“Dear Steve,
To much unsecured debt and have never had a ding until this year.. i am 51.. along with a first and second mortgage
i would like to know if I go into a charge off state with a few of the unsecured creditors will this effect my Wife’s credit if she’s an authorized user only.. Her report does show only Authorized user
2nd question. Once I get my unsecured debt down to a minimum amount is it possible my mortgage lender(BofA), for whom I have never been late on a payment, will let me combine the 1st and 2nd mortgage and take advantage of the lower rates available now??????????
Wade”
Dear Wade,
First off, thank you for contacting me. I’m happy to help and share my advice.
To lessen any peripheral impact on your wife’s credit report I would suggest you call the creditors and remove her now as an authorized user. It will take a month or so for that to update on her credit report and fall off.
I don’t know if Bank of America will allow you to combine your mortgages but if you can get your debt to income ratios down and your credit scores up it is certainly possible to refinance both mortgages into a new ultra low rate mortgage.
A couple of the issues that might hold you back though are the loan to value on your house and the apparent recent bad credit on your credit record. If you have loans heading for charge off that would tell me you have recent delinquent items.
If you have not looked at your credit score or monitoring your credit score, you should. It’s important to do considering the potential upcoming refinancing.
And if we are looking a bit more medium term here I would suggest you contact a local mortgage broker that represents a number of different lenders now. Talk to them about your situation and come up with the best plan to help you achieve your goal of a future refinance.
One last possible consideration to deal with those delinquent debts might be to consider an unsecured debt consolidation loan to wrap those all up into one loan. But that only makes sense if you can afford the payment. If you’ve been late because of income issues then we’ve got a totally separate problem we’d need to deal with first.
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