I am 60 days pastdue on my
mortgage can i refinance
I am 60 days pastdue on my mortgage can i refinance - You can refinance
however you will receive higher interest rates. You can ask your lender
for a forbearance agreement which will allow you to postpone or suspend
payments so that you can catch up on mortgage payments.
The short answer is yes. Even being up to 120 days
down you can still refinance. It comes down to equity.
There are specific lenders that can be matched to
this type of situation. Typically called "sub-prime" lenders, they have
a multitude of options available to you that can get you on track.
Although the interest rates are somewhat higher depending on the lender
and your specific situation, these loans are built to get you through
until the mortgage lates drop off, allowing you to repair your credit
and get back on track with a great loan and an excellent interest rate.
You can usually refinance no matter how good or
bad your credit is, no matter how far behind you are on your mortgage.
The type of financing though that you may qualify for with a poor
mortgage history will probably be less than favorable. Along with a bad
mortgage history come higher interest rates. The worse your mortgage
history, the higher the interest rate you will be charged. If you do
not qualify for a conforming loan or a sub-prime loan you may qualify
for a hard money loan.
Lenders only look at the last 12 months of
mortgage history. If you can wait the 12 months then the late payment
will not affect your refinance in a negative way.
120 Days Late Mortgage Payment - If you fall more
than 90 days behind on your mortgage, you run the risk of foreclosure,
where your lender will demand satisfaction of your entire mortgage and
may sell your property to do it. If you allow the loan to fall 120 days
behind, a 120 day late will be recorded on your mortgage, making it
nearly impossible to refinance and save your home. However, if your
first mortgage is for less than 60% to 65% of the value of your home,
there is help available no matter what your credit looks like.
Late payment - "How do late payments affect me?"
It is very important to make sure that you make
all of your mortgage payments on time. Not only do late payments lower
your credit score and cost you money in late fees, they can affect your
ability to buy a new home or refinance your current one. Lenders will
look at your mortgage or rental history over a period of 12 to 24
months when determining your interest rate and what LTV you are
A lot of times, many mortgage companies will work
with you if you are having payment problems. Please contact them if
money is getting tight so they can come up with a situation that fits
How late is your payment? If you are less than 30
days late the incident probably won't show up on your credit report.
You will still have to pay any late fees, If you must be a few days
late on your payment its very important to contact your lender to let
them know that the payment will be delayed and when exactly it will be
Late payments, as far as your credit report are
concerned, are at least 30 days late. A late payment for your mortgage
will hurt your credit score more than a late payment for a car loan or
It will be important to explain you payment
history if you have been late in the past. An letter of explanation
will most likely be required by the lender of any new line of credit.
If one of your accounts have gone into
collections, you can pay these accounts off through your new loan.
Depending on how long ago the account went into collections, some
lenders will not force you to pay it off through your financing
process. It will depend on when it went to collection and how much the
amount is. Check with your loan officer for more details.
What payments are were you late on? In the
mortgage industry credit card late payments aren't as important as
mortgage late payments, but both should be avoided at all costs! If you
must be late on one payment, make sure it is not your mortgage!
When money gets tight and you are going to be
forced to be late on some of your bills first consider what items
report to your credit report each month. Normally your home phone bill,
electric bill, gas bill, cell phone bill, water bill, and other similar
bills do not report on your credit report. If you absolutely have to be
a few days late on one or more of your bills, it may be a good idea to
start with the bills that do not report to your credit report first.
Don't let these items get too far behind because these items could be
shut off or even worse be sent to collection after awhile, at which
time they could possibly be report to your credit report. Please
remember that the above information is not stating that it is ok to not
pay your bills or pay them late, but is only providing you with some
information that may be able to help out as a very short term fix to
keep your credit rating up.
Once a mortgage becomes 60, 90, and then 120 days
past due, it is often very difficult to catch up the arrears. Extra
interest, attorney fees, and collection fees can be added to the
arrearage amount. Additionally, it becomes more & more
difficult to obtain a refinance loan.
MOrtgage lates are one of the most harmful
delinquent accounts that can be found on a credit report.
Late Charge - The penalty a borrower must pay when
a payment is made a stated number of days. On a first trust deed or
mortgage, this is usually fifteen days.
The grace period is stated in Truth In Lending
document in the closing document packet. After the grace period is
over, the borrower will be liable to pay the late pay penalty as stated
in the TIL.
If you make a late mortgage payment and do not
include extra for the late fee, your payment may be applied to the
accrued late charge first. Then it is applied to past due interest.
This will decrease the amount of money that is applied to the principal
balance of your loan.
Late charges can eat up your budget right under
your nose. It's best to if at all possible avoid even a single late
Late dates are different depending on the lenders.
Also, the late charges are different as well. Be sure to review the
loan documents or ask the closing agent at the closing.
Each state has a specific law stating exactly how
much grace period a consumer has before a late payment can show
officially be considered late and show up on their credit report.
Late charges are penalties imposed by banks on
mortgagors when payments are paid after the grace period. Most late
charges will not negatively impact the mortgagors' credit history
unless they are more than 30 days late.