Mortgage refinancing with bad credit
If you’re trying to get a get a mortgage, a second mortgage, or a home loan with bad credit there are ways in which you can improve your credit score. You need to discuss your predicament with a mortgage professional who can tell you what your options are. There are often legitimate causes for poor credit ratings such as sickness, unemployment and other financial problems. If you’ve had a problem in the past, but your payments have been on time and steady for one year since, your credit score could be satisfactory enough to get a mortgage refinance loan. If at the moment you have excessive debt there are 4 options that you can choose from to control it:
1. You can reduce your other expenses if your credit score isn’t in really bad shape. Reducing certain expenses may mean making lifestyle changes such as selling your car, getting a non secured signature loan, taking equity out of your home, selling off your home, cashing out your retirement benefits, selling expensive personal items, or simply watching how you spend your money.
2. If you credit score is severely damaged and you cannot do anything from the first point, then you can find a local CCCS office and get Consumer Credit Counseling Services. You may be able to get some help in paying off your debts via Chapter 13 bankruptcy even though you don’t literally have to file for bankruptcy.
3. The third option, if CCCS cannot help, is to claim bankruptcy. Claiming chapter 13 bankruptcy takes longer than chapter 7 but it is better because it doesn’t affect your credit rating as badly. Chapter 13 gives you up five years to pay your debts and your credit score will show that you’ve been bankrupt for 7 more years on top of when you complete the debt payments.
4. Chapter 7 bankruptcy is for people that feel they cannot ever repay their debts. This is the least desirable option because your credit rating is basically ruined for 10 following the year that you file, but you’ll be out of bankruptcy in 6 months and you’ll never have to repay the debt.
Bad credit history can be improved by making a sincere effort to pay your monthly payments on time. To get a mortgage, or home mortgage refinancing it really depends on your financial reviewer and how your credit score looks to him. If after one year you’re not able to get a mortgage, wait another year and make sure you make your payments on time every month.