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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Mortgage/real estate people weigh in
85K loan. How much income do you have to show?
What would the debt to income ratios be?
Also if you defaulted could they come after ss or IRAs?
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Posted 3/7/11 3:12 PM  |
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JennZ
MY LIFE!!
Member since 8/05 25463 total posts
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Re: Mortgage/real estate people weigh in
Oh no, are your parents cosigning?
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| Posted 3/7/11 3:39 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Mortgage/real estate people weigh in
Posted by JennZ
Oh no, are your parents cosigning?
against my wishes they have agreed to back my cousin.
I talked to my cousin and told him that in the event he defaults they will lose their burial funds. That's all they have and I will be on the hook for the rest to keep them afloat.
My cousin doesn't see the half empty aspect..he says he would sell a piece of land before he would let that happen. I still say no way.
I'm hoping that they just won't qualify and that will be that.
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| Posted 3/7/11 7:07 PM |
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MsSissy
xoxoxo
Member since 3/07 39159 total posts
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Re: Mortgage/real estate people weigh in
Posted by Blu-ize
My cousin doesn't see the half empty aspect..he says he would sell a piece of land before he would let that happen. I still say no way.
So if he has land to sell why is he asking them to help him out.
This stinks. I wish they would listen to you. 
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| Posted 3/7/11 7:13 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Mortgage/real estate people weigh in
Not sure if he's telling me the whole story. He wants to hold onto the land for some reason right now. He had a rental property burn down and got paid for that but not sure the whole mortgage was paid off.
I know my parents see him as a son and that's the issue. I see him as a brother too. We all help each other but he has had many issues with money over the years, some his fault, some not. I can't fault him completely, but he is going through a terrible divorce.
He claims to have liquid assets but needs the mortgage for his tax deduction.
His mortgage will be slightly less than he is paying for rent right now plus he will get the deductions.
I'm very afraid for them and I am praying they won't qualify and that will be that. I think my parents are having a hard time saying no. I may have to just do that and I'm afraid that will be the end of the relationship with my cousin.
eta: I can't see how they would qualify..they have ss income and that's it. No liquid assets and debt.
Message edited 3/8/2011 8:52:37 AM.
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| Posted 3/8/11 8:50 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Mortgage/real estate people weigh in
Posted by Blu-ize
85K loan. How much income do you have to show?
What would the debt to income ratios be?
Also if you defaulted could they come after ss or IRAs?
Is the purchase price 85K? How much down? Assuming 20% down and 85K loan, pymt would be around $450/mo on 30 yr loan, so income at 45% debt to income ratio (max) would need to be about $1,000/mo assuming no other monthly debt payments are being made. Lots of variables here!
I really hope your parents don't do it! You should make sure you go over his income, ask to see his credit report. I'm not sure but I would think ss /IRAs would be safe, if anything property would foreclose and credit would be ruined but I don't think they can take income if default.
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| Posted 3/8/11 9:24 AM |
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Re: Mortgage/real estate people weigh in
Also, my understanding is -- and I am a real estate agent, not a mortgage person -- that a co-signer who won't be occupying the property can't really make the deal happen IF the buyer falls far short on the income requirements. In other words, if a bunch of people are buying a house together, and will be living in the house together, then everyone's income is added up. But if it's a non-occupying co-signer -- meaning your cousin is buying the property and will be living there, and your parents will not, then your cousin has to come pretty close to being able to qualify on his own. If he is a little short, then his co-signers can get him over the hurdle. But they can't make it happen for him if he is far from being able to qualify on his own.
This is how some of the mortgage people I work with have explained it to me, as a way of saying that you can't just a assume that a non-occupying co-signer will help a buyer get approved if the buyer is not even in the ballpark of qualifying.
Message edited 3/8/2011 9:37:22 AM.
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| Posted 3/8/11 9:34 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Mortgage/real estate people weigh in
Posted by Century 21 Dallow - Christine Braun
Also, my understanding is -- and I am a real estate agent, not a mortgage person -- that a co-signer who won't be occupying the property can't really make the deal happen IF the buyer falls far short on the income requirements. In other words, if a bunch of people are buying a house together, and will be living in the house together, then everyone's income is added up. But if it's a non-occupying co-signer -- meaning your cousin is buying the property and will be living there, and your parents will not, then your cousin has to come pretty close to being able to qualify on his own. If he is a little short, then his co-signers can get him over the hurdle. But they can't make it happen for him if he is far from being able to qualify on his own.
