Equity Loan - Bad Credit

What is the name of your state? NH

My home has about $60,000 in equity, but my personal debit to income ratio is crap. Because my credit is low, nobody will loan me the money it would take using the equity to pay off the bills. It is a kind of "catch-22" if you will.

Can a 2nd individual NOT on my mortgage take a home equity loan against my property? I have someone who has a lot better credit than I and probably could get a loan - if they owned the property (which they don't). Could I still use them in some capacity?

I'm trying to think of ideas that are out of the "norm" on how to come up with about $25k to pay off debt, using my mortgage or equity of 60k in my house.

Thoughts? Ideas? Any suggestions would be greatly appreciated!

[JETX]

Originally Posted by nhcredit

Can a 2nd individual NOT on my mortgage take a home equity loan against my property?

No.

I have someone who has a lot better credit than I and probably could get a loan - if they owned the property (which they don't). Could I still use them in some capacity?

Yep. You can borrow from them.

[lcannister]

Originally Posted by nhcredit

I'm trying to think of ideas that are out of the "norm" on how to come up with about $25k to pay off debt, using my mortgage or equity of 60k in my house.

Thoughts? Ideas? Any suggestions would be greatly appreciated!

Second and possibly 3rd jobs for a year all income paid toward the debt leaving it paid down and you might be able to relax then and having paid on time and more than minimum your credit score would improve...

Unless you have learned what put you into this situation and are dealing with it you will only lose your home even if you get that loan. Why? Because you will pay off all the debt then proceed to run it all up again except this time there will be no equity in the home only the ability to lose it.

Is that equity calculated on a VERY recent appraisal?

The appraisal was within the past year.

I'm not concerned about falling back into debt for 2 reasons:

A. I cancelled my credit cards, etc..
B. I no longer had a high paying job where I could use 1 paycheck to payoff a high balance. Now with a kid and loss of job, money has taken more of a value than before.

The problem is, I need to get a balance to work off of so that I can save and pay off debt. I have enough money to support my basic needs, however if one little thing pops up - I get screwed. And of course with crap credit from being out of work and taking a job at 1/2 the salary, it hurts.

A 2nd job has always been an option too, however working OT at my current job makes me more money. I just wish Banks could actually see potential - not an inaccurate # rating on debts that are SOL. Can I sue the credit bureaus at all? They have crap on my account that should be long gone now that's holding me back too.

[JETX]

Originally Posted by nhcredit

Can I sue the credit bureaus at all?

Of course you can sue them... after all, anyone can sue almost anyone else over almost anything. However, there is nothing in your post that even gives a hint of a case against them... or anyone else.

They have crap on my account that should be long gone now that's holding me back too.

That is very simple... send the reporting agency a very nice letter (certified RRR) telling them what debts you think are no longer valid and why... and ask them to investigate and remove. That is your right under the FCRA (Fair Credit Reporting Act).

[HUD-1]

Why take unsecured credit card debt and secure it with your house? You could end up losing your home as a result of credit card debt. Some people say they want the interest write off. In your case, I think it sounds too risky. Work with a non-profit credit counselor and pay off the credit card debt, leaving the house out of the picture. You stated that if one thing pops up, you're screwed. Better to have a collection agency calling, than a foreclosure pending.