I had another I couldn’t help today. Credit Casualty
For the second day in a row a friend of the faithful 25 came forward for help. Today’s brought front and center an important principle. Take care of your mortgage first, last, and always. In other words, if you are having financial problems your mortgage is your most important obligation.
The friend had gone through some problems. Things were better now, good enough they qualified for a 3 % down FHA loan. Then quickly a fact surfaced that dashed the possibility. They had let a home go back to the bank and the bank took a loss. That transaction was FHA. Instead of a great rate and a low down payment this borrower has to either pay off the FHA deficit, which they cannot, or go hard money.
Hard money is high interest rates, prepayment penalties, and a big down payment.
It is not fun not being able to help. So I guess I have to get my joy in sharing these important principles with those who drop by and read. Larry Cragun
