My wife and I separating, she wants to buy me out but her credit is poor at 560, what can she do??

Question

As I have stated in the question, her credit score is 560. She wants to refinance and buy me out. Our house appraised at $170,000 so my half after payoff would be around $31,284. However, she has been trying to raise her score but I am very doubtful it will happen. Is there a mortgage company that will loan 100% loan value with a credit score that low?? Thanks and please answer ASAP!!

Answer 1

The answer is:

There is ALWAYS some sub-par Mortgage Company that will approve her for a Refinance -- and she is going to have to spend a lot of time looking around for this type of financing. It is going to take weeks of time -- yours and hers.

In reality -- this interest rate is going to be high -- and the payment will probably increase, and I doubt she has thought of the issue of having a proportion of the Taxes and Insurance (as well as most likely being required to purchase Mortgage Life Insurance) added on top of the basic principle plus interest payment.

Is there a reason why SHE is wanting to buy you out with a shaky credit history? Why are you not buying her out -- or both of you just placing the home on the market in the meantime?

I suspect she is doing this because she would have difficulty either purchasing another residence, or can not juggle her budget to accomodate rental units either.

Answer 2

Don't use Ditech or Lending Tree as they will pull her credit multiple times and will reduce the score even more. She needs to consultant a mortgage broker as they have hundreds of lenders to shop from and only need to pull her credit once. I do agree with a couple answers already given sounds like she will need a cosigner. (mother,sister or brother anyone who can help her qualify for the new mortgage payment) Her credit may be to low alone for 100% refinancing and a cosigner will increase her chances significantly. Trying to raise her credit score can take months if even possible depending on what is currently reporting now. I hope this helps you but if you have any further questions or need any further help please feel free to email me.

Answer 3

Unless she can get an approved co-signer, you will not get released from the mortgage. She has to be able to qualify for the loan by herself or with a co-applicant. If she can't do this, you two may have to sell the home and split the profits. Gosh I hope it works out for you.

Answer 4

Credit score aside, you haven't said if she has enough income to get a loan that big.

Best bet, sell the house. each of you get your half. Each of you buys your own house with your big down payment.

You said "separating". Do you mean divorcing? Dependong on what state you live in, that really matters.....

Answer 5

She can bring in a partner with a better credit score.

I write a blog on the subject of credit management, mortgages, real estate trends, etc. Check it out for more information that may be helpful.

Answer 6

Have her try di-tech.com, there are also several places on the web that specifically cater to people with low credit scores. Good Luck

Answer 7

to respond to your question bluntly, they're nevertheless jointly. i do no longer think of you ought to enter right into a relationship with a married guy, do you? as a results of fact technically, that's what he's, with the possibility of possibly getting back inclusive of her. Plus they have a powerful bond considering that toddlers are in contact. What makes you think of which you're actually not there just to fill the void? you in undemanding terms isn't optimistic of something till the divorce is very final, or maybe after that.

Answer 8

i don't think she has a chance but you never know! if you are interested then you buy her out and be done.good luck!