Credit and Mortgages
I need help! I own a 3/1 ranch style house in GA with about 30,000 in equity, I own a cottage w 9 acres in KY free and clear, value about 35 to 40,000, and primary residence in KY value about 150, payoff 99. I want to cash out my equity and pay off all credit card debt and close all but two, but, because of the credit card debt, I cant get a loan, any ideas about how I could solve this problem. The house in GA is rented, the cottage is up for sale. I need some creative ideas that will straighten out this mess. The equity in the homes will cover the debts.
Have you tried contacting a mortgage broker who can help you find a cash out refinance loan? If you explain to them that the money you cash out will be used for debt relief, then they may be able to help you locate one. You can find a mortgage broker in the yellow pages. Good luck.
Tanya
To add to Tanya's post. Go ahead and close the credit cards that you plan to. Then when you speak with the broker, tell them that you want to use the equity to pay off the closed accounts. Have the closing agent pay off these accounts at closing, not cashout to you.
This way, the cards are already closed, so if you pay off the balance, you can't simply go back and put more on them (protection for the refi lender, and lowers your DTI level as well). By having the closing agent disperse the funds DIRECTLY to the CC companies, the lender is assured that these loans are actually paid off (no relying on you, the customer, to pay them).
This will increase your chances to get refinanced.
Roger
Contact me at
MentorForWinners@aol.com with your contact info and I'll get in touch with you.
Mark
I do cash out, debt consolidation loans all the time. Call me my contact info is under my profile.