I hope someone can help. I have over $500,000 in equity in my house but because of my bad credit rating, no one will give me a Home Equity Line of Credit. It would be such a huge help to consolidate my bills.
Any ideas? Thanks so much in advance.
I am surprised that nobody will give you a loan that uses your home to secure it. Most places are jumping at the bit to do just that. In both cases, I was told I had derogatory marks on my
credit report. Washington Mutual was more informative about delinquencies and late payments (which I know about but I’m trying to be on time now). Other than that they wouldn’t say a thing. I can just see it: they’ll be over me like white on rice if and when I do pay my bills to give me a loan.
If anyone knows of a company that could help, I’d appreciate any information you can provide.
Well, first I’ll start with my opinion..
Why would you want to put your house as risk by getting a home equity loan.. Let’s look at it this way, if your mortgage is $1000/month and your credit cards are $1000/month, you can get a home equity loan and maybe have a mortgage payment of $1500 now instead of $1000.. So, if something happens and you can only afford $1000/month, you can no go into forclosure.. so if it was me, I wouldn’t take that risk.. Of course that’s a simple look at it, but that’s the general idea.
I don’t know your situation of course, but if you’re not too attached to the house, why don’t you sell it, make the $500,000 you have in equity and use that to pay off the bills and then you live in an apartment with no debt and a bunch of money in mutual funds. Then you can start over by saving for a new home or using the funds you have as a down payment. Again, I don’t know your situation, but I’m answering as “what I would do”
If you’re still bent on getting a home equity loan, then you can look for mortgage companies that do manual underwriting. Meaning that they actually look at all aspects of your life. Did you pay the mortgage on time, did you pay your electric on time, etc as opposed to just looking at your fico scare. Hope that helps Tom and good luck!
Try your local credit union and/or bank that you have a relationship with already. They may be more willing to “work with you” even if you get higher interest rates. The more I read, the more I learn about how companies are screwing people for paying late. It does not help a bit that nowadays they want the payment there by 10:00 a.m. Pacific Time. If it gets there at 11:00 a.m., you get higher fees, charged late, marks on the credit report, etc., etc.
Not everyone can pay a bill the second it arrives in the mail.
I have looked into home equity lines of credit, and it all ‘looks’ good. But, something was always holding me back. I never did one, and am now getting out of debt without putting my house on the line. I own this, and it is the thing standing between me and the street, so I wouldn’t ever park my house on the line like that.
This would be a one shot thing and I’m only looking for 30K to settle my mom’s estate. That’s what’s aggravating (among many other things). I’m looking to get a loan (or HELCO or whatever you want to call it) of less than 10% of the available equity. Thanks for all your advice, though.