mortgage ack!

[chhotii]

Paying the mortgage is not a problem. Matt is paying enough rent to cover the monthly mortgage payment, the property taxes, the HO insurance, and the water bill, with a smidge left over to save up for the inevitable unexpected expenses.

However, there are several other problems with the mortgage. Problem #1 is that since the mortgage was qualified for based on Rich's income, the mortgage company is likely to take objection to the fact that he can't possibly be earning any more money, and call in the loan when they find that out. Another problem is that he was required under the terms of the refinance to live in the house, as his primary residence, for at least a year from the start of that loan. The fact that I switched the HO insurance on the house over to a Landlord policy is likely to tip off the mortgage company as to the fact that he failed to do that. Also, I will probably have to take Rich's name off the deed, which will probably make the mortgage company uncomfortable-- here they have given him a loan, secured by property that's now in someone else's name.

All of this spells "foreclosure" for sure. Not that foreclosure is instant doom; Susan's house has been foreclosed on, and it seems that that's just annoying more than anything else. It takes a while for them to actually take the house away.

But, anyway, I do need a new mortgage, and the sooner the better. If I take a mortgage on the condo to pay off the mortgage on the house, I believe this will have the (huge) advantage that I can deduct the interest on my taxes.

Meanwhile, I have been hearing horror stories from my mother about the absurd Kafka-esque bureaucratic nonsensical process her bank has been putting her through, and the complete idiots at the bank who are completely failing to help her through this. (I will have to call her tonight to find out whether she did actually have a closing today, and if not, what happens next.)

I'm wondering if some banks have more clueful and skillful staff than others, or if it just inevitably has to suck. At my credit union, they know me, but on the other hand as a smaller institution they seem to be sometimes kind of inexperienced and clueless.

Also wondering if I should get my credit report(s) before applying, to see if there are any surprises? Given that it does ding one's score to even check.

Advice, anyone?

Comments

[deguspice.livejournal.com]

As a general practice you should take a look at your credit report a couple times a year. There are three major credit reporting companies and they each offer a free credit report every 12 months, so you can cycle through them once every four months and not pay a fee. The site to start at is www.annualcreditreport.com (sites with names like "free credit report.com" are not). If a site asks for your credit card number, it's probably trying to sell you a service that you don't need if you just want to view your credit report.

It's your credit report, so your rating is not dinged if you take a look at it.

Credit unions are usually friendly and are easy to deal with for taking out a loan. Especially if you already have an account with them.