aerobat
07-09-2008, 10:26 PM
I have great FICOs, and have a piece of land that has a construction loan on it under my personal name. I plan on holding onto it and build sometime in the distant (5-15 years) future due to current conditions. I have written a letter to the lenders stating that I will be forced to foreclose on the project (which is untrue; just an attempt to get more favorable terms). In the letter, I asked for a 12k forgiveness of the closing costs of the construction loan due to the fact that I never even took one draw. Additionally I asked for reasonable terms for a land loan on a 30-year fixed. They denied both requests and extended my 12-month loan term into its extension period (it was originally 12 months with a 6 month extension allotted) after I informed them of my intention to foreclose. So, is there any way to quantify how one, two or three late payments would effect my FICO’s and for how long? My Experian is 784, I have never missed a payment in my life, unfortunately my DTI is quite high. I have 8 mortgages totaling around 1.1mil, I have 20k in credit card debt and 50k in student loans. I am attempting to miss a payment, therefore evoking a more favorable response from the bank, especially considering it is land and not one parcel in the area has sold in over 2 years. I originally bought it for 90k and put 20k down (all on investor borrowed money). I now owe 95 on it due to finance charges and cannot give it up because I have invested close to 40k in plans and permits (which the bank does not know about). In essence I may be willing to take a FICO hit in order to save 12k and a long-term loan. The bank says they can give me a short-term loan of something like 15 months and no forgiveness of the construction loan closing costs. How badly will a foreclosure affect my FICOs? I could have a third party make a short sale on it as a different, but more risky option.