There Are Such Things As Credit Repair Mortgages
There Are Such Things As Credit Repair Mortgages
It's no secret that the US housing market bubble has burst. For the first time, mortgage companies that have been around for years are going under. There seems to be more and more news stories about bankruptcies and people having their dream homes repossessed. But the US government is urging all brokers and banks to go lenient on those who are having trouble paying for their mortgages. This is an effort to help stabilize the market. One of these efforts is a credit repair mortgage.
What Are They?
Credit repair mortgages actually have been around for years, it's just that now they are getting a bit more press since the housing market started to plunge. It's in a lender's interest to get the mortgage paid off in any way they can, even it means a repayment plan or even a longer wait between payments. It's harder for a bank to repossess and sell the house. They stand to loose money that way, even if their customer has trouble making the current mortgage payments.
Each bank or lender will have different details for the credit repair mortgages they offer. It's very much like getting a refinanced mortgage. Some can offer you two or three years of fixed payments, which do not depend on the state of the housing market. You also can often wind up paying lower interest rates than if you stuck with the original mortgage. In order to find a credit repair mortgage for you, ask your creditors or bank for a recommendation or type in "credit repair mortgage" in your favorite internet search engine.
Helps Your Credit Rating
Being able to pay off a mortgage definitely helps your credit rating and being able to make payments always looks good on your credit report. By making payments - even if they add years to your mortgage - makes you look trustworthy in the eyes of anyone else you may need to borrow money from in future. You need to get on top of your mortgage payments as soon as possible - don't wait. The sooner you can arrange for a credit repair mortgage, the sooner you can get back on track.
There are also many free resources online about repairing your credit and reducing your debt. A great place to start would be the "Credit Repair Tools" section at MoneySearch.com. You should also keep a spending journal to keep track of all your expenses and can see easier where to make spending cuts.