Reply #22: Yeah... it's that "I think" that always gets you. [View All]

[MrUnderhill]

I moved out of the DC suburbs thinking real estate had really started to peak. Our property value had almost doubled in a little over three years and we wanted to cash out.

A little over a year later, houses in the neighborhood are selling for about 15% more than they were at the time. You just never know.



As for your situation with "B & C paper"... check around. See if there isn't a "portfolio lender" in the area (maybe one you've worked with) that retains some portion of the non-conforming loans they make. You may find one that doesn't go by the straight credit score.

As I said before... credit is a numerical assesment of your "character" (the likelihood that you will repay if you possibly can - your "ability to pay" is a seperate measurement). "Back in the day" I granted credit to a guy who had declared bankruptcy just 2-3 years previously because he could documnet that even after the debts were absolved, he worked two full-time jobs and paid every one of them back ever penny - even though he had no legal obligation to do so. His credit "score" was lousy... but his "character" was pristine. I knew he WOULD pay me back unless he died in the interim.

Not every lender has that kind of authority any more... but they are out there. You just need to find someone with the flexibility to use a little human judgement.