Help with Mortgage Payments

If I can't refinance because of poor credit, what other options do I have to lower my mortgage payments?

I really don't know how to ask this. I need help on my mortgage. I will be 62 years old next month. I had to file bankruptcy last year. I can't refinance because of credit and no income. Please help if you can.

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Bill's Answer
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Highlights


  • If you have equity in your home, you may be able to refinance with poor credit
  • It can't hurt to apply

Credit rating is one factor in making a loan decision. Given your bankruptcy, which is most likely reported on your credit report, it will be more challenging to get approved for a loan, since your credit rating will be low. Additionally, if you are seeking a refinance loan, your debt to income ratio will be considered as well as other variables in the loan underwriting process.

Keep in mind, however, that if you have accumulated equity or have a sizable down payment, that could provide the cushion in an LTV (loan-to-value) calculation to get you approved. Most of all, it cannot hurt to apply and see what lenders think of your situation.

Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs.

I hope that this helps you make the right decision for your particular situation, but be sure to shop around and find a loan that meets your needs.

If you would like more information, please visit our mortgage resource page.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

35 Comments

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  • 35x35
    Mar, 2012
    Anne
    I need to know how i can make mortgage payments over the phone without having to pay that extra fee to process it over the phone and still get my mortgage paid with no problem.
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      What is the name of your mortgage servicer? Out of curiosity, does your bank or credit union offer an online bill-paying service?
      0 Votes

  • 35x35
    Sep, 2011
    CATHY
    i'm trying to get help to pay my mortgage, thru my company. can you please help. before i go int foreclosure thanks in advance.
    0 Votes

  • 35x35
    Aug, 2011
    Larry
    Try calling the National Association of Homeowner Advocates, Found out about them through someone I know - they helped me for free no upfront fees and very helpful.. they had very knowledgeable staff when I called in I tried for almost 2 years with BofA to get a loan modification and they got my delinquent payments caught up and reduced my payment down almost 40%.
    1 Votes

    • 35x35
      Aug, 2011
      Bill
      Thank you for sharing your experience with NAOHA. I went to their Web site and was not very impressed with it. That does not mean they do or do not do good work. However, based on their site, I would advise someone to contact Hope Now instead. Hope Now's phone number is 888-995-HOPE. I see the same phone number at the NAOHA site, but find the information presented at Hope Now's site much more detailed.
      0 Votes

    • 35x35
      Oct, 2011
      Mike
      Well I went into their website and actually gave it a try since they said they dont ask money upfront but I was just impressed! I would like to take a minute or two to thank National Association of Homeowner Advocates for all the help they have giving me. Most people try to get over on me and lie. They have helped me when NO ONE did. Now I'm able to keep my house and afford it. I was loosing it. My real Estate agent told me I was going to be foreclosed August 3 and have no where to live. NAHA is excellent, their attitude is excellent, their customer service voice is truthworthy and soothing, I'm lucky I found them. I would like to give them an acomation on everything I could. Most people are nasty and don't care about you, NAHA has more class than anyone I met in the last 12 years in Florida. I wanted to post this to let everyone now that if everyone was more like them they too would be a better person. I filled out an application with them over the phone and in about 2 hours I got a call back from them letting me know I was approved for a Loan Modification and reduced my payment down almost 40%.
      4 Votes

  • 35x35
    Feb, 2011
    gladys
    I started to do refinancing with my bank a few months ago .At that time my credit was very good I had equity in the home but they turned me down :cold turkey": After going through the the entire process and telling me how much it would cost and how much cash I WOULD GET they still turned me down'. Things turn differently I had a surgery and was on disability and that played an havoc on my credit. I applied to the same bank for Loan Modification and they still turned me down. I have to leave other bills and pay the mortgage because I don't want to lose my only home. Because I did that my credit is a bit low. If my bank had helped me when things were good and my credit was better I would have been helped.
    0 Votes

  • 35x35
    Jun, 2010
    John
    I was approved for our home mortage modifacation in April. We did complete the 3 month trial and then got offical paper work and have made 3 payments since ON TIME. We just has a major car issue and was in need of cash to fix car. That would incure missing next Mortage payment. Will they defer a payment to help this issue so we can stay current and get car fixed and be back on time in payments the following month..? Its thru Wells Fargo in NC.
    0 Votes

  • 35x35
    Jun, 2010
    Bill
    John, I would suggest that you contact your lender (Wells Fargo) well in advance of missing a payment and check with them about the consequences of missing the payment and falling out of compliance with your mortgage modification. I would guess that missing even one payment would result in losing the benefits of your modification, and you may be back into the mix of a potential foreclosure process. Ironically, though, since they don't want you to default you may be able to re-qualify for a modification again after missing a payment. Whatever you decide and agree with your lender, I would highly suggest that YOU GET IT IN WRITING so that another loss mitigation or loan modification department at Wells Fargo doesn't get mixed up. Good luck and please report back with what happens. Bills.com
    0 Votes

