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home equities loans and the Slope — Brooklynian

home equities loans and the Slope

femmedada
femmedada
edited November -1 in Park Slope
UGH . . .

I opened today's mail and found out that the home equity loan my husband and I were trying to take out to pay off some extremely high medical bills--220K--has been denied. We applied for this loan one year ago but due to the huge number of people trying to refinance, it took a year to transfer our underlying coop loan from one bank to the bank that had previously agreed to offer us a new loan to pay off what we owe on the apartment and then grant us a home equity loan to pay off our medical bills. Our credit is perfect and so I'm left wondering if the 30% drop in the market value of our apartment is the culprit. Has anyone else in the Slope encountered this? Are real estate prices still dropping in this neighborhood?

I think that we are going to end up living in Prospect Park. I hope that that is legal!

Femme

Comments

  • modsquad
    modsquad
    You should post at Brownstoner

    http://www.brownstoner.com/forum/

    I think you'll find not only sympathy (I know you're not asking that) but many people in similar circumstances plus some answers to your questions.
  • mountebank
    mountebank

    Subject: You can always dump the place and live on the

    East side of the Park for about 1200/month,
  • swngnmonk
    swngnmonk
    One issue is income - are either of you independent contractors? Not sure if this applies to HE loans, but for mortgages, banks now want two *years* worth of proof-of-income for people who don't have W-2 jobs (W-2: the end-of-year tax form you get from your employer when you have a perm job).

    Why? Because of all the abuse in the mortgage industry during the boom years - all the 'stated-income' ('liar') loans that got made - where people stated they made $200k/year w/o any proof. Tax returns are the only acceptable proof now.

    It's worse than that - if you are an independent contractor, you know the drill - you expense *everything*, so as to reduce your tax exposure. Banks don't look at your gross income as a contractor, they look at your net. So if you've been expensing all you can for the last few years to reduce your income tax, guess what? You're likely not going to qualify for a mortgage, because your perceived income is now way too low.

    Good luck.
  • swngnmonk
    swngnmonk
    Side note - I've spoken with a few mortgage people, and the craziness is, if you can land a W-2 job, the only proof-of-income they need is month's worth of pay stubs, and a copy of your contract w/ your employer. It really is biased towards those who work for others, versus for themselves.
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