All Forum Posts by: Dave Mustaine

I'm selling my first house and just had the home inspection.   The buyers attorneys letter states the appraisal shall not be ordered for at least 5 business days after the attorney review period.   The bank ordered the appraisal already and he called me yesterday and appraiser wants to come asap even though we have not agreed on the home inspection issues yet.  However, I'm almost positive the home inspection will be agreed on before he gets here next week.  Should I agree to let him do the appraisal now?  Why would the buyers attorney be asking for a 5 business day delay before ordering the appraisal? 

Does the appraiser get a copy of the buyers home inspection prior to the appraisal?    If the sale is not closed does the bank eat the appraisal cost or do they send me a bill?  I think In the contract it states if the appraisal does not come in as high as the purchase price the contract will be null and void.  If that happened, could I lower the price or buyer put down money to meet the appraisal to keep the closing date without having to write a new contract and delay the closing.  Thanks! 

Thanks!  Much appreciated.   I will give the buyers agent 2.5%, which is the going rate in my area.  Is there a way to quickly screen an agent to make sure they are an agent?  I thought about having them scan and email me their business card, but they could send me anyone's card. 

I'll be listing my house in Aurora, IL In a few weeks. I found a realtor with tons of current listings and past sales who will put me on the MLS for $100. Very high volume realtor. He also gets $200 of the buyer agent commission upon closing. He sent me the MLS input forms and I know all the answers, two other exact models recently sold. The only thing he does is takes offers and counter offers. I'm suprised he does this for only $300 total compensation. What's the catch? I'm planning to try this to save a few grand but want to make sure there isn't a big reason to not do it. Here is some info and then a few questions.

I'm not working so I don't mind taking all the calls to schedule showings and questions.  I bought a lock box at Home Depot.  I'm going to hire a photographer.   I have a lawyer. I already wrote my ad.  There will be no major home inspection issues.   House is 15 years old in great shape.  I know how to stage it.  I'm a good negotiator.  Is there anything else an agent could do for me that would be worth over 3k?    Is there anything I need to worry about? 

The flat fee listing agent said he will put my name, email, and phone number in the area on the MLS for the showings contact. If someone contacts me for a showing or questions, can I be certain they are an agent and not a thief? Im worried about giving the lockbox code to anyone who is not an agent.

Hmm, the listing agent said. If anyone contacted him outside of the MLS he would forward the email to me. However, I suppose a buyer or thief with no agent could call him and ask for my info. is there a fast simple way to screen people to make sure they are an agent? What should I ask? I don't have a fax machine.

Should I eliminate buyers with no agent since I have no agent to do the work.  Anything else to worry about?  Thanks! 

I never thought of your idea to use the credit card money to buy a smaller place.   Houses in Indianapolis are half the price of my area in Illinois.    I could buy a house with cash for 80k down there.   

However, I did some research and aparently creditors can force you to sell your House if you have more Equity than the exemption amount.   If I used the 80k of credit card money to buy a house with cash, and then defaulted on the 80k of credit cards.   They could force me to sell the house to get their money.  That would have Been a great option too bad.

Let's assume I can't do a short sale.  I do have a heloc too.   the most important question is which situation that landlords would think is worse.

1. A foreclosure involving a primary and heloc with another bank.   Keep current on perfect 25 year credit card history.  I wondering the  missed house payments and foreclosure would trigger the credit card banks to shut down my credit lines. 

2.   Sell the house clean and fully pay off Bank with 20-25k of credit card money.   Default 20-25k or settle 20-25k of multiple credit cards.   I have four different cards with different banks. 

I'm sure landlords would think one of these situations is better than the other.  I'd appreciate a couple of opinions.   The main thing I care about is my ability to rent apartments over the next several years and probably forever. 

I stated in option one to try for a short sale because I would be about 25k underwater selling the house including agent fees and closing costs.   My income is a flat 22,500 Ssdi not taxable.   I don't qualify for a loan mod or refinance my income is way way way to low compared to this expensive townhouse.    I would be applying for crappy $700 apartments.  

One of my biggest questions is would the bank let me do a short sale if I had 80k in my brokerage account but owed 90k on credit cards?   I'm thinking they would  look at the 80k in my brokerage and expect me to sell the house normally and pay them the 25k deficit with the money I borrowed on credit cards?   And screw my credit card companies. 

