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I need some advice -


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I posted this on the "credit repair" board too - sorry.

My husband was applying for a HELOC ($24,000) by himself because my credit is horrible. I have numerous "Collection"/Charge Offs" on my report - totally about $10,000 - with an additional $14,880 for a voluntary repo - which I am trying to work out payments on now.

He was shot right down because his salary was not enough. But, if they use my credit and salary - they said I would have to pay off all the collections - that would be the entire $24,000 loan that we want for home repairs and/or improvements.

Does anyone know any options here. I'd be willing to try to pay off the $10,000 debt, but not add in the $14,880 and just pay them with a payment plan. Would that work?

My salary would definitely help. I make more than him (on the books) and also recieve child support that I could show as income.

Could we possible remortgage and get more money that way. If I had to pay ALL my debt, we would need more like $50,000 to pay it all and do the home improvements. What do you think?

I guess after typing this - I will also post this on the mortgage board. Thanks for your help.

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To start, I hope that your screen name is not reality. If you are in a situation where things are bad cash flow wise, and a loan will not cure them, then I would suggest you not do anything. To increase your long term debt to pay off short term debt is normally not a good suggestion.

If however, you have had a rough spot, and now things are back to normal, then lots of times taking equity from your home to get rid of your "old" debt it a good idea.

Now: to answer your question:

HELOC"s and 2nd's are much more risky than 1st mortgage loans, so most lenders want much higher minimum range of credit scores than if you are either just getting a first or a first/second combo.

One possible thought is that, depending on your DH credit scores, you could get a "stated income loan". Take your income and his income and together have a figure that you would put down as his "stated income" Not all but some lenders have stated income wage earner loan programs for just this set of circumstances.

You could contact the people that are handling the REPO, and see if you were to make them a lump sum payment-maybe they would take less. They for sure get part of their money instead of the hope of getting all of it.


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