Bonehead Husband Needs Help

purplefdu · 09-19-2008, 09:24 PM

Alright, so working on buying a house. Found one we like, but needs $15k in repairs. Went to our bank (as opposed to the credit union we have our car loan through in the next state over) to talk about a Maine loan that allows up to $35k repair costs on top of home cost. Find that some collection agency has re-reported a repossessed car on my husband's credit report. The original came off in August. The collection agency bought the debt in May and just reported it. Original apparently shouldn't have come off until April 2009. Bank says no go on mortgage because of this.

We went to my parents to ask about borrowing a couple thousand to settle the debt. They said ok, but needed a concrete number. So we came home and he called them and seems to have agreed to settle for 3.5k on a 10k original debt and a 15.7k reported. I'm almost 100% sure we could have settled for less, as 3k is 1/3 or 30+% of the original debt. They haven't sent us a paper stating what he agreed to, although the window is apparently between now and October 19th for the 3.5k amount.

I think 2-3k is more than reasonable to settle. The place that repossessed it purposely undersold his 10k car for 2k after only a year and almost no blemishes. They originally told him 6k min and told him they weren't sure the computer would "take 3.5k" but magically it did. We're not forking out anything without the settlement agreement in our hands as we need this over and done with to get the mortgage (being the only negative left). But I'm afraid since he already said he would give 3.5k they won't go down any more. Any ideas on how he can possibly bargain them down more?

The Zoo · 09-20-2008, 06:36 AM

I hate to be the one to say this but if you're having to borrow money to pay this off you probably should re-evaluate buying a house. Just my two cents. Houses are amazingly expensive.

khorrell · 09-21-2008, 05:47 PM

I don't have any advice or suggestions, but I wanted you to know that we're not ignoring you, purple! I hope that you figure out a good solution to your situation.

happysmileylady · 09-21-2008, 06:12 PM

Quote:

The collection agency bought the debt in May and just reported it.

I am pretty sure that this is illegal. If it's already come off your report once I would try to fight it. Send them a letter demanding proof of the debt, I think you can request both prove of the debt being valid and of the date of it.

Trying to settle is only going to leave it on the report for another several years.

And as far as the mortgage, try another couple of banks, different banks have different lending practices.

FitandFrugal · 09-21-2008, 09:35 PM

Quote:

Originally Posted by The Zoo

I hate to be the one to say this but if you're having to borrow money to pay this off you probably should re-evaluate buying a house. Just my two cents. Houses are amazingly expensive.

GMTA.
I don't want to sound harsh, either, purple, but are you sure you're ready to buy a house?

jdp · 09-22-2008, 05:37 AM

Quote:

Originally Posted by happysmileylady

I am pretty sure that this is illegal. If it's already come off your report once I would try to fight it. Send them a letter demanding proof of the debt, I think you can request both prove of the debt being valid and of the date of it.

Trying to settle is only going to leave it on the report for another several years.

And as far as the mortgage, try another couple of banks, different banks have different lending practices.

What she said!

I'd google credit type attorneys in your area. And well, if its just your bonehead husband with the problem, then yes buy the house. Good luck!

purplefdu · 09-25-2008, 06:32 PM

Want a break down of my budget scheme/logic?

Max mortgage we'll need: $100k
3% down on mortgage: $3k
closing costs: unknown as of yet, may be covered by seller or mortgage program
Paying off debt: $3.5k
Fixing second car: $1-2k
Savings: about $3k right now
Need $7.5-8.5k, have about $3k although by closing will be more

