First of all, I made a grave mistake transferring my 2nd mortgage (9.5%, 20yrs) to a personal line of credit (10.99%, 8 yrs) thinking that an unsecured loan is better than a secured loan. I did not realize that the interests are calculated sooo differently that now, 7 months later, I feel like the loan amount has only gone down a little…it could have been close to being paid off if I had kept my 2nd mortgage.
Second, I did not receive any notification that one of my medical claims from Feb 2007 had not been approved by my insurance. I was told by the hospital that they were working with the insurance company to get this resolved. Last month when I checked my credit report, I noticed there was a collection and that my FICO score had dropped from 760 to 650! Can they do that without notifying me? I paid the collection in full right away. Would they remove the entry from my credit reports? What else can I do to recover my previously good FICO score?
Because of these two problems, I now have a 33% debt to credit ratio and am not in good credit standing to refinance my mortgage at the current low rate.
This is more of a general complaint (and I have a such a big headache). But any comments are welcomed.
Thanks for the info. I’m not having problems paying my bills or anything. I had very good credit (until that collection showed up on my credit report) and have never missed a payment.
The 2nd mortgage had about 13K on it when I paid it off and opened a personal line of credit. My main mortgage is about 77% loan-to-value. I know I can refinance, but it’s unfortunately I won’t be able to get a good rate for it. It now just looks like I have a lot of credit card debts whereas before, I was debt free except for my mortgages… 
Roger
#1 by golferwhoworks on July 28, 2010 - 4:10 pm
Alvin
slow down. you can refinance but the second to make it your loan to value MUST be at 85% or less as it is now a cash out loan to combine both mortgages. If you are there ok if not FHA will still do these but you must have 2 appraisals and they will take the lowest value of 2 to do the loan. Now as for the posting it will not change as it correct. Fair Credit Reporting Act state all credit must be properly reported and sound like this one was. Now once paid only time will get the scores back up. The dti is not a problem as the total DTI can be as high as 43% and with compensating factors even higher for an approval.
You can also refinance the second deed of trust by itself to a fixed not. HELOC’s are adjustable to prime rate in most cases and work like a credit card on your home. And most only send you interest only payments for 10 years then you have to bite the bullet so to speak
I am a mortgage banker in TN & KY
#2 by Heather S on July 31, 2010 - 5:44 am
Willie
you should check out hope now, they help people refinance in your situation and fix their loans to lower interest rates.