Foreclosure started...have 4 months to save

[pctelc]

Hello.
My score is 486, was told it needs to be at 520 at least. I have four months to save our home, which means I need to refinance by 5/14. I need help/guidance in how to raise score to keep house. Payoff of $215,000, house is worth $300,000 to keep it from total foreclosure. Any advice as to what to do?

[chane]

It shouldn't be a problem getting your scores up to 520 in that amount of time.

If you have time to learn credit repair yourself, hang out at this forum and start at the "Beginner's Credit Information".

If you don't want to do it yourself, sign up for Lexington Law immediately.

[kemet]

Unfortunately, your timing could not be worse! Your home will probably lose value, raising the required LTV of your refinance at the same time banks are reducing the LTV on refinances and demanding higher credit scores.

This is the middle of February, 2008. I don't think you are going to get a high LTV, fixed rate refi with a FICO under 650!

Your best bet is to consider other options such as Loss Mitigation.

Hope this helps!

Bill Young

[MDI]

Being realistic is what you need to be right now. No one can guarantee you with a score increase.

You need to contact a local real estate agent and talk with your lender about doing a short sale.

By all means, try for a loan modification as well, but handleing it this way, you have both wheels turning.

Your most important objective is to keep a foreclosure from getting on your credit.