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CAN ANY ONE OFFER ME SOME ADVICE ?

Hello,

I became disabled about 3years ago. I lost my business due to the disability and now my only source income is my Social Security Disability Check. I own my home, but have a Home Equity Loan and credit card debt. I‘ve been getting by and paying both with my S/S check and my savings account. I would like to consolidate my Equity Loan and my Credit card debt to lower my monthly payment ,to where I'm able to afford to pay for this with my Disability check alone.

Do to my situation of being disabled and not employed , I don't know who or were to go for help with this. I'm afraid to call my bank(Citibank) who is holding the note, thinking if they know of my situation, it might cause problems with my current loan. I don't know if going to another bank is the thing to do or just contact a mortgage broker.

My credit score is 730 and my wife's score is 768. We have never missed or been late on a payment and no bankruptcy. My house is worth $450000.00 and my Equity loan is $124000.00 and Credit Debt $55000.00. My credit score is due to the credit card debt, it was about 775 I never had that much credit debt and this is do to my disability. Also ,my current rate on the Credit debt is 2.99 and 3.99.I'd like to consolidate both and get another Equity loan/line in the range of $200000.00-$230000.00.

1.Will contacting my bank cause any problems?
2.Should I apply to another bank for a equity loan?
3.Will a bank not even consider my application with the
situation I describe here?
4.If I apply to another bank and get turned down , Will it effect my
credit report if I try a mortgage company to obtain a loan?
5.With the information I gave here, I'm I wasting my time? Will
I get a loan?
6.Are there any other options for me?

I'm at a stand still here and don't know what direction to go.......
I would appreciate any advice or info.........................
Thank you
Tom

ckalvesmaki · Posted: Fri Oct 12, 2007 7:03 am Post subject:

Posted: 12 Oct 2007 05:22 Post subject: Help with Debt Consolidation

---------------------------------------------------------------------- ----------

CAN ANY ONE OFFER ME SOME ADVICE ?

Hello,

I became disabled about 3years ago. I lost my business due to the disability and now my only source income is my Social Security Disability Check. I own my home, but have a Home Equity Loan and credit card debt. I‘ve been getting by and paying both with my S/S check and my savings account. I would like to consolidate my Equity Loan and my Credit card debt to lower my monthly payment ,to where I'm able to afford to pay for this with my Disability check alone.

Do to my situation of being disabled and not employed , I don't know who or were to go for help with this. I'm afraid to call my bank(Citibank) who is holding the note, thinking if they know of my situation, it might cause problems with my current loan. I don't know if going to another bank is the thing to do or just contact a mortgage broker.

My credit score is 730 and my wife's score is 768. We have never missed or been late on a payment and no bankruptcy. My house is worth $450000.00 and my Equity loan is $124000.00 and Credit Debt $55000.00. My credit score is due to the credit card debt, it was about 775 I never had that much credit debt and this is do to my disability. Also ,my current rate on the Credit debt is 2.99 and 3.99.I'd like to consolidate both and get another Equity loan/line in the range of $200000.00-$230000.00.

1.Will contacting my bank cause any problems?
2.Should I apply to another bank for a equity loan?
3.Will a bank not even consider my application with the
situation I describe here?
4.If I apply to another bank and get turned down , Will it effect my
credit report if I try a mortgage company to obtain a loan?
5.With the information I gave here, I'm I wasting my time? Will
I get a loan?
6.Are there any other options for me?

I'm at a stand still here and don't know what direction to go.......
I would appreciate any advice or info.........................
Thank you
Tom

Hi Tom,

I am sorry to hear about your situation......I do have a couple of questions though.....
The first question would be....how old are you and your wife? I ask this because a if you are old enough then a reverse mortgage may be an option for you......

My second question is......What is the current rate on your heloc?

Finally.....There are options and a broker may give you better options than the lender you are currently with....They have very limited programs(i am able to wholessale through them)

Posted: Fri Oct 12, 2007 7:40 am Post subject:

Cedric - Thanks for the reply !
My wife and I are 51- so no Reverse mortage. I'm hoping to get a loan that I can handle until I'm eligble for a Reverse mortgage.
My current rate is 8.25% (arm)I have 1 year before it goes to a fixed rate with a twenty year pay off. That I can handle it's the credit card payments that are hurting me. The rates are good on them at 2.99 and 3.99 but there combined monthly payment is $1050.00. I need to get that down.
I know its not wise to pay unsecure with your house on the line.Are there any other ways to go.
Thanks again

Posted: Fri Oct 12, 2007 8:14 am Post subject:

I would take a look at combining the 2 mortgages into a 30 year fixed interest only loan.......the interest only would be for 10 years......allowing you to then go into a reverse mortgage......what is the current payment on your first mortgage.....???

Cedric

livinginnky · Posted: Fri Oct 12, 2007 8:33 am Post subject:

tgolden · Posted: Fri Oct 12, 2007 9:17 am Post subject: Tony Golden

Great feedback Eric
Tony Golden
Financial Advisor

tgolden · Posted: Fri Oct 12, 2007 9:22 am Post subject: Tony Golden

Hello Tom,
I agree with Cedric and I believe your plans with a reverse mortgage will be helpful in your situation. One other factor you may want to consider is that a reverse mortgage will limit the amount of money they loan you so your home can continue to grow in appreciation at a faster pace then the compounding debt. The lower your current mortgage is at age 62 will allow you more money to utilize for monthly cash flow or long term growth.

