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  • Question About Home Equity Loans

    Hi,

    I purchased a house appraised at $60,000.

    I purchased it for $51,000.

    I paid 20% down, which was somewhere in the $10k range, and financed
    the rest through a local bank.

    This was 4 years ago. I now have a payoff amount on the home loan
    somewhere around $38,xxx.

    I have had a rough year - I own my own business - and am trying to
    avoid bankruptcy for that fact. I have applied for a home equity loan
    to pay off some debt that I incurred starting this business and was
    denied. I was seeking $7k. The place that denied me is in a small
    town, and their main excuse was that they were "too small to do a 2nd
    mortgage under my conditions". The manager suggested I try a different
    financial institution.

    At the time, I was FOUR months late on my house payment and nearing
    foreclosure. I've since made a couple payments, and now only owe for
    August, and September (was due 09/09). I'm sure paying this off might
    look better, but I don't know. Will the fact that I let things get 4
    months behind totally ruin my ability to get a home equity loan?

    I know I can't get a new credit card at this point or anything, but my
    understanding was that it was easier to get a home equity loan because
    it's "secured".

    I read this group a lot and get a lot of good financial advise on all
    types of subjects so I was hoping someone could help with this one.

    How easy/difficult should it be for me to get a $7k-10k home equity
    loan under the above conditions? Are there any banks/financial
    institutions known for being a little more accepting of difficult
    times?

    Thanks in advance for any advice...

  • #2
    Question About Home Equity Loans

    On Sun, 12 Sep 2004 04:52:30 GMT, [email protected] (sam) wrote:
    Hi,I purchased a house appraised at $60,000.I purchased it for $51,000.I paid 20% down, which was somewhere in the $10k range, and financedthe rest through a local bank.This was 4 years ago. I now have a payoff amount on the home loansomewhere around $38,xxx.I have had a rough year - I own my own business - and am trying toavoid bankruptcy for that fact. I have applied for a home equity loanto pay off some debt that I incurred starting this business and wasdenied. I was seeking $7k. The place that denied me is in a smalltown, and their main excuse was that they were "too small to do a 2ndmortgage under my conditions". The manager suggested I try a differentfinancial institution.At the time, I was FOUR months late on my house payment and nearingforeclosure. I've since made a couple payments, and now only owe forAugust, and September (was due 09/09). I'm sure paying this off mightlook better, but I don't know. Will the fact that I let things get 4months behind totally ruin my ability to get a home equity loan?I know I can't get a new credit card at this point or anything, but myunderstanding was that it was easier to get a home equity loan becauseit's "secured".I read this group a lot and get a lot of good financial advise on alltypes of subjects so I was hoping someone could help with this one.How easy/difficult should it be for me to get a $7k-10k home equityloan under the above conditions? Are there any banks/financialinstitutions known for being a little more accepting of difficulttimes?Thanks in advance for any advice...
    Not being in your shoes, I don't know but having real equity in the
    house, I'd check out Household Finance or a like establishment. The
    rate is going to be higher but then again there is the greater risk.
    No bank or lending institution wants your house.

    Comment


    • #3
      Question About Home Equity Loans

      On Sun, 12 Sep 2004 04:52:30 GMT, [email protected] (sam) wrote:
      Hi,I purchased a house appraised at $60,000.I purchased it for $51,000.I paid 20% down, which was somewhere in the $10k range, and financedthe rest through a local bank.This was 4 years ago. I now have a payoff amount on the home loansomewhere around $38,xxx.

      Try this site..LOTS of info on home repair, finance,
      banking..Autos...Lots! (It's about 3/4 down the page)


      http://forum.doityourself.com/index.php?

      Real Estate & Finance
      Sub-Forums: Banking & Credit, Home Business & Home Office, Home
      Buying & Selling, Home Plans, Insurance, Investments & Finance,
      Law, Loans & Mortgages, Mobile Homes, Planning Your New Home

      Wealth of info (Pardon the pun)

      Comment

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