I've been searching long and hard for a mortgage lender that can help me but have yet to find one that can. I have some old credit card / loan debt that is killing my credit score. Currently I am sub-600. My house appraises north of 350K. I owe 127K on the first mortgage, 20K on the 2nd. So i'm looking at a minimum of 200K in equity. I need approx. 50K to get completely out of debt not including the house. Does a lender exist that would lend to me with my terrible credit score? Also for background, i was in forbearance until Dec of 2021 and had a loan modification in June 2022. I am currently behind on my payments. Seems as if i'm sitting on tons of equity which would fix my problem but can't touch any of it. Any suggestions are appreciated. Thanks.
Cash out refinance to eliminate debt but have poor credit
- Thread starter AJ327
- Start date
OneHugeMess
LoanSafe Member
I would deeply consider bankruptcy. It will be next to impossible to get a Home Equity Loan, with a high DTI, and bad credit score.
The only thing I would suggest, is, if all your debt, is mostly credit card related. You could attempt to reach out to a Credit Counselor like (InCharge or Similar) who'd put you a Debt Management Plan. They'd get you a lower interest rate on all the credit card loans, and you'd avoid a formal bankruptcy, and new debt.
The only thing I would suggest, is, if all your debt, is mostly credit card related. You could attempt to reach out to a Credit Counselor like (InCharge or Similar) who'd put you a Debt Management Plan. They'd get you a lower interest rate on all the credit card loans, and you'd avoid a formal bankruptcy, and new debt.
