Posted on: 08th Apr, 2010 07:08 am
so i have a balance of 83k on my home in ohio, which i put 30k down on. i have great credit and can afford the payments as i have a great job. the bank said they would refinance where i can cash out 35k. i am considering doing this and moving back to ky. i would be living with my mom and have the money back i put down on it. it's up for sale but hasn't sold as of yet. i just want to be done with the home and move closer to my family. what are the worst ramifications if i chose to do this? any advice would help1
If you take a cash out loan and do not pay it off, the lender will foreclose the property. This will have a severe negative affect on your credit report. Your score would go down by 250 points, you would be liable for the deficient mortgage balance resulting after the sale of the property and you won't be able to qualify for a loan in the next 2-3 years. Also, this negative item will remain in your credit report for the next 7 years.