Posted on: 03rd Jul, 2009 01:04 am
i own a house in the sf bay area, holding the property as my sole and separate property (i had inherited the home) i took a mortgage on the property for $150,000 3 1/2 years ago (interest only loan at 10.75% private lender) the money was used to help my husband and i's business, which ended up closing last year after 14 years.
we live on the property, and my husband and i have been having a hard time finding jobs. i am working part time, and am confident i will find more work in the near future.
i am behind in my mortgage payments, no default has been filed yet, but my credit is very bad because of the business failure (it was a sole proprietorship) i don't know if i can refinance or not in this situation. i have about $150,000 in equity even with the economic downturn.
we have about $20,000 in joint debt because of the business failure, with a credit score of about 500 or less.
i need some ideas of what i should do.
i want to remain in the home. it is our family home and i my parents intention was that it should be left to me then to my sons. i have rented out 2 rooms to help get by for now.
any advice would be much appreciated.
thank-you.
we live on the property, and my husband and i have been having a hard time finding jobs. i am working part time, and am confident i will find more work in the near future.
i am behind in my mortgage payments, no default has been filed yet, but my credit is very bad because of the business failure (it was a sole proprietorship) i don't know if i can refinance or not in this situation. i have about $150,000 in equity even with the economic downturn.
we have about $20,000 in joint debt because of the business failure, with a credit score of about 500 or less.
i need some ideas of what i should do.
i want to remain in the home. it is our family home and i my parents intention was that it should be left to me then to my sons. i have rented out 2 rooms to help get by for now.
any advice would be much appreciated.
thank-you.
Hi theartistchick
Though you've equity in the property, you should have a credit score of around 700-720. As you've mentioned that you've a credit score of 500 or less, it would be difficult for you to get a refinance.
You've mentioned that you are delinquent in your mortgage payments. In such a situation, it would be better if you could contact the lender and apply for a loan modification. A loan modification will help you in saving your property and will also lower your interest rate to some extent.
Thanks.
Though you've equity in the property, you should have a credit score of around 700-720. As you've mentioned that you've a credit score of 500 or less, it would be difficult for you to get a refinance.
You've mentioned that you are delinquent in your mortgage payments. In such a situation, it would be better if you could contact the lender and apply for a loan modification. A loan modification will help you in saving your property and will also lower your interest rate to some extent.
Thanks.
Thanks so much for the reply. I've read that it's a good idea to contact HUD also. I wonder if a private lender would even consider a loan modification. The mistake I made was to increase my payments to them in an effort to catch up, which in reality I did need a modification at least until we could stabilize. :(
Welcome back theartistchick,
You can definitely speak to HUD and see if they can help you in this regard. If you find that HUD is unable to help you in this regard, then contact your lender and check out the options he can offer you.
You can definitely speak to HUD and see if they can help you in this regard. If you find that HUD is unable to help you in this regard, then contact your lender and check out the options he can offer you.
You really need to work with someone to get your credit up to 620 or more.