This is how some of the mortgage people I work with have explained it to me, as a way of saying that you can't just a assume that a non-occupying co-signer will help a buyer get approved if the buyer is not even in the ballpark of qualifying.
This may be the savings grace here. They will not be occupying the home.
Also, the offer on the home is $85K..It's bank owned. The ask is $127K. He is offering low.
He has no $$ for a down payment so not sure how that would work. He is asking for a $85K loan and his mortgage person said he needs to show $25K in income. He writes down almost all of his income so he shows very little. (that's a whole other story) and I cringe when I think of the audit that's coming his way.
Which also makes me nervous that he won't be able to afford this house if the IRS catches up to him.
My head hurts.
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| Posted 3/8/11 9:42 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Mortgage/real estate people weigh in
He is still married right? NOT fully divorced, meaning NO decree?
I would be EXTREMELY wary of that.
That last thing he wants to be doing is buying anything while he is still married..that'll be open game for his soon to be ex wife..
My attorneys always told me to sit tight and wait out until the divorce was final before I made any investment/purchases.. because I would be setting myself up if i did.
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| Posted 3/8/11 10:54 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Mortgage/real estate people weigh in
Posted by bicosi
He is still married right? NOT fully divorced, meaning NO decree?
I would be EXTREMELY wary of that.
That last thing he wants to be doing is buying anything while he is still married..that'll be open game for his soon to be ex wife..
My attorneys always told me to sit tight and wait out until the divorce was final before I made any investment/purchases.. because I would be setting myself up if i did.
Yes. This just all stinks.
I'm not going to let them sign the papers if it comes to that.
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| Posted 3/8/11 10:55 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Mortgage/real estate people weigh in
Posted by Blu-ize
Posted by bicosi
He is still married right? NOT fully divorced, meaning NO decree?
I would be EXTREMELY wary of that.
That last thing he wants to be doing is buying anything while he is still married..that'll be open game for his soon to be ex wife..
My attorneys always told me to sit tight and wait out until the divorce was final before I made any investment/purchases.. because I would be setting myself up if i did.
Yes. This just all stinks.
I'm not going to let them sign the papers if it comes to that.
I am so sorry! I know how frustrating this is..
Being that you are so close to him, I think you need to sit him down and have a talk with him one-on-one.. no bullsh!t and lay all the cards out on the table..
I hope it all works out! 
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| Posted 3/8/11 11:00 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Mortgage/real estate people weigh in
so he is offering $85k on a $127k asking price REO?
his offer isn't approved yet?
and in my experince- it isn't going to be
I know a few of the major guys buying REOs now and they are going over asking
is this property even mortgagable? most bank owned homes are not- esp in that price range
I know he is family- but the more you write- the more I smell something fishy
If you want me to do some research on the house- get my the address
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| Posted 3/8/11 11:03 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Mortgage/real estate people weigh in
It's in Monroe, NY. Not sure of the addy. It's a 2 bdroom house that has been short sold.
He's also under the impression that he can refi when his finances get better and when the market gets better in two years and take them off of the mortgage. I think that is a GIANT IF!
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| Posted 3/8/11 11:19 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Mortgage/real estate people weigh in
Posted by bicosi
Posted by Blu-ize
Posted by bicosi
He is still married right? NOT fully divorced, meaning NO decree?
I would be EXTREMELY wary of that.
That last thing he wants to be doing is buying anything while he is still married..that'll be open game for his soon to be ex wife..
My attorneys always told me to sit tight and wait out until the divorce was final before I made any investment/purchases.. because I would be setting myself up if i did.
Yes. This just all stinks.
I'm not going to let them sign the papers if it comes to that.
I am so sorry! I know how frustrating this is..
Being that you are so close to him, I think you need to sit him down and have a talk with him one-on-one.. no bullsh!t and lay all the cards out on the table..
I hope it all works out!
I did that yesterday. I told him the real deal and how much we want to help but the risk is just too big. He will not let anything happen to mom and dad he tells me..I know he won't on purpose but anything can happen. I'm not risk adverse but I've been burned and I won't do it ever again.
He has owned many homes in his life and had no issue buying and selling so I know he knows how it all works.
Also, mom and dad are 77 and 79..who will give them a 30 year loan?
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| Posted 3/8/11 11:23 AM |
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