if u have had bad credit and u own your lland wont to do home equity lon??? what would be the chances of getin

Question

do u think i might get a home equity loan//????

Answer 1

Contrary to the first poster's response, lenders are NOT particularly passive in approving home equity products.

Lenders qualify borrowers purely on an actuarial basis; that is, according to the borrower's ability and likelihood of repayment. They are not in the business of foreclosing on properties, and will certainly disapprove any loan which does not meet their underwriting guidelines. In fact, in my experience, it would appear that more equity loan applications are denied than are approved.

I once offered an equity loan to an individual whose home was completely paid off. His credit score was quite favorable, but he'd had a bankruptcy several years earlier. He was only applying for a paltry $7,000, but the application was declined.

I would recommend you use a local mortgage broker who can counsel you on the best type of loan for your situation and can shop many lenders using a single credit inquiry.

Answer 2

A home equity loan is a second mortgage which means the lender takes second position if the house is foreclosed on. As a result, the qualifications are more stringent.

With bad credit the easiest way to get cash out is to refinance the first or obtain a new first if you own the property outright. I see rates around 7% for 580 scores and that is not bad considering.

Here is some additional info. Hope this helps.

Answer 3

You can always get a home equity loan regardless of your credit history, however with a poor credit history you will be paying a much higher interest rate than someone with good credit. The banks will lend to you however because the loan is secured by the property.

Answer 4

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 5

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