Will Judgments on Your Student Loan Affect Your Mortgage Refinance?



People who want to start a new life and a new family will always look forward to buying a new home. This should be easy, particularly if your credit standing is good but what if you've missed a few payments and already have a judgment on your student loans? Student loans already make it challenging to obtain a mortgage but a judgment could make your application way more difficult and could actually affect the success of your loan.

How lenders look at you
Your student loans are not the only consideration your lenders will look at in case you need a loan from them. They will assess the whole picture – your credit history – which will include every single cent you borrowed that has been documented. This will include your credit card loans, car loans, mortgages and every other type of debt you might have.

Your lenders will also consider the cost of the property you're looking to purchase, the type of mortgage and your income. If you've had a judgment on your student loans, this could cause your lenders to sit up and be wary of you. They could either downright refuse you for a loan or hike your mortgage refinance rates.

Should the first scenario occur, you might have to find other means with which to pay off the judgment on your student loans or go and find other creditors that will take you in and give you a loan for a refinance. Should the second scenario hold true, you will get the money for a mortgage refinance loan but you will have to pay your debt off the amount of money you receive.

Will your home be seized?
Believe it or not, most creditors are not interested in seizing your home. If they place a lien on your property because of the judgment on your student loan, they might have to pay a good amount of money just to take your property.

If it gets sold, the lender may not always get a sufficient return on their investment. Homes that get seized through a judgment do not sell at market value, which means that your creditor will not get a lot out of it. This is why most creditors are not really interested in seizing your home just to enforce a judgment on a debt.

Furthermore, a lien does not automatically mandate you to sell your property – you are not forced to do so. However, should you voluntarily sell the property or in this case, refinance it, you will have to pay your debt to your creditor out of the payment you received as a result of the transaction.

Second of all, seizure of property isn't something that most creditors will do because it is, quite simply, bad PR. They want to enforce their right to collect but at the same time, they don't want to be seen in a bad light. If you're still unsure about the whole thing, your lawyer can shed light on certain things, particularly about laws in your state.

What you should do
First, it's important that you see a lawyer regarding your situation. They can help guide you on what you can do regarding your credit and give you information on the steps your creditor could take should they choose to enforce your judgment. This should help you protect your property and whatever income you may be receiving at this time.

Second, you might want to discuss the steps you have to take regarding your application for a mortgage refinance. Your goal here is to negotiate as best as you can fair terms – the kind that will help you keep your home and set you back on your feet again.







Menu


My Articles

Tips For Finding And Using Current Mortgage Refinance Rates
What You Should Know About Getting A Refinance Mortgage In Florida
How To Know If You Need Mortgage Refinance In Toronto
A Quick Guide To Using Mortgage Refinance Calculators
Is This The Right Time To Get A Mortgage Refinance Loan In California?
NH Mortgage Refinance
Washington Mutual Refinance Mortgage
Texas Mortgage Refinance Loan
Finding Mortgage Refinance Loans In Colorado
Get Rid Of Your Subprime Mortgage With A Refinance Loan
Tips For Getting Low Mortgage Rates On Refinancing
VA Streamlined Mortgage Refinance
How To Refinance With A Second Mortgage
How To Choose The Ideal Mortgage Refinance Broker In Ontario, Canada
How Soon Can A Mortgage Be Refinanced?
Will Judgments On Your Student Loan Affect Your Mortgage Refinance?
How To Get The Best Mortgage Refinance Quotes
Refinance Mortgage Balloon Coming Due
Refinance Home Mortgage
Lowest Mortgage Refinance Rates
Nevada Mortgage Refinance Loan
Refinance Mortgage Rates
Getting Good Mortgage Refinance Rates On Bad Credit
Things To Remember When Comparing Mortgage Refinance Rates








My Articles


Finding A Friendly Mortgage Rate For Refinancing In Arizona If you're looking to take out a refinancing loan and are living in..


Tips For Finding And Using Current Mortgage Refinance Rates If there's one truth about mortgage refinance rates, it's that they..


Nevada Mortgage Refinance Loan There are many reasons why you would need a Nevada mortgage refinance loan...


How To Know If You Need Mortgage Refinance In Toronto With refinancing, you are taking out a second mortgage on an asset that’s..



Related Videos:

Related News:

 
No item elements found in rss feed.