  • 35x35
    May, 2010
    Bill
    Read the Bills.com resource Home Affordable Foreclosure Alternatives Program (HAFA) to understand how to remove your obligation to this debt and avoid foreclosure.
    0 Votes

  • 35x35
    May, 2010
    juaita
    i am 68 and disabled my husband passed away last november, and i lost half of my income as a result. i am over the limit to get any help from medicaid or the va not by much tho as they only allow a little over 700.00 in order to get help. i have talked to every body possible and my lender said i have too much debt and not enough income. so i hae my condo on the market but is not selling and i am going to lose it if it does not sale soon.....what would you suggest?
    0 Votes

    • 35x35
      Sep, 2011
      richard
      Do a short sale to prevent foreclosure and get some money from the bank for a relocating.
      0 Votes

  • 35x35
    Jan, 2010
    Bill
    First, look at the Home Affordable Refinance Program to see if you can renegotiate the terms of your mortgage. Second, look at the HUD Senior Housing Information Center to learn more about the "Section 8 Housing Choice Vouchers Program." You will need to find the public housing authority in your state to learn more about HUD programs to assist senior homeowners.
    1 Votes

  • 35x35
    Jan, 2010
    Robert
    I simply want to know what government agency will help a 75 year old male with low income pay monthly mortgage payments,or am I living in a dream world! Thank You!
    0 Votes

  • 35x35
    Sep, 2009
    Bill
    As a response to the recent downturn in the U.S. economy and housing market, the federal government has been pressuring lenders to work with consumers who are struggling with their mortgage payments, and is working on plans to provide incentives to those lenders who are willing to offer concessions to borrowers. I strongly encourage you to contact your lender to discuss what programs the lender offers to write down borrowers' mortgage balances to make the principal debt more in line with the actual value of the home. Although not all lenders are offering this type of assistance to borrowers, many are offering reduced interest, deferred rate adjustment, etc., and it certainly does not hurt to call your mortgage company and ask what options are available. See the Making Home Affordable Web site for more information.
    0 Votes

  • 35x35
    Sep, 2009
    william
    I am behind $2059.75 on my mortgage. I need help. I don't like to ask for help but was laid off in jan-feb.
    0 Votes

  • 35x35
    Jul, 2009
    Bill
    First, look at Home Affordable Refinance Program, and be mindful of the cautions raised on this site about scams. Unfortunately, you are in a tough spot and a prime candidate for an unscrupulous schemer promising you the moon and later taking your house. Fortunately, you are a teacher, and you are accustomed to recognizing tall tales when you hear them ("My dog ate my homework"), so your scammer-senses are highly tuned. Second, some cities and states offer housing programs for teachers, which are meant to attract teachers who otherwise could not afford to live in that area. Do some online detective work to see if there's a housing assistance program available to you. Finally, most lenders consider 35% the maximum amount of debt a household should have relative to its monthly income, and you appear to be well above that. I hope you find another option, but you may need to consider selling the property before the payments drag you underwater. Avoid foreclosure. Consider a short sale if you find yourself with a deficiency balance.
    0 Votes

  • 35x35
    Jul, 2009
    Liliana
    I just got modified from 3,400 monthly to a 3 month trial payment of 1,791.00. The problem is that my living boyfriend left three weeks ago, therefore know I cannot make the payment alone. I am a teacher and bring home 1,400.00 twice a month. There is no equity in the property and the 1,791.00 is not counting the maintenance fees and daily expenses like electricity, groceries, water etc... What suggestions do you have?
    0 Votes

  • 35x35
    Jun, 2009
    Bill
    Steven, dig out your mortgage papers and call the mortgage holder. They may be willing to work with you on deferring or reducing the payment -- or not. Either way, you are notifying them of your situation and that you are not about to disappear. Given that you are already in the bankruptcy process, you are aware of your assets. Before liquidating any of them to raise money for your mortgage, check with your attorney to see if you are able to do so without muddying your bankruptcy filing. Similarly, talk with your attorney before selling your home. Any equity in your home is an asset, and liquidating that during your bankruptcy might have serious consequences.
    0 Votes

  • 35x35
    Jun, 2009
    Steven
    Hi my name is Steven and i'm in bankruptcy and my payment are current , however i can't pay my current $2300 mortgage because after 11 years of services the company closed it doors , i have not found any work , what do i do who do i call ,please help my wife has income but not that much . write back soon or give us some resources
    0 Votes

  • 35x35
    May, 2009
    Bill
    Have you tried here? http://www.makinghomeaffordable.gov/
    0 Votes

  • 35x35
    May, 2009
    Becky
    I have a mortage and I can't pay it. I looked at loan modifaction, reverse mortage, and several other things and nothing seemed promising. Short of having someone walk in off the street and give me the money, I have run out of options. What can I do?
    0 Votes

