660 FICO, Still Can't Refi Mfr Home
What would you do if you were me? I have 11% interest rate on an investment property. I lose $400 a month respectively. I have had home listed on mls for 4 months and neither me or interested buyers can get financed. I am serious when I say, can I "give" it away? I need to dump this financial burden and I don't know how. I can barely make mortgage payments and soon I will have to default. I have property listed here too with no bites. I owe 129k, and I have appraisel at 166k
I need advice bad. Again, 660 fico, but I cannot document income. I have had 4 interested buyers who cannot get financing either because it is a mfr home. Current note is with Fairbanks Capital.
HELP PLEASE!!! 
If you have interested buyers, do owner financing. At least you will have cash flow until you are able to refi it.
Ok, here is a dumb question, but how? I mean, if I owe the bank money, how can I finance? Can you help me set up a scenerio? My payment is 1350 a month.
Here is an article you may be interested in:
Quote:Servicing Problems Result in $40 Million Fairbanks Settlement
FTC, HUD will drop investigations
October 28, 2003
By PATRICK CROWLEY
One of the nation's leading servicers of subprime mortgages, under intense regulatory pressure because of consumer complaints, has agreed to a $40 million settlement with the federal government.
Fairbanks Capital Corp. of Salt Lake City, Utah, has reached the agreement with the U.S. Department of Housing and Urban Development (HUD) and the Federal Trade Commission (FTC).
In return, the government agencies will drop their investigations of Fairbanks.
The settlement must still be approved by the federal investigations, which have been investigating Fairbanks for a number of allegations lodged by consumers.
Fairbanks has been accused of charging excess fees, misapplying mortgage payments and inappropriately threatening customers with foreclosures by using inaccurate or false information.
"We have acknowledged an investigation and we have worked extensively with (Fairbanks) to come to a resolution, but we have no comment at this time," Brenda Mack, spokeswoman with the FTC in Washington, said in an interview.
Fairbanks spokesman Brian Keeter referred www.MortgageDaily.com to statements and filings made by The PMI Group Inc., a New York Stock Exchange publicly-traded investment company and Fairbanks' majority shareholder.
In the statement, posted on the PMI Group's website, the company said "this proposed settlement must be approved by the FTC commissioners as well as HUD and its implementation is subject to obtaining necessary court approvals."
PMI Group offers more details in a recent filing with the Securities and Exchange Commission (SEC).
"If approved ...the agreement will resolve both the FTC and HUD civil investigations," PMI Group said in the filing. "The terms of the proposed settlement require changes in Fairbanks' operations and the creation of a $40 million fund for the benefit of consumers allegedly harmed by Fairbanks. PMI expects to guarantee or fund approximately two-thirds of Fairbanks' obligations under a $30 million letter of credit to be obtained by Fairbanks to fund a portion of the $40 million fund."
In the earnings statement PMI said the settlement will resulted in a loss of 20 cents a share. For the third quarter, Fairbanks announced net income of 67 cents a share, compared to 98 cents in the same quarter a year ago.
The federal investigations began in March after Sen. Barbara A. Mikulski, D-Md., asked HUD to "launch an investigation into the business practices of Fairbanks Capital Corp."
"There are hundreds of complaints about this company from homebuyers all over the country, alleging that Fairbanks is scamming them out of thousands of dollars," she wrote in a letter to HUD Inspector General Kenneth Donohue.
Despite being the focus of several unfavorable news stories Fairbanks has said little about the investigations or the charges and complaints made against the company.
When Mikulski revealed her concerns Fairbanks president Bill Garland released a statement saying the company "will certainly to seek to address directly with Senator Mikulski and her staff any concerns the Senator may have about Fairbanks' servicing practices."
Also, in March Standard & Poor's placed Fairbanks' residential subprime and residential special servicer rankings on CreditWatch with negative implications, reflecting "increased regulatory scrutiny over the company's servicing practices."
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Patrick Crowley is a political reporter and columnist and former business writer for The Cincinnati Enquirer.
First of all, your home is listed in MLS. If your house is up for sale, no lender will refinance your mortgage. If you want to refinance it, you have take it off the market, and wait for six months. So, your only solution is now to sell it.
What the other person is saying is you can create a note for a buyer of the house and you will be still on title and mortgage with Fairbanks. Lets say you will sell this house for $160K with 9% interest for 30 years. The monthly payment is 1287.40 plus insurance, prop tax and other exenses.
I would definately try to do L/O. If you want to know how to do it, post your message in L/O forum. I think you will get more money for the house (future value of the house), 3-5% option fee up front, and more money in your poket every month (if you decide to give them rental credit) I think this should be a win win situation.
Definately sell it lease/option or owner finance the property in your local paper...do something creative that will take this off your back.
Worst case scenario, if you have to sell it, find an investor who will take it off your hands so you stop "bleeding"
Good luck,
Christian "The Solutions Kid" Beebe
[addsig]
Thanks everyone. How does this sound. Keep in mind this house should typically rent for about $1000
5k down, $1500 mo (300 credit)
$152k due at end of 12 months. This doesn't include rent credit.
I hesitate to ask for more down because the area is so depressed.
Hey,
If I am reading this correctly this is a manufactured home. Try GE capital mortgage or Conseco. Keep trying most Brokers dont like these. Especially in a hot refi and purchase market. When rates go up an business gets slow they will be more helpfull to investors in general.
By the way I read the article on Fairbanks they are very investor friendly. Like the associates they got a bad rap the reason being is they foreclouse in the time frame they are alotted. Most lenders will give three more months. You have to be carefull of to much consumerism (Reagan hated it). This causes lawmakers to put in effect laws that appear to be on the side of the little guy. The little guy dosent understand much of whats going on it just appears to be good. The associates was very investor friendly also because they would foreclouse within a short time (the legal time allowed.) Of course the attys get involved. Investors dont need to band together they need to be aware however.
Hi, Pinky
I got to tell you one thing. Rent credit is determined like this. Rent you are charging minus fair market rent. You said fair market rent for your property is $1000, so I don't think it makes sense for you to charge $1500 and give rent credit of $300.
Quote:
On 2003-11-03 18:46, moneyprivate wrote:
Hey,
If I am reading this correctly this is a manufactured home. Try GE capital mortgage or Conseco. Keep trying most Brokers dont like these. Especially in a hot refi and purchase market. When rates go up an business gets slow they will be more helpfull to investors in general.
in reguards to conseco they filed bankrupcy earlier this year and now are called greentree (again) but still are not buying paper just servicing old paper