Need suggestions

**jIM_Ohio** · 08-24-2008, 01:51 PM

$6000 over 9 years is $54k. Meaning the second mortgage will drop 54k plus maybe another $5-10k with current actions.

Why is credit score shot? Bankruptcy?
You best bet if credit score is shot for 7 years is to make it as good as possible by year 9 and then refinance before year 10.

In meantime get a second job. If you can make 30k per year over next 9 years, you can have the 2nd mortgage paid off and the credit score is not an issue.

Nothing magic about the situation or advice- if you want to work to get out of this, then you can. But you will have to make a sacrafice somewhere.

Drive a cheaper car- put car savings into mortgage
Move and find a cheaper place- even if it means renting while credit gets fixed.

Home ownership is not a right, so you have to do something to fix YOUR situation.

**ifonlyIknew** · 08-24-2008, 02:26 PM

I appreciate the feedback.
It sounds like you think paying down the second mortgage before it adjusts would be the best option.

I'm trying to run the numbers and decide if I should actually pay down the first with the extra cash and then work on the second.

To clarify, I can't refi. with my partner for 7-10 years, and with only my own income and excellent credit score I may only be able to qualify the around a $250,000 refi, which would not work in this situation because the 1st and second would have to be considered.

You mention sacrifice..if you only knew..but I understand that you can only make recommendations based on the limited info that I've provided.

So again..thanks for the feedback.

**jIM_Ohio** · 08-24-2008, 03:40 PM

Originally posted by ifonlyIknew View Post

I appreciate the feedback.
It sounds like you think paying down the second mortgage before it adjusts would be the best option.

I'm trying to run the numbers and decide if I should actually pay down the first with the extra cash and then work on the second.

To clarify, I can't refi. with my partner for 7-10 years, and with only my own income and excellent credit score I may only be able to qualify the around a $250,000 refi, which would not work in this situation because the 1st and second would have to be considered.

You mention sacrifice..if you only knew..but I understand that you can only make recommendations based on the limited info that I've provided.

So again..thanks for the feedback.

Even reading between the lines of this post, I can offer more advice.

1) pay down the higher interest rate loan first- reasons:
a) it is costing you more
b) it is the loan which will cause the most problems in 10 years.

2) Partner's credit score is the issue- good input.
a) try to refinance yourself- don't let what you "think" will happen be the determining factor until the bank tells you for sure.
b) Again, have partner get credit in line as quickly as possible. If this can be done within 9 years, you can refinance out of problem.
c) There might be other options here, most options will happen if you owe LESS than 500k. Meaning get out of jumbo loan territory. Other options will be available if you own 20% of the house. So own 20% and owe less than 500k for best options.

Is a second job/ income of 30k/year possible?

**disneysteve** · 08-24-2008, 04:08 PM

I agree with Jim (as usual). Throw every extra dollar at the second mortgage. It has the higher rate (which is variable and could go even higher) and in 8 years you will hopefully be in a position to refi before it converts.

I also agree with your partner taking the next 8 years to fix his/her score as much as possible.

**Merch** · 08-26-2008, 09:50 AM

I also agree with Jim and Steve.

Need suggestions