Sunday, September 04, 2005

Loan Shark

I explained how we were in danger of loosing our house due to a few months of sour income opportunities and a couple years of circumstances in this post. The reality is starting to set in hard with the cost of things on the rise after Katrina, it is apparent now that we will never catch up.

Anyway I have a funny story from the antics of high finance:

This guy from U.S. Capitol Mortgage Company calls me last week and wants to help. I tell him we are past the point of help, we are soon to bankrupt. He keeps after me saying how that is the kind of people their company is, they help folks recover by lending them the money they need to see them through the low spot. I told him our life story and how we are barley able to keep food on the table and a roof even with our combined 100 hours a week labor. He goes on to say that they will be able to pile all our backwards debt into a lump and the payment will give us breathing room in our budget. I gather and scan many hours worth of documents to send him.

He calls my boss Friday and tells him he needs to reach me, he has some great news that is going to make my holiday weekend a great one. When I call him back he says I am approved…for a payment that is 50% higher than the one I am having a bitch of a time making now. I say "What the hell have you wasted our time on over here, that is no option, that is certain death." Hell fire if you want my house just make a damn offer on it!


Now, I had detailed with great passion how I needed a breathing room of a loan payment and he had said that I could consider an interest only loan. He really got my hope pump going. I thought that would be a way to make the next two years, as my wife gets her degree and I get settled in with the initially low paying city job. He explained Friday how the past two years on my credit score did not allow that kind of loan. So I said "the logic is skewed!" "You can offer me a loan that is half again as high as the one I barely make when all the world goes my way, but you can not offer me a loan with a lower payment which will be much easier to make while things are so tight."

Thanks for wasting my time U.S. Capitol Mortgage.

At least if I lived at the flooded coast I would be dead or Allstate would be there. They were there before the Red Cross could get in.

I know, I know, self pitty only makes matters worse.
:: posted by Tennessee Jed, 3:33 PM

15 Comments:

Jed, I sure hope you and MG get some kind of good news about your mortgage woes soon!
Blogger red molly, at 7:45 PM  
sounds like you had a run-in with the infamous Redundant Department of Redundancy.
Blogger Joe Powell, at 6:43 AM  
TJ - talk to a good lawyer NOW! You may be amazed at the options you have to at least hold on to your home. I realize i am making an ssumption here (that you haven't already).

If you do end up having to start over, know that your friends will be there to help.
Blogger greatwhitebear, at 1:39 PM  
Thanks for the encouragement everyone!!!

It will be allright even if it ain't allright.
Blogger Tennessee Jed, at 4:34 PM  
Remember, the mortgage company doesn't want to foreclose. They lose money that way and they will work with you to save the mortgage.

Also, most unsecured creditors (credit cards) will settle for 20% of the debt. If you go a long time without paying the will start to get nasty but then when you start talking settlement they cheer up. The offer 60% you say 10%. They call back and offer 50 and so forth but you never go above 20%. At 20% they can still make money off the collection. Below that they do better to sell the loan to another creditor.

Its an ugly war but it can be won. And remember, many of our richest people had many bankrupcies. Walt Disney had 7 before hitting it out of the park with Disney Land. I once had a friend tell me "remember, your creditors can't eat you."
Blogger djuggler, at 12:07 PM  
Thanks DJ, I once told them you can't get blood from a turnip, they said I was not a turnip!
Blogger Tennessee Jed, at 8:32 PM  
So this is where all the mortgage rate calculator information is, I thought I did a good job on my site, but I am humbled. Maybe someone can take a look at my site at mortgage rate calculator and tell me where I can improve.
Very nice site!!
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Blogger Johnny, at 2:43 PM  
Hi Tennessee Jed, I believe it has been a while since the last comment left, but I would be very interested to know what your situation is now. I too am going thru the same situation; however I work at a financial institution and have the stress of loosing my job everyday because if they found out my bills were past due,then they could fire me. Hope life is treating you better now. Best wishes.
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