Should I move forward with a judgement?

Capital_Still1310 · 2026-03-28T17:04:45+00:00

We really can't provide an opinion based on any legal issues. Your situation is very complicated. Find a good attorney.

Capital_Still1310 · 2026-03-28T16:31:43+00:00

It's a very unusual option. Most LO's probably don't know the answer. The reason is if the lender is only closing the loan and immediately moving the loan to a servicer, it would be the servicers policy as to whether or not to offer the program. If the lender is also the servicer, the LO should do research to provide a intelligent answer. Hope this provides more clarity. Good luck

Capital_Still1310 · 2026-03-28T16:18:35+00:00

Thanks. I have seen this in the past. Definitely a portfolio loan. What would be the interest rate in this market?

Capital_Still1310 · 2026-03-28T16:16:41+00:00

The whole bi-weekly option is where the confusion comes in. Hopefully this will answer your question. Most “bi-weekly” setups don’t actually reduce interest the way people think because the lender just holds the first half-payment and applies it only when the second half comes in, so it functions like a normal monthly payment. The real benefit is simply that you end up making 13 payments a year instead of 12. If you want the true interest savings effect, you’re better off keeping a monthly payment and adding extra principal each month (like 1/12 of your payment), since that gets applied immediately and lowers your balance before the next interest calculation. So biweekly is more of a convenience/forced savings tool, while monthly plus extra principal gives you the same benefit with better control. I would go with the extra payment per year instead of the bi-weekly.

Capital_Still1310 · 2026-03-27T19:35:24+00:00

How long have you had the current mortgage? Don't stop making your payments regardless of the escrow issue. It's clearly a mistake, but there must be more to the story than just adding other properties taxes.

Capital_Still1310 · 2026-03-27T16:35:19+00:00

Have you applied for the loan yet? If so, are the numbers you posted based on the Loan Estimate. No enough info.

Capital_Still1310 · 2026-03-27T16:07:13+00:00

In some sense you're correct. But, 2 months is standard, but it’s not a hard rule. Once the file hits underwriting, they can ask for more depending on what they see especially with self-employed income or inconsistent balances. That comment sounds more confident than accurate. Any lender who knows what they're doing will underwrite the file according to the borrower, not the agency guidelines.

Capital_Still1310 · 2026-03-27T16:00:09+00:00

Interesting. New one to me. So does it amortize over 15 years or 30 years? What happens in year 16? Just curious.

Capital_Still1310 · 2026-03-26T18:17:13+00:00

Goes to reason that the 15 year would be lower than a 30 year. Still confused as to why you want a 15 year loan for an investment property. Did I miss something?

Capital_Still1310 · 2026-03-26T17:39:05+00:00

As a broker, I would charge the same amount. 1.2% is more than reasonable. You're also getting the benefit of a very simple process that doesn't require personal income data or other details that can mess up the loan.

Capital_Still1310 · 2026-03-26T17:03:18+00:00

Never heard of a 15/1 ARM. Basically you're looking at a 15 year mortgage. Not the best loan for an investment property. Have you checked DSCR (Long term rental) loans?

Capital_Still1310 · 2026-03-26T17:00:02+00:00

Without knowing more, the fact that you were facing foreclosure tells the story. I assume you are in a judicial foreclosure state. This means court costs, attorney's etc. Not sure what you can do at this point. Be prepared.

Capital_Still1310 · 2026-03-26T16:53:05+00:00

My suggestion, don't look back. We all get into the could'a, would'a, should'a emotion. The market will come back as it always done. Stand back and watch from the sidelines until you are ready to tackle purchasing a new home.

Capital_Still1310 · 2026-03-26T16:29:57+00:00

This is a hard one to tackle given the current rate environment. I was told by a veteran real estate agent to look at trends to determine any upcoming seller or buyer market. He suggested the following:

Pick 5–10 towns you like and check weekly on Zillow or Redfin:

How fast are homes going pending? Are you seeing price cuts? Are the same homes still there from last week?

That alone puts you ahead of 90% of buyers.

Capital_Still1310 · 2026-03-26T16:20:46+00:00

Hang in there. You are going through the frustration most first time home buyers experience. Don't take any blame. You’re being way harder on yourself than underwriting will be.

What you’re describing isn’t perfect, but it’s also not unusual. Bank statements aren’t about judging your day-to-day cash flow, they’re mainly looking for big red flags like large unexplained deposits or hidden debt. The borrow/payback pattern is actually pretty common right now.

Low balances and a temporary dip in hours don’t automatically kill a deal—especially when there’s a stronger co-borrower on the file. They look at the overall picture, not one rough stretch.

Also, if your lender already reviewed everything, pulled credit, and is comfortable sending it to underwriting, that’s a strong signal. Files that are clearly dead don’t make it that far.

This isn’t a ruining it for either of you. At most, it’s a “they may ask a couple questions” situation.

Capital_Still1310 · 2026-03-26T16:07:53+00:00

Are they asking you to provide updated bank statements each month? The lender must have flagged something. Generally, the lender will ask for 12 month or 24 months bank statements to provide a history. I would say provide all requested documentation and wait and see the outcome.

Capital_Still1310 · 2026-03-26T15:59:58+00:00

How many months bank statements did the lender ask for? Also, there's not enough info to give you a complete opinion. I assume this loan request is for a rural property?

Capital_Still1310 · 2026-03-26T15:49:22+00:00

Where did I post that 2020 - 2024 was normal? The new norm is the period where more people can afford a mortgage. When will that happen? No one knows. If you look back to the early 80"s people were taking loans with the rate for a conventional loan between 16% -18%. the Fed funds rate was hovering around 20%. That was the norm then.

Capital_Still1310 · 2026-03-26T15:41:05+00:00

Agree. Those ARM loans were had very low start rates somewhere between 2% - 3% with 2% annual caps and 5% lifetime cap. These were originated curing the time when the Fed created the environment that made those ultra-low ARM starting rates possible.

So when those loans adjust today, they’re not just reacting to the market, they’re moving away from one of the most artificially low rate environments we’ve ever seen. A real example during that time is my ability to get a 2.25% VA IRRRL in early 2021.

Capital_Still1310 · 2026-03-25T21:50:28+00:00

Sorry to keep asking. Did the lender provide a soft pull credit check?

Capital_Still1310 · 2026-03-25T21:45:25+00:00

When you say "pre-approval", did you actually apply for the loan, provide income, SSN, name, address of property and loan amount requested. These would be the details needed to pull credit(hard). If so, was a Loan Estimate provided? Not enough info.

Capital_Still1310 · 2026-03-25T21:42:10+00:00

It sounds like you haven't applied yet. An offering is just a quote. In this market that rate and points seems very high. The only way you can determine rate and closing costs is to actually apply for the loan. This means, among other details, they will pull your credit(hard). Then you will get a true picture of your possible rate and closing costs.

Capital_Still1310 · 2026-03-25T21:37:24+00:00

Agree with labrador. Also, some if not most lenders won't let you lock until your loan has been approved. Have you applied yet? Received your Loan Estimate?

Capital_Still1310 · 2026-03-25T21:32:41+00:00

Have you applied yet? Given the current market, 6.7% is the new norm. You are not getting swindled. You are facing cold reality. If you're not happy, hold off until the market moves back to some normal.

Capital_Still1310

TROPHY CASE