although i have the feeling it’s not just our town. I remember the housing collapse. The banks were lending to ppl who couldn’t afford the mortgages. They were high risk and approved anyway. Now the banks have gone totally the other way. They were bailed out by the government of course but now they don’t want to lend to ANYONE.
We have 2-3 houses per street here. A lot of older retired folks who bought them to rent out,no longer want to rent.They want to sell these homes. They are as anxious to sell as people are to buy. Not going to happen.The lending institutions have gotten too strict. They’re sitting on the bail out the government gave them.
You can’t find a rental here and the houses are sitting-as they sit they go downhill.
Here’s our story. We moved from a 2nd floor rental after my mother passsed away. We had said if that time ever came we would move. We just didn’t think it’d be so soon. It was. So we found a 3 bedroom,2 bathroom rental with a nice deck for 575.00 per month. For our town that’s very high but it was a ground floor rental. We have health problems and the 2nd story was very difficult with the stairway.
We were there for 5 yrs when we were given a pre approval letter for a mortgage. At the time there was the house we’re renting now-it was perfect for us. Three months later Mr LIAR mortgage guy denied our approval. He jerked us around. He jerked the realtor around. He jerked the seller around. Now our previous rental is gone-it’s already rented out.So we’re renting a home with a for sale sign in the yard; a house that’s on the market.
We tried to get a mortgage approved but we were told our income wasn’t high enough; our credit scores were good. We did get an increase in income and now they’re saying our credit scores are too low. We talked to a gentleman who said he could get us approved if we could clear up 2 accounts. He suggested we get a loan. We tried-our credit union turned us down. Our debt to income ratio was too high so they turned us down for the loan. DUH. This is what the loan was going to be used for. Get the 2 accounts paid down so we could get the mortgage approved.
Our landord was charging us 600.00 per month rent here.He was good enough to drop it to 550.00 per month.He appreciates that we’re always on time with rent.( More often than not we’re early.Rent is always our first priority.)
We’ve been with this credit union for 10 yrs and the loans they have given us have all been paid in full. All good. Didn’t matter.
The mortgage payment,including taxes and insurance would be about 200.00 LESS than the rent we’re paying.Meantime we found another house at an even better price that has everything we have here and we’re stuck.
I feel for the folks selling the house. They’re an older couple and they just want to be done with it. They’re retiring and want to go out of state on vacation. They can’t get a buyer-the banks keep turning everyone down.
Here’s another really assinine part of a credit report. Every time you apply(which you do when you’re trying to get approved for a mortgage)it’s called a ‘hard hit.’ What does this action have to do with a credit score?
You know what the deal is? Everything about the process is against you. PERIOD. Our town is full of houses that can’t be sold and the sellers just keep dropping the prices. It makes no difference either because the banks are still NOT going to approve anyone.
Know what happens in a town like this? It DIES. Lo and behold the water company keeps raising their rates. Ok.Who down there has had a salary increase we’re paying for?
I hear the electric rates are going to go up too. Not like food prices aren’t already through the roof.I’m grateful for having the aparment across from my folks when we needed to be there. I’m grateful for finding a ground floor rental which is difficult here even though the rent was pretty high.[We had a great landlord there too.]
I’m VERY grateful we found this house-it’s just right for us. Small,but not too small. Frustrated though because a mortgage would be less than rent and concerned; if he does find a buyer we have nowhere to go. I’m not particularly excited about moving our possessions out to the sidewalk.When spring comes it’s only going to take that one person that might be able to get approved.
I bet we’re not the only people who have gone through this experience. Something has to give. You can’t approve people who are very high risk;on the other hand you can’t make the hoops so difficult only the very few can jump through them.