Having Trouble Refinancing - Posted by Rick Shepard

Posted by wes on August 23, 2006 at 17:30:29:

Without commenting on your primary question, I will offer this.

Seems to me that a 7 year old Bankruptcy should not be causing a 593 credit score (although in conjuntion with too much debt it certainly could).

Your problem could be significantly improved with a higher credit score so here is one way you might approach the issue.

Make a small (extra) payment a few days after you make your monthly payment on your credit card bills.

Make sure your main payment has been recorded which is applied to the current (balance due).
The extra payment is “unscheduled” (be sure to make it before the new statement is calculated (check the statement date printed on your credit card bill. It is usually about the same day of the month) or it will be applied to the next months “New” Balance Due).

I have seen large increases in FICO Score in a short period of time using this technique…

Having Trouble Refinancing - Posted by Rick Shepard

Posted by Rick Shepard on August 23, 2006 at 06:39:21:


We are having trouble refinancing properties away from our primary bank that we use to purchase.

We currently have $900K outstanding with our bank, a small local institution that we have a great relationship with. Our limit is about $1.5 Million based on the size of the bank. We have been looking to refi properties with other banks/mortgage brokers to lower our exposure to do more deals but keep running up against credit report problems. My middle score is 593 due to a 7-yr-old bankrupcy, some medical collections, and, I suppose, to much debt. We currently have about $9,000 in monthly payments and have never once in 3 years been late on a single payment yet with this low credit score we are having problems. Does anyone know of someone who will look at the total situation and not just credit score?

Thanks in advance,

Rick (OH&WV)

Re: Having Trouble Refinancing - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on August 24, 2006 at 19:34:21:

Wes gave some great advise that you should try. I’ve seen that work a couple of times.

If you want financing now I see a couple main considerations that were not addressed:
Loan to value
Rate term or cash out
Documentation type (Full doc, stated, no doc, etc)
Debt to income…what is your ratio?
How old are the collection?

The score does not shut all financing avenues, but if you want to go 80%, no doc, the collections are 5 months old, etc. your not going to find financing.

Pleae provide a more complete picture.