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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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Keep your fingers crossed...
We're waiting to hear back about being approved for a 2nd mortgage so we can pay off our credit cards. It's a 125% 2nd mortgage loan. Not our first choice, but our credit cards are killing us at 29.9%. We've only been paying minimum payments for years. It's time to get rid of them. We just have to hope that when we sell the house, it's worth enough to pay off the loan.
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Posted 9/13/05 9:21 AM  |
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Prudential Douglas Elliman Real Estate
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MrsERod
Praying for Everyone.
Member since 5/05 26170 total posts
Name:
MrsERod™®
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Re: Keep your fingers crossed...
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| Posted 9/13/05 9:22 AM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Keep your fingers crossed...
honestly Melissa, the idea of a 125% loan at this point in the market is scary to me. You'll owe more than your house is worth, and the market is not increasing as quickly as it was over the last few years. Is the second mortgage a fixed rate?
Have you sat down with a financial advisor to discuss your situation? There may be better options for you out there to consolidate your CC debt without over mortgaging your house.
Good luck!
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| Posted 9/13/05 10:01 AM |
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monkeybride
My Everything
Member since 5/05 20541 total posts
Name:
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Re: Keep your fingers crossed...
Posted by -Lisa-
honestly Melissa, the idea of a 125% loan at this point in the market is scary to me. You'll owe more than your house is worth, and the market is not increasing as quickly as it was over the last few years. Is the second mortgage a fixed rate?
Have you sat down with a financial advisor to discuss your situation? There may be better options for you out there to consolidate your CC debt without over mortgaging your house.
Good luck!
I kind of agree.
I wish you luck on whatever you decide but weigh the risks very carefully.
We wanted to sell our house to buy a house on a larger piece of land (we don't live in NY either) and we couldn't even break even on reselling our house. I would think in NC where there is lots of new construction you might run into the same problem. There are definitely better options for credit card debt.
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| Posted 9/13/05 10:04 AM |
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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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Re: Keep your fingers crossed...
We really don't have any other choice! We would never get approved for a personal loan, and we don't want to screw up our credit with Debt Consolidation programs. We've been dealing with paying only minimum which has been causing overlimit fees, late fees, etc. We haven't even used the cards in years. I don't see any other way out of it?
The rate is a fixed rate. Of course it's higher because of the type of loan, but A LOT less than what we're paying in minimum payments right now. We're also not taking out the whole 125% amount we're only taking out what it would cost to pay the cards off and then a few thousand extra for a down payment for a car for my DH. It'll only be for about $23K. I would think within 4 years the value of the house would go up that much at least???
I really wish we had another alternative, but I don't see what else we can do?
Thanks for your thoughts though! I am a little nervous about it, but it will relieve a little bit of our stress right now.
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| Posted 9/13/05 10:16 AM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Keep your fingers crossed...
I understand you're in serious financial trouble, and I urge you to seek a professional's opinion. There may be other options.
Can you transfer your balances to 0% cards for 6 months? its a temporary fix, but ill take some pressure off while you figure this out. Why are you paying late fees if you're making payments each month?
and why are you going further into debt with a car for your DH? If he needs a car, just get some used cheap car that works that you can buy with the few thousand of the downpayment alone.
If you're getting hit with overlimit fees, and late fees and you're totally maxed out on your credit, then messing up your credit rating with debt consolidation programs shouldn't be a concern to you. Your credit is already messed up.
You HOPE the value of your house will increase, but its not a sure thing, particulary since property values are so inflated now, and it leaves you with negative equity and nothing to fall back on.
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| Posted 9/13/05 10:41 AM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Keep your fingers crossed...
Posted by -Lisa-
If you're getting hit with overlimit fees, and late fees and you're totally maxed out on your credit, then messing up your credit rating with debt consolidation programs shouldn't be a concern to you. Your credit is already messed up.
I TOTALLY agree! You just said you can't even get a personal loan at this point. Your credit is already screwed up! Why are you even concerned that it may get screwed up more if you do debt consolidation? Your debt/income ratio is so bad at this point... it won't matter.
You might want to consider bankruptcy if its that bad. But talk to a financial planner or lawyer before doing that. I believe there are programs out there that you can do which will allow you to "make a deal" with the creditors to only pay back part if your debt... and you can still keep your house! Who cares if your credit gets hosed if you can still keep your most important asset?
But if you take out a loan against your house... your house all of a sudden becomes the collateral. If you do debt consolidation... you may not have to put your house as collateral and you can protect it.
125% mortgages are very BAAAAAD. Hell... 100% mortgages are bad in itself.
I hate to be blunt... but you are taking the wrong approach to this.
Talk to SeptemberBride03. I believe she is a financial planner and might offer some good suggestions to you.
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| Posted 9/13/05 11:18 AM |
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BrunetteMom
LIF Adult
Member since 8/05 1480 total posts
Name:
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Re: Keep your fingers crossed...
Posted by DjPiLL
Posted by -Lisa-
If you're getting hit with overlimit fees, and late fees and you're totally maxed out on your credit, then messing up your credit rating with debt consolidation programs shouldn't be a concern to you. Your credit is already messed up.
I TOTALLY agree! You just said you can't even get a personal loan at this point. Your credit is already screwed up! Why are you even concerned that it may get screwed up more if you do debt consolidation? Your debt/income ratio is so bad at this point... it won't matter.
You might want to consider bankruptcy if its that bad. But talk to a financial planner or lawyer before doing that. I believe there are programs out there that you can do which will allow you to "make a deal" with the creditors to only pay back part if your debt... and you can still keep your house! Who cares if your credit gets hosed if you can still keep your most important asset?
But if you take out a loan against your house... your house all of a sudden becomes the collateral. If you do debt consolidation... you may not have to put your house as collateral and you can protect it.
125% mortgages are very BAAAAAD. Hell... 100% mortgages are bad in itself.
I hate to be blunt... but you are taking the wrong approach to this.
Talk to SeptemberBride03. I believe she is a financial planner and might offer some good suggestions to you.
A law was just passed that will force people to go through either a debt consolidation program or debt settlement program before even thinking about bankruptcy. There were too many people just filing away at bankruptcy before.
I wish you alot of luck.
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| Posted 9/13/05 11:22 AM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Keep your fingers crossed...
Posted by BrunetteMom
A law was just passed that will force people to go through either a debt consolidation program or debt settlement program before even thinking about bankruptcy. There were too many people just filing away at bankruptcy before.
I wish you alot of luck.
Yeah I heard the rules recently changed. Thats why I said better check with a lawyer first. Good information to know!
Good luck!
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| Posted 9/13/05 11:25 AM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Keep your fingers crossed...
I would start applying to some of these good debt consolidation loan programs that were posted in this thread.
One of them is bound to approve you (since they want to make money). Most have NO collaterals!
A Good Read
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| Posted 9/13/05 11:27 AM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Keep your fingers crossed...
Caiden:
I have a very good suggestion for debt consolidation that I found. I sent you a FM about it that I think would really help you.
Let me know.
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| Posted 9/13/05 11:32 AM |
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Ambersmom
Straight up nasty
Member since 5/05 7740 total posts
Name:
Sharon
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Re: Keep your fingers crossed...
DJ, that's so nice of you to look out for my friend. Thanks so much!
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| Posted 9/13/05 7:02 PM |
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