I'm in the process of refinancing my 1st mortgage (3.99% WOOT). Thank you HARP 2.0
But i have a 2nd mortgage on wich i pay 9.4%, and i'm looking for a way to lower that, or eliminate it. Has anyone ever done it? I'm not in hardship currently, but i think 9.4% is too much for a 2nd mortgage. I read about people getting settlments with banks for pennies on the dollar.
Can this be done if i'm not in hardship, i have the income to make my payments currently. If i managed to get a settlement offer accepted, and it went thru, would it ding my credit score? How bad would it hurt my credit score.
As of March 2012 i have no more baddies on my report, even my BK dropped off. I have not checked my scores, because buying FICO scores is getting too expensive.
Settling for pennies on the dollar: In 99 out of 100 cases you will need to be in default and the process will have devastating effects on your credit. Doesn't sound like you are in that situation.
Defaulting on the 2nd would also ruin the prospects of refinancing at a low rate, unless you did so after the fact of refi. Defaulting on the 2nd could ding you 150 to 200 pts on cr score, plus if the creditor is aware of your financial situation they may well try to obtain a def judg if that is an option in your state. Could you refi the 2nd bal into a 1st mtg at the low rate of 3.99%?