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Guest

My wife and I have had credit problems due to family illnesses as well as job loss in the past. 9 years ago, we were renting our home and the owner wanted to sell and offered us a great price. At that time our credit was problematic and we only qualified for a 2-year ARM. We didn't want to move, so we bought the home.

Since then, we have managed to make the payments which started out at $1200 per month and rose to $1900 per month over the years. Unfortunately, 3 years ago, both my wife and I lost our jobs and although we made our mortgage payments, other bills were late - affecting our credit scores negatively again.

Now, with this recession, we fear layoffs yet again. Interest rates are low, but I feel we may have problems refinancing into a fixed rate loan because our credit rating is still poor. Because our household income is high, we don't qualify for any government loan rehab program.

Am I stuck with this ARM forever?

jnoa · Posted: Wed Jun 10, 2009 9:29 am Post subject: Depends

From the information you gave it is hard to say, what exactly are your credit scores? I believe from the question you both are currently employed? Do you have any lates on the mortgage in the past 12 months? If you live on the east coast, touch base with me through the contact information below and I can help point you in the right direction to getting out of the ARM depending on the above variables. If you live somewhere else let me know those answers and I will try and give you a good estimate of what you can do.

Good luck

Guest

My wife's score is in the high 500's. My is in the low 500's. We are both employed, but she makes much more than I do as I have just started my own business. We don't have any lates in the past 12 months. We live in Michigan.

thanks for your help!

jnoa · Posted: Wed Jun 10, 2009 10:11 am Post subject: advice

I do not know about Michigan, but there are a few lenders on the east taking 580's and higher. That being the case touch base with a broker in your area to see if they can find a loan for you. Most likely you will need to have only your wife on the loan and hope her income covers it. If you can't qualify, try to rebuild your credit by doing things like keeping ALL credit card balances less than 25% of their loan limit, paying off the balance each month, not applying for new credit such as credit cards, store cards, auto loans ect, and trying to pay down any high balances if possible. All of those will hopefully bring up your scores in a few months so you can move forward and get to a fixed rate.

Good Luck

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