Getting upset...

[krobin02]

The underwirter for my loan (no name) is getting me really pissed. They requested a letter from my attorney stating that I did (or did not in my case) reaffirm my car loan which is still reporting open on my credit report. I filed pro se. I guess that means that I was my own lawyer. Imagine that. I provided Schedule D which listed my car and the discharge letter. This apparently is not good enough since I'm not a lawyer. They are in essence calling me a liar, saying that my car was reaffirmed, and telling me that I no longer can get 100% financing. They want me to go 80% if I have more than 10 payments left on the car (which was NOT reaffirmed). Now I have to talk to a guy at the agency they got my credit report from and he's going to conference in Hyundai. I want to scream. They are wasting all of our time because HMFC is just going to tell them what I already have. I did not reaffirm the car loan. How hard is that to understand. Because of my disability and where I live, I can't go without a car. So, instead of splitting the rent with my brother when he moved in, he just decided to make my car payment so that I wouldn't have to turn it in. It's getting paid so that I can keep it, but it is not a debt that can legally be enforced or collected. <SCREAMING IN FRUSTRATION!>

[freshstart2006]

I'm a mortgage underwriter. If that debt is still open, they have to count it in your DTI (debt to income ratio). I'm assuming that with the car payment, your DTI is too high for 100% financing. Not all mortgage companies are the same, but at mine we can exclude that debt from your ratios if you can provide 6 months cancelled checks proving that your brother pays this debt. If he gives you cash, and you pay it from your own account, you are probably out of luck. I'm sorry!

Unfortunately, it does not matter that you did not sign a reaffirmation agreement. You are still responsible for that debt because you still have the car and are making the payments.

You have to remember to always cover your tail in these situations. When I bought my house, I didn't get approved at one company because I was renting from my aunt and paid in cash the first few months, so I didn't show being seasoned for 12 months.

Next time, always leave paper trails.

[freshstart2006]

By the way, do you have a family member who could loan you the money to make a down payment on the house? If so, you could use gift funds to get approved and you could pay your family back. You may even be able to get a 2nd mortgage now or down the road. It just depends on your complete situation I know that National City Mortgage can be pretty lenient on approving 2nd mortgages.

You might want to get in touch with a mortgage broker. Explain the situation completely. Sometimes mortgage brokers have magical ways of making things happen.

[MTG_BANKER_OH]

I guess I am a little confused you included the car in the BK but you have been makeing payments on it anyway or your brother has been making payments on it? I believe if you kep making payments on something after the BK that is the same as reaffirming it? I am confused as to why they would tell you 80% now as opposed as you buying a smaller home I do not know how that should knock you down that much. Do you know what lender your broker is sending you through. Something just does not seem right to me. Another thing is if it was included in the BK and you did not reaffirm it then you should have nothing to worry about if you do a connference call with Hyundai and htey say it is included in the BK.

On the second mortgage idea national city will not touch anyone on a second mortgage until at least 4-7 years after the BK. As far as the rent goes there are other lenders that will allow you do a private VOR without canceled checks it just depends on the lender.

Please keep us updated on your situation.

[freshstart2006]

Yep, it really just depends on the lender. I'd try going through someone else if I were you. There's gotta be someone out there who can help you. Good luck!

[IN-DEBT]

To krobin02:

How did you make out with getting your new home? I hope it all went well.