What a week.
Signed all the documents for the refinance last weekend but had some issues with some of the numbers so decided to call the bank rather then send them in. I was concerned because it was listed like I had all the assets (and k had only a few), etc. The bank said not a problem they just put down minimums. The guy started looking to see if there were any other issues... after about an hour on the phone, he took it over to the underwriter.... ... Came back DENIED. I have a big ding on my credit, something went to collection.
[backstory - in 2007 I switched my phone from verizon to AT&T. Verizon charged me $300 for breaking the contract. I hadn't had a contract with them for years, they tried to say that when they sent me info and I didn't do anything that was a contract. So I called the Government commission listed on the phone bill, and they looked into it. Ruling was in my favor.]
So the loan was stopped. There are other loans that allow that ding, but they didn't have good cash out or APR and some wanted me to come up with $40,000. [one good point, was on the phone for 2 hours and the bank guy said I was the most calm, composed person he ever had to deal with, even after this unexpected screw up].
So then I called the government commission and found out their databanks don't go back that far.
So then I called Verizon. Got transferred a few times, hung up on a few times, and finally got through to someone who knew what I wanted and looked me up and said the credit was off the books and he would forward that to the reporting company and fax me a letter within 24 hours. YAH!
I got the fax the next day. It said the bill was paid off. I called my bank, and read them the fax, and they said it wouldn't work. The ding has to be totally removed from my credit. I asked them specifically what the magic buzz words to use were. They said it can't say collections, and it can't indicate I was ever late.
So I called back Verizon. Got transferred and hung up on a few times. But I'm persistent. Got through to the right place. Told them the buzz words. They said they could do it. They are sending the credit people another update, and faxed me a paper that said the ding will be totally removed from my credit.
I will call my bank at the end of the week and ask them to do a hard pull on my credit (I asked what the magic buzz words are) to see if its gone. And then restart the loan procedure. They can use most of the signed disclosures, so it won't be so bad.
I am planning on sending Verizon an invoice billing them for at least 4 hours of my time (more if its not done yet). Apparently this works sometimes.
The bank figures the ding was only noticed so late in the procedure because my score was so high, they just assumed I couldn't have anything big on it. Who knew.
So I transferred k's 401 from his old company (invested in a hodge podge, he tends to just equally choose funds) into an IRA brokerage account. He wants me to invest. Its a bit scarier playing with someone else's money. I'm going to probably go with low cost index funds and a few choice stocks. I don't think we will be adding to this fund. He has a retirement fund with his work (which I think discredits you?). I am trying to put money in roths for both of us, but maxing it out is $833 a month to save, and right now that's not happening.
The refinance was going to include paying off $16,000 I have in 'business' debt. Since I am sole owner the debt is mine. I consider it 'business' because it was used to buy inventory, and I was hoping the business would make enough to pay it off. But I am trying to grow the business, its currently in my house and I would eventually like to move it out. My dream is that k and I will buy the property and the business will incorporate and rent it from us.
The business is internet based, we sell custom clothing. There are currently over 10 people who help with production and shipping. The sewers are mostly stay-home-moms. It started off as a make-income for my friends with babies and I've had friends running it. I took over a few years ago and changed the business model a bit and did massive organization, before it was limping along making enough money to pay everyone and pay me enough for the bother of it in my house and the work I did on the occassional weekend. But I decided to build it up to move it out to a retail store which would significantly increase business. The plan is to move it out when I know I can afford all the expenses from the current business. And I want to have most of the stock. I don't want to grow in debt.
But I am in debt now, I used the card to make some major stock purchases last year, and to cover cash flow. Its only been 5 months since we re-organized and I am now taking an active role and making sure everything is progressing. I am not involved in daily production or shipping. I am doing the finances, logistics, and web work. I'm also making sure the house (my house) has room to expand. And, like all owners of small businesses, I take out the garbage. I am the direction. I have great people doing the work. I think its going to grow well. Its already shown it can limp along without even good pictures of our products.
And my point was... The $16,000 credit card debt for the 'business'. I'm going to pay it off with my 6- month emergency fund. It will wipe it out. I have been putting $1200 a month towards it, so it will grow again. I have psychological issues with putting my money towards the business debt, but I really need to get over them since its all me. (sole owner) Yes, I can write off credit card interest as a business expense. But its an unnecessary expense. And its better the business invest in itself and not have debt. So as the credit cards come in, I will pay them off.
I would still like to take the cash from the refi to pay off k's card. its at $12,000.
Ramblings March 24
What a week.