Posted on: 06th Apr, 2012 01:11 am
my credit score is in the range of 670. we have to move and our property is also underwater. the lender has decided not to approve a short sale. we owe $114k on the property. we haven’t even received any buyers for our property until we lowered the price to $95k. now situation is tough and we want to refinance our mortgage to reduce the payments or get a 15 year loan. then we’ll be rent it out. i will be receiving a cash bonus next month. would i be better off paying off the credit cards with that money or should i put it toward the mortgage. is there any way to reduce loan interest when one is unable to pay them?
Hi Papyrus,
First and foremost, as you're not staying in the property, it won't be a good option to refinance the mortgage now. You won't be able to offset the closing costs that you will be paying at the time of closing unless you stay in the property for the next 4-5 years. It will be better if you could contact your lender and apply for a loan modification and pay off your debts.
Take care
First and foremost, as you're not staying in the property, it won't be a good option to refinance the mortgage now. You won't be able to offset the closing costs that you will be paying at the time of closing unless you stay in the property for the next 4-5 years. It will be better if you could contact your lender and apply for a loan modification and pay off your debts.
Take care
Is the existing mortgage owned by Fannie Mae or Freddie Mac?
If it is, call the lender and ask if you cxan do a HARP 2 refinance.
Technically, if you do a new mortgage, you are supposed to live in the property a minimum of one year after that. Otherwise, you are supposed to be doing an investor mortgage and the are is higher for that
You may be best off just keeping the mortgage you have and rent the property
If it is, call the lender and ask if you cxan do a HARP 2 refinance.
Technically, if you do a new mortgage, you are supposed to live in the property a minimum of one year after that. Otherwise, you are supposed to be doing an investor mortgage and the are is higher for that
You may be best off just keeping the mortgage you have and rent the property
