Bad Credit? - Repair it here yourself!

There're many reasons you may want help for bad credit. We're here to help you understand what affects credit, what makes credit bad, how and what entities define your credit, guide you through the credit definitions, financial concepts, common misconceptions and provide you with information and tools that will help to solve your credit problems. Get help for bad credit now! To achieve this, we provide you with Free Access to a wealth of credit related content, forms, tools and calculators. We show you how to improve your bad credit step by step, reestablish your ability to borrow monies, how and where obtain loans, credit cards, mortgages and other financing. Repair Credit now!

Foreclosure refinance - can you refinance foreclosure at all

Mon Jan 28, 2008 09:01AM | By Tony

See more in Mortgage | Permalink | Email | Comments (0)

You can refinance foreclosure and you can not - much depends on the state laws you live in, your credit history, why you are in foreclosure, and equity in your house. The WHY question is important.

How much equity you have in your house is the most important thing when it comes to foreclosure refinance. Many states provide you with redemption period during which you can try to bring your mortgage up to date.

You can try to sell or refinance. Again, your home equity or the loan to value ratio or LTV will be playing a crucial role, as even with quite bad credit scores, you can try to refinance your foreclosure - as long as your LTV is lower than probably 70% or you have at least 30% of equity.

The question is if this going to help, because the new interest rates will be high. The best thing these days is to work with your current mortgage holder.

And here the WHY comes - if you are in troubles because your adjustable rate mortgage jumped, then converting it to a fixed rate mortgage will make sense for your existing bank - as long as it can see that before you were always on time with your payments and your overall credit rating and history is decent. So the lender knows that giving you a break, will help indeed.

If you got yourself in too much debt, lost your job, etc., banks may be reluctant to help as they believe that you will be in the same situation again soon. I even hear about few cases when, while considering foreclosure refinance, some lenders look at you profession and job history to check how marketable your skills are. So it is tough out there.

Post a comment

Name:

Email:

URL:

Remember personal info?

Comments:

Please enter the code as seen in the image above to post your comment: