bad debt home equity loan needed

Guest 0.10 Dollars($)

Have equity in home but very low credit scores (less than 580). We have approx $37K in equity after 2nd mortgage. Need only $15K to pull completely out of debt & pay off all collections. We finally have the income to cover paying off debt, but this is a recent thing. Since there are multiple collections, & a garnishment pending, we just don't think we have the time to get it paid down. We've sent payments, but collectors tell us we have to send more or garnishment will start. We have all debt divided up by our expendable income & send each agency it's "share" per the Dave Ramsey plan. However, they don't seem happy with that & we're worried they won't wait any longer for payment in full. Should we cash the equity to avoid bankruptcy or keep trying to pay off ourselves? Also, could we even find a lender?

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

With the amount of equity you have in the house you should be able to get a mortgage even with a 580 score. Have you contacted any lender for the mortgage? And what they are saying?

Miller

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Jamie,

Nowadays, there are many lenders in the market who offers home equity loan to borrowers who have a low credit score of 500-600. Using the fund that you receive from the home equity loan will help you to reduce all your debts.

helping_user · Posted: Wed Aug 22, 2007 3:41 am Post subject:

Hi Jamie,

If you are being forced by your collector for full payment, then only think for cash out the home equity. Whereas, I don't think you face too much problem from lender for cash out the equity with having a credit score of around 580. Yeah, it may happen you will charge little high interest. That's why I am suggesting you to make it as your last option.

Thanks

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