Monday, January 21, 2008

CountryWide mess hits home

I had decided in November to take my flip off the market and try a lease-purchase. Part of the strategy was to re-finance the loan on the property. (I had been paying the previous owners loan payments on an ARM loan and the interest rate had jumped up to 9.7%). When I applied for the mortgage in November the broker thought it was a slam dunk. But CountryWide dragged their feet on the loan for 2 months, constantly asking for this and that document. It was a death of a thousand cuts as they decided Friday that they didn't want to lend the money.

So now I am in a funk. This is a $500 a month penalty over what I thought I would be paying on the re-fi. I had the cash flow on all my properties worked out to squeak by and now it doesn't look promising. There's no place else to look for income at the moment and the only light I see in this tunnel is a train coming at me.


Anonymous said...

So far,how are your real estate projects performing compared with your previous real estate experiences in WV(?)I don't envy you at all,in not having a fallback plan,and ending up a landlord.At least you got a new house along the way.I've been a landlord and I would rather undergo a tax audit than do it again.The lessons learned from each might make a good future column.

Paul said...

good suggestion.