SC tries to do a home equity loan a bit over a year ago. Prior he bought a custom build house for upwards of $700,000, then his wife lost her job. The change in income hit them hard and he took out about $40,000 in debt against his retirement, another $42,000 in credit cards ($38,000 with us). He owes about $470,000 on the house, so figures he wants a home equity to pay down the 1st mortgage enough to get it into a non-jumbo (cheaper mortgage) and pay off the extra debt.
Appraisal comes in at $450,000. The home equity doesn't happen.
SC takes some serious time to accept this, then wants us to create an unsecured loan, just for him, at $80,000 (twice the amount of our maximum unsecured loans), at 6% APR (at his credit score, his rate would be 10.99 for an unsecured loan) at 120 months (unsecured loans have a maximum 60 month term.
...so, yeah, that didn't happen either.
Now, a year plus later, SC is back in touch with me. Apparently he just tried to go through another bank to try to do the refinance out of a jumbo loan/home equity loan that he tried to do with me last time. They got an appraisal for his house at $442,000. Yeah, less than ours.
Can't we do anything for him? He's such a long-time customer. He really needs help getting out of this $80,000 worth of retirement/credit card debt.
Well, the home equity is out.
Yes, it really is.
No, we are not going to do a home equity loan for a house that appraises at less than you own on your first mortgage. You can pay us to run another appraisal, but you will be out of pocket that cost, and considering the circumstances, I cannot recommend that.
Plus side, you're credit score has improved.
Negative side: I know that because of the credit pull from the $35,000 card loan application two months ago... for a third car. Wife is still out of work. You really needed that 3rd car, huh? With a $35,000 price tag? That was a requirement?
Negative side: That $38,000 of the credit card debt that is with us...that balance is down to a whopping $36,500. Really been working at getting that debt down over the past year, haven't you?
Hmmm... I can look at your credit card transactions. Home Depot. Okay, that could be a necessity. Clothing store. Again, maybe... Restaurant. Another clothing store. Restaurant. Retail store, retail store, retail store... You know, maybe I've misreading this, but it doesn't appear to me that there is much NOT using the credit card going on here.
Now, since we dropped your credit card rate when your credit score improved, you have the lowest rate we offer (variable though) unsecured on that debt. 7.25% APR. Your retirement loans are 5.5%,and technically you are paying that to yourself. Your three cars are maxed out above their equity in their three, maximum term loans (you refinanced the other two to higher rates and longer terms? Really?), so no title loan possible.
..I really don't have a better rate/product for you that what we already have.
At which point, SC pulls out the same suggestion for the mythical $80,000 unsecured loan at 120 months and a 6% APR that he tried to sell me on this year.
Look. I have a fixed $40,000 unsecured loan at 7.99% APR and a 60 month term. We can pay off your credit card debt, close out the credit cards, and then you will be in a fixed term, fixed rate repayment. That is what I can offer.
Why yes, it is a higher rate than your credit card. Better though, because it is fixed.
Why yes, it is a higher minimum payment that your credit card. Aren't you trying to get out of that debt?
NO YOU CANNOT HAVE A $40,000 PERSONAL LOAN ON TOP OF THE $40,000 CREDIT CARD. Maximum unsecured aggregate total: all credit cards and personal loans you have with us, is $40,000. I can move it to a different product, but I can't increase that maximum.
...you want your wife to apply for the loan then.
The wife who you started this conversation by saying she still is out of work and has no income?
No, we do not offer loans to customers without income.
*sigh*
Here's the number of the credit counselor.
What? NO! I just told you. WE CANNOT and WILL NOT DO THE LOAN YOU ARE ASKING FOR.
...
....
.....
I swear, I'm not even portraying this completely. He asked for his 6% APR loan FIVE times. Even spelled out how it would help his payments, as if that was the part I wasn't quite getting.
Talk to debt management. I can't help you.
*UPDATE 12/20/2017*
One thing this Sc has, it is persistence. At least persistence in trying to ask someone to help him borrow his way out of the mess he got himself into and is not making any effort himself to truly get out of.
So, over the past month, plus, SC has continued to push for us to do "something" to help him.
Except he doesn't want to meet with a debt counselor.
And he doesn't want to try to sell off one of his three cars to see if he can drop that payment.
And he doesn't want to stop using his credit cards so as to at least not make the debt worse.
No, he wants his house to magically appraise for more money so he can have the equity to do what he wants.
Barring that, he wants us to come up with his version of an unsecured loan tailor made to assist him because he's a special snowflake who deserves it for breathing or some such reason.
So, SC persistence pushed his plea up the management chain to one of the bank VPs, the one in charge of lending. Who asked me to send him everything I had. I forwarded the whole email chain (THIS is why my emails to customers are ALWAYS professional and polite, no matter what the circumstances.... well that, and I really believe in doing my best at customer service, but it's nice to know that I can forward any email chain to a VP and not worry about what they will read.)
Anyway, the VP actually comes to see me, because he wants to know what he's missing. Because guess what, HE can't find anything to fight for either.
And I get to tell the VP pretty much: Yes, that's right. Nothing worth fighting for.
Doesn't help that SC decided to spend an extra thousand this past weekend at a department store on his credit card with us. I guess it's goodish that he had the available limit to spend, but still...
