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Can dealing with a debt negotiator hurt my chances of a refi?

At what point can dealing with a debt negotiator hurt my chances for a possible refi? My income is stable at $60-$65k in Chicago but I had a couple credit cards get out of hand a bit S.O.S.! This is my first refi since purchasing in 2008. by steven.pratt55555 from Chicago Heights, Illinois. Jul 2nd 2015 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

The short answer is yes, but more info would be needed.. when you try to negotiate a debt, regardless of it being a mortgage, credit card, or whatever, it will reflect poorly on your credit report. This is because the bureau will put a statement below the account stating " Account settled for less than owed". If this was a mortgage, then it's called a short sale, and most financing programs have mandatory waiting periods, typically 3 to 4 years. If you settle a credit card debt, then its possible the lender will make you wait at least 12 months, and some as much as 36, but all of them will want a letter of explanation describing your circumstances at the time of settlement, why you thought it was the best option, and what have done to prevent the same thing from happening again. Also, if you have ANY derogatory event after your settlements, then this shows a lack in financial handling and the lender will most likely turn you down. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714

Jul 2nd 2015
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