should my mother refinance or maybe try an equity loan

hi andrekennedy,

if she is current on her payments and has equity on the property, then she can refinance the loan at a lower rate. however, before approving the loan, the lender will also check her credit score and income. i guess, a refinance is a better option than a home equity loan. this is because, the home equity loan will be a second mortgage. in that case, she will have to pay two mortgages. however, in refinance, she will get a new loan with new terms and conditions. it will not be a second mortgage.

thanks

"she had already filed chapter 13 a few years ago "

if she had filed a BK under chapter 13 then by this time the asset should have been free from mortgage.

You want to keep the asset so better you go for refinancing the mortgage.that will surely be good move.Ask your lender to increase the debt period while lowering the EMI. (monthly installment).

If you are not lagging behind on your mortgage then surely they will cooperate in this regard. :arrow:

refinancing is a far better option. perhaps she can push the term out to a maximum length so as to drop payments and thereby make the pain less when she goes to write those checks every month.

my mother has not good credit and somewhat low income ,where or what mortgage company will work with her if she is current.she is currently financed with Walter mortgage company out of Florida,but they are tough to deal with ,they took her to court twice already in the past for being behind.just want a company thats reputable and fair,and wants to help.we are new at this,

Hi andrekennedy!

Welcome to forums!

In order to refinance the property with a new lender, your mother would require a good credit score and stable income. Lenders will check these before approving a refinance. She will, thus, have to improve these and then look out for a refinance. To improve her credit, she can check out the following page:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Sussane

andre, you don't describe a situation that would entice many lenders. you describe poor credit, low income and a history of delinquency that has already resulted in legal manuevers by the mortgage company on two occasions.

truly, you'd want to have your Mom's credit analyzed, see exactly what her score is, and come up with some outstanding compensating factors in order to obtain a loan for her.