OT- Home Loan Question - High Risk

[Brian]

Hello,

A few years ago, we took out what we didn't know at the time was one of those "high risk loans" to pay bills off and make a few home improvements.

I've now found myself divorced and I am trying to refinance both into one,

15 year loan no bank wants to touch me. Period. I have excellent credit and have never, ever been late on any bill.

Any suggestions? I've heard that some people have sued these companies that offered these loans. That's fine, but I just want a bank/company to help me out.

[SQLit]

They are required by law to tell you why. Ask for the reason in writing.

[Brian]

Who is required? The banks for telling me "no"? Well if that is the case, I can understand mostly why they wont take a chance on me. But still, if places help people with "bad credit", there has got to be a place for "good credit" customers.

improvements.

[rck]

There's more to good credit and loans than simply paying on time. Go to one of those Internet sites and get your credit score. Lenders look at many things, the two most important being income to debt ratio and payment history. You could be paying everything on time and still have a score of

650 to 700, and many lenders won't touch that. They also look at credit card balances. Owe more than 50% on your cards and it's a big negative. Owe more than 90% and they won't want to know who you are even if you never missed a payment. There are many online debt calculators that will tell you accurately where you are. A high risk loan in itself shouldn't give you a bad rating. Living in the same place for a long time and steadily employed with the same company is a plus. Every time you apply for credit it lowers your score. More than 10 open accounts in the last 5 years, lower it some more. Live in a bad neighborhood and it could be lower. They may deny this but it's true. Out here they illegally asked my age when I applied for a mortgage. Banking like medicine used to be a profession. There are no professions anymore, only industries. You score is all that matters to them.

Bob

[John Hines]

The credit grantor (in this case the bank) has to tell you why, and what information they used, IE which credit reporting company. Said credit reporting company is required to provide you with a copy of your credit report, if you where denied credit.

So get the written denial from the bank, and call the reporting company, the info should be on the denial letter.

[Herb]

"Brian" wrote

Surely you knew it was a high risk loan. These usually are accompanied by excessive high processing fees, highest amount allowable by law interest, or some other tell tale sign.

You do not seem naive about loans, so it makes one wonder why you didn't check out a reputable bank b/4 signing on the dotted line for a better loan.

Being it was only a few years ago, having credit through a high risk association, raises a red flag with reputable banks.

I believe by law they must tell you in writing without asking why your request was denied.

In America, anyone can sue anyone. It's whether you win or lose which makes the difference.

[Rich]

Ask them for your FICO score and a specific letter of rejection.

[Chet Hayes]

And what kind of loan are you applying for? If it's a home loan secured by a mortgage, how much equity do you have in the house? Normally if you have equity, a good payment history, and income, getting a loan shouldn't be a problem. Why was the original loan high risk?

[DaveG]

Really. You didn't know. Did you make the payments on this loan as scheduled?

Then you should have no trouble securing any loan which your income and excellent credit qualifies you for. What reason were you given for the turned down loans?

Right.

If you've been turned down for credit you must have been told why. If it's information on your credit report, then you are entitled to a free copy of your report. Get one and look it over for any possible bad marks.

[Brian]

My score was something near 800...because this "high risk loan" was over and above the value of the home, no one wants to help...I would hope that my good credit would be a basis for taking a chance on me.

improvements.

[Brian]

This 2nd mortgage is well above and beyond the value of the home and no one wants to help me because of that.

improvements.

[Adam Russell]

The thing of it is, no bank *ever* wants to help you. They only loan you money to help themselves. No matter how good a risk you are these odds dont justify it. Basically, if you dont pay they lose since if they take your house they are still losing money on the deal. They want a deal where whether you pay or not they still come out ahead. Then again I'm no expert, just telling you what I think.

[Banty]

Mortgages are collateralized by home value. You just told us you don't have the collateral to cover this loan.

Banty

[Banty]

It's not just your credit rating. Sounds like your records show you'd by overextended w.r.t. your income by the new loan, if you aren't overextended already.

Banty

[Brian]

Oh, I believe you..

At the VERY LEAST, I'd like that 2nd loan refinanced.

[Brian]

[dadiOH]

Did you talk to whoever made the loan in the first place?

-- dadiOH _____________________________

dadiOH's dandies v3.0... ...a help file of info about MP3s, recording from LP/cassette and tips & tricks on this and that. Get it at

[Brian]

no..they say "all reps are busy with refinances..call back later." and they don't answer emails...

:(

[Adam Russell]

When I said banks dont make loans out of the goodness of their hearts I wasnt trashing them. It's just the way of the world and there is nothing wrong with it. What is wrong here is that you seem to want someone to risk their money without you offering sufficient collateral.

[Chet Hayes]

It's not clear to me that there is any advantage to refinancing. You have a high risk loan on a house with a mortgage balance that exceeds the value of the home. The interest rates on these are high and don't fluctuate as much with long term interest rates as a regular home mortgage would. Even if you could refinance it, the rate may not be much different.

If you want advice, it would help if you gave us all the info as right now, we really don't know how many loans you have, which are secured, what the rates are, etc.