Personal history:
We can spend $3k to move into an expensive apartment or put a down payment on a house. Rental is about $1200-1500 for rent a month versus $600-800 for mortgage. My father has 10% lung capacity, lung cancer and COPD. He starts his second round (of 6) of chemo next week. He was diagnosed last summer. My mother is at the biopsy stage for a lump found in her breast (with family history) this summer. They have no car so we are fixing mine to leave with them while we pay back the loan and help them find a car. Once we get our offer accepted I will be getting a job (retail/fast food) and $500/month will be going to them to pay it off. I have two dogs who are both "dangerous breed mixes" and they aren't easy to find a rental for, and no getting rid of them isn't an option (would you leave your kids to move into an adult community?-I didn't think so). My landlord broke my lease and let his kid move in downstairs where its set up as a vacation apt for his elderly father and the neighbor turned him in for paying taxes on a single family and having a multi-family. We have since been "evicted" in the manner we need to have somewhere to move asap or proof we're in the process of doing such (such as buying a home). He waited a month to find this out as he was out of town for work and the registered letters could not be picked up.

The home we want is listed at $74.5k and is bank owned. Our broker is optimistic we can get them down to about $60k, even with the $15k in work it needs (conservative estimate by our contractor who is a family friend) we will come out under the $100k max we set and the $118k the bank told us we can afford comfortably on only my husband's income (I don't have work history and thus can't be officially counted). We're hoping to be able to either be able to add an in-law apt in the future so my parents can live with us (they rent). The home's appraised value in 2006 was $237k.

Our mortgage counselor, our broker and our contractor are all long time family friends and have spent plenty of time making sure we're not setting ourselves up for failure. I promise you we only look like young stupid kids, we're not. We've already made the payment (after getting the agreement letter printed), gotten receipt of such faxed to the bank this morning and the satisfaction letter is in the mail.Which makes no negatives left on my husband's credit and only student loans on mine (which we are working through). We asked our bank manager about it and he said we're better off just settling if we can afford to and worrying about fighting about it later in court. Anything else you want to know about my life (except maybe my weight

?

And besides if we all waited until we were perfectly ready to have kids or buy a home most of us wouldn't be here and would be renting our entire lives....

khorrell · 09-26-2008, 05:14 AM

You sound like you have all your ducks in a row, purple! I hope that it works out for you

redsoxmaniac · 09-30-2008, 01:29 AM

Quote:

I have two dogs who are both "dangerous breed mixes" and they aren't easy to find a rental for, and no getting rid of them isn't an option

You may want to check with your future insurance carrier (homeowners). Some will not cover you if you have "dangerous breeds"

khorrell · 09-30-2008, 05:24 PM

An outstanding point, redsoxmaniac! I missed that entirely

09-19-2008, 09:24 PM	#1
purplefdu Senior Member Join Date: Jan 2008 Location: York Beach, ME Posts: 627 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (29)	Bonehead Husband Needs Help Alright, so working on buying a house. Found one we like, but needs $15k in repairs. Went to our bank (as opposed to the credit union we have our car loan through in the next state over) to talk about a Maine loan that allows up to $35k repair costs on top of home cost. Find that some collection agency has re-reported a repossessed car on my husband's credit report. The original came off in August. The collection agency bought the debt in May and just reported it. Original apparently shouldn't have come off until April 2009. Bank says no go on mortgage because of this. We went to my parents to ask about borrowing a couple thousand to settle the debt. They said ok, but needed a concrete number. So we came home and he called them and seems to have agreed to settle for 3.5k on a 10k original debt and a 15.7k reported. I'm almost 100% sure we could have settled for less, as 3k is 1/3 or 30+% of the original debt. They haven't sent us a paper stating what he agreed to, although the window is apparently between now and October 19th for the 3.5k amount. I think 2-3k is more than reasonable to settle. The place that repossessed it purposely undersold his 10k car for 2k after only a year and almost no blemishes. They originally told him 6k min and told him they weren't sure the computer would "take 3.5k" but magically it did. We're not forking out anything without the settlement agreement in our hands as we need this over and done with to get the mortgage (being the only negative left). But I'm afraid since he already said he would give 3.5k they won't go down any more. Any ideas on how he can possibly bargain them down more? __________________ Homeward Bound Puppy Blog&Personal Blog best general coupon site & organic grocery coupon help

