Mortgage refinance

[16paws]

Hi All..Question on refinancing...My husband and I are trying to refinance our current mortgages (1st and 2nd) into one mortgage..Our current lender, who we've had our loans with direct from the beginning, 12 years ago, is telling us that we have one late from May of this year, and they are unable to do anything until that is gone.  My husband's mid score is 630.  I'm a little annoyed with them, since we also have our checking, savings, and Line of credit with them.  Are there any other mortgage programs that will accept us for a refi with a cash out with a score that low and one missed payment?

[Anonymous]

Not really.  Cash out mortgages are very hard to come by these days without really solid credit.  Even with the mortgage late aged removed the 630 midscore would probably kill it.  Now, if you got the late removed (unlikely), then that would both remove the late and improve your score.  Bottom line is that with any mortggae late in the past 12 months (and often in the past 24 months), banks will not lend to you.  12 months clean mortgage history will be a minimum requirement for about any bank and many are stricter than that.

[16paws]

THanks for the reply...I am just bummed that this bank already HAS our mortgages..you;de think they would be a little more giving.  So what types of loans do you think other folks getting, where I have read people getting mortgages with lates, scores in the lower 600's (even 580) and BK's listed on the credit reports..It's just so frustrating - I haven't worked since last summer - and we struggle to keep our heads about water and pay our bills on time - and yet there are people who have had a big chunk of their mortgages PAID for because they bit off more then they could chew

[Anonymous]

truthfully, the stories of getting mortgages paid down, balances reduced, etc are kind of like Bigfoot sightings.  Everyone has heard of them but almost noone has ever seen them.  It is more a radio commercial and talk radio phenomenon than a reality.

As far as the bank goes, why would they combine the loans if they already have them and would stand to loose money.  The people who are getting the help by the way, generally have to default on the loan and/or apply for a loan modification.  This is nothing like a refinance and almost always has a very negative impact on your score and will also quite likely hurt chances down the road for home loans, etc.   Also, you have to prove hardship generally to get a loan mod so most people who just bought too much, but who have not had job loss/illness/etc do not qualify.