employer "off the books" loan where they ignored our existing home We had a current appraisal and a CMA done on that home, it was on the market at the time, and both showed that we had about 150k in equity, and at that point, the current marketing time at our list price was estimated to be 90-120 days - which was supported by both the appraiser and the realtor using current marketing/sales data - this too was supplied "off the books" and used my undocumented income I actually provided my income documentation, but I was a 1099 contractor and had only been doing it for around 15-18 mos - not the 24 months required to apply full doc self employed -again supplied "off the books" as a compensating factor.
So, all the "off the books" info was supplied to the broker, who did manual underwriting, and the actual lender on the loan did a review of all of it before giving us the special approval under the NINA loan guidelines. Essentially, had I been self employed for the full two years, we could have done a full doc loan. At the time, we had very little debt, other than mortgages, and our income was sufficient to meet the DTI requirements, even when including the mortgages on both houses. Also, the LTV of both loans was originally less than 80% on the second home - we supposedly had over 100k equity when we first bought it. So this wasn't even one of those 100% financing deals.
Unfortunately, right after we got the loan for the second home, the real estate market crashed, and both houses became upside down (we didn't find that out until later), and, being employed in the real estate industry (not doing loans or selling at that point, but still related), my job went South. I went from earning enough to cover everything to where in 2008 I only grossed 8.2k for the year in that business.
We carried the 4 mortgages on both houses for over a year. I worked 3 jobs - at one point traveling away from DH and two teenagers 3-5 days a week overnight- and we still were sinking further and further behind every single month. We finally hit the point where family had to come first, I was missing our kids last years at home with us, and we gave up. Prior to mid 2008, we never had a single late payment on our credit history. Also, even if were still holding on by then, we would've sunk last fall when I started getting sick, culminating in my surgery last week. Man, I could write a book! Too bad the title "A Series of Unfortunate Events" is already taken.
I welcome your full audit. Could we have done things differently? Sure. We could've waited to sell the first house to buy the second. Did we make mistakes? Absolutely. I'm not perfect, just forgiven.
And BTW, just because this is how it worked in our case, doesn't mean that I'm judging any of you reading this who stretched things in your financing, lol. Live and learn.
Sorry for the long post, this kind of judgemental, vitriolic posting really chaps my hide, and seems to pop up fairly frequently from the one who claims to be "here for the info". Back to our regularly scheduled programming.
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