Finance Credit

10 tips for bad credit home mortgage refinance

Published at 01/06/2012 20:36:04


With the financial recession from the latest years, the bad credit home mortgage refinance is a solution agreed by the banks along with the clients. Here are the required steeps needed for a successful bad credit home mortgage refinance.


  1. Admit that your financial situation is worse than it was when you have signed the credit contract in the first place.
  2. Talk with the bank as soon as possible. 20 or 30 days of delay are not a catastrophe, but if you are late more than 90 days, the bank might initiate the foreclosing procedures, and you will lose the house in this case.
  3. Ask the advice of a financial planner. Those companies have experience in credit restructuring, and the specialists there will issue a plan for you to pay the ongoing loans. The financial planning companies are able to give you several plans designed with the purpose of getting you out of debts, and you will have to choose one of them. Moreover, the plans will be issued considering the regulations of your bank, so you can be sure the bank will approve the respective bad credit home mortgage refinance option once you present it to them.
  4. Don’t be discouraged if the bank refuses your plan. Present them the alternative solutions you have, and ask them if they have any proposals. At the end, a common solution must be reached.
  5. Your payment behavior is decisive for the decision of the bank. If you have paid all your obligations in time, you will probably be eligible for a refinancing option.


6. Health problems and unemployment represent a reason for you to stop paying the monthly rates. However, talk with the bank as soon as you get ill or as soon as you are fired from your current job.

7. Read the blogs and forums. People talk about their experiences with different banks on those specialized sites, and you will be able to come up with your own restructuring plan to present to the bank based on those experiences

8. Read the contract carefully. In some cases, the contract states the necessary procedures that will be applied in case the client can’t pay the rates anymore, and this represents the standard procedure that will be applied to your case also

9. Be sincere. The bank will discover if you have unpaid rates in the past, or if you have problems at your current job, so it is better to talk with the representatives of the financial institutions about those problems from the start.

10. Ask for a customized bad credit home mortgage refinance option. In this case, if the value of your real estate has grown in the latest period. In this case, the mortgage might not only be cheaper, but it will also give you access to some extra funds

Tips and comments

As a beneficiary of a mortgage refinancing option, you have the obligation to use the money as stated in the credit contract. The bank will ask for bills and invoices to prove that you have spent the money as stated in the contract.  


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