Saturday, October 03, 2009

Why You Can't Get Refinanced or a Loan Modification

Being self-employed, in the banks' eyes, I make $0.

And the reason why you understand is that no matter how much money you make and no matter how long you've made it, if it is self-employed income, it's not "real" income. Banks don't consider it "real" income unless you're miserably slaving away for some other schlep.

Ergo if you are self-employed it's very difficult to get financed, refinanced, or any kind of financing from banks in general.

But for those of you who are trying to get refinanced, haven't missed a payment, or could make a payment if they just modified your loan, but are constantly getting turned down here is the explanation why.

Now it is somewhat of a detailed and mathematically lengthy explanation, but just try to follow through with it. Regardless, the larger point is notice how once again, the government solution has failed to bring about a recovery in the housing market. And not only failed, but made it more or less impossible to help those they claimed they were trying to help.

5 comments:

Milton Hayek said...

Is Silicon Valley the last functioning industry left in America?

Ryan Fuller said...

Your tax dollars at work.

Anonymous said...

I know this is probably a geeky thing to do, but I forwarded the article onto Glenn Beck ...

While he does seem a little extreme and crazy at times, he is one of the few people in the media who would report this kind of information to the general public.

Robert of Ottawa said...

I worked for a feqw years as a self-employed consultant/contractor in electronics, here in Canada, and I found the same lack of credit.

Hot Sam said...

Everyone in government thinks they can "solve" our problems.

I have only ONE problem that I can't remedy by myself:

Government won't get the %*$& out of my way or off my back!