  • 35x35
    Feb, 2009
    Bill
    If you have sufficient income, then you should not have a problem in getting the home refinanced in your name, but then your wife would probably have to transfer the title to the property in your name as well. The best way to find out is to get quotes from multiple lenders and then discuss with them, your options. You can get 4 free quotes by using the Bills.com lender matching service at: https://www.bills.com/homeloan/mortgage_refinance/
    0 Votes

  • 35x35
    Feb, 2009
    bruno
    I'm currently 2 months behind on my mortgage, the house is actualy under my wife's name only and i was wondering if it would be possible to refinance the house on my name trying to lower rate and amount . My credit score is ok never beeing late on any payments or anything ,just wondering what would be the best option 4 me . Reason that we got behind is tha my wife had a baby and had to leave her job and my job is seasonal and i was on unamployment .please if u could please help me with the options i'll be very thinkfull..
    1 Votes

  • 35x35
    Oct, 2008
    Bill
    You will just have to try different lenders. Each lender has their own rules about lending for empty lots, property value being one of them. I cannot really say that there is general rule.
    0 Votes

  • 35x35
    Oct, 2008
    Judy
    I have another question. How would I go about getting a loan on a property lot, worth about $30,000. It has no mortgage on it. It is a buildable lot in an area where the property value has not gone down. It is in a nice area and in a residential area, even though there is a school close by. I've heard co's don't give loans on lots unless their worth a lot more. I don't know where to go. Any suggestions.
    0 Votes

  • 35x35
    Oct, 2008
    Bill
    Have you tried our lender search service, you can do so here: https://www.bills.com/homeloan/mortgage_refinance/
    0 Votes

  • 35x35
    Oct, 2008
    Judy
    I got a refinance around 2006, about 3 mo ago my mtg co did a modification, which was really no modification, since they didn't lower the interest rate, which was high. I want to get a refinance, and have about $100,000 in equity and a co signer, but I can't find anyone who will refinance me. Any suggestions on where to go?
    0 Votes

  • 35x35
    Oct, 2008
    Bill
    I am sorry, but Bills.com is a portal intended to give "information only", we are not a bank, and do not lend money directly.
    0 Votes

  • 35x35
    Oct, 2008
    DESPERATE
    I NEED TO SEE IF I CAN GET FINANCIAL HELP TO PAY MY MORTGAGE OF $3800.00 BY TUESDAY 10/28/08. I CAN PAY IT BACK IN JANUARY WHEN I GET MY CHRISTMAS BONUS BUT I SCARED THAT I WON'T BE ABLE TO GET IT MY TUESDAY AND MY HOUSE WOULD BE IN FORECLOSURE. NO ONE WANTS TO HELP ME OUT EXPECT PAYDAY LOANS WHICH ARE DUE IN 14 DAYS. PLEASE SEE IF I CAN GET THIS HELP QUICKLY I WILL PAY IT BACK IN JANUARY.
    2 Votes

  • 35x35
    Sep, 2007
    Evanda
    I am in current need of $10,000 to get caught up on my mortgage. It is a tough situation. My sister and brother-in-law were looking for a home about 2 years ago and I was living with them in their apartment. At that time, I was a junior in college with little income. They wanted to get into a home bad and asked me to co-sign since I had a slightly better credit score. I did not want to do it, because I knew I did not have the income to cover the mortgage. However, my sister convinced me that I should help them out since I was living in their apartment(paying some rent). I did! Well, I graduated from college 9 months ago, but just became a teacher about 2 months ago. During the process of me finding a job in my field, my brother-in-law left his job and started a business. The business got slow and he went without pay for some time. Our monthly mortage payment is $1800. We got way behind, because of such a large payment. We are currently able to meet the mortgage payment, because I can now pay half, but we are behind. We are in need of $10,000 to catch up. What can we do?
    13 Votes

  • 35x35
    Oct, 2007
    Bill
    If you have equity in your home, I'd highly suggest trying to refinance your home and payoff the debts and also get back current on your mortgage. I can tell you that with mortgage late payments (and an impaired credit rating) it might be very difficult to get a refi... If you want to try to refi and get an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: https://www.bills.com/mortage/refinance Best, Bill
    1 Votes

  • 35x35
    Oct, 2007
    Esther
    My mom passed on June 28th unexpectedly. There was no will so the home is up in the air. Since June I have been making the mortgage payments but I am currently 3 months behind. How can I catch up the payments while going through the probate process?
    0 Votes

  • 35x35
    Oct, 2007
    Bobs
    The probate process will handle the disposition of your mother's home and all of her assets (and liabilities). if you are going to inherit the home, and if there is equity in the home (its worth much more than the mortgage owed) then you should contact the lender and discuss loan modification or forebearance to allow you to make the loan current and prevent foreclosure.
    1 Votes