To (hopefully) end it all, the VP sent a rather strongly worded email to the SC...basically saying: "You make enough income. Stop spending so much."
By the way, this SC's income left over after his minimum debt payments is more than I make BEFORE my bills...
Appraisal comes in at $450,000. The home equity doesn't happen.
SC takes some serious time to accept this, then wants us to create an unsecured loan, just for him, at $80,000 (twice the amount of our maximum unsecured loans), at 6% APR (at his credit score, his rate would be 10.99 for an unsecured loan) at 120 months (unsecured loans have a maximum 60 month term.
...so, yeah, that didn't happen either.
Now, a year plus later, SC is back in touch with me. Apparently he just tried to go through another bank to try to do the refinance out of a jumbo loan/home equity loan that he tried to do with me last time. They got an appraisal for his house at $442,000. Yeah, less than ours.
Can't we do anything for him? He's such a long-time customer. He really needs help getting out of this $80,000 worth of retirement/credit card debt.
Well, the home equity is out.
Yes, it really is.
No, we are not going to do a home equity loan for a house that appraises at less than you own on your first mortgage. You can pay us to run another appraisal, but you will be out of pocket that cost, and considering the circumstances, I cannot recommend that.
Plus side, you're credit score has improved.
Negative side: I know that because of the credit pull from the $35,000 card loan application two months ago... for a third car. Wife is still out of work. You really needed that 3rd car, huh? With a $35,000 price tag? That was a requirement?
Negative side: That $38,000 of the credit card debt that is with us...that balance is down to a whopping $36,500. Really been working at getting that debt down over the past year, haven't you?
Hmmm... I can look at your credit card transactions. Home Depot. Okay, that could be a necessity. Clothing store. Again, maybe... Restaurant. Another clothing store. Restaurant. Retail store, retail store, retail store... You know, maybe I've misreading this, but it doesn't appear to me that there is much NOT using the credit card going on here.
Now, since we dropped your credit card rate when your credit score improved, you have the lowest rate we offer (variable though) unsecured on that debt. 7.25% APR. Your retirement loans are 5.5%,and technically you are paying that to yourself. Your three cars are maxed out above their equity in their three, maximum term loans (you refinanced the other two to higher rates and longer terms? Really?), so no title loan possible.
..I really don't have a better rate/product for you that what we already have.
At which point, SC pulls out the same suggestion for the mythical $80,000 unsecured loan at 120 months and a 6% APR that he tried to sell me on this year.
Look. I have a fixed $40,000 unsecured loan at 7.99% APR and a 60 month term. We can pay off your credit card debt, close out the credit cards, and then you will be in a fixed term, fixed rate repayment. That is what I can offer.
Why yes, it is a higher rate than your credit card. Better though, because it is fixed.
Why yes, it is a higher minimum payment that your credit card. Aren't you trying to get out of that debt?
NO YOU CANNOT HAVE A $40,000 PERSONAL LOAN ON TOP OF THE $40,000 CREDIT CARD. Maximum unsecured aggregate total: all credit cards and personal loans you have with us, is $40,000. I can move it to a different product, but I can't increase that maximum.
...you want your wife to apply for the loan then.
The wife who you started this conversation by saying she still is out of work and has no income?
No, we do not offer loans to customers without income.
*sigh*
Here's the number of the credit counselor.
What? NO! I just told you. WE CANNOT and WILL NOT DO THE LOAN YOU ARE ASKING FOR.
...
....
.....
I swear, I'm not even portraying this completely. He asked for his 6% APR loan FIVE times. Even spelled out how it would help his payments, as if that was the part I wasn't quite getting.
Talk to debt management. I can't help you.
*UPDATE 12/20/2017*
One thing this Sc has, it is persistence. At least persistence in trying to ask someone to help him borrow his way out of the mess he got himself into and is not making any effort himself to truly get out of.
So, over the past month, plus, SC has continued to push for us to do "something" to help him.
Except he doesn't want to meet with a debt counselor.
And he doesn't want to try to sell off one of his three cars to see if he can drop that payment.
And he doesn't want to stop using his credit cards so as to at least not make the debt worse.
No, he wants his house to magically appraise for more money so he can have the equity to do what he wants.
Barring that, he wants us to come up with his version of an unsecured loan tailor made to assist him because he's a special snowflake who deserves it for breathing or some such reason.
So, SC persistence pushed his plea up the management chain to one of the bank VPs, the one in charge of lending. Who asked me to send him everything I had. I forwarded the whole email chain (THIS is why my emails to customers are ALWAYS professional and polite, no matter what the circumstances.... well that, and I really believe in doing my best at customer service, but it's nice to know that I can forward any email chain to a VP and not worry about what they will read.)
Anyway, the VP actually comes to see me, because he wants to know what he's missing. Because guess what, HE can't find anything to fight for either.
And I get to tell the VP pretty much: Yes, that's right. Nothing worth fighting for.
Doesn't help that SC decided to spend an extra thousand this past weekend at a department store on his credit card with us. I guess it's goodish that he had the available limit to spend, but still...
To (hopefully) end it all, the VP sent a rather strongly worded email to the SC...basically saying: "You make enough income. Stop spending so much."
By the way, this SC's income left over after his minimum debt payments is more than I make BEFORE my bills...
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