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Refinance With Late Payments
Should 2 late payments on a time share stop my refinance from going? Should I wait out filing bankruptcy if debt collectors are leaving me alone?
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1 Reply
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Refinancing After Missed Payments
How Your Missed Payments Impact Your Refinancing:
Credit Score: The first thing that could be an issue while refinancing is your credit score, which can be negatively impacted by two of the late payments recorded against you. Late payments of obligations certainly hamper and meet their threshold, as a minimum score must be met for lenders to be more pliable.
Lender Policies: Every lender exhibits a different pattern of dealing with late payments and the habits of their clientele. Some may cut you slack because the payments are overdue, and your profile records a great history of on-time payments.
Explanation: If there was an extenuating circumstance that caused the late payments, try to explain it to the lender. Most lenders will appreciate that you are telling them the truth and are able to assess your financial situation accurately.
Is this the right time to refinance?
Evaluate Your Current Scenario: Although there were late payments, it is reasonable to reconsider your stance on the possibility of refinancing in case the current mortgage on the property has a much higher rate of interest or far less favorable terms. You can always check back on the savings to see if it would be worth opting for.
Consult with Lenders: Talk to several lenders and ask them where the application will take you. Someone might be prepared to work with you if your payments are overdue.
Filing Bankruptcy
How to Approach Your Day of Filing:
Diligence is Key: If the debt collectors do not remove communication barriers, it indicates that ‘time’ is already on your side. Your debts are not deleted as payouts are not being carried out on target.
Insight and Finding Out Down The Road: Inform yourself if you see room for payment in the debts owed. If the debts are more manageable and you cannot look for a plausible approach, serving fair days may be a better alternative.
Steps to be Taken:
Credit Impact: Most lenders value credit scores highly; thus, a lien on early payment can have a tremendous impact.
Investigate Thoroughly: Instead of going straight for bankruptcy, consider bankruptcy alternatives, like ignoring unpaid liabilities until you reach the total amount needed.
Refinancing: The total amount needed to consider for payment can, in 2 situations, discouragement and disbelief, complicate the time needed for processing. Lenders are the best people to approach for gaining insight into payments.
Filing Bankruptcy: If you have unpaid liabilities that seem overwhelming to pay off after filing bankruptcy or currently, look into deciding on them with all possible alternatives.
Should you have more questions, don’t hesitate to ask!