If you have Bad Credit is it impossible to refinance?

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My husband and I got ourself in debit. First off we put off paying our mortgage for a few months. And finally got a letter saying that we were put in to forclosuer. We took a title loan out on our only vehicle and went to the bank to pay off. However the bank said it was to late. And said we needed to contact the lawyers office to make the payment. So we contacted them as well as another company that helps forclosuer that would loan us the full ammount of money needed to pay the lawyers and bring us current and regular with our Bank-Another loan. SO now we have to pay our regular house payment of 800.00 our title loan payment of 800.00 and our 2nd mortgage of 400.00 This will be for the next two years and will leave us pretty much broke each and every month. I want to refinance and pay everything off and just work with 1 payment, my husband doesn’t. One reason is credit. HELP! I need all the advice about this situation as I can get

  1. Reply
    May 1, 2011 at 6:36 am

    Once you have bad credit, the damage is done, and it will stay with you for seven years, the average credit reporting time. It is not impossible to refinance when you have a bad credit, it will just make you have a little higher interest rates. If I were you I would tell your husband, that it is better for you to have one payment a month than multiple payments every months, because if you miss one of the multiple payments, it can effect the other payments on the loan. The bank can use that late payment from other loan as a precautionary move to make your interest higher, and therefor you will ended paying more than you owe.
    Convince your husband to do a refinance because in the end you will save money instead of losing money.

    Good luck.

  2. Reply
    May 1, 2011 at 7:21 am

    It’s a little late to be asking for help. I doubt that there is any equity in the house, and you were probably scammed by a lender that deliberately overvalued the real estate for their loan, so you are most likely in debt more than the real value of the house, especially in the present market, unless you have a very unique local market.

    By keeping your first mortgage, which probably has a low interest rate, you did well. What else you did was not. You should have talked to a lawyer about a Chapter 13, which would have allowed you to keep the house with a plan for paying the mortgage arrears and a small amount on all your other, unsecured, debt.

    Refinancing the whole thing, assuming you can get it, will mean paying a higher interest rate on the total amount, thus paying a lot more over the life of the mortgage. And the monthly payment may not be less than what you are paying now. Check out the possibilities carefully. If you have a local credit union you can join or belong to, they may be willing to help.

    Avoid anyone who wants a deed or deed of trust for a loan, or who promises to let you buy the house back “after.” There won’t be an after.

  3. Reply
    micky b
    May 1, 2011 at 7:40 am

    This is a well recommended consolidation company on this site :

  4. Reply
    stephen l
    May 1, 2011 at 8:23 am

    There are lots of things you can do to improve your credit. One is credit repair. A creative loan officer could probably do the loan for you as well. The 2nd source website has a freee evaluation form that may be of some help. Good luck.

  5. Reply
    May 1, 2011 at 9:00 am

    Get valuable tips on bad credit from http://moneymentor.cashmatter.info . It’s a very useful website.

  6. Reply
    Gary H
    May 1, 2011 at 9:09 am

    Don’t lose hope if you’re looking to buy a home. There are so many different ways to fund a home now, just about anyone with any kind of credit can get into a home, regardless of credit situation.

    Of course, some will cost you more money in the long run, but a home it’s still one of the best investments that you can make, so, in many cases, it’s worth it, especially for the first year of ownership.

    You should shop around, and ask different lenders what kind of programs they have, and if they can help. Try to find a lender that specializes in bad credit mortgages. You can find some bad credit mortgage lenders listed on this page on and off:


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