Oh god, the credit crisis has ruined me.

[gkdmaths]

I need some advise, soothing or lots of beer. I havent been on DU in a long time, but I need some friends right now.

A year ago I started building a house before many of us had the idea of what was heading our way in terms of credit and lending. We were preapproved for a nice 30 year fixed mortgage, got a construction loan, bought our dream property and decided to build our dream house. First thing, we hired a crook of a contractor who spent 6 months taking draws and not doing a thing. Finally, we fired him at great cost and hired a new terrific builder who has been a gem to work with (and who has truly been the best - email if you're thinking of building in western Washington). Unfortunately, this extended our house completion date by six months and into the current situation in the mortgage market mess. We could have closed no problem three months ago.

Our dream house is complete, we got our C.O. today, but last month our lender said that the loan package we were approved for is no longer in existance and, last night he told us that all other options are off the table except for one. He says, and I trust him as a close personal friend, that nobody in my state is making jumbo loans to *anybody*. I mean that too - in the sense that my partner's mom has agreed to buy the house and rent it to us. They have no debt, credit in the 800's and over a million in assetts - and they were declined for the jumbo.

Basically, what we have to do is come up with $123,000 to buy down the loan below jumbo status, but thats a lot of money (Im not asking, if thats what you're thinking).

Our other option is to go to the bank who gave us the construction loan and, since we've been paying and wish to continue paying, ask if they will let us fly with the construction loan until we can refi (maybe 2 years?). I know they dont want to foreclose, and we certainly want, and can pay for, the house.

God, I havent eaten or slept in a long time. what do you guys think I should do? anybody else out there get caught up in this mess too? Im legally homeless Sunday at midnight.

thanks for reading,
Greg

[yellowdogintexas]

1. I would talk to the existing lender, they damn sure don't want to foreclose.

If partner's mom is willing to buy house and rent to you, maybe instead could infuse some funds into the principal. Are you sure this wasn't a one time close at setup? Lender might be willing to modify the loan. If you have a 30 yr fixed rate and have been paying on it..surely you can get them to do a loan mod of some kind

[gkdmaths]

2. thats what were hoping,

her mom has offered 100K (most of which would go to our builder so that he and his subs are paid).

our contracter is such a great guy, my partner was so upset that we wouldnt be done by christmas like we were supposed to be, so he got a tree and decorated it in the front room for her. He's really a terrific man.

[Redstone]

3. Yes. Banks do not want to be in the real-estate business. They want your mortgage

much more than they want your house (talking to the OP, here).

Good luck to you. If it's any consolation, remember that NOBODY saw this coming.

Redstone