Bichon and DoingHomework: You guys are right, it wouldn't have been logical to do that. So i'll get the credit card paid off in a few days. Hopefully my debit card will be here by then.
Bichon as for the refinance, I've touched on it a little here in this thread. So here's the rundown:
1. I was a victim of predatory lending and was very ignorant to the way buying a house works back in 2006.
2. I had a real estate agent that I trusted, but that didn't go well as you can tell by my mortgage payment.
3. When I first got my home I had an 80/20 loan with 11% and 9% respectively.
4. The following year I was able to refinance at 7.25.
5. Finally the economy went to crap, I couldn't refinance to save my life.
6. HARP went into effect but was only geared to save those who didn't have PMI on their loans so I was still stuck.
7. Finally this year HARP 2.0 came out that was geared to people that had PMI. So I was close to closing out on a refinance deal with a company called AIMLoan.com, but two things prevented this from happening. 1) My wifes car went to crap so we bought another car. I got a really good deal on it. I knew that if AIMLoan found out that I bought the car before getting the refinance then it would've been tough for me to get the loan. However, I didn't buy the car until during the time that I went to closing so I figured that it would've been okay. However, AIMLoan.com runs a credit check right before they payoff the loan even though everything was approved and I went to closing and everything. 2nd) AIMLoan.com even though they knew that I had bought this other car by running the credit check they never told me flat that it was going to be a problem. They kept dragging their feet with the whole deal by saying that they needed more paperwork. So another month goes by and I kept checking in asking when they were going to payoff the loan. They hit me again with needing more paperwork and another credit check? So at that moment I sent a pretty nasty email saying that they needed to uphold their end of the bargain. Needless to say they finally came back and told me that since they ran my credit and found that I another car added that their systems came back with a caution to loan to me. So with that being said, all those credit inquiries are hurting me right now with getting a refinance done. So i'm going to wait a year before I try again which is next June.
I'm going to try to say this as nicely as possible:
You seem to be painting yourself as a victim for everything.
- A victim of predatory lending in the first place
- A victim of a real estate agent
- A victim of circumstances with the car breakdown
- A victim of fraud
Now, you might just be the unluckiest person in the world. Or perhaps you need to be more proactive in these matters. It is YOUR responsibility to read everything before you sign it and demand an explanation for anything you don't understand. It is also your responsibility to do your own due diligence.
You have until next June before you attempt to refinance, right? By that time you ought to have read 4-6 books about the real estate settlement process. You should know exactly what your rights are. You should also have enough cash saved in addition to the money needed for the transaction so that you do not need to spend anything on credit for at least 3 months. When the lender tells you not to use your credit cards or take out any loans until after closing, DON'T!
We've all made mistakes. But it is important to learn from them and not repeat them. Your mistake was not buying the car. Your mistakes were 1) not understanding the settlement process and 2) not having adequate cash reserves to cover a failed vehicle during that period. You can avoid these mistakes next time by educating yourself and by saving up a large emergency fund.
Good luck to you.