09-21-2008, 05:47 PM	#3
khorrell Senior Member Join Date: Jan 2008 Location: near Washington DC Posts: 608 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (84)	I don't have any advice or suggestions, but I wanted you to know that we're not ignoring you, purple! I hope that you figure out a good solution to your situation. __________________ The Paycheck Chronicles "helping military families make the most of their paychecks"

09-25-2008, 06:32 PM	#7
purplefdu Senior Member Join Date: Jan 2008 Location: York Beach, ME Posts: 627 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (29)	Want a break down of my budget scheme/logic? Max mortgage we'll need: $100k 3% down on mortgage: $3k closing costs: unknown as of yet, may be covered by seller or mortgage program Paying off debt: $3.5k Fixing second car: $1-2k Savings: about $3k right now Need $7.5-8.5k, have about $3k although by closing will be more Personal history: We can spend $3k to move into an expensive apartment or put a down payment on a house. Rental is about $1200-1500 for rent a month versus $600-800 for mortgage. My father has 10% lung capacity, lung cancer and COPD. He starts his second round (of 6) of chemo next week. He was diagnosed last summer. My mother is at the biopsy stage for a lump found in her breast (with family history) this summer. They have no car so we are fixing mine to leave with them while we pay back the loan and help them find a car. Once we get our offer accepted I will be getting a job (retail/fast food) and $500/month will be going to them to pay it off. I have two dogs who are both "dangerous breed mixes" and they aren't easy to find a rental for, and no getting rid of them isn't an option (would you leave your kids to move into an adult community?-I didn't think so). My landlord broke my lease and let his kid move in downstairs where its set up as a vacation apt for his elderly father and the neighbor turned him in for paying taxes on a single family and having a multi-family. We have since been "evicted" in the manner we need to have somewhere to move asap or proof we're in the process of doing such (such as buying a home). He waited a month to find this out as he was out of town for work and the registered letters could not be picked up. The home we want is listed at $74.5k and is bank owned. Our broker is optimistic we can get them down to about $60k, even with the $15k in work it needs (conservative estimate by our contractor who is a family friend) we will come out under the $100k max we set and the $118k the bank told us we can afford comfortably on only my husband's income (I don't have work history and thus can't be officially counted). We're hoping to be able to either be able to add an in-law apt in the future so my parents can live with us (they rent). The home's appraised value in 2006 was $237k. Our mortgage counselor, our broker and our contractor are all long time family friends and have spent plenty of time making sure we're not setting ourselves up for failure. I promise you we only look like young stupid kids, we're not. We've already made the payment (after getting the agreement letter printed), gotten receipt of such faxed to the bank this morning and the satisfaction letter is in the mail.Which makes no negatives left on my husband's credit and only student loans on mine (which we are working through). We asked our bank manager about it and he said we're better off just settling if we can afford to and worrying about fighting about it later in court. Anything else you want to know about my life (except maybe my weight ? And besides if we all waited until we were perfectly ready to have kids or buy a home most of us wouldn't be here and would be renting our entire lives.... __________________ Homeward Bound Puppy Blog&Personal Blog best general coupon site & organic grocery coupon help

09-26-2008, 05:14 AM	#8
khorrell Senior Member Join Date: Jan 2008 Location: near Washington DC Posts: 608 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (84)	You sound like you have all your ducks in a row, purple! I hope that it works out for you __________________ The Paycheck Chronicles "helping military families make the most of their paychecks"

09-30-2008, 05:24 PM	#10
khorrell Senior Member Join Date: Jan 2008 Location: near Washington DC Posts: 608 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (84)	An outstanding point, redsoxmaniac! I missed that entirely __________________ The Paycheck Chronicles "helping military families make the most of their paychecks"

09-20-2008, 06:36 AM	#2
The Zoo Junior Member Join Date: Jul 2008 Posts: 25 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	I hate to be the one to say this but if you're having to borrow money to pay this off you probably should re-evaluate buying a house. Just my two cents. Houses are amazingly expensive.

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