Posted on: 16th Aug, 2010 06:23 pm
My husband and I want to refi our house to take advantage of these great low rates. Our current mortgage is with BAC, our balance is about $167,000, and our current payment is about $1,100. We want to shorten the term to 15 years, which, if we can get 4%, would give us a payment of around $1,300.
The big problem is my credit score. It is in freefall right now because of my ex-husband's mortgage, which I am still liable for. He filed bankruptcy last year and fell behind. I was not notified and did not find out about this until almost a year after it happened. He is paying off the arrears now as part of his Ch. 13 plan, but it will be another 4.5 years before he is officially caught up. His mortgage balance is $41,000, and his regular monthly payment is $400. His mortgage was formerly with Countrywide, so now it is also with BAC.
I have a lawyer who is preparing to intervene in the bankruptcy to try to either force a sale of the house or have me removed from the mortgage.
I just pulled my FICO scores. Equifax says 733, TransUnion says 628, and of course, I don't know what Experian says. We haven't looked at my husband's scores, but there is no reason to believe they aren't excellent. Nothing much has changed for him since we bought our house 4 years ago, and he was in the 790s then. I was in the low 800s then. Sigh.
My question: Is there any point in applying for the refi and trying to get a lender to listen to the explanation above and ignore my bad scores accordingly? If we're going to be turned down automatically, I don't want the inquiries dinging me further.
Thanks for your help.
The big problem is my credit score. It is in freefall right now because of my ex-husband's mortgage, which I am still liable for. He filed bankruptcy last year and fell behind. I was not notified and did not find out about this until almost a year after it happened. He is paying off the arrears now as part of his Ch. 13 plan, but it will be another 4.5 years before he is officially caught up. His mortgage balance is $41,000, and his regular monthly payment is $400. His mortgage was formerly with Countrywide, so now it is also with BAC.
I have a lawyer who is preparing to intervene in the bankruptcy to try to either force a sale of the house or have me removed from the mortgage.
I just pulled my FICO scores. Equifax says 733, TransUnion says 628, and of course, I don't know what Experian says. We haven't looked at my husband's scores, but there is no reason to believe they aren't excellent. Nothing much has changed for him since we bought our house 4 years ago, and he was in the 790s then. I was in the low 800s then. Sigh.
My question: Is there any point in applying for the refi and trying to get a lender to listen to the explanation above and ignore my bad scores accordingly? If we're going to be turned down automatically, I don't want the inquiries dinging me further.
Thanks for your help.
hi kschess!
welcome to forums!
with the score of 628, you would be able to qualify for a fha loan to refinance provided you don't have much negative items in your credit report. you need to contact your lender and apply for a refinance immediately. however, it's not mandatory to refinance the loan with the same lender. you can contact other local lenders and apply for a loan.
feel free to ask if you've further queries.
sussane
welcome to forums!
with the score of 628, you would be able to qualify for a fha loan to refinance provided you don't have much negative items in your credit report. you need to contact your lender and apply for a refinance immediately. however, it's not mandatory to refinance the loan with the same lender. you can contact other local lenders and apply for a loan.
feel free to ask if you've further queries.
sussane
Thank you, Sussane.
Yes a 628 should be able to get you into an FHA refi if other requirements are met.
i know some lenders have been pushing 665 for an fha refinance now days...
Hi Greg, Ive heard some lenders going as low as 600's but i know most still look for the min Fico of 620. Havent seen any lenders using 665 as a min fico score these days.