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Mortgage refinance/Chargeoffs

Hello, I have a question about refinancing. I have two charge offs on my credit one for 12,000 and another 5,000 that are 4-5 years old. If I negotiate a settlement with these credit card companies and my credit report says paid for less then full will I be able to refinance my home. My first mortgage is 1,200,000 and my home is worth 1,800,000 -2,000,000. My debt to income ratio is more than sufficient. Do you also think we would be able to get a favorable rate below 5%? Thank You.
By Jedsmith66944 from NY Jul 17th 2014
Reply

Hello. Yes if the settlements are satisfied you should be able to refinance. As long as you qualify, ie: credit and income are sufficient and your LTV is what you think it is, rates and fantastic for loans that size. Roughly down to 4%, APR 4.11%. I work for a direct lender in NJ, we are licensed in NY as well, I do a lot of business in NY. Millenium Home Mortgage-Scott Singer 908-303-1367-Call me anytime.

Jul 17th 2014
by

My first thought is do nothing as it applies to the charge off's as creating any new activity will bring the seasoned date from 4 to 5 yrs old to current status causing your credit score to drop. --- First ck with NY State to determine the statues of limitations; if greater than the limitation then it shouldn't be an issue. If less than the limitations contact a local mortgage professional and seek approval and if and only if you're required to pay them off should you make any attempt to do so. -- Because the charge-offs are greater than $2000 the lender should perform an analysis to determine impact and if need to be paid. Collections accounts of non-purchasing spouse are included in the cumulative balance. -- The only possible exclusion considered are medical collections and charge off accounts, which is what you have. If it is determined that these collections are required to be paid the underwriter will determine the approach to be taken.

Jul 17th 2014

Good Evening! You should have a conversation with a local mortgage professional in your area about your situation as your credit score will be a very important factor in trying to get financing in addition to your assets, employment, income, and liabilities (debt to income ratio). You are in the Jumbo Loan Category, so typically your Max Loan to Value will be 80%. Based on your estimated value, you should be fine in that respect. Rates should be under 5%, but that is something your mortgage professional can answer generically, but to actually see what you could get for a rate, you would need to complete an application and have your credit scores pulled for all 3 credit bureaus. If everything is fine (most likely you'll need a 680 FICO Score or above), you should be able to include your charge off accounts into your new loan amount if required by the lender. Again, paying these accounts in advance, through a refinance, or not at all is something you can discuss with your mortgage professional. I am including a link for you to review with regard to the Statute of Limitations on Debt Collections, which are broken down by the type of debt and by State. Always consult an Attorney for more accurate information. Good Luck going forward! http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

Jul 17th 2014

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