If they don't let me short sale,  I would have to decide between a foreclosure or credit card default for 25k to get out of the house clean.   I'll probably be renting apartments forever if I can qualify.   I want to know how landlords would few a foreclosure versus a short sale, versus a credit card default or major settlement on several cards.   How does a credit card default rank compared to short and foreclosure 

I've owned my townhouse for 16 years and can't afford it anymore    I've had 3 different roommates here over the past 15 months and am having a hard time finding another.  I've not been happy with the roommates.   So now the tables have turned and it will be me losing my house and trying to qualify for apartments.   I need to get out.  

 If you were a landlord reviewing my credit for an apartment which of these options  would you prefer.    My credit has been perfect my entire life never missed any payments.    Credit score is currently about 710 because I have 90k in ccard debt.   But I have most of the ccard money in my brokerage account.   All 0% interest I'm always getting deals and I've never been late.   

1.   I try to do a short sale and if that fails a forclosure.   I keep paying my credit cards without missing payments.   So my credit report would show a short sale or forclosure,   They report a short sale as "paid in full for less than amount owed".  I'm not sure I would be approved for a short sale because they might consider the 80k I have from credit cards a tangible asset.   

They might expect me to use that money I borrowed on credit cards to pay the bank off at closing.  Anyone know?   Instead of looking at it as money offsets credit cards.    I think you can do a short sale without missing payments but not positive.  

2.   I sell my house and use 25k of the credit card money I borrowed to pay the deficit between sales price less fees and loan amount.   I would get out of house clean with the bank.  However, let's assume I had to default and not pay 25k of my credit cards.    This could lead to a judgment or two if they sue me?   Or maybe I could settle balances on several credit cards to get that 25k. 

In sum, would you rather take someone for an apartment that has a short sale or foreclosure but everything else was  perfect?  Or would you rather take the guy who defaulted on credit cards but got out of the house clean?  Thx.  

I am considering applying for a loan mod on my house.   However, I'm almost positive  I'll need to get out of the house and into an apartment in a year or two.   I would like to know how you view a loan mod in terms of credit risk when analyzing a prospective tenant.   

I've never paid late or missed payments on anything in my life.   My credit score is around 750.    It went down from 800 because I currently have a lot of 0% credit card debt but I have all the money in my brokerage account.   

I have the banks loan mod paperwork and it says during the trial they report it as partial payment plan to the credit bureaus.  After the mod is done they report it as modified.     Would they keep reporting as modified forever after that or would it switch to paid as agreed at some point?  

I'm not sure how bad this will hit my credit score but I'm thinking it will be bad since I've had perfect credit my whole life.  

If the only thing bad on my credit report was this loan mod, how would you view that in terms of renting to me.    I may have two loan mods one for my main loan and one for my heloc with another bank.    Would two loan mods be a lot worse than one in your eyes?

I am getting very stressed out because I'll need to get approved for an apartment and I'm worried the loan mods can get me denied.   Any idea how much my credit score would drop? 

The last question is if I applied for an apartment and had missed some mortgage payments. Would that be a lot worse than a loan mod.   Or would you deny if there was a loan mod and missed payments.    Assume I will pay everything else on time as usual , credit cards, medical, etc.   thanks! 

As previously mentioned, I am on Social Security Disability and can't work.  I am limited to the 22k per year, and I will need every penny of that to live and then some.  I would not be able to get out of the credit card situation which would be growing at 20% plus.  

Minimum ccard payments are about $1500 a month.  I guess you are suggesting to use the credit card money to pay off the 30k house deficit.    When the zero percent deals end I'll be paying more like 20% interest.  And it will grow and I will almost for sure never get out with my low income. 

in my first  post, I said hypothetical 100k mortgage and ccards to make them equal for the comparison decision on which to pay.   I currently have 80k on ccards and 80k in my brokerage account to cover them.    I am under water about 30k on the house if I include the agent fee.  If I sold the house tomorrow I would have to pay 30k to the bank and agent to be out clean. 

  I will be in a real bind when my zero percent ends this time because several are ending all within a 2 month period.  After you pay one off you usually don't get another offer for a long time.   And sometimes never.  

In the past, I have applied for a new card to get a new offer, and then transferred my credit line from another card to the new one.   Exp.   I have 4 chase cards.  Every time I open a new one I transfer almost all the credit line to the new card.  They let you do that over the phone.   I've got 3 U.S. bank cards ,  totally of about 12 credit cards.  

I won't be able to get new credit cards anymore though.   I was denied on the last two that I applied for because I have too much credit already.  Also, with my now very low income I cant.