Home Equity Loan
Bad Credit Home Equity Loan score of 585?
I recently have decided to pull some money from my house for a few different reasons. I have had one of those years where some bills have gone unpaid and have gone to collections, not my best year but I am sure we have all faced this in our lives. My credit score has hit as a mid score a 585 which is below the guidelines for some lenders to allow an Heloc. My home value is about 500 K, and the loan pay off is about 250 K so I do have the equity in the home for the loan but just not the credit score. I have looked at a Refi but would suffer a prepayment charge from the lender that is around 8 K as well as another 10 K in closing costs etc....etc... I would like to do a Heloc and I am not really concerned so much about the interest rate on the deal as I will plan to sell the house in the next year. I am looking for a company that does that kind of lending. Any suggests my yahoo answer friends.
Public Comments
- Either way your interest rate will be exhorbitant, they will foreclose because you can't make the payments, then you will be a contributor to the current crisis. With your credit score you couldn't buy a new car with an interest rate less than 16.99%. (Probably a sheety Suzuki) My advice is to forget about a loan and fix your credit first.
- I'm sorry, but I won't recommend a lender. You need to deal with the deeper issue first. Your cavalier "these things happen" attitude toward paying your bills guarantees that you'll repeat your mistakes. You have home equity. I'm guessing that's your only asset. Don't spend it. Preserve it. Get your financial house in order. Improve your credit. THEN consider sucking out equity.
- I would never do a home equity loan. You put that money on the house and can't make the payments the bank will take your house. Check out daveramsey.com and listen to his radio show. He has lots of great advice on money and debt. It doesnt cost a dime to listen.
- Hi Jackey What you DON'T need is a new loan. This will negatively affect your credit. What you should do is to refinance the current mortgage that you have. This will in effect achieve two things, a lower interest rate that what a line of credit will offer as well as an improved credit score. The best place to look immediately is the lending tree, Bank of USA and even First Again. I know a friend in Chicago that is in that very same problem and he sent me this web link - http://homerepairloans.info/2007/12/15/home-equity-loan-with-poor-credit/ I hope it helps. It gives three no obligation forms to fill out that led to just about 42 offers. He sifted through until he found the perfect one. Take a look.
