Thank you for choosing Just Answer.
Under HARP 2.0 There is a minimum credit score of 620 needed to qualify for a HARP 2.0 loan. With 4 credit cards in default it is likely the score is below that value. You should get your credit score and see where you are. If the 3 credit scores vary widely the middle score is what will be considered.
Also, there is a maximum debt-to-income (DTI) ratio for HARP 2.0 participants. The maximum is 45%. This is computed by determining your monthly salary; determine your total monthly recurring debt (mortgage, credit cards, installment loans). Divide the monthly income into the monthly debt. Multiply the result by 100. The ending result must be 45%.
for example monthly income $1000 monthly debt $700.00;
DTI = Monthly debt / Monthly income 700/1000 =0.7 Multiply the ratio by 100 to convert to % ).7 x 100 = 70%. Number is XXXXX 45% so does not qualify.
Even if you do not qualify you should discuss with the lender. Ultimately it is the lender who can decide whether or not to modify the loan.
Please remember the to click on OK, GOOD or EXCELLENT SERVICE so I may get credit form my answer. If you have further questions please ask. Thank You !
I know I'm under 600 and sinking. My debt to income is ratio is high. I thought it would be best to settle cr cards before I apply. Then I'd be able to begin restoring my credit score and have a better ratio. How long did they extent the HARP program? Interest rates are supposed to remain low for a year or so, right? My daughter's cosigned Student loans put me in this situation and she was 180 days past due before I started paying. Can't pay everything and keep paying my mortgages. I'm guessing I'll have cr cards mostly settled in the next few months.
Deadline has been extended to December 31, 2013. Eliminating the CC debt would improve your debt ratio. You still need to get your credit into the acceptable range.
Please remember the to click on OK, GOOD or EXCELLENT SERVICE so I may get credit form my answer. If you have further questions please ask. Thank You
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).