Debt Payoffs
Your credit report will usually contain a list of your credit lines. This will also include bad debts and collections you have for the past several years.
Any outstanding debts will show up on your credit report, so not disclosing these debts on your mortgage application will not help you.
Your credit report may contain the name of creditors you are not familiar with. These unfamiliar names are often collection agencies that have purchased your debt from your original creditors.
In a refinance a typical mortgage lender will want to pay off all or as much of your bad debt as possible.
The checks are usually made out by escrow directly to the creditors. This is to make sure the money is sent to the creditors.
Avoiding Paying Debts
You can avoid paying some or all of these debts by choosing your lender carefully. Some lenders are more flexible on this issue than others.
Some lenders will allow you to cap your payments on old debts so you can keep more of your money.
Some hard money lenders allow you to not pay off any old debts, unless they are debts on your property. In this way a borrower can avoid paying old debts that can cost you thousands or tens of thousands of dollars.
archerpacific.com Get Mortgage Rates, 25+ Free Mortgage Calculators, Mortgage Quick Tips and Much More
Mortgage News from Archer Pacific [mortgage.archerpacific.com]
Payment Option Mortgage News [PAYOPTIONMORTGAGENEWS.COM]
No comments:
Post a Comment