With that aside, I'm sure you would rather focus on the present situation.

Other then the credit card and mortgage debt, do you have a car payment or anything of that nature?

I would believe that you should be able to get another HELOC to consolidate your debt but it looks like you need to consider future financial planning as well as resolving your immediate situation. It is a good situation that you have great credit scores and want to consolidate. The only concern would debt to income based on your fixed income situation. Using up your savings would also be a concern to me in securing your future.

There are a few programs out there that may be of benefit to you that like a reverse mortgage, the program is designed to benefit your financial planning for now and the future instead of just acting as another loan that puts a patch on the current situation. If interested I will see if I can help you with reviewing such programs.

Tony Golden
This response is for reference only. Please seek professional and legal advice before acting reference materials

Posted: Fri Oct 12, 2007 10:37 am Post subject:

Thank you so much to everyone, for the replies!

Cedric, Thanks again .
I was thinking of a std. 30 mortgage but figured the
closing cost would be high. With a HELOC it seems alot of banks charge no closing cost.
___________________________________________________________

Eric, Thank you for all that input..............
As far as the answers to a couple of questions you had:

Payments for my Equity Loan and Credit Cards=approx.$1950.00 a month.
My S/S check is $1853.50 ( It's tough ,You never think it would could happen to you............)
Never late with any payments-credit clean

Eric a question I have for you ,if you don't mind is: How or what is the best way to approach Citibank? I want to consolidated the two but as I mentioned I would like to get a little more just in case of an emegency.
It will go into my savings account.
_____________________________________________________________

Tony Thanks,
To answer your questions:
I had a car loan ,but paid it off early in full - 1/07 .
The only other loan I have is a Parent College Loan which is $73.00
a month with only $2800.00 left to pay.
________________________________________________

Thanks again to all I appreciate the help..........
Tom

Guest

Hi Tom,
That's good to hear. It is always good to think ahead and make sure the key needs such as transportation are secure for the near future.
I see that you have a few options being introduced to you which is good. Definately contact your existing company to see what they can do but i would plan to have a few options to reveiw. Just be careful that the motivation behind all parties involved is to resolve your current and long term needs and not just sell you a product.
I will gather some program details that may be of use and see if I can upload for your review. I know when you get to this point it all can become overwhelming but it is good to take a step back if possible and gather your options
Best Regards
Tony Golden

jenkin7 · Posted: Sat Oct 13, 2007 4:33 am Post subject:

Hello Tony,

Your post was really informative. But do you think Tom can still qualify for a reverse mortgage at the age of 51?

Posted: Sat Oct 13, 2007 8:19 am Post subject:

Hi To Everyone........

I Thank You All So Much For The Help....... I look forward to hearing from all of you.

ckalvesmaki · Posted: Sat Oct 13, 2007 10:51 am Post subject:

Tom in your earlier post........You had talked about the "costs" associated with a redoing your first mortgage......There are costs associated with a second as well...A higher rate being one of them.......basically with your scores......a decent broker should be able to put together a loan with very little in the way fo closing costs.......and un like a HELOC you wind up with a fixed rate..........which would be much better for you in the long run......Citibank is like any other big lender today..........and this is just my $.02....The majority of big banks will higher anyone they can to be a "loan officer" because bank are exempt from the state licensing requirement......you don't have to have any expiereance or education.....That is not to say that there aren't a lot of good people who work for them.........but you are a number.....Can you get a hold of your LO on a saturday if you have a question? Ho about at night and after hours? In your sitution you are probably best suited by dealing with someone who will take the time to explain every step of the process to you......review ALL of your options......and come up with the BEST plan for YOU.......

Posted: Sun Oct 14, 2007 2:06 pm Post subject:

Before we get any further... Originally you posted your CC's had a rate of 2.99 and 3.99... Are those introductory?

When you approach Citibank the best policy would be to be upfront and honest about them getting their money. "Money talks" and this is true in this situation more than ever. The best way to handle them is to lay out their options as clearly as possible. And here is what they are...

1. Help you. In doing so they get to keep some money. If they consolidate your debt then you get to pay on the new mortgage to them just like you are now.

2. Don't help you. You refinance anyway and they get 0. A big fat nothing no mortgage no credit cards nothing nada zip. Got it.

Now as stated above Citibank is no better than any other lender. If they aren't "helping" you with good terms then go somewhere else anyway. Just like any mortgage you should shop for the best deal anyway. The only reason I would consider them is if they would refi the cc debt to the mortgage without any significant closing costs. Like I said ealier they are just going to do a new mortgage just like any other company would do.

Now the main question is this. What can be done to help you get in the best situation possible? The only way to truly answer that is to get with someone and apply for a new loan. You will then be able to find out what options are available. Just like was stated above it is important to get a new loan based on helping you not just putting you deeper in a hole.

livinginnky · Posted: Sun Oct 14, 2007 2:08 pm Post subject:

That was me above. Forgot to login.

Posted: Mon Oct 15, 2007 6:29 am Post subject:

Thanks again to everyone here! You don't know how much I apprecaite your help and information...............................................

I don't feel as nervous as I did prior to finding this forum. I though because I was not employed with very little income, I wouldn't even be consider for a loan especially with a good rate.

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