The loan with the credit union did not go through. Too poor credit history as well as the loan being too high of a debt to income ratio. I offered to lower the amount we requested, but they said no, it was really the credit scores. Despite the fact that I asked numberous times to ignore those and look at us.
Called Capital One on the car loan. They are no help either. Not willing to take a short sale and work out payments on the deficit. Won’t release the title until it is paid in full. Won’t refinance their own loans.
We’ve spent months trying to get this figured out. Brick wall after brick wall. So here’s where we are going. May not be the ideal path, but it’s what we have to do.
Going to let the car loan go into default. Hurts to do it, but we have to get rid of it. That frees up $500 a month that we can add to the $50 a month we are paying towards our back tax issues. We’ll be a car down and have to work out payments in the end anyway (I hate that. Especially since we’re willing to do it now. Loan company’s not ready until they repo it and add all their other charges… grrr.) But, we’ll get our 2006 PPT paid by August. Get Adrian’s car legal by September. Get my repo’ed car legal (who knows I may still have it then) by October (not sure how that will all work out time line wise.) Then save for a beater, catch up the cc’s (I’m just going to send $5 to each in the meantime), and get the BEF funded. Then we’ll be ready to snowball FINALLY. As we stand now (without extra income) we’ll be able to start our snowball in Sept 2008, Debt Free Dec 2010. BUT, we are getting 2nd jobs, Adrian is doing lots of handyman work around the neighborhood. And God bless him, I think he’s FINALLY getting it!! Keeps asking, “What’s Dave say about….” Oh and side story… we were leaving Aldi Sunday and he leans over and gives me a kiss and says, “I think it’s a really good idea that you’re taking out cash for groceries.” He’s a little slow on the get up, but I think he’ll catch up quick.
Hoping that next June/July when we need to refi that ARM we’ll be able to. Our current lender said they look at if we’re current over a 12 month period over what our credit otherwise has done. Hope that’s true. Or may try Churchill Mort. We’ll see when we get there. The worst that could happen is that we have to sell the house and go back to renting. Which, in the end, it’s just a house. Our family is our home no matter where we live. And if we do that, we’ll be debt free sooner. Not that that’s the way I want to get debt free. I love my house and planned to stay there forever, but maybe that’s not what our journey is set for.
Oh, and the washing machine… it was the door switch. We fidgeted with it and Jimmied it to work for now. We’ll get it fixed for good once we can swing a little cash. Oh AND, our tree in the backyard split on Saturday and landed on the house!!! Luckily it only pulled the gutter down. We’re just going to replace it out of pocket (empty pockets at that – could be a while) instead of paying our ins deductible. My MIL said it best, “If you guys didn’t have bad luck you wouldn’t have any luck at all.” So true.
As hard of a process as this was/is I’m relieved that we finally can get a plan in place and get all this taken care of. I’m sure there will be more hiccups along the way, but we’re in this together as husb/wife and as a family and we’ll get there.