Refinancing w/ less than perfect credit????

kwbandaide63 · Joined: 05 Jun 2007 Posts: 1 1.47 Dollars($)

I am trying to refinance my ARM that is already up to 10.8% and set to rise again in a few months. My credit is in the 500's and my current mortgage company has reported me as 60 days late x 3. I was on medical leave and contacted them in advance and they had put me on a forebearance as that is all that they will offer-so because of this they report it as VERY late. HELP. I do not want to lose my house. I am currently with ASC which takes the payments for Wells Fargo. Have written to Wells Fargo but no one will contact be back. I am ready to sell and rent at this point. Any suggestions. I do not think that I can continue with these payments the way they are so holding on is not really an option. Anyone willing to refinance. I have lived in my house for 16 years and don't want to leave but will if I have to.

Guest 0.10 Dollars($)

How is the real estate market in your region? is there any equity in the house? Refinance will be difficult with credit score of 500+ and lates on your credit report. Have you contacted any lender about possibility of a refinance? what they are saying?

colin · Posted: Tue Jun 05, 2007 5:16 pm Post subject:

Hi Kwbandaide,

Welcome to Mortgagefit forum.

Being able to refinance this arm is quite possible but rates will be somewhat higher than normal because of the defaults you had on this present loan.

First thing to do for you would be to contact a few lenders to know what kind of rates they are offering. And by refinancing you would be able to come out of this adjustable rate mortgage which is going to go up even further.

Colin

Guest 0.10 Dollars($)

Provide us few more details about your current income, other debts and reason for such low scores, is it just because of defaults on the mortgage that your score has dropped so low or are there other debt problems also.

Have you received any refinance offers?

The position you are in, your next step would depend on the kind of rate you get on the refinance and would it be affordable for you.

Caron

Hi Kwbandaide,

Welcome to our forums.

I understand that you want to sell the home or else offer it for rent so that you can afford to pay the mortgage with the rental payments. Ok, then first of all, have a talk with the lender saying that you want to rent out the property as you have certain financial issues involved and you are keen paying the mortgage in time.

If you can rent out the property to a suitable tenant who's paying you on a monthly basis, then I hope it will be easier or you to follow the forbearance plan and make payments on the loan. And, if at all, it is not possible to find a suitable renter, then only you should think of selling your home.

Good luck!

charlesarmbruster

Most importantly, how much do you owe on the mortgage and what is the home worth today?

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