March 13th, 2017 10:22 AM by Andrew Liu DRE: 01109246 NMLS#249736
(not her real name to protect the privacy) has been a client of mine for many
years; I helped her to get her purchase loan when she first purchased a house
some 10 years ago.
the years, she got in financial trouble (as most of us have during the great
recession), and she started to pile up debt.
She took out a second loan on her house and charged up her credit
cards. Worse than that, she was not able
to make minimum payments on her credit cards or make payments on time, causing
her credit score to drop significantly.
Thus, the interest rates on her credit cards skyrocketed! She really struggled each and every month
just to get by. She was also never able
to refinance her two loans as her credit score were too low. Pretty much all of her and her husband’s
income was being used to catch up on payments.
She literally could not even afford to go out to have a nice lunch.
called me. At first I concentrated on
helping her to improve her credit score enough to refinance her two loans into
a FHA loan. Was this loan was secured,
her monthly mortgage payment was reduced dramatically, this extra money she
saved allowed her to catch up on the credit card payments. Six month later, her credit score improved
nicely, and I refinanced her FHA loan into a conventional loan with some cash-out
to pay off her credit debts. In the end, her total month payments were cut in
half! Now, she can afford to enjoy that
nice lunch she has been craving for years.