I bought a house in 2006. When I first purchased property (a house and just under 5 acres) I got a 1st and 2nd mortgage at Wells Fargo Bank 6% fixed on first and like 10.5 on second. My then girlfriend insisted on changing mortgage to a variable with a minimum payment due that does not even cover the interest. She wanted this to save money while she was in school. She also ran a credit card up to $ 18k and another up to $ 3,500. My credit score went from 750 to 450. I also put her name on house I thought it was in case I died but I have to have her signature to sell house. My question is how hard will it be for me to get out of this mess. I have already paid an attorney $ 5,500. Also when the credit was dried up she first asked me to leave me house and move in with my mother which I did for her son’s “security” she was going to take over the payments she made 1 payment then moved in with her new boyfriend. What a mess!!!
Here is my situation:
-owe $ 9900 to citifinancial @ 28.9% interest (student loan & personal loan)— min. payment of $ 437/mo
–owe $ 15900 to finance company @ 18.99% interest (car loan)– min payment of $ 228 bi-weekly
–owe $ 790 to HBC credit card @ 28.9% interest (used for wedding attire and wedding necessities)
–owe $ 126000 to mortgage company @ prime + 8%- originaly purchase price of house was $ 133,900
Citifinancial has offered us the following home equity loan terms:
–lowered interest to 18.9%
–pay off car loan & credit card debt
–pay off our existing loan with them
–lowered monthly payments to $ 377/month (we would pay bi-weekly and about $ 250 bi-weekly, so paying more then minimum payment)
–$ 2900 cash upon signing new loan (which we could REALLY use to buy new appliances for our kitchen- dishwasher is dead, and so is our dryer)
My husband doesn’t think it is a good idea to take our a home equity loan, while I think it is a good idea because of a lower interest rate, paying off other debt, and NOT financing our needed appliances (at an in-store rate of 28% interest, because we don’t have extra cash right now)… what do you think?
We have had our original citi loan for 13 months, and it was originally $ 12 500– we have it down to $ 9900 in a year, so we are good at paying it on time, and paying more on it when we can.
I think it is a good idea to take the loan, because it seems it will help our credit, lower our monthly payment (though as I said, we would continue paying more than the minimum)– and the best thing would be that our other loans are more than 18.9% interest- so wouldn’t it make sense to pay only ONE bill (the new citi loan) than a bunch of small ones at higher interest rates??
Help me make sense of this- how can I explain this to my hubby so he sees it the same way I do? HE says he doesn’t want to do it because he wants to pay citi financial off and never deal with them again- he doesn’t see how it can really help us out right now…
ALSO it would prolong our payments to citi for 2 years beyond what we are owing them right now- this new loan would be for 160 payments- 160 months=13 years whereas we owe them for a little under 11 years right now… and our car loan is 4 years ammort.
What makes sense- taking the loan OR paying what we do now on different bills and never getting anywhere?
I am looking for a way to get out of a bad investment. I bought a house for 325 K and now its only worth $ 200,000, thanks to the current market. I owe the bank 280 K and its a negative option arm loan, so they let me pay less than interest. Soon the Bank will realize that this house is worth so little. The may force me to make a full payment and I will not be able to. The Rent I earn now barely pays the minimum payment. So I have 4 choices: 1) walk away, 2) Foreclose 3) Short Sale and 4) Loan Restructure. Do you think the last one will have the least or shortest impact on my credit? If I do it, I plan to pay the new loan on time forever. I plan to send many disputes to the credit bureaus until they erase the 90 days of skipped payments that I will have to do in order to get this approved.
I added even more details at www.blogsomebody.com. which contains full details in various posts
I am trying to rebuild my credit and i am not sure on how to go about it….i have the follwing ards
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First premiere(1year) 250 limit
Creditone – Card hasnt ariived (fee) 350 limit
Orchard Bank – Card hasnt ariived(fee) 300 limit
Capital One – card hasnt arrived (fee) 500 limit
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As you can tell these cards are new, fees and low limits but i am unsure what the best way to manage these cards. Should i pay the minimum payment on each card due to fees and just charge on one card(cap1) and pay it back at the end of hte month? or should i just a little bit on each card. I had alot of issues in 2005 and just now i have been giving a second chance to try and rebuild. my scores are in the mid 500′s and i currently have two car loans under my name. after 2005 i haev no cc until last year when i received first premire(which i want to cancel)
Any advice would bve appreciated.
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I received a credit card offer from a credit card company that is in partnership with the CA. The offer was to sign up for this credit card that will already have a balance of $458 with a minimum payment of $35/month to pay the debt down. Once the first payment is made, my availble credit will increase starting at $50. Once the offer is accepted the debt would be considered paid in full and removed from my credit report. The debt is about 5 years old. I am thinking that this will hurt me more than help me because of the amount of revolving credit that will utilized for current accounts. Should I take them up on this offer?
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I have an account with WFNNB that has a lot of 30, 60, 90, and 120 day late marks. It’s currently up to date as far as payment goes and they have placed me on this “hardship” program that lowered my interest rate and lowered my payment. However, by doing so, even when i’m making my required minimum payment it’s still showing 30 days late every month when I was never aware of this.
According to them, when your on the hardship program and you carry a past balance, even if your making your new minimum payment on time, there’s still a past due balance being carried over.
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Needless to say, this account is killing my scores and ruining my credit. The balance on it is $3,500.
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What should I do? Can I PFD them even though it’s not in collections? If so, can I offer to pay lower then then the amount owed (ex 80%) or is that asking too much since its not in collections yet.
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I really don’t see the point in paying on this account anymore because its so damaging to my credit. I was thinking let it go to collections, then PFD the collections agency if I have a better chance.
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Any recommendations? Has anyone been successful with a PFD directly to the OC before having it sent to collections?
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Any input would be appreciated.
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I just received my new CC statement from B of A that reflects the new Credit CARD Act requirements. At the top of the statement is a table that tells me how long it would take to pay off the balance (about $2100) if made only the minimum payment – 14 years, at a cost of ~$3400 in interest payments. If I pay $67 a month, it will take 3 years, with about $2400 in interest.
I always PIF, so the info isn’t relevant to me, but I did find it kind of interesting.
I have a Discover Open Road card, which paid off and will only be using it for utilities as the interest rate was raised to 19.99% and I will be paying it off monthly. I previously had a balance of $900 and the minimum payment of $40. I paid it off last month and this month the balance is $100 with a minimum payment of $40.
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Kind of strange. Like I said, I am paying it off in full anyway, but I couldn’t find anywhere in my terms that they were raising the percentage for minimum payments. I just want to understand how my card works if by chance I ever had to carry a balance.
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Thanks for the help